European natural and organic market subject to increased segmentation
As the sector becomes more mainstream new entrants and existing suppliers are developing products for specific consumer segments and sales channels.
New research by Organic Monitor suggests that the European natural and organic cosmetics market is becoming increasingly segmented. As the sector becomes more mainstream new entrants and existing suppliers are developing products for specific consumer segments and sales channels. According to Organic Monitor, most developments have been in the UK where new products were introduced for babies and children, teenagers and men’s grooming.
Increased segmentation has also occurred in private label, especially in the UK and German markets. Natural and organic products have been launched under own brands of supermarkets, drugstores, organic food retailers and discounters.
Organic Monitor also found that high consumer interest in the sector is leading to increased investment in natural beauty retailers with brands like Korres and Aveda opening concept stores across Europe and retailers such as The Organic Pharmacy expanding chained outlets.
While the economic recession has affected specialist retailers such as organic food retailers and health food shops, demand for natural and organic cosmetics from mass market retailers has remained buoyant and private labels are becoming more prominent due to their competitive prices.
In addition, Organic Monitor expects the take-up rates of natural and organic standards to rise over the coming years. This is partially down to the predicted effects of the unifying Cosmos standard and the NaTrue standard, which has the backing of some leading international brands.