Natural HBC brands are growing up -- their marketers are packaging and selling natural moisturizer, shampoo, and eye shadow more slickly than ever before. And green consumers are more receptive, too. Thus retail sales of natural HBC boomed by 57% during 2004-2008, to $6.6 billion.
In the coming years, the marketplace will be complicated by the after-effect of the deep recession; by the Big Blur of retail channels; by reformulations to please mainstream America; and by international activity. But the opportunities get hotter and hotter.
Packaged Facts’ newest edition of its best-selling guide to the natural HBC market includes: Separate chapters on skincare, haircare, and makeup, which contain historical and future dollar patterns, together with Packaged Facts’ famous in-depth analysis. International trends are covered for the first time in this edition. Also included are extensive product-use data from Packaged Facts' own consumer survey. And the profiles of Clorox/Burt’s Bees, Estée Lauder/Aveda, Hain Celestial, Kiss My Face, L'Oréal/The Body Shop, and others are detailed.
Read an excerpt from this report below.Report Methodology
Market Insights: A Selection From The Report
“Natural” vs. “Organic”: Which Is More Trusted by Consumers?
Packaged Facts attempts to make precise use of the terms “natural” and “organic.” “Natural” signifies that a personal care product is composed of ingredients found in nature. “Organic” further signifies that those ingredients are pure, having been grown or processed without the aid of artificial colors or flavors, pesticides, preservatives, or any other synthesized, possibly harsh or toxic chemicals.
“Organic” has emerged as the term that is better understood by consumers; equated with the common phrase “pure and unadulterated” content, “organic” is less vague than “natural.” Therefore, it is reasonable to assume that “organic” has become the more trusted descriptor, simply on the basis of its clearer definition.
Packaged Facts uses the term “semi-natural” to describe personal care products that may contain certain natural/organic ingredients -- such as botanical actives or scents -- but that also contain large portions of non-natural substances.
Nevertheless, the distinctions between natural, organic, and semi-natural are very hazy. Labels that suggest “natural” or “organic” often refer only to specific ingredients in otherwise non-natural formulations, which is most typical of products sold through mass outlets -- but is certainly observed of many products sold through the natural channel, too. One must realize that even these featured ingredients may be heavily diluted in hydrosols -- that is, in water -- whether formulations are completely natural or not.
Those readers new to the natural personal care industry may be surprised to learn that many natural/organic products do have some non-natural content -- perhaps a little chemical preservative, or a foaming agent like sodium lauryl sulfate, or the emulsifier and humectant propylene glycol, etc
In the News
Recession Dampens Growth in the U.S. Natural & Organic Personal Care Market
New York, July 22, 2009 - The U.S. natural health and beauty care (HBC) market will charge toward sales of $12 billion in 2014 as more American consumers go natural, organic, and green, according to Natural and Organic Personal Care Products in the U.S., 4th Edition by leading market research publisher Packaged Facts. In 2008, the U.S. market grew 8% and approached $7 billion.
Looking ahead from spring 2009, Packaged Facts designates the natural personal care market a “steady performer” during recessionary times. Safety concerns, fear of disease, green-minded worry about pollution, and U.S. consumers’ heightened sophistication regarding health/fitness/appearance issues will help return the market to the double-digit growth reached annually from 2002-2007.
“Many Americans fear the health consequences of using chemical-laden deodorant, shampoo, foundation, and other personal care products,” says Tatjana Meerman, publisher of Packaged Facts. “They have tried natural versions of such products, and have become sincerely, even passionately green-minded. Just as there is no turning back the clock on America’s acquired taste for things upscale, whether designer clothing or luxury goods, there is no way that we can give up our safer natural and organic products, or the green, eco-friendly thinking that accompanies them.”
Global sales are forecast to parallel the bullish U.S. market and approach $40 billion in 2014, with total growth exceeding 73% for the period 2008-2014.
Natural and Organic Personal Care Products in the U.S., 4th Edition examines the consumer marketplace for natural and organic skincare, haircare, and makeup products. In this latest edition, international data are presented and analyzed for the first time. Dollar estimates incorporate sales to consumers through all channels, including natural food/HBC, mass, specialty stores, department stores, independent grocers, spas and salons, Internet websites, mail-order ads/catalogs, etc.
About Packaged Facts - Packaged Facts, a division of Market Research Group, publishes market intelligence on a wide range of consumer market topics, including consumer goods and retailing, foods and beverages, demographics, pet products and services, and financial products. Packaged Facts also offers a full range of custom research services.