According to research carried out by Organic Monitor, natural & organic brands on the North American market are making inroads in mass market retailers and encouraging supermarkets to develop private label ranges as shelf-space in natural food shops reaches its limits.
Amarjit Sahota, president of Organic Monitor told CosmeticsDesign.com USA, “We have followed this sector over a ten year period and we now see a trend in brands like Burts Bees growing considerably outside of its traditional channel of distribution."
“Limited shelf-space for non-food products is restricting growth in natural food shops and retailers are also becoming more selective with their natural personal care ranges,” he points out.
With the North American market for natural personal care products now estimated to have reached $5.4 billion in value, Sahota says most revenue increases are coming from outside of natural food shops as brands like Eminence Organic are targeting hair salons whilst premium brands like Dr. Hauschka have become popular in beauty retailers.
According to the specialist research group, apart from new distribution channels, natural & organic brands are also looking at export markets for business growth.
With a consumer market of 1.2 billion, the Chinese market is deemed the most prospective in Asia, thanks to its healthy market growth rates and high consumer preference for western brands.
“Aubrey Organics is one of the most successful American brands in the Japanese market, whilst Intelligent Nutrients is gaining popularity in Asian countries because of its certified organic range,” Sahota reveals.
However, the president points out that few western brands have made advances because of distribution and regulatory issues.
US v European market
This trend has yet to be seen on the European market as Sahota says brands are already specifically designed and launched to appeal to mass market retailers.
Sustainable Cosmetics Summit
Organic Monitor will host the North American edition of its Sustainable Cosmetics Summit at the InterContinental New York Barclay hotel on 17-19th May.
The aim of the Summit is to encourage sustainability in the beauty industry by bringing together key stake-holders and debate major sustainability issues in a high-level forum.
With growth in the North American sustainable cosmetics market slowing and brands exploring new growth openings, this year Organic Monitor is to focus its Marketing & Distribution Innovations session on new distribution channels and new country markets.