The global market for natural and organic beauty products has experienced a significant surge, reaching a staggering $14 billion in sales, as revealed by a comprehensive study conducted by Ecovia Intelligence. This growth comes on the heels of a period marked by a slowdown due to the impact of the Covid-19 pandemic and subsequent economic uncertainties stemming from geopolitical tensions.
Amarjit Sahota, the founder of Ecovia Intelligence, highlighted the firm’s continuous monitoring of the natural and organic personal care market since 2003, emphasizing the meticulous data collection process involving key industry players, market trends, and product insights. Through a detailed “trade audit,” which involved consultations with leading brands and distributors across Europe, North America, and Asia, valuable information on market dynamics, sales channels, and competitive landscapes was gathered and analyzed. Additionally, secondary research drawing from various sources such as websites, media outlets, and trade publications further enriched the study.
The research findings underscore the dominance of North America and Europe in this sector, accounting for over 80% of total sales, with the US leading the global market share, where natural and organic products constitute a noteworthy percentage of overall cosmetic sales. However, the most rapid growth is now witnessed in the Asian market, propelled by a surge in new product launches. Noteworthy is the influx of new entrants globally introducing innovative products, while established brands are expanding their portfolios to include natural and organic offerings.
A significant evolution in the landscape of natural and organic cosmetics is the growing importance of product certification. Sahota emphasized the shift towards certified products, with over two-thirds of sales in countries like Germany and France now being attributed to certified items. The report identified key certification standards such as COSMOS and NATRUE as pivotal, particularly in Europe, where countries like France and Germany lead in the adoption of certified products. Globally, certified items constitute a substantial portion of total sales, reflecting the increasing consumer preference for verified natural and organic options.
The distribution channels for these products have also witnessed a transformation, with a notable expansion beyond traditional outlets like health food stores to include drugstores, pharmacies, department stores, beauty retailers, and even non-retail venues such as hair and beauty salons. Sahota emphasized the significance of this diversification, citing the shift from predominantly ‘alternative outlets’ to mainstream cosmetic retail platforms. The rise of online retailing, especially accentuated during the pandemic, has further reshaped the distribution landscape.
Moreover, the competitive scenario in the natural and organic cosmetics market has undergone a paradigm shift, with a notable presence of multinational corporations like L’Oréal, Estée Lauder Companies, and Unilever, among others, either launching natural and organic product lines under their existing brands or acquiring established natural/organic labels. This trend underscores the mainstreaming of natural and organic beauty products across the industry.
Looking ahead, Ecovia Intelligence anticipates continued market expansion in the foreseeable future, driven by heightened consumer awareness regarding synthetic chemicals in cosmetics, prompting a growing demand for natural and organic alternatives. As consumers become increasingly informed about the potential health risks associated with certain ingredients, the shift towards natural and organic beauty products is poised to gain further momentum, shaping the future trajectory of the beauty industry.
Leave a Reply
You must be logged in to post a comment.