Vivaness 2015: The place to be for the global natural cosmetics industry

In contrast to the somewhat restrained growth in the sales of classic cosmetics, certified natural cosmetics continued to develop positively in key markets in 2013. The German industry took a major step towards the billion euro sales threshold during the course of the year. Worldwide, sales revenues from natural beauty products rose by around US$7bn to almost US$30bn from 2010 to 2013. 45% of this came from natural cosmetics brands which have to meet strict raw materials and production guidelines and which are certified by monitoring bodies. Experts assess the market share of "near-natural" cosmetics as being around 55%.

The German market for certified natural cosmetics enjoyed further growth for the second year in a row. Between 2012 and 2013, it increased by around 7% to €920m, which corresponds to a share in the overall cosmetics market of over 7%. And the outlook is very positive: In the first six months of 2014, according to natural cosmetics industry monitors, a growth rate of over 10% was posted. Sales revenues from certified natural cosmetics have risen since 2011 by well over €100m, whilst sales of near-natural brands, at €983m, only grew by 2.5%. (Picture: Cosmetics at Landwege in Germany)
 

The German Cosmetics, Toiletries and Detergents Industry Association (IKW), Frankfurt am Main, Germany recorded a growth rate of 0.6% to around €12.9bn for the German cosmetics market in general in 2013. Market expert Elfriede Dambacher (see picture), owner of naturkosmetik konzepte Dortmund, Germany, describes natural cosmetics as "the driver of growth in the cosmetics industry". In addition, she continues, the success of the sector is evidence of a change in consumer behaviour. Customers are turning to natural cosmetics brands because they feel that the origin of the raw materials and protection of resources are important. In addition, they are consciously taking the ethical and social aspects of the value creation chain into account and generally relying on the credibility of companies that they trust when making their purchase. This tendency is becoming apparent in more than just the growth rates of the end products. Raw materials suppliers are clearly taking the increasing demand for natural and certified organic ingredients seriously. Worldwide, the certification organisations are also enjoying a steady rise in numbers as more and more companies become members.
 

The international market research company Kline & Company, Parsippany, New Jersey (USA), currently puts the global market for certified cosmetics at over US$13bn. Europe's markets account for a good 20% of this, with Germany topping the sales ranking with €920m (2013). France follows with around €400 million and a market share of 3% - 4%. Other countries with plenty of natural cosmetics-loving consumers are the UK, Italy, the Netherlands, Austria, Switzerland and Scandinavia.

(Picture: Natural cosmetics in Helsinki)

Manufacturing companies from these countries are active with their brands not just at home but also in the export business. A whole host of successful smaller companies has arisen in recent years and found a place alongside the established brands on retailers' shelves and in various online shops. With Breeze 2015, Vivaness is offering a unique platform within the trade fair especially for such newcomers to the market for the fifth time now. Every company can use this opportunity to present itself to the trade public twice in total. The area holds around 10 exhibitors. By the end of the exhibition in 2014, many of last year's labels had already expressed an interest in being there again the next time. After all, Breeze, Novelties and the premiere of the Meet & Talk communication platform were amongst the main visitor attractions at the event. (Pictures: Vivaness Novelties 2014 and Breeze)
 

The constantly increasing availability and wide choice of natural cosmetics products in all marketing channels have clearly boosted the interest and appeal of natural cosmetics. In addition, there are further advertising activities in consumer media outlets and, for the first time, TV advertising, all of which have further increased awareness of the brands.

The term "natural cosmetics" is defined differently in an international context and market researchers therefore arrive at different growth rates. However, everyone agrees on the forecasts for further development of the worldwide markets: The prospects for natural cosmetics in the future will continue to be very positive. According to the internationally respected market research company Kline, world sales of natural cosmetics grew from 2012 to 2013 by 10.6% to almost US$30bn. Kline makes a distinction between certified and near-natural cosmetics, using the terms "truly natural" and "nature inspired". Near-natural cosmetics, according to Kline, enjoy a global market share of around 55% with sales of over US$16bn, whilst the share of certified natural cosmetics has reached 45%, or more than US$13bn.

The California market research institute Grand View Research Inc., San Francisco (USA), recently published a study entitled "Global Organic Personal Care Market Analysis And Segment Forecasts To 2020". According to this study, global sales of certified natural cosmetics are set to rise by 2020 by US$3bn to around US$16bn. The forecasts for the Asia-Pacific region are particularly promising: Here, sales of currently two billion are set to rise to 3.77 billion in 2020. The market researchers consider the further expansion in consumer awareness of the advantages of natural cosmetics to be the key factor for the positive development in demand over the next five years. (Picture: Cosmetics at North Coast Food Coop, Oregon, USA)

Alongside the fast-growing buyers' markets in Asia, the traditionally strong sales market in North America is also growing further. The USA's market share of global sales of certified and near-natural cosmetics according to Kline is 15%, or around US$4.5bn. The well-established organic specialist trade in the United States, especially the market leader, Whole Foods Market, provides a massive selection of near-natural products and certified natural cosmetics. Many mass market suppliers such as supermarket chains and drugstores have also built up a surprisingly large range in this sector. The specialist trade is trying to stand out from its mass market competitors through the use of its own quality criteria, such as "GM-free" and "not tested on animals". Experts forecast that the demand for certified natural cosmetics will increase more in the future than the demand for near-natural products. Through the expansion of the branch network in the specialist trade and the further increase in consumer awareness of problematic ingredients, sales of natural cosmetics are set to grow further in the USA too. (Picture: Non-Gmo poster at Whole Foods Market)

From 7 to 8 October the Natural Cosmetics Conference will held in Berlin. From 11 to 14 February 2015, Vivaness in Nuremberg will once again be the inspiring "place to be" for representatives of the international cosmetics sector, and thus for everyone already active in the increasingly successful natural cosmetics market segment or who would like to gain a foothold there. 200 exhibitors and around 42,000 trade buyers are expected to visit Vivaness and BioFach the Exhibition Centre Nuremberg again in 2015. (Picture: Exhibition hall in Nuremberg, Vivaness 2014)

Tip: Vivaness