Natural and organic cosmetics and personal care products are now mainstream, and companies presenting their products to the mass market, specifically through a large retail presence in supermarkets and chain stores are doing exceptionally well. In comparison, some premium natural & organic brands are losing market share because of sluggish demand from organic food shops and beauty retailers.
Already established European natural cosmetic companies are bridging boarders and developing a pan-European presence. Korres Natural Products and Melvita are leading the way with the opening of new concept stores across Europe. An increasing number of brands are following this trend, including Weleda, Dr. Hauschka, Madara Cosmetics and Couleur Caramel, all which have opened concept stores in recent years. In addition to concept stores, brands are also manoeuvring to better position themselves in the high demand, high growth online retail market.
Brands that are well-known in some European markets and less recognized in others are now making inroads throughout the entire continent, such as Burt’s Bees and H&M. Burt’s Bees is well received in the US and UK, but relatively unknown in other parts of Europe. A new distribution agreement with Sephora retailers in France should help change this and expand their market share in new European markets.
H&M is a new entrant to the natural cosmetic industry. Characteristically a fashion and apparel retailer, H&M is launching a new line of certified organic skin care products to be sold in stores across Europe.
As new entrants continue to increase and the market becomes even more competitive, Organic Monitor predicts the market winners to be “those companies who can adopt strategies based on product differentiation,” such as products certified natural or organic, as well as products that are competitively priced, offering consumers with a better value without sacrificing product effectiveness.
New entrants and established brands are expanding across Europe to meet growing consumer demand for natural & organic products. A recent study by Organic Monitor finds European natural cosmetic sales will approach EUR 2 billion this year.