06.14.11
The North American market for natural and organic personal care products is recovering from the financial crisis, with sales exceeding $5 billion for the first time last year, according to new market analysis from Organic Monitor. The market growth stagnated in 2009, however healthy growth rates are resuming once again as consumer demand for natural products strengthens, the group said.
Organic Monitor forecasts North American revenues will reach $8 billion by 2017, driven by widening distribution and new product launches as penetration of natural and organic personal care products is increasing in supermarkets, drugstores, mass merchandisers and club stores.
New product launches are stimulating market growth. The entry of large multinationals – including Johnson & Johnson and Estee Lauder – is making natural products more accessible and visible to consumers. However, retailer private labels are expected to have most success, Organic Monitor said.
Two leading supermarket chains have introduced private labels for natural personal care products in the last 18 months, with more expected to follow suit. Organic Monitor expects demand for private label products to emulate that for organic foods. All leading mainstream retailers are marketing organic foods under their private labels; they have become so successful that O Organics (Safeway) and PC Organics (Loblaw) are the leading organic food brands in the US and Canada respectively.
As new entrants continue, the supply-side for natural personal care products continues to fragment. More than 600 brands are present in the North American market, however very few have significant market share. A two-tier market has developed, whereby large brands are occupying the first tier and small-medium size firms are in the second tier. The gap between the tiers is widening as large brands—such as Burt’s Bees and Bare Escentuals—use capital inflows to expand market share, the firm reported.
With many products marketed on natural and organic claims, consumer confusion remains a major industry concern, according to Organic Monitor. Standards are having a major impact, with many companies looking at certification schemes to ‘legitimize’ their natural and organic products.
Organic Monitor finds the adoption rate of standards rising; about 8% of natural and organic personal care products were certified in 2010, up from 4% in 2007.
More info: http://www.organicmonitor.com/300260.htm
Organic Monitor forecasts North American revenues will reach $8 billion by 2017, driven by widening distribution and new product launches as penetration of natural and organic personal care products is increasing in supermarkets, drugstores, mass merchandisers and club stores.
New product launches are stimulating market growth. The entry of large multinationals – including Johnson & Johnson and Estee Lauder – is making natural products more accessible and visible to consumers. However, retailer private labels are expected to have most success, Organic Monitor said.
Two leading supermarket chains have introduced private labels for natural personal care products in the last 18 months, with more expected to follow suit. Organic Monitor expects demand for private label products to emulate that for organic foods. All leading mainstream retailers are marketing organic foods under their private labels; they have become so successful that O Organics (Safeway) and PC Organics (Loblaw) are the leading organic food brands in the US and Canada respectively.
As new entrants continue, the supply-side for natural personal care products continues to fragment. More than 600 brands are present in the North American market, however very few have significant market share. A two-tier market has developed, whereby large brands are occupying the first tier and small-medium size firms are in the second tier. The gap between the tiers is widening as large brands—such as Burt’s Bees and Bare Escentuals—use capital inflows to expand market share, the firm reported.
With many products marketed on natural and organic claims, consumer confusion remains a major industry concern, according to Organic Monitor. Standards are having a major impact, with many companies looking at certification schemes to ‘legitimize’ their natural and organic products.
Organic Monitor finds the adoption rate of standards rising; about 8% of natural and organic personal care products were certified in 2010, up from 4% in 2007.
More info: http://www.organicmonitor.com/300260.htm