Slowing market growth rates and an influx of new entrants are raising competitive stakes in the European natural cosmetics market. According to Organic Monitor, the European market seems to expand by 12% in 2010.
In its new briefing report on the European Natural Cosmetics Market, Organic Monitor finds market winners since the economic downturn have been competitively priced brands. Consumers are attracted to the value prepositions offered by such brands – certified natural & organic products at low prices – with private labels doing exceptionally well. They are most prominent in Germany where they comprise about a third of all natural cosmetic sales; private labels have been introduced by supermarkets, drugstores, organic food retailers and even discount stores.
Major growth in the European market is coming from mainstream retailers. For instance, Burt’s Bees, one of the leading American brands, is showing healthy growth as it increases distribution in supermarkets and pharmacies. Other new entrants are taking a segmented approach, focusing on specific consumer groups and products. Many natural cosmetic firms are taking the direct route to get closer to consumers. Apart from online retailers, a growing number of companies are opening concept stores across Europe. Paris is becoming the epicenter of natural cosmetic retailers; leading brands, such as Weleda, Dr. Hauschka and Couleur Caramel have opened concept stores in recent years.
As competition steps up, Organic Monitor predicts market winners to be those companies who can adopt strategies based on product differentiation. Organic Monitor is a specialist research, consulting & training company that focuses on the global organic & related product industries.
Posted on: 13.10.2010