Natural cosmetics as a future market

The cosmetics market is very dynamic and a lot has happened in the last twelve months. This was emphasised by Elfriede Dambacher, consultant and expert in the natural cosmetics industry, at the 11th Natural Cosmetics Conference. In her presentation, she presented current figures and data on the national and international market.

While conventional cosmetics in Germany largely stagnated in the first half of 2018, the natural cosmetics market grew by 3.1% in the same period - despite falling average prices. According to Dambacher, more new customers are turning to natural cosmetics, although the drugstore remains the dominant channel. Discounters have also recently become a dominant factor in the market. As an example, Dambacher cited the permanent listing of discounter Aldi’s own certified natural cosmetics brand.

Natural cosmetics market also interesting for major corporations

The market for natural and near-natural cosmetics is also booming internationally. According to Elfriede Dambacher, this is not least because consumers are becoming increasingly sensitive to the side effects of synthetic chemical care products. Ethical aspects, such as absence of animal testing, are also still decisive for many when making purchasing decisions. “Natural cosmetics is the market of the future, worldwide,” says the expert.

Please also read:
L'Oréal acquires Logocos

Forecasts by leading market research companies assume that natural and near-natural cosmetics will grow worldwide by 10% annually until 2025 - one reason why the market and corresponding companies are so interesting for large corporations. L'Oreal's acquisition of Logocos is one of the latest, but not the only, example for her. She called for a more objective discussion - and to focus on what constitutes a brand. The more know-how the conventional cosmetics industry buys, the more opaque it becomes for consumers.

Sovereignty of interpretation over the term „natural cosmetics“ not secured

In reality, it is also often difficult to classify “near-natural” and “genuine natural cosmetics”. “The sovereignty to interpret the term ‘natural cosmetics’ is not secured,” warned Dambacher. The industry expert pointed to “distortions of competition” that could be observed through cross-border online shops and on some online platforms. The German drugstore markets, for example, jointly drew the attention of political decision-makers to the offer of products that were not marketable. Dambacher also pointed out that the mandatory declaration of products was often missing. Here she sees a need for action to identify natural cosmetics more reliably, precisely because this distribution channel is becoming increasingly important. “According to the IRi ‘E-Commerce Retail Panel’, online retailing was already growing significantly faster than stationary retailing in 2017,” said Dambacher, citing an example: “Natural cosmetics face cream is growing by a factor of 2.5 more strongly than in stationary retailing.”

But not only in terms of sales - digital media (social media) are also becoming increasingly important in communicating with (potential) buyers. According to Dambacher, retailers often react too slow. “More creativity is needed here,” she appealed.