A new report from consulting firm Kline & Company said that the US natural personal care market will still have healthy growth this year despite the economic downturn.
The market last year was up 19% at over $2bn in sales at the manufacturers' level, according to Kline. Although it is not certain if consumers will still be willing to pay premium for natural and organic products given the current economic condition, Kline noted that major marketers are in good position to compete because of their stronger supply chain negotiating advantage and well-developed distribution channels.
Natural personal care have become more available, accessible and affordable in mass retail channels because of these marketers. Sales for naturally-inspired products that contain natural extracts but still rely on synthetic ingredients for their functional performance have also experienced unprecedented growth, said Kline.
In Europe, the natural personal care market also experienced growth with a 15% sales gain last year on top of a $3bn sales base. Germany still leads the market capturing nearly a third of the total European market sales, according to Kline.
You can hear more about the study on Kline's web conference on Feb. 19 at 9am EST.