Smaller Firms Driving Natural PC Market Growth

Consumers are increasingly interested in natural personal care products, with the market growth driven by small and mid-sized companies rather than multinationals, reported Imogen Matthews, a consultant to in-cosmetics. In her report on Happi, Matthews noted larger firms have entered the space via strategic acquisitions or investments, rather than launching separate natural lines. Estee Lauder, interestingly, has explored all three possibilities, acquiring Aveda, investing in Forest Essentials, and launching its own line—Origins.

Often, the reluctance comes down to ROI. Why invest the time and energy in something that may not prove successful, when there are so many options already out there that might benefit from a jump start in capital and exposure? The Clorox acquisition of Burt’s Bees is a case in point, with the once-niche brand competing strongly with larger firms on the shelves.

Additionally, there is concern about the cost involved in going all natural, which has led some multinationals to do more combination offerings. While Garnier emphasizes its preference for natural ingredients, synthetics are still a part of their formulas.

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