Organics gaining market share in EU

Sales of natural and organic cosmetics in Europe are continuing to grow despite the economic downturn, with revenues projected to increase 13% to €1.7bn this year, according to a new report by Organic Monitor.

The 2009 edition of The European Natural Cosmetics Market has found that greater distribution and high consumer demand for ethical and natural products has boosted sales, with the German and French markets showing the fastest growth. Both countries have seen a large number of private label launches over the past 12 months – in Germany alone, private labels account for 10% of total sales.

Organic Monitor says natural and organic products comprise 3% of total cosmetics sales in Europe, with the market share above 4% in Germany, Austria and Switzerland. The market share is expected to reach 10% in Germany in the coming years.

The UK market however has seen a drop in its growth rate due to the economic situation. The growth rate dropped from 16% to 8% in 2009, due to a drop off in sales in organic food shops and retailers.

Elsewhere in Europe, there has been a growing number of concept store launches for natural and organic beauty products. Brands such as Dr Hauschka are opening boutique concept stores and larger retailers such as Monoprix are launching stores dedicated to the sector.

The findings of the report will be discussed in more detail in a dedicated workshop during the Sustainable Cosmetics Summit, held in Frankfurt from 16th-17th November. For more information go to www.organicmonitor.com