Global Natural Cosmetic Sales Approaching US $7
sales of natural & organic cosmetics are soaring with revenues projected
to approach US $7 billion this year. New research by Organic Monitor
finds that North America and Europe are the two engines of growth,
comprising the bulk of the US $1 billion sales increase.
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
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.
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
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.
Europe: Investors Targeting
Natural Cosmetics Market
#3001-60 The North American Market for Natural
& Organic Personal Care Products
Posted: September 17th 2007
This article is prepared from our ongoing research on the natural cosmetics industry.
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