Green Future: Natural Cosmetics Market

in the United States in the United States

by Ewa Grigar, Senior Market Researcher, Kline & Company
A presentation at:
September 24, 2013
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Natural Personal Care: Global Market Brief
Natural Personal Care: Global Market Brief is an
analysis of the global market for natural personal care
products, focusing on key trends, developments,
challenges business opportunities and natural challenges, business opportunities, and natural
ratings. The research addresses such issues as:
What is the definition of "natural"?
How big is the market for truly natural products?
What are the fastest growing male grooming What are the fastest growing male grooming
brands, and why?
Who are the market leaders?
Where are the opportunities for personal care
marketers?
Features: ingredient analysis and natural ratings
NEW! Plus, 2 optional in-depth companion reports,
ith h i d t il d d i i ht th with comprehensive details and deep insights on the
Natural Personal Care Market in China,
And in J apan.
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We define natural as all brands that are positioned as natural, and then
further segment the market into truly natural vs natural-inspired further segment the market into truly natural vs. natural inspired
NATURAL PERSONAL CARE
Truly natural brands/products
Natural-inspired brands/products
Skin care products
Hair care products
Excludes:
Back-bar products
Makeup
Fragrances
Oral care products
Other Toiletries
Prescription
products
All l fi t d t th f t l l (f t / t hi t ) l th i
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All sales figures reported at the manufacturers level (factory/net shipments) unless otherwise
noted
The United States accounts for over 15% of the global natural
and organic personal care market
Sales of Natural Personal Care
Products by Region, 2013
and organic personal care market
United States
Rest of world
Asia
Europe
Brazil
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Global Sales:
USD 29.5 billion
(2013 manufacturers level)
In 2013, sales of natural cosmetics in the U.S. are estimated to reach
almost USD 4 5 billion almost USD 4.5 billion
Growth of the Natural and Organic Cosmetics
Market in the US, 2008 to 2013
USD Billion mfr
4
5
7%
USD Billion mfr
3
4
1
2
0
1
2008 2009 2010 2011 2012 2013-est.
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CAGR: 7.1 %
Certifying associations and organizations worldwide are working hard to
regulate the naturals market regulate the naturals market
In the United States, a harmonized standard does not
exist.
Besides U.S. labels, some of the brands are also certified
with European certification bodies, such as ICEA,
ECOCERT, or Soil Association.
Products may display the USDA Organic Seal and
must display the certifying agents name and address,
only if:
100% organic- Product must contain
(excluding water and salt) only organically
produced ingredients.
O i P d t t t i t l t 95% Organic- Product must contain at least 95%
organically produced ingredients (excluding
water and salt).
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Consumers and associations support transparency in labeling
The Organic Consumers
Association
(OCA),encourages
retailers to take action to
address widespread
organic labeling fraud in
In 2010, Whole Foods
Market introduces its own
policy on the organic
labeling of personal care
products
"Organic" or "Made with
Product ratings and
reviews are available
from consumers and
independent
organizations such as
g g
their health and beauty
care aisles
Organic or Made with
Organic Ingredients."
organizations, such as
Skin Deep
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The natural market in the United States is very fragmented with top 5
leading marketers accounting for 26% of the total market share leading marketers accounting for 26% of the total market share
Aveeno
Bare
Escentuals
Burt's Bees
Aveda
Arbonne
The market is
beginningto
All other
beginning to
consolidate with
large companies
acquiring smaller
brands to gain
h f th
The U.S. market in 2013 - estimation
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share of the
market sales.
Trends in Product Categories
In terms of value, skin care is the leading product
category in the natural personal care market in the
United States in 2013.
Fragrances
Oral care Oral care
Makeup
Hair care
Other Toiletries
Skin care
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The U.S. natural cometics market, 2013 - est.
Hair care is the best performing product category in 2013
Hair care is estimated to
increase by almost 7%. y
Oral care is the least dynamic
with estimated sales increase with estimated sales increase
of less than 2%.
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New trend among the U.S. consumers: non-GMO
The fear of GMOs in food and beverages The fear of GMOs in food and beverages
translates into growing interest in purchasing
non-GMO beauty products.
More consumers are beginning to recognize the
N GMO S l h d k i
Andalou Naturals is the first complete personal
care brand to be verified by the Non-GMO
Project in 2013.
Non-GMO Seal, when used on packaging.
Alcohol, glycerin (corn derivatives), soy and
canola oils ingredients with GM risks for
cosmetics.
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Channels of distribution
Health and natural food stores and supermarkets
Pharmacies and drug stores
Mass outlets
Department stores
Specialty stores
All other
Direct sales
p
-10% -5% 0% 5% 10% 15%
All other
% Growth
T t l USD 4 5 Billi
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Total: USD 4.5 Billion
Trends in distribution channels
M tl t ff l
Af b d i th
Mass outlets offer ample
shelf space to the private
label products in order to
take the higher profit
margins of private-label
A few brands in the
luxury naturals market
continue to rely heavily
on distribution though
specialtyretail stores,
margins of private label
products.
specialty retail stores,
boutiques, and spas.
The smaller brands in the
prestige segment continue
to focus on their primary
channel of distribution, not
taking the risk of moving to
mass markets.
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Product Trends
Whats hot in natural personal care?
Natural brands upgrading their Natural brands upgrading their
portfolio with organic lines
Increasing demand and offer of
natural fragrances
BB Cream
Makeup with natural ingredients
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The U.S. market for natural personal care products is expected to show
moderate growth with a CAGR almost 6% through 2018 moderate growth with a CAGR almost 6% through 2018
USDBillion mfr USD Billion mfr.
6
7
4
5
2
3
0
1
2013 2014 2015 2016 2017 2018
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2013 2014 2015 2016 2017 2018
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If you require additional information about the contents of this document or the
services that Kline provides, please contact:
sciences, and consumer products industries for over
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Kristina Zablecke
Account Manager, Consumer Products
Ewa Grigar
Senior Analyst, Ph.D., Consumer Products
Tel: +32-2-776-07-36
Email: Kristina.Zablecke@klinegroup.com
y , ,
Phone: +420-222-330-018
Ewa.Grigar@KlineGroup.com
www.KlineGroup.com