Investors from Brazil, Japan, New Zealand and Switzerland have all targeted the country, whose natural cosmetics market has allegedly grown 40 per cent over the past two years, according to market research company Organic Monitor.
"There is a growing international consumer demand for high-quality natural products. This has contributed to the marketing success of New Zealand organic cosmetics companies in France, which is quite possibly the worlds most exciting cosmetic market," said New Zealand Trade Minister Phil Goff.
According to the French Technology Press Bureau, foreign investors are being drawn to France because of its reputation for excellence in cosmetics with many seeing it as the most lucrative route into the €1bn European natural cosmetics market.
Many companies have developed research facilities in the country with Natura, Brazil's leading natural cosmetics company, recently opening an advanced research centre in Paris to develop new cosmetics techniques, and have been doing business in France for over two years.
In order to have a solid R&D centre in the country, Swiss natural cosmetics and supplements leader Weleda is planning to invest €15 million over three years in its subsidiary in Huningue, Alsace, Eastern France.
Likewise, NP Corporation, a Japanese natural cosmetics and biotechnology company, opened a subsidiary in Lyon, France last year in order to focus more clearly on natural cosmetic research, primarily made of red wine extracts.
France also has one of the most respected cosmetic clusters, Cosmetics Valley, that houses R&D development and cosmetic projects for cosmetic, plant-based, giants such as Clarins, L'Occitane and L'Oreal.
However, despite the influx of activity in the French naturals market, there is growing industry concern over what is and isn't 'natural'. With products containing just 2 per cent of natural ingredients being classed as 'organic' many manufacturers and consumers are calling for stricter legislation.
Manufacturers are not required to state the proportion of natural ingredients and naturally dervived ingredients in formulations, making the labelling system confusing for consumers.
According to the Cosmetic, Toiletry and Perfumery Association a natural ingredient has mainly been processed physically such as being ground or dried. A naturally derived ingredient however, may have been processed using synthetic chemicals.
