The North American market for natural & organic personal care products is continuing its positive trajectory, with revenues reaching USD 5.6 billion this year, according to new analysis by Ecovia Intelligence.
Growing consumer demand for ‘clean beauty’ products and increasing distribution are driving market growth, the company says.
Natural and organic products now comprise over 6% of personal care product sales in North America. Natural and organic hair care products have the highest market share, at 9.5%. Most revenues, however, are coming from natural skin care products because of the popularity of products like moisturizers, lotions, soaps and face masks.
Investments and acquisitions have become a key feature of the North American market, with leading brands almost all now owned by large multinationals or investment firms. But new entrants continue to arrive in the scene, with some targeting specific consumer groups, or specific channels.
While natural food shops are the traditional outlets for natural personal care products, their market share is shown to be in decline as distribution increases in conventional channels. Natural and organic personal care products are making inroads in specialty personal care stores, department stores, drugstores and supermarkets. Some, like Sephora, are offering dedicated areas to natural and organic beauty products. Another development is the arrival of on the scene of stores specializing in ‘clean beauty’ products, such as Credo Beauty, whose business values are built around the ‘Credo Clean Standard’. After opening the first outlet in 2015, it now operates nine Credo Beauty stores.
Ecovia Intelligence finds that although the number of natural and organic personal care standards has increased substantially over the last decade, adoption rates remain low. Certified products represent roughly 10% of natural and organic personal care product sales. NPA and NSF ANSI 305 are the most popular standards, however other ethical labels are gaining traction. The Non-GMO project Verified label is the fastest growing, currently adopted by about 30 personal care brands.
Competitive stakes are rising, with brands jostling for retail shelf-space. Pioneers are shifting their focus from natural ingredients to wider green issues, such as ethical sourcing of raw materials, sustainable packaging, and resource efficiency.
Case studies of such brands, as well as latest findings from this market analysis, will be presented at the Natural Cosmetics Masterclass (15 January, San Francisco).