Predominately associated with the food industry, market research analysts Organic Monitor has predicted that the company will branch out and purchase one or more natural personal care companies.
Hain Celestial has been marking its territory in the organic market for some time with the acquisitions of three organic food companies, Lima Foods, Natumi, and Haldane Foods. However, the search for personal care acquisitions in Europe will do doubt consolidate its foothold within the sector.
"Acquiring a European manufacturer would allow the company to build marketing and distribution synergies for its existing brands like Jason Natural and Avalon. Its major challenge is finding suitable targets, especially since large cosmetic companies like L'Oreal are also on the hunt" said an Organic Monitor spokesperson.
Industry analysts have tipped 2007 as being a big year for the natural and organic cosmetic market, with further consolidation expected to follow on from the fervent activity witnessed over the past two years - providing a range of competition for companies such as Hain Celestial.
Despite the UK organic market topping €200m, Hain Celestial has until now only invested in US organic personal care companies.
However, Organic Monitor has stated that acquiring European brands would allow the company to gain further market share in an area that is tipped for continued success.
"Hain is looking to have a global presence. Over the next two to three years, we are looking for at least another two to three acquisitions, which are either stand-alone or bolt-on and which would be complementary to what we are doing here" said David Arrow, a spokesperson for the company.
Arrow said that the company is aiming to increase turnover in the UK from its current level of 60m to 150m in the next two years, both through organic growth and acquisitions.
L'Oreal was the biggest name in the organic sector in 2006, with the company making big inroads into the market, following the acquisitions of Sanoflore and Body Shop.
In line with these kind of moves, many natural and organic food companies have also been busy tapping into the market by extending their branding into the cosmetics field.
In Germany organic food supermarkets, drugstores and even discounters have already launched natural cosmetics under their own private labels.
Likewise, the UK's leading food retailer Tesco launched an own brand range, Bnatural, which made the company the first British mainstream retailer to gain Soil Association-certified for a private label cosmetics range.