LONDON—Due to increased distribution, the North American market for natural personal care is seeing healthy growth and natural and organic brands are expanding into new channels as shelf-space in natural food shops reaches saturation, according to Organic Monitor. The research company's finding discovered a shift in natural personal care companies' focus, as they're looking to distribution for growth openings.
As will be shown in the marketing session at 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, while premium brands like Dr. Hauschka have become popular in beauty retailers. JR Watkins is focusing on multi-level marketing, while 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 and 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, while 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 (May 17 to 19), 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 and 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.
