12.01.11
Global sales of natural and organic beauty products are projected to reach $9 billion in 2011, according to a new report from U.K.-based Organic Monitor. Although consumer demand for natural and organic products remains buoyant, new research finds the growth rate is slowing because of the weak economic climate. In its new report, “Global Market for Natural & Organic Personal Care Products,” Organic Monitor predicts revenues will climb to $14 billion in 2015. Demand for natural and organic products has spread to every region, however, sales remain concentrated in Europe and North America. Natural and organic products have 2% share of global personal care product sales. However, in some countries—such as the U.S., Germany and Austria—market share is reaching 10%. The large market share is because of high consumer awareness and extensive distribution of natural and organic products. Competitive stakes are rising as new entrants continue while market growth rates slow. Organic Monitor finds successful brands focus on marketing and distribution to differentiate their products. Vertical integration is occurring whereby brands are operating at several levels of the supply chain. Concept stores have become en vogue, with leading brands like Aveda, Melvita and Korres opening international retail networks. For further information: www.organicmonitor.com