Beauty Store Business magazine - January, 2020

Natural and Organic Holds 6% of North American Beauty Market

It has been a very good year for natural beauty products. Revenue for the North American natural and organic personal care market reached more than $5.6 billion in 2018—and claimed roughly 6 percent of personal care product sales, according to a new report from market research and consulting firm Ecovia Intelligence. The report showed hair care products to have the highest share of this market segment at 9.5 percent, and significant revenue coming from natural skin care product sales due to the popularity of products like moisturizers, lotions, soaps and masks, etc. Most leading natural brands, the report noted, are owned by large multinational or investment firms, while new brands continue to enter the market, with some targeting specific consumer groups and/or channels.

Other significant findings included shifts in distribution. First sold exclusively in natural food shops, natural and organic personal care products have now found their way into specialty personal care stores, department stores, drugstores, and supermarkets, causing the natural retail store market share to decline. Some, like Sephora, have designated areas for these products. Other stores specializing only on clean beauty products are also opening due to the trend. Credo Beauty, being one of them, now operates nine locations after the launch of the first outlet in 2015.

Ecovia found certification of natural and organic personal care products to be relatively low with only 10 percent of natural product sales being certified. The most popular standards are NPA and NSF ANSI 305, and the Non-GMO project is the fastest-growing verified label. In addition to natural ingredients, Ecovia found natural products also focus on wider green issues, like ethical sourcing of raw materials, sustainable packaging and resource efficiency.

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