Organic Monitor digs into natural cosmetics in the UK and Germany

By Guy Montague-Jones

- Last updated on GMT

Related tags: Private label, Retailing, United kingdom

Organic Monitor has published a report on the natural cosmetics market in Germany and the UK highlighting the growing popularity of private label brands in both countries.

Natural cosmetics have a strong foothold in Germany and the UK holding respectively a 5 per cent and 3 per cent share of the total market.

The rise of private label brands

Offering competitive prices, private label brands are becoming increasingly popular in these markets. Found in supermarkets, drugstores, organic food retailers and even discount stores, private label products are widening their reach.

In Germany they already represent 10 percent of total cosmetic sales. Private label products are typically 3-4 times cheaper than equivalents from leading natural cosmetic brands.

This price difference goes a long way to explaining their growing sales and should encourage further growth as the recession starts to bite into consumer spending.

The impact of the economy on natural and organic cosmetics

Organic Monitor spokesperson Tina Gill recently spoke to CosmeticsDesign.com predicating a shift within the natural and organic market towards mid-range and private label products.

Although Gill was upbeat about the prospects of organic and natural cosmetics and insisted that growth opportunities remain despite the downturn, she did not anticipate a continuation of the dramatic growth rates of recent years.

In fact the effects of the economic situation are already being felt. Organic Monitor said specialist retailers like organic food retailers and health food shops have been worst affected.

Organic and natural cosmetics sales are slowing in these stores as the number of consumers coming through the doors starts to fall.

Meanwhile, demand from mass market retailer and non-retail channels continues to remain buoyant.

Related topics: Market Trends, Naturals and organics

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