In America, increased focus on ecological and natural products, has led to huge growth in this sector. By ‘mainstreaming’ these products in mass market, retailers like Wal-Mart have been able to expand product ranges and launch exclusive products. It is no surprise then, that the natural and organic sector is the fastest growing in the North American cosmetics and toiletries industry, with sales increasing by 20% a year.
A new report finds that product penetration is increasing in all channels such as specialty personal care stores and department stores, which are introducing premium natural and organic brands, spas, salons, beauty centres, television shopping and online retailers. Greater segmentation is leading to dedicated brands being developed for some channels.
Most sales however remain from natural food shops which have 45% market share. Leading chains like Trader Joe’s and Wild Oats have developed private labels for natural beauty products, whilst independents are giving greater shelf-space to these products. Whole Foods Market is setting the pace by looking at setting up dedicated spas in some of its natural food supermarkets.
Also, ingredient and formulation issues are becoming increasingly important in the North American market. The growing number of pseudo-natural products is leading consumers to scrutinise the composition of natural and organic personal care products. Manufacturers are responding by launching products with high levels of natural extracts, ethical and certified organic ingredients. We can therefore expect to see more certified fair trade and organic products as companies move away from ‘natural marketing’. Major new entrants like Yves Saint Laurent (Care by Stella McCartney) and Origins Natural Resources are launching Ecocert-certified products. Additionally, Intelligent Nutrients is expected to have a major impact in 2008 with its novel range of nutritional cosmetics that are made from certified organic food ingredients.
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January 19th, 2008 at 1:21 pm
The UK Organic Grocery Market is £2 billion of the total £100 billion.
The World Market Organic Market is about £20 billion dollars and is growing at about 20% per annum. Consumer will buy more when they realize that Organic is the only safe way to exclude, cloning and additives.
Question – can we keep up with demand?
Have a look at the IFOAM registered Certificators
http://www.organicassistant.com/organisations/certificators.php
January 30th, 2008 at 12:09 pm
Interesting point. We always seem to assume that the demand can and will be kept up with. It is very positive if the North American market can lead the Organic products Market, perhaps other consumers in other countries will follow suit. I definitely think this is the way forward.
January 30th, 2008 at 1:09 pm
I think that the organic cosmetics industry differs from food as it is not as perishable so has a longer shelf-life and this makes it easier to keep up with the demand.
January 30th, 2008 at 1:11 pm
Very interesting reply to my note above, but very slightly wrong. Europe and the UK lead the field. The US maybe the largest in volume terms but is a very late adopter. The UK and Germany lead the world in setting Organic Standards which are improving with the guidance of IFOAM. I’m sorry to say, but the US was a very late adopter of any meaningful organic standards and now is getting it very wrong regarding keeping organic, organic if you see what I mean. The US is allowing all sorts of dilution to its Organic Certification Standards…. very regrettable.
Have a look at our website for much more detail on this.
http://www.organicassistant.com/
January 30th, 2008 at 1:35 pm
I definitely agree with you on the food market, but the research I have found say the U.S. is leading the organic cosmetics industry. Supermarkets such as Wal-Mart are expanding product ranges and making it more mainstream, something which we yet have to wait for in the European market.
January 30th, 2008 at 1:50 pm
In the UK, “organic” goods are still mostly the preserve of the wealthy consumers, i.e. those that have enough disposable income to “worry” about ethical concerns. Because of this there is now an element of social status attached to using organic products. So, the question is, will organic become more mainstream or are these products still niche?
January 30th, 2008 at 3:00 pm
This has certainly got a debate going.
May I throw a spanner in the works regarding Organic = Elite?
Baby Food.
In the UK 40% to 60% of all Baby Food is Organic.
Maybe we with will poison ourselves but not our children?
Now there’s a thought.
http://www.organicassistant.com/
January 30th, 2008 at 7:12 pm
I think that attaching the word ‘organic’ to baby food is often a scam. Parents are made to feel guilty if they don’t buy organic food for their baby and end up paying higher prices for the organic products, and yet they are not necessarily better. It is often assumed that organic = healthier, and yet when you look at the ingredients, you see there is added sugar to a product that doesn’t need it. Yes, it’s organic sugar, but so what, it’s still best for baby not to have any added sugar.
January 31st, 2008 at 8:04 am
I Googled for something completely different, but found your page…and have to say thanks. nice read.
January 31st, 2008 at 12:57 pm
I am sure that this global trend has a substantial influence on every nation. Compared to Western countries, organic food consumption in China is considerable small. However, the growth in domestic demand has been prompted by the emergence of an affluent middle class.
July 10th, 2008 at 11:42 am
Am very much interested in organicproducts and interested in doing business with you. My products range from vegetables and fruits
October 28th, 2008 at 8:44 pm
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