UK natural products market latest: competitive

By Lucy Whitehouse

- Last updated on GMT

UK natural products market latest: competitive

Related tags Organic personal care Hygiene

Naturals in the UK beauty market have seen sales increase by nearly 30% since 2012 and now the market is facing an  increasingly competitive landscape, according to new research.

A new report from Ecovia Intelligence, market research firm, shows that within this, natural hair care are the most popular products, with the market share now sitting at 5% of total hair care products.

With growth rates set to slow now in the UK, however, moving forward, brands are looking at export markets to sustain growth says the firm.

Why the slowdown?

Market growth rates are slowing, however, according to the firm. Ecovia Intelligence suggests this is linked to an uncertain political and economic climate, related to the Brexit vote.

On top of this, the depreciation of sterling in the foreign exchange is leading to higher prices of natural & organic personal care products, the firm observes.

Retailers are also becoming more cautious in introducing and / or expanding natural & organic personal care product ranges.

What currently drives sales?

Consumer concern relating to the safety and transparency of synthetic chemicals is the major driver of market growth, says the firm.

Consumers are buying natural & organic personal care products as they are perceived to have lower health risks,​” it confirms.

Another major driver is distribution, Ecovia Intelligence states. “These products have been making headway in conventional retail channels, such as department stores, beauty retailers and chemists. Most sales, however, are from health food shops and organic food retailers.”

Certification: increasingly crucial

The report finds more and more consumers are now expecting certified claims on natural products, and the industry is responding.

The research shows that about a third of all natural & organic personal care products are now certified, with the Soil Association / COSMOS standard the most popular with UK brands.

Ethical labels are becoming more visible on products, the firm says: as well as natural & organic, a growing number of products are carrying Vegan Society, Fairtrade, and related labels.

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