Organic Products sector Fastest Growing in the North American Cosmetics Industry
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’.
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