European natural cosmetics market set to expand by 12% in 2010, as competition increases
Organic Monitor puts this down to an influx of new competitively priced entrants to the market
In its new report on the “European Natural Cosmetics Market”, research company Organic Monitor has found that since the economic downturn, the natural cosmetics brands that have fared the best are ones that have competitive price points, as well as being certified natural and organic.
Private label brands have also performed exceptionally well and these are most strong in the German market where they make up roughly a third of all natural cosmetic sales. This is largely due to a strong supermarket and hypermarket retail presence in the country which generally offers consumers C&T products at relatively low prices.
And the most growth in Europe can be seen by brands targeting these value-focused channels with brands such as Bulldog making strides in the Nordic market and US brand Burt’s Bees increasing its share in supermarkets and pharmacies across Europe as a whole.
As the competition steps up, Organic Monitor says that it predicts the market winners to be “those companies who can adopt strategies based on product differentiation” and it expects competitively priced brands to continue to do well as consumers seek out natural products offering better value for money.