Global Organic & Natural Toiletry Industry
Due to rising consumer awareness as to the potentially harmful effects of certain ingredients used in the manufacturing of cosmetics demand for natural toiletries continues to rise. According to research from MarketLine, more than 35% of consumers generally look for natural personal care products to avoid cosmetics that contain synthetic chemicals.
Cosmetics manufacturers are picking up on purchasing trends favoring natural cosmetics to better meet consumer demand. In 2010, close to 10% of new products on the market carried the paraben-free mark. Consumers also continue to opt for cosmetics free of other additives, with alcohol representing the top-ranking culprit for health conscious buyers.
As future demand for organic and natural beauty products is reliant on consumer awareness, manufacturers of these products will likely concentrate on marketing approaches that educate consumers as to the harm of certain additives and the benefits of opting to use natural cosmetics.
Regional Market Share
- The US natural and organic hair care, make-up and skin care market expanded by more than 60% in the five-year period ending 2010, reports Packaged Facts. At that point the industry was worth close to $8 billion and is forecast to hit the $11 billion mark in 2016. Natural and organic personal care products are being packaged similarly to traditional products to attract consumers. Green products remain popular, despite the economic recession. In the short-term, companies will have to capitalize on the various retail channels to retain market share. Digital sell-through media will play a central role in market development over the coming years. Freedonia predicts consumers will boost spending on cosmetic and toiletries, while opting for organic and natural ingredients as much as possible. Demand for active and natural ingredients will continue to rise as companies attract consumers by featuring natural elements like botanical extracts, amino acids and enzymes in their marketing strategy. More and more consumers are now turning away from products that include commodity surfactants and petroleum oils, preferring instead ingredients such perceived as softer such as botanicals extracts.
- The UK natural and organic personal care products market is witnessing a large increase in the number of new products being launched. Many new products target specific consumer groups such as babies, children, teens, men and new mothers. The majority of these products continue to be sold through organic food stores and specialist retailers, though retail penetration is on the rise in other channels like supermarkets, beauty retailers, pharmacies and department stores. Personal care product manufacturers will likely concentrate on adopting natural and organic cosmetic standards moving forward to appeal to consumers looking for safe products adhering to specific standards with a seal of approval from a recognized certifying body.
- France’s natural and organic cosmetics market is the leader within the EU in terms of growth. French sales of natural and organic personal care products continue to record more than 20% yearly growth, according to Organic Monitor. Availability is growing to meet rising demand, with retail penetration fuelled by distribution through perfumeries, pharmacies, parapharmacies, supermarkets, department stores, hypermarkets, salons and spas. Low-priced certified natural and organic cosmetic products available through mass market retailer outlets are appealing to budget-conscious shoppers. Over coming years, the French market is expected to adhere increasingly to the Cosmos standards, following on from cosmetic manufacturers and ingredient companies compliance with the Ecocert standard.
- Organic and natural toiletries have witnessed 20% growth in the Middle East market, according to research from Organic Monitor. The United Arab Emirates lead the Gulf Cooperation Council in terms of natural and organic products market share and revenue. Growth potential is vast as the market for natural and organic products is in its early stages. The natural and organic sector represents as little as 0.1% of the Middle East market, far below the EU and the US where it is at 3%. Market growth will be fuelled by demand for organic and green beauty products as consumers increasingly avoid chemical ingredients. The increasing amount of shelf space dedicated to these products will also help drive market growth.
Market Outlook
Consumer concern over the harmful effects of synthetic ingredients in their personal care products, including parabens, aluminum salts and phthalates, continues to fuel demand for natural products. Standards and certification will prove key over the coming years as consumers look for trusted markers in choosing their cosmetic products.
While the EU and the US are leading in terms of sales, growth rates are higher in other areas, pointing to great growth potential for the organic and natural toiletries industry. Newer manufacturers to this market include Garnier, Henkel and Amore Pacific.
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