Major players feed global organic and natural growth

By Katie Bird

- Last updated on GMT

Global sales of natural and organic cosmetics are escalating thanks
to increased investment from top players, and the mainstreaming of
once-niche products.

According to a report from Organic Monitor, that claims to be the first ever report to look at the global market for natural and organic cosmetics, worldwide sales are approaching $7 billion. In addition, the report projects that global natural cosmetics market revenues will rise to over $10 billion by the end of the decade, at which point the market share of the sector will be near to 10 percent in the US and Germany. The two main drivers of growth remain Europe and North America, which are responsible for the majority of the $1 billion growth the sector has experienced this year. Behind these two giants come Australia and Japan, with organic and natural personal care markets that are also growing, Organic Monitor told Cosmetics Design Europe. The report cites three major engines for growth within the market: the mainstreaming of natural and organic cosmetics; inward investment; and growing consumer demand for green products. The mainstreaming of the market can be seen in the patterns of product distribution with natural and organic products appearing in an ever-widening range of outlets including department stores, pharmacies, spas, hotels and supermarkets. According to the report it is Europe that has seen the largest amount of retailer investment. In particular the leading supermarkets in the UK are not only marketing natural and organic cosmetics, but many of them have released their own private labels. Germany, however, has seen the largest amount of retail investment, where a number of certified natural cosmetics have been launched by discount stores. Many of the big players in the personal care industry are also investing in the market, either acquiring brands with a green feel or releasing their own certified natural or organic lines. Organic Monitor told Cosmetics Design Europe that it expects all of the biggest competitors in the industry to be looking at possibilities in the green arena, stating in their report that 'L'Oreal is eyeing further acquisitions since buying Sanoflore and The Body Shop'.​ One step ahead is Estee Lauder who introduced Origins Natural Resources in 1990, have recently launched a certified organic cosmetics line called Origins Organics. The business research company expect that acquisitions of existing companies that specialise in natural and organic cosmetics will dominate the investment from top players, with the launch of own label product ranges expected further down the line.

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