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:
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.