The turnover figures generated by natural and organic cosmetics have been growing for years now. In Germany alone, the market has doubled in size over the last 10 years. What I find even more interesting than the growth in turnover, however, is the changes that are emerging among consumers: More and more consumers are adding certified and uncertified natural and organic cosmetics to their shopping trolleys. Why is this? The main reason is that consumers’ buying motives have changed significantly. More and more people are opting for cosmetics that are more natural and made using ethically correct production practices. This is a trend, incidentally, which has been observed all over the world, and the sustained demand for milder and more natural products is having an impact on the cosmetics market as a whole. As a result, cosmetics shelves are flourishing and becoming greener – but the understanding of what can be classed as a natural and organic cosmetic differs from country to country. This means that it’s not just natural and organic cosmetics which are increasing, but also the number of brands that are seen as natural and organic cosmetics brands. Experts have said that the market for “green” cosmetics could expand by up to 10% a year, and that’s a dynamic that will challenge every player in the industry. Retailers and manufacturers therefore have an enormous amount to deal with and overcome, especially in the guaranteeing of high quality standards and raw materials, but also in the requirements resulting from the industry’s extensive digitalisation and the competition, which is becoming ever fiercer.
The German natural and organic cosmetics market is the largest in Europe, meaning special notice is taken of trends in Germany. The profit for the first half of 2017 indicates a significant trend here: Around 7 % more products were sold than in the same period of 2016, but the increase in turnover was lower at 2.5 %. This is a consequence of continuous price campaigns, which are primarily run by chemists (these have a market share of over 40 %) and give people a greater incentive to give natural and organic cosmetics a try. Half a million people more have purchased natural and organic cosmetics in Germany alone in the last year. That’s a huge number – but no one can afford to rest on this success. Consumers have become more demanding and retailers need to employ a consistent strategy for natural and organic cosmetics as well – both online and in their physical stores. The fact is the market is still changing. Solid, convincing concepts will not go amiss, because there is still plenty of room for growth!
About Elfriede Dambacher
Elfriede Dambacher, the owner of consultancy firm naturkosmetik konzepte, is an international expert in the natural and organic cosmetics industry, the publisher of various market studies and a book author. www.naturkosmetik-konzepte.de