According to the recent Euromonitor International Cosmetics and Toiletries in France report, a newer trend, in part borne out of the demand for natural/organic ingredients, is that of ethical consumerism. As the realities of global warming and the exploitation of developing labour markets gain increasing media attention, consumers have developed a conscience and want products that fit with these values. This means products with a minimal environmental impact and those that give something back to the communities in which they operate. Once a niche position espoused by speciality brands, such as Green People, going green has now become such a potent selling point, even the world's largest cosmetics and toiletries multinationals are becoming eco-friendly.
In France according to CSA/Agence Bio (Organic Agency), four out of 10 French consumers purchase organic cosmetics and toiletries products at least once a month, another 23% once a week and 7% once a day. This shows that there is a growing demand for organic and natural products as the market for organic cosmetics becomes prolific. Furthermore, according to research carried out by the British Organic Monitor, France is the fastest developing European country for organic and natural cosmetics with sales of around EUR150 million in 2006. Ecocert has estimated that sales have increased by 66% in 2007, to EUR250 million.
Weleda (German label BDIH), the pioneer in organic and natural cosmetic products which established itself in France since 1924, has seen its value sales double in two years. In addition, and according to industry sources, the niche market for organic and natural cosmetics and toiletries products will soon become mainstream.
For manufacturers organic and natural products are a form of added value that works, and an added value of the future. This trend is likely to have a huge impact in the forecast period and beyond. A study by Laboratory Kiobi found that the French market for natural and organic products will represent one third of the total value sales of cosmetics and toiletries products within the next five years. However, organic and natural cosmetics and toiletries are seen today as products with added value, which could become the norm in the forecast period. Therefore the manufacturers are likely to be forced to invest heavily in the development of such products, as the consumer will soon consider such added value as a minimum requirement.
Euromonitor International suggests that manufacturers active in the cosmetics and toiletries market will have to adapt their development strategies in line with this present and growing trend. The growing demand is unlikely to be ignored as the leading companies will seek to develop their ranges of organic and natural products.
There are several different strategies, which the companies may choose to adopt. One, is to reposition some of their existing products as natural and thus offer this advantage in the market such as, for example, with the brand Origins from Estée Lauder. Two, is to create a new natural brand; for example, Yves Saint Laurent Beauté with the launch of the Stella McCartney organic range. Three, to acquire an existing and established natural brand such as L’Oréal with Sanoflore and The Body Shop.
However, it is important to note that consumers seek a truly organic and natural brand rather than a brand which is marketed around the organic concept. Furthermore, the company might lose credibility if a brand appears to be less than natural and organic.
For more information on this report from Euromonitor International, click here:
http://www.euromonitor.com/Cosmetics_And_Toiletries_in_France?DCMP=AFC-cmp
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