Les Échos Études have released a study on the market and distribution of organic and natural cosmetics. Growth prospects, market dynamics, and detailed analyses of brands’ strategies and operating forces were the main dimensions taken into account for this new edition.
The first figure provided in the study is the growth of the organic and natural cosmetics market: +9% in 2016.
An under-exploited market, a huge growth potential
In a market environment that is tricky for beauty, organic and natural cosmetics boast satisfactory results. And yet, the market did not explode after its boom in the second half of the years 2000. Organic cosmetics remain a niche market, and distribution is still largely dominated by specialized distributors. Still, the growth potential is huge.
• Driven by fundamental trends, purchasing behaviours keep changing. The target is getting wider than sole ‘organic addicts’.
• Distribution tends to open a little more, in particular food superstores, whose organic cosmetics sales made great progress in 2016, while the hygiene-beauty department fell. Carrefour, Leclerc, and Intermarché redesigned their private labels, and Monoprix focused on partnerships (Lavera, Natura Siberica). In the selective network, organic brands have emerged, as the channel has been looking for sources of growth. Sephora’s initiatives in the United States suggest organic/natural products have a potential for brands in France.
Many challenges to be met for brands
The motives for buying organic cosmetics are still mostly based on negative drivers.
As a result, for …
