USA: Natural cosmetic sector keeps on growing

Consumers are showing more and more health-consciousness and are increasingly buying natural personal care products. Investors are eagerly picking up this trend, reports the Seattle Times. The Natural Products Association estimates the industry is growing five times faster than the conventional personal-care-product sector. In 2007, sales of organic personal care products increased by 12.5 %. Mintel estimates the inflation-adjusted figure will rise to $ 513 million this year, even though the economy in the United States is not doing well. Analyst David A. Schick credits the size of the aging baby-boomer population for the growing demand.

Consumers will still have to buy soap and shampoo in a slow economy, but will also look for low priced products. According to Scott Potter, managing partner of San Francisco Equity Partners, which invested $ 14 million in the Yes To Carrots brand, natural items meet this demand. The Israel-based brand has more than doubled its sales since debuting in the U.S. last year and will use the capital to further boost the distribution in North America and to launch more natural products. Other leading companies are also ready to fulfil consumer’s demand. Target, for example, expanded its beauty aisles by adding nine natural and organic product lines. Wal-Mart sells various brands just like Whole Foods, Walgreen and CVS Caremark do.

http://seattletimes.nwsource.com