Increased investment in natural C&T companies expected in 2010
Improving economic conditions and easing of capital restrictions look set to trigger a rise in investments in natural personal care companies, says Organic Monitor.
Improving economic conditions and easing of capital restrictions look set to trigger a sharp rise in investment activity involving natural personal care companies in 2010, says Organic Monitor. The research and consulting company cites the acquisitions of Bare Escentuals by Shiseido and Kibio by Clarins as evidence of the resurgence in investment in the natural personal care industry - investment that has undergone an 18-month lull beginning at the start of the financial crisis in 2008.
According to Organic Monitor, European companies are the most likely to be involved in major deals over the coming year. This is largely due to the lack of investment opportunities in North America where many leading natural companies have already been acquired.
A report carried out by Organic Monitor, Investments, Mergers and Acquisitions, found the most successful natural personal care companies to be those that receive investment but continue to work as separate entities, Aveda (Estée Lauder) and Burt’s Bees (Clorox) being two such examples. In comparison, those that are integrated into larger corporations often fail to realise their growth potential, as small enterprises with strong ethical values do not always fit well into larger profit-driven organisations, says Organic Monitor.
The topic of investment in natural personal care companies will feature in the organisation’s upcoming Sustainable Cosmetics Summit, which takes place from 24-26 March in New York.
