Natural Cosmetic Sales Approaching US $7 Billion Worldwide
The major drivers of market growth are the mainstreaming of natural & organic cosmetics, inward investment and growing consumer demand for green products. Distribution of natural and organic cosmetics is increasing in supermarkets, drugstores, and pharmacies across North America and Western Europe. Investment is coming in from large cosmetic manufacturers, retailers, private and financial investors.
Europe has seen most retailer investment with a number of leading mass market retailers launching natural & organic cosmetics in the last year. The leading British supermarkets are marketing natural & organic cosmetics under their private labels. However, most retail investment has been in Germany where even discounters have launched certified natural cosmetics.
The research was done by Organic Monitor.
Investment is also coming from large cosmetic companies who are either acquiring dedicated natural & organic cosmetic companies or launching certified products. L’Oreal is eyeing further acquisitions since buying Sanoflore and The Body Shop in 2006. Origins Natural Resources, part of Estee Lauder, has launched a certified organic cosmetics line under the Origins Organics banner. A new report by Organic Monitor looks at Mergers, Acquisitions, and Investments in the Global Natural Cosmetics Industry.
Organic Monitor projects global natural cosmetics market revenues to surpass US $10 billion before 2010. At that time, the market share of natural & organic products of total cosmetics is projected to near 10% in countries like Germany and the US.
New Product Development (NPD) has become a key feature of the natural cosmetics market. By adopting private standards like Ecocert and Soil Association, cosmetic manufacturers are forced to innovate through product formulations. Companies are experimenting with natural preservatives, surfactants and colourants as they move away from synthetic chemicals.
The major challenge the industry faces is lack of regulation, with many pseudo-natural products competing with legitimate natural and organic cosmetic products. Differences in natural ingredient compositions and the variation in private standards could dampen consumer confidence in natural & organic products.
Defining a natural and organic cosmetic product, a major industry concern, is the subject of the technical seminar at the first-ever conference on Natural Cosmetics & Sustainability: Natural Beauty Summit Europe in Paris. The seminar will tackle technical & formulation issues companies face with natural and organic cosmetics. Organic Monitor will also present its latest findings on the global market for natural & organic cosmetics at the inaugural event on November 29, 30.
About Organic Monitor
Organic Monitor is a business research & consulting company that specialises on the global organic & related product industries. Since its formation in 2001, Organic Monitor has been providing a range of business services to operators in high-growth ethical industries. Our business services include market research publications, customised research, business consulting and workshops. Visit us at www.organicmonitor.com