Economic crisis hits Europe’s natural and organic beauty market

 

Natural and organic personal care brands are now only experiencing single-digit growth across Europe, with the poor economic climate blamed for the slowdown.

According to Organic Monitor’s December 2012 report on the European market, the UK has been hardest hit, causing many domestic brands to look to export opportunities for growth. Companies have instead started targeting the Nordic region, the US, Australia and other parts of Europe.

Even Germany, Europe’s largest natural and organic personal care player, has experienced declining growth. France has enjoyed the largest number of new product launches, although mass-market distribution only accounts for 15%of all natural and organic personal care sales.

Across the continent, specialist retailers continue to dominate the market and represent the greatest number of sales. While many brands are targeting pharmacies, beauty retailers and department stores, natural and organic products only command a 10% share in these channels.

While Organic Monitor has predicted an improvement in the market as the economy picks up, competition will “remain intense” as companies go up against “large cosmetic firms”. Brands with a “clear strategy in terms of product offering or distribution are expected to succeed in the changing market landscape,” according to the report.