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Natural Products Outperform the Overall Personal Care Market

By: Nancy Mills, Kline & Company
Posted: November 19, 2010

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In the supercharged natural personal care industry, the U.S. market has shown the most significant impact of the prolonged economic recession. However, the real story here seems to be the surge in truly natural products, which shot up more than 20% over the past year, while natural-inspired products inched up just over 4%. One of the leading factors behind the growth of truly natural products is product reformulations. Marketers are reformulating their natural-inspired products to fit more within the truly natural segment. Furthermore, some of the leading marketers of what Kline defines as truly natural personal care products, including Burt’s Bees (Clorox) and Tom’s of Maine (Colgate-Palmolive), have succeeded in expanding their product lines in mass market retail outlets such as Wal-Mart, Target and drug stores around the country, which has played an important role in the growth of the truly natural segment.

Around the globe, consumers have displayed ever-increasing interest in natural products, which will continue to push worldwide growth into double-digit territory—a welcome respite for diversified multinational manufacturers reeling from lackluster performance in the overall beauty market. The key to leveraging this growth in specific regions is to remain mindful of the nuances and unique characteristics in each market. While stellar growth may be the universal condition, specific consumer demands and other drivers in each region will dictate the best course of action to capitalize on pockets of opportunity.

Nancy Mills is industry manager, consumer products, at Kline & Company.