Changes in the organic cosmetic industry expected
by Redaktion (comments: 0)
The market research company Organic Monitor estimates that the European market for natural and organic cosmetic products is currently growing at 20 per cent a year, and is set to surpass a value of € 1 billion. The increased activity in this category could give way to big changes. According to Organic Monitor, this means more companies will launch more new products in the category and larger companies will try to buy up smaller companies within the next year.
Organic and natural brands are starting to make inroads into conventional cosmetic channels. Brands like Weleda and Dr. Hauschka, once only marketing their products in organic stores, are now stocking them in pharmacies, department stores and even in supermarkets. This was seen as a similar development as in organic food in the 90s, stated a spokeswoman of Organic Monitor. Retail shelf space will be taken up by a growing choice of organic and natural cosmetic and toiletry products touching every category.
According to Organic Monitor, European-wide market leader Weleda will be the leading brand, followed by regional players like French Sanoflore, Uk-based Green People and Germany’s Wellments. A further trend that many of these brands are likely to pick up in the coming months is product launches containing food ingredients like organic chocolate, hemp and exotic plant extracts.
Further activities are expected in the board rooms. L’Oreal has already stated that it wants to be a leading player in the category and has bought the Body Shop and Sanoflore. The management has announced that it could be involved in further activity in the near future. Organic Monitor believes that L’Oreal is determining the pattern of things to come, with small and medium sized companies being bought up by large players at a rapid rate in the following years.
Login for subscribers