US cosmetics fast turning eco-natural

A new report from Organic Monitor, UK-based organic industry analysts, shows 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 and strong growth projected with its share of the total US  personal care products market doubling to 15% in the coming years.

Organic Monitor notes that the North American market is evolving into a two-tier market. The first-tier comprises companies that have received a capital injection in recent years which supports large marketing budgets, and they show a large rise in market share as they expand distribution and strengthen their product portfolios. The second-tier comprises smaller companies that continue to focus on traditional markets. The gap between first and second tier companies is widening as the market evolves.  This is disappointing because larger players can sway consumers with hype, even green-wash, whereas the smaller producers are often built on core ethical principles and have underpinned this market for 20 years.

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. Organic Monitor expects to see more certified fair trade and organic products as companies move away from ‘natural marketing’. Indeed, major new entrants like Yves Saint Laurent (Care by Stella McCartney) and Origins Natural Resources are launching Ecocert-certified products. Intelligent Nutrients is expected to have a major impact in 2008 with its novel range of nutritional cosmetics that are made from certified organic food ingredients.

The report is available here.

Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.