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Natural and organic cosmetic brands looking for new growth openings in North America

With growth in the North American natural and organic cosmetics market slowing, brands are exploring new growth routes. According to a new research by Organic Monitor, brands are concentrating their efforts towards expansion into new retail channels and export markets.

While the North American market for natural personal care products has reached 5.4 billion US dollars, Organic Monitor underlines that in most revenue increases are from outside the traditional channel of natural food shops. In a context of slower growth, most brands are focusing on the expansion of the retail network.

Changing retail landscape

Burt’s Bees and Yes To brands have grown considerably in drugstores, whilst premium brands like Dr. Hauschka have become popular in beauty retailers. JR Watkins is focusing on multi-level marketing, whilst brands like Eminence Organic are targeting hair salons. Natural brands are also making inroads in mass market retailers, encouraging supermarkets to develop private label ranges,” notes the market research firm.

Actually, the retail landscape for natural and organic cosmetics is changing at a fast pace. Limited shelf-space for non-food products is restricting growth in natural food shops. In parallel, retailers are also becoming more selective with their natural personal care ranges. Chained outlets, such as Whole Foods Market and PCC Natural Market, are increasingly scrutinizing product formulations.

Export markets

Apart from new distribution channels, export markets are the other important source of business growth for natural and organic cosmetic brands. Asia is one of the main destination for North American brands. Although its size is a fraction of the North American market, the Asian market for natural and organic personal care products continues to show double-digit growth. According to Organic Monitor, the burgeoning middle-class in countries, such as China and India, are creating demand for ‘chemically clean’ cosmetics.

The Asian market is attractive because of healthy market growth rates and high consumer preference for western brands. Aubrey Organics is one of the most successful American brands in the Japanese market, whilst Intelligent Nutrients is gaining popularity in Asian countries because of its certified organic range. With a consumer market of 1.2 billion, the Chinese market is deemed the most prospective in Asia. However, few western brands have made advances because of distribution and regulatory issues. A frontrunner is the Australian brand Jasmin Skincare with its range of organic skin care products,” details Organic Monitor.

Sustainable Cosmetics Summit

These various issues will be presented and debated at the next New York edition of the Sustainable Cosmetics Summit organised by Organic Monitor at the InterContinental New York Barclay hotel on 17-19th May 2012.

CEOs of leading natural and organic personal care brands will discuss the marketing and distribution challenges they face in the North American market. The panel comprises CEOs from Aubrey Organics, Dr. Hauschka, Weleda, JR Watkins, Eminence Organic and Jasmin Skincare.

With research showing raw materials and packaging comprise the highest environmental impact of personal care products, the summit will also hone in on these key areas.

V.G.

© 2012 - Premium Beauty News - www.premiumbeautynews.com
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