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Natural & Organic
Naturals Market Maintains Strong Global Growth
Posted: March 11, 2010
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The Brazilian market could be a challenge for some brands in that direct sales dominate the distribution channels. The channel has fallen off in many developing nations during the past 10 years, and most brand marketers are not equipped for this kind of distribution. However, drugstores here have also begun dedicating more shelf space to natural personal care products, boosting sales in this channel significantly.
Attractive in Asia
By the sheer size of its population, growth in GDP, and disposable income among consumers, the Asian market is quite attractive to global marketers. Posting a healthy growth rate in 2009, the region collectively commands a 40% share of the global market for natural personal care products.
A rich heritage of ayurvedic and herbal medicine, particularly in India and China, means that consumers are quite familiar with the principals of natural remedies. Ironically, this tradition does little to stem the tide of highly synthetic products passed off as naturals. With no labeling standards in place in some countries and a low degree of consumer differentiation between truly natural and natural-inspired products, the market is currently led by manufacturers who remain more committed to profits than their natural positioning.
Also, contrary to what one might expect, while domestic brands are currently quite strong here, foreign brands are highly regarded as more technologically advanced, further opening the door of opportunity for global brands to infiltrate this booming market.
In Asia, as in most other parts of the world, makeup is a fast-growing category. In January 2010, Tokyo-based cosmetics giant Shiseido acquired mineral makeup pioneer Bare Escentuals in a move that will no doubt continue the proliferation of natural makeup products across Shiseido’s already strong presence in the regional marketplace.