North American Natural & Organic Personal Care Market Exceeds $5 Billion

Natural personal care market growthThe North American market for natural and organic personal care products recorded sales in excess of US $5 billion in 2010, according to a new report by Organic Monitor. After recovering from the financial crisis of 2009, market growth rates have rebounded to pre-recessionary levels as consumers continue to demand ‘chemically-clean’ cosmetics and toiletries.

The market for natural and organic personal care products is widening. Companies are entering into retail channels that were once assumed ‘out-of-bounds’ for higher priced natural products. Natural brands are now finding success in supermarkets, drugstores, mass merchandisers and club stores. Additionally, private labels are also contributing to the growth as they allow retailers to offer natural products at affordable prices. With a much broader consumer base, market growth is driven by the full retail spectrum, not just specific channels.

However, there is a growing divide within the industry. Over 600 brands are present in the North American market, but the market share majority is controlled by few. A two-tier market has developed, according to Organic Monitor, whereby large brands are occupying the first tier and small to medium size companies are operating in the second tier. And the gap is growing. Large natural personal care product companies, like Burt’s Bees, Bare Escentuals, and Tom’s of Maine, have all recently been either bought by or received huge capital inflows from much larger dominate manufacturers, which has allowed them to even further expand.

Organic Monitor predicts that in coming years natural and organic products will account for 10% of personal care product sales. The natural and organic market, once only a small market segment, now is poised for considerable and continual growth. Mergers, acquisitions and investments will likely play a significant role in market developments over the next few years as the high growth potential is attracting more investors.  But, as the market becomes increasingly crowded there will be even more fragmentation between the successful brands and the aspiring brands. Those who can build strong distribution and differentiate themselves are expected to excel.

Organic Monitor recently published a report which analyzes the US and Canadian markets for natural and organic personal care products, which they segment by the following product categories:

  • Natural & organic skin care products
  • Natural & organic hair care products
  • Natural & organic oral care products
  • Natural & organic cosmetics
  • Natural & organic deodorants
  • Other natural & organic personal care products

The 2nd edition report provides market information for each product category including: market size, revenue forecasts, pricing analysis, competitive landscape, sales channel breakdown and consumer trends. Recommendations are given to existing participants and new entrants looking at growth opportunities in this emerging market. Market shares and profiles are given of the leading brands, manufacturers, importers and retailers in US and Canada.

Find more information on the report here.


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Posted by on Jun 14th, 2011 and filed under NEWS. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

35 Responses for “North American Natural & Organic Personal Care Market Exceeds $5 Billion”

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    For centuries people have used natural essential oils on their skins for multiple purposes: Moisturizing, calming inflammations, erasing scars and stretch marks, acne… There are all kinds of essential oils out there that you should use instead of using products that include chemicals. The only reason the big cosmetic companies include chemicals in their products is to get that quick short term intended look and feeling that you are seeking, it provides the users with quick satisfaction. On the long run, those same chemicals that provide you short term satisfaction, start drying your skin, make it difficult for the skin and hair to breath, etc… I personally founded a company that sells all natural organic Argan oil products online, check out our website: PrettyArgan. Also, look up other essential oils that can be just as good for your skin and hair. The good old olive oil that you can get at the super market will do all kinds of marvels on your skin and hair. I grew up in north africa, and I remember when I was young, we would put olive oil on our skin before going to the beach, and my mom used to put Argan oil or olive oil on her hair regularly.

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