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Some of the biggest cosmetic players are positioned to tap into continued growth in the naturals personal care market despite the economic gloom, a study reveals.
Last year was a mixed bag for the personal care industry, with fortunes tailing off markedly in the last six months, even for some of the biggest and most dominant players, such as P&G and L’Oreal. However, the natural personal care segment seems particularly well positioned to continue growth, which according to market research company Kline Group increased by 19% in 2008 to reach an estimated $2 billion.
Naturals market looks well insulated
Kline believes that continued interest in natural products will help insulate manufacturers working in this sector from the declining consumer spend that is affecting other categories. “Consumers’ desire for safer products and their concern for the environment have combined with more mainstream availability of natural products to drive growth in the market,” said Karen Doskow, associate project manager for Kline.
However, perhaps the biggest challenge facing natural personal care players is whether or not consumers will be prepared to pay the premium price that products in this category command in the face of diminishing spending power.