Nordic natural market boosted by consumer spending based on environmental concerns

By Andrew MCDOUGALL contact

- Last updated on GMT

Nordic natural market boosted by consumer spending based on environmental concerns

Related tags: Personal care products, Cosmetics, Personal care

Nordic consumers take ethical and environmental concerns very seriously when it comes to cosmetics and personal care products and this is helping to drive the market forward.

The region, which is made up of Denmark, Finland, Iceland, Norway, and Sweden, sees green labels as increasingly important when purchasing beauty products, suggesting natural product manufacturers would do well to target the area.

According to a new study by Organic Monitor, the Nordic market for natural cosmetics is showing healthy growth, with sales doubling between 2008 and 2014, and predictions suggest sales revenues could climb to €200 million in the coming years.

Hey, big spender…

The London-based research firm says that Denmark has the largest market for natural cosmetics in the Nordic region; as natural and organic products comprise 4% of total cosmetic & personal care product sales.

This could be influenced by the fact it also has the highest market share for organic foods, 7%, in the world, suggesting Danish consumers are high spenders on natural and organic products because of ethical and environmental concerns.

Organic Monitor also says that widening availability is also driving market growth, as these products are making inroads in department stores, beauty retailers, supermarkets, drugstores and non-retail channels. Although health food shops still have the highest sales share.

Imported and local

And while natural product manufacturers would do well to target the Nordic region, it is not just the imported brands, which are highly established, that are flourishing, as new data also suggests that Nordic brands are showing a rise in market share.

For example, the Danish company Urtekram has taken market leadership as it has a strong market position in all country markets partly because of its extensive product range and distribution.

It was also the first company to launch Cosmos-certified organic cosmetics in the region and has products with the Fairtrade and Nordic Swan labels.

According to Organic Monitor, green labels such as these are becoming increasingly important in the Nordic region as consumers are increasingly looking for logos and symbols that represent ethical / environmental attributes.

The Nordic Swan is most established for personal care products, recognised by over 90% of consumers.

Ethical labels will be featured in the upcoming Sustainable Cosmetics Summit Europe hosted in Paris on 21-23 October. For more information, click here.

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