The North American Market for Natural & Organic Personal Care Products

Natural & Organic Ingredient Composition Becoming Important as Market Evolves

The natural & organic sector is the fastest growing in the North American cosmetics & toiletries industry, with sales increasing by 20% a year. Healthy market growth rates are projected to raise the market share of natural & organic products to 15% of total cosmetic & toiletry sales in the coming years.

High market growth rates and the absence of official standards are leading to many pseudo-natural products being launched. The proliferation of organic & natural personal care products is making consumers scrutinise the ingredient composition and demand products with high levels of natural extracts, ethical and certified organic ingredients. Indeed, new entrants like Yves Saint Laurent (Care by Stella McCartney) and Origins Natural Resources are launching products certified by organisations like Ecocert and Soil Association. Other companies are making products that contain USDA certified organic ingredients.

Apart from new product launches, a major driver of market growth is 'mainstreaming' of natural & organic products. Distribution in mainstream retailers is increasing as retailers focus on ethical and natural products. Mass merchandisers like Wal-Mart and Target are introducing natural & organic personal care products, supermarkets like Safeway and Loblaws are expanding product ranges, whilst drugstores are launching exclusive products. High demand is also coming from specialty personal care stores, department stores and spas & salons. Greater market segmentation is resulting in dedicated brands being developed for these channels.

Although the competitive landscape remains highly fragmented, a two-tier market is developing. The first-tier comprises companies that have received a capital injection in recent years. These frontrunners, backed by large marketing budgets, are showing a large rise in market share as they expand distribution and strengthen their product portfolios. Aveda is the market leader because of its extensive, yet exclusive, distribution channels. The second-tier comprises smaller companies that continue to focus on traditional markets. The gap between first and second tier companies is widening as the market evolves.

The report analyses the US and Canadian markets for natural & organic personal care products, focusing on pure natural and organic brands. Market information for each product category includes market size, revenue forecasts, pricing & distribution analysis and sales channel breakdown. Recommendations are given to natural personal care product companies and new entrants who are looking at growth opportunities in this emerging market.

Market analysis and forecasts are given for the following product categories:

• Natural & organic skin care products
• Natural & organic hair care products
• Natural & organic oral care products
• Natural & organic cosmetics
• Natural & organic deodorants
• Other natural & organic personal care products

Over 100 brands are covered in the report which include Avalon Organics, Aveda, Burt's Bees, Care by Stella McCartney, Dr. Hauschka, Jason Natural, Modern Organic Products, Origins Organic, Tom's of Maine, Weleda and others. Profiles are given of the leading manufacturers, importers and retailers of natural & organic personal care products.