Published 03-01-12
Submitted by Organic Monitor
Healthy growth in the North American market for natural personal care products is occurring because of increasing distribution. Natural & organic brands are expanding into new channels as shelf-space in natural food shops reaches saturation. Organic Monitor research finds that natural personal care companies are focusing on distribution for growth openings.
As will be shown in the marketing session in the Sustainable Cosmetics Summit, the North American market for natural personal care products has reached US $5.4 billion in value. Most revenue increases are from outside the traditional channel of natural food shops. 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.
Limited shelf-space for non-food products is restricting growth in natural food shops. 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. PCC Natural Market will give details of its selection criteria for natural personal care products at the Organic Monitor summit.
Apart from new distribution channels, natural & organic brands are also looking at export markets for business growth. 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. At the New York edition of the Sustainable Cosmetics Summit (17-19 May), the company will state how it has overcome the ‘great wall of China’ to make Jasmin Skincare popular with Chinese consumers.
Also at the summit, CEOs of leading natural & 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. Slowing market growth rates, rising competition and distribution channels will be debated by the CEO panel.
About the Sustainable Cosmetics Summit
The aim of the Sustainable Cosmetics Summit is to encourage sustainability in the beauty industry by bringing together key stake-holders and debate major sustainability issues in a high-level forum. The North American edition will take place at InterContinental New York Barclay hotel on 17-19th May 2012. More information is available from www.sustainablecosmeticssummit.com
About Organic Monitor
Organic Monitor is a London-based specialist research, consulting & training company that focuses on the global organic & related product industries. In 2011, we celebrated 10 years of encouraging sustainable development. Since 2001, we have been providing a range of business services to operators in high-growth ethical & sustainable industries. Our services include market research publications, business & technical consulting, seminars & workshops, and sustainability summits. Visit us at www.organicmonitor.com
Further Information
For more details on Sustainable Cosmetics Summit America, including conference program, please contact:
Ms. Marie-Theres Wimmer
PR & Marketing Executive, Organic Monitor
Tel: (44) 20 8567 0788
Fax: (44) 20 8567 7164
Email: mwimmer@organicmonitor.com
Organic Monitor was established in 2001 with the mission to assist operators in the organic products supply chain by providing accurate and timely business information. The first service we launched was Industry Watch, providing news updates on the international organic products industry via our website and e-newsletter.
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