Natural cosmetics a global trend-setter

Market researchers are agreed: natural cosmetics have a great future. The worldwide sector also maintained its position very well during the crisis and even recorded growth. For example, sales in Germany grew by some 7 % in 2009. Studies show that the sector will also continue growing to an above-average extent in the coming years.

The signs are good for the international growth market natural cosmetics. This is confirmed by both the forecasts of the traditional manufacturers and the increased entry of international cosmetic companies. A current study by the international market researcher Kline Group forecasts excellent prospects for natural cosmetics in Asia, Europe and the USA until 2014. According to Kline’s Global Natural Care Market Report, the Asian markets with their two-figure growth rates will reach a volume of 14.8 billion US$. The market researchers expect sales of over 6.3 billion US$ in Europe in the next five years and 5.8 billion US$ in the USA. Evidence of the stability of the natural cosmetics sector in the crisis is also provided by the growth achieved in 2009 – 13 % in Asia, 9 % in Europe and 8 % in the USA. (Picture: Asia expects high growth rates. Natural cosmetics sales location in Tokio)
 

Sector expert Elfriede Dambacher (picture) of naturkosmetik konzepte, Dortmund, sees the changing values in society as one of the reasons why the cosmetics market is going green. The natural cosmetics industry profits from a new orientation towards credible and authentic brands. Today’s customers are enthusiastic about products from companies which accept responsibility for social issues and the environment. The continuing health and wellness trend is another key source of motivation.
 

Sales of natural cosmetics in Germany in 2009 grew by almost 7 % to 717 million EUR – 45 million euros more than the year before – and achieved a share of 5.6 % of the total cosmetics market. As the Gesellschaft für Konsumforschung (GfK), the consumer research institute in Nürnberg, shows in its current study on natural cosmetics, customer reach and spending on certified natural cosmetics have increased by almost 50 % since 2006. On the marketing side, the low-cost private labels – especially those from the drugstores – play a decisive role. Whereas the volume demand rose by more than 11 % in 2009, sales grew by only a single-figure amount of just under 7 %. This is attributed to the starter-price brands. Great potential lies in customer retention, but the level of loyalty of natural cosmetics customers is currently still too low. It is a question of making occasional buyers into regular customers. (Picture: broad range at a drug store, natural cosmetics at Budnokowski in Hamburg)
 

The French market is probably one of the most exciting and dynamic markets in Europe at present. The home of the big world-renowned cosmetic brands has shown little interest in the natural cosmetics trend for a long time. For some years, however, the cosmetics sector there has produced high two-figure growth rates and the natural cosmetics share of the total cosmetics market is currently about 3 %. The French organic food trade has had good reason to be pleased about the positive development of the range over the past years. More than 70 % of the retailers are convinced that natural cosmetics will also be one of the growth segments with great potential in the future. (Picture: strong in France and active worldwide: L'Occitane, specialised store)

France specialist Dr. Burkhard Schaer of Ecozept has established this in his study on natural cosmetics in France. Almost half the specialist retailers also see possibilities of development in the market demand for natural cosmetic products. Because of the extensive range of products, however, the trade is applying special selection criteria. For example, importance is increasingly often attached to fair trade raw materials. The decisive factors for rapid expansion of the market are distribution and the expertise of the staff and shop. (Picture: Dr. Burkhard Schaer to the left, panel discussion at Vivaness 2010)

The five founding members and labellers of the Cosmos standard, the German BDIH, the French Cosmebio and Ecocert, the Italian ICEA and the British Soil Association, recently set up the non-profit umbrella organization Cosmos-standard AISBL. The approved standards were published before this move. This has completed a major step towards European harmonization and work is now to press ahead on internationalizing these standards. The organization is open to further members.

NaTrue, the second major international standard, no longer shows the three stages of natural cosmetics, natural cosmetics with an organic component and organic cosmetics on its label – the relevant stars have been removed. The three-stage system has been retained for the standards and certification. NaTrue (picture) is also adopting new ways of communication and is getting fit for the future: Its presence on Twitter and Facebook is to boost dialogue with consumers, and extensive product information can be called up over the mobile phone using the quick response code.