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Growth for Naturals

Posted: September 21, 2007
Global sales of natural and organic cosmetics are soaring with revenues projected to approach $7 billion this year. New research by Organic Monitor finds that North America and Europe are the two engines of growth, comprising the bulk of the $1 billion sales increase this year. The major drivers of market growth are the mainstreaming of natural and organic cosmetics, inward investment and growing consumer demand for green products.

Investment is coming in from large cosmetic manufacturers, retailers, private and financial investors. Europe has seen most retailer investment with a number of leading mass market retailers launching natural and organic cosmetics in the last year. Investment is also coming from large cosmetic companies who are either acquiring dedicated natural and organic cosmetic companies or launching certified products.

A new report by Organic Monitor looks at mergers, acquisitions and investments in the global natural cosmetics industry and projects global natural cosmetics market revenues to surpass $10 billion before 2010. At that time, the market share of these products is projected to near 10% in countries like Germany and the U.S.

Companies are experimenting with natural preservatives, surfactants and colorants as they move away from synthetic chemicals. The major challenge the industry faces is lack of regulation, with many pseudo-natural products competing with legitimate natural and organic cosmetic products. Differences in natural ingredient compositions and the variation in private standards could dampen consumer confidence. Defining a natural and organic cosmetic product, a major industry concern, is the subject of the technical seminar at the first-ever conference on Natural Cosmetics & Sustainability: Natural Beauty Summit Europe in Paris, November 29 and 30, 2007. The seminar will tackle technical and formulation issues companies face with natural and organic cosmetics.