SAMPLE Global Organic Personal Care Products Market 2012 – 2018

Organic Personal Care Products Market: Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2012 - 2018

Transparency Market Research

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Global Organic Personal Care Products Market 2012 – 2018

Table of Content Chapter 1

Preface .............................................................................. 13

1.1

Report Description ....................................................................................................... 13

1.2

Market segmentation .................................................................................................. 14 1.2.1

Global organic personal care products market segmentation, type and geography .......................................................................................................... 14

1.3

Research scope ............................................................................................................ 14

1.4

Research Methodology ................................................................................................ 15

Chapter 2

Executive Summary ......................................................... 18

2.1

Global organic personal care product market revenue, 2011 - 2018 (USD Million) ........ 18

2.2

Global Organic Personal Care Products Market Snapshot ............................................. 19

Chapter 3 3.1

Introduction................................................................................................................. 21 3.1.1

3.2

Classification of organic personal care product ................................................... 22

Value chain analysis ..................................................................................................... 23 3.2.1

3.3

Organic Personal Care Products – Industry Analysis ............................................................................ 21

Value chain analysis of global organic personal care market ............................... 23

Market Drivers ............................................................................................................. 24 3.3.1

Drivers for organic personal care market: Impact analysis ................................... 24

3.3.2

Increasing consumer health awareness ............................................................... 24

3.3.3

Widening distribution channels .......................................................................... 25 3.3.3.1

Global organic personal care market, distribution channel share, 2011 .................................................. 25

3.3.4

New product launches ........................................................................................ 26

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Global Organic Personal Care Products Market 2012 – 2018 3.3.4.1

Natural & organic personal care products - new product launches, 2011 & 2012 ................................... 27

3.4

3.5

Restraints .................................................................................................................... 28 3.4.1

Restraints for organic personal care products market: Impact analysis ................ 28

3.4.2

Short shelf life .................................................................................................... 28

3.4.3

Costing issues compared to synthetic products ................................................... 28

Opportunities .............................................................................................................. 29 3.5.1

Evolving regulations supporting the organic way of life ....................................... 29

3.5.2

Increasing purchasing power of Asia Pacific ........................................................ 29 3.5.2.1

3.6

Per capita income of India and China, 2009-2012.......... 29

Porter’s five forces analysis .......................................................................................... 31 3.6.1

Bargaining power of suppliers............................................................................. 31

3.6.2

Bargaining power of buyers ................................................................................ 32

3.6.3

Threat of new entrants ....................................................................................... 32

3.6.4

Threat of substitutes........................................................................................... 32

3.6.5

Degree of competition ........................................................................................ 33

3.7

Market Attractiveness Analysis .................................................................................... 34

3.8

Organic personal care market: Company market share analysis ................................... 36

Chapter 4 4.1

Organic Personal Care Products- Product Segment Analysis ............................................................ 38

Global organic personal care products market, by product type: Overview .................. 38 4.1.1

Global organic personal care products market revenues share, by product type, 2011 and 2018 ........................................................................................... 38

4.1.2

Organic skin care products .................................................................................. 39 4.1.2.1

Global organic skin care products market, 2011 – 2018 (USD million) .................................................... 39

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Global Organic Personal Care Products Market 2012 – 2018 4.1.3

Organic hair care products .................................................................................. 40 4.1.3.1

Global organic hair care products market, 2011 – 2018 (USD million) .................................................... 40

4.1.4

Organic oral care products .................................................................................. 41 4.1.4.1

Global organic oral care products market, 2011 – 2018 (USD million) .................................................... 41

4.1.5

Organic cosmetics ............................................................................................... 41 4.1.5.1

Global organic cosmetics market, 2011 – 2018 (USD million) .................................................................... 42

4.1.6

Other organic personal care products ................................................................. 42 4.1.6.1

Global other organic personal care products market, 2011 – 2018(USD million) .......................................... 42

Chapter 5 5.1

Organic Personal Care Products Market- Regional Analysis ............................................................................ 44

Global Organic personal care products market: geographical overview ........................ 44 5.1.1

Global organic personal care products market, revenue share by geography, 2011 and 2018 .................................................................................. 44

5.1.2

North America organic personal care products market revenue, by type, 2011 - 2018 (USD million).................................................................................... 45

5.1.3

North America organic personal care products market, revenue share by country, 2011 - 2018 (USD million) ...................................................................... 46 5.1.3.1

U.S. organic personal care products market, 2011 – 2018(USD million) ..................................................... 46

5.1.3.2

Mexico organic personal care products market revenue, 2011 – 2018(USD million) ............................. 47

5.1.3.3

Canada organic personal care products market revenue, 2011 – 2018(USD million) ............................. 48

5.2

Europe ......................................................................................................................... 49

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Global Organic Personal Care Products Market 2012 – 2018 5.2.1

Europe organic personal care products market revenue, by type, 2011 2018 (USD million) .............................................................................................. 49

5.2.2

Europe organic personal care products market, revenue share by country, 2011 - 2018 (USD million).................................................................................... 50 5.2.2.1

Germany organic personal care products market revenue, 2011 – 2018(USD million) ............................. 51

5.2.2.2

France organic personal care products market revenue, 2011 – 2018(USD million) ............................. 52

5.2.2.3

United Kingdom organic personal care products market revenue, 2011 – 2018(USD million)................... 52

5.2.2.4

Russia organic personal care products market revenue, 2011 – 2018(USD million) ............................. 53

5.2.2.5

Italy organic personal care products market revenue, 2011 – 2018 (USD million) ............................ 54

5.2.2.6

Spain organic personal care products market revenue, 2011 – 2018(USD million) ............................. 55

5.2.2.7

Rest of Europe organic personal care products market revenue, 2011 – 2018(USD million)................... 57

5.3

Asia Pacific ................................................................................................................... 57 5.3.1

Asia Pacific organic personal care products market revenue, by type, 2011 - 2018 (USD million) ............................................................................................ 57

5.3.2

Asia Pacific organic personal care products market revenue, by country, 2011 - 2018 (USD million).................................................................................... 58 5.3.2.1

Japan organic personal care products market revenue, 2011 – 2018(USD million) ............................. 59

5.3.2.2

China organic personal care products market revenue, 2011 – 2018(USD million) ............................. 60

5.3.2.3

India organic personal care products market revenue, 2011 – 2018(USD million) ............................. 61

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Global Organic Personal Care Products Market 2012 – 2018 5.3.2.4

South Korea organic personal care products market revenue, 2011 – 2018(USD million) ............................. 62

5.3.2.5

Thailand organic personal care products market revenue, 2011 – 2018(USD million) ............................. 63

5.3.2.6

Taiwan organic personal care products market revenue, 2011 – 2018(USD million) ............................. 64

5.3.2.7

Rest of Asia-Pacific organic personal care products market revenue, 2011 – 2018(USD million)................... 65

5.4

Rest of World ............................................................................................................... 66 5.4.1

Rest of World organic personal care products market revenue, by type, 2011 - 2018 (USD million).................................................................................... 66

5.4.2

RoW organic personal care products market revenue, by country, 2011 2018 (USD million) .............................................................................................. 67 5.4.2.1

Brazil organic personal care products market revenue, 2011 – 2018(USD million) ............................. 67

5.4.2.2

Rest of World organic personal care products market revenue, 2011 – 2018(USD million) ............................. 68

Chapter 6 6.1

6.2

Company Profiles............................................................. 70

Aveda Corporation ....................................................................................................... 70 6.1.1

Company overview ............................................................................................. 70

6.1.2

Financial overview .............................................................................................. 70

6.1.3

Business strategy ................................................................................................ 70

6.1.4

SWOT analysis .................................................................................................... 71

6.1.5

Recent developments ......................................................................................... 71

Amway ........................................................................................................................ 71 6.2.1

Company overview ............................................................................................. 71

6.2.2

Financial overview .............................................................................................. 72

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Global Organic Personal Care Products Market 2012 – 2018

6.3

6.4

6.5

6.2.3

Business strategy ................................................................................................ 72

6.2.4

SWOT analysis .................................................................................................... 72

6.2.5

Recent developments ......................................................................................... 72

Burt’s Bee .................................................................................................................... 73 6.3.1

Company overview ............................................................................................. 73

6.3.2

Financial overview .............................................................................................. 73

6.3.3

Business strategy ................................................................................................ 74

6.3.4

SWOT analysis .................................................................................................... 74

6.3.5

Recent developments ......................................................................................... 74

The Body Shop ............................................................................................................. 75 6.4.1

Company overview ............................................................................................. 75

6.4.2

Financial overview .............................................................................................. 75

6.4.3

Business strategy ................................................................................................ 75

6.4.4

SWOT analysis .................................................................................................... 75

L’Occitane en Provence ................................................................................................ 76

1270 Valley Brook, ...................................................................................................................... 76

6.6

6.5.1

Company overview ............................................................................................. 76

6.5.2

Financial overview .............................................................................................. 76

6.5.3

Business strategy ................................................................................................ 77

6.5.4

SWOT analysis .................................................................................................... 77

6.5.5

Recent developments ......................................................................................... 77

Natura Cosméticos S.A. ................................................................................................ 77 6.6.1

Company overview ............................................................................................. 78

6.6.2

Financial overview .............................................................................................. 78

6.6.3

Business strategy ................................................................................................ 78

6.6.4

SWOT analysis .................................................................................................... 78

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Global Organic Personal Care Products Market 2012 – 2018 6.6.5

6.7

6.8

6.9

6.10

Recent developments ......................................................................................... 79

Kiehl’s .......................................................................................................................... 79 6.7.1

Company overview ............................................................................................. 79

6.7.2

Financial overview .............................................................................................. 79

6.7.3

Business strategy ................................................................................................ 79

6.7.4

SWOT analysis .................................................................................................... 80

6.7.5

Recent developments ......................................................................................... 80

The Hain Celestial Group, Inc. ...................................................................................... 80 6.8.1

Company overview ............................................................................................. 80

6.8.2

Financial overview .............................................................................................. 81

6.8.3

Business strategy ................................................................................................ 81

6.8.4

SWOT analysis .................................................................................................... 81

Arbonne International ................................................................................................. 81 6.9.1

Company overview ............................................................................................. 82

6.9.2

Financial overview .............................................................................................. 82

6.9.3

SWOT Analysis .................................................................................................... 82

6.9.4

Business strategy ................................................................................................ 82

Bare Escentuals ............................................................................................................ 82 6.10.1

Company overview ............................................................................................. 83

6.10.2

Financial overview .............................................................................................. 83

6.10.3

Business strategies ............................................................................................. 83

6.10.4

SWOT analysis .................................................................................................... 83

6.10.5

Recent developments ......................................................................................... 84

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Global Organic Personal Care Products Market 2012 – 2018

List of Figures FIG. 1

Global organic personal care products market segmentation, type and geography

14

FIG. 2

Global organic personal care product market revenue, 2011 - 2018 (USD Million)

18

FIG. 3

Classification of Organic personal care products

22

FIG. 4

Value chain analysis of global organic personal care product market

23

FIG. 5

Global organic personal care market, distribution channel share, 2011

25

FIG. 6

Natural & organic personal care products - new product launches, 2011 & 2012

27

FIG. 7

Per capita income of India and China, 2009-2012

30

FIG. 8

Porter’s five forces analysis

31

FIG. 9

Organic personal care market, by product

34

FIG. 10

Company market share, 2012

36

FIG. 11

Global organic personal care products market, revenue share by product type, 2011 and 2018

38

FIG. 12

Global organic skin care products market, 2011 – 2018 (USD million)

39

FIG. 13

Global organic hair care products market, 2011 – 2018 (Kilo Tons) (USD million)

40

FIG. 14

Global organic oral care products market, 2011 – 2018 (USD million)

41

FIG. 15

Global organic cosmetics market, 2011 – 2018 (USD million)

42

FIG. 16

Global other organic personal care products market, 2011 – 2018 (USD million)

43

FIG. 17

Global organic personal care products market, revenue share by geography, 2011 and 2018

FIG. 18

44

North America organic personal care products market, revenue share by country, 2011 and 2018

46

FIG. 19

U.S. organic personal care products market revenue, 2011 – 2018 (USD million)

47

FIG. 20

Mexico organic personal care products market revenue, 2011 – 2018 (USD million)

48

FIG. 21

Canada organic personal care products market revenue, 2011 – 2018 (USD million)

FIG. 22

48

Europe organic personal care products market, revenue share by country, 2011 and 2018

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9

Global Organic Personal Care Products Market 2012 – 2018 FIG. 23

Germany organic personal care products market revenue, 2011 – 2018 (USD million)

51

FIG. 24

France organic personal care products market revenue, 2011 – 2018 (USD million)

52

FIG. 25

United Kingdom organic personal care products market revenue, 2011 – 2018 (USD million)

53

FIG. 26

Russia organic personal care products market revenue, 2011 – 2018 (USD million)

53

FIG. 27

Italy organic personal care products market revenue, 2011 – 2018 (USD million)

54

FIG. 28

Spain organic personal care products market revenue, 2011 – 2018 (USD million)

55

FIG. 29

Rest of Europe organic personal care products market revenue, 2011 – 2018 (USD million)

FIG. 30

57

Asia Pacific organic personal care products market, revenue share by country, 2011 and 2018

58

FIG. 31

Japan organic personal care products market revenue, 2011 – 2018 (USD million)

59

FIG. 32

China organic personal care products market revenue, 2011 – 2018 (USD million)

60

FIG. 33

India organic personal care products market revenue, 2011 – 2018 (USD million)

61

FIG. 34

South Korea organic personal care products market revenue, 2011 – 2018 (USD million)

FIG. 35

Thailand organic personal care products market revenue, 2011 – 2018 (USD million)

FIG. 36

64

Rest of Asia-Pacific organic personal care products market revenue, 2011 – 2018 (USD million)

FIG. 38

63

Taiwan organic personal care products market revenue, 2011 – 2018 (USD million)

FIG. 37

62

65

RoW organic personal care products market, revenue share by country, 2011 and 2018 67

FIG. 39

Brazil organic personal care products market revenue, 2011 – 2018 (USD million)

FIG. 40

Rest of World organic personal care products market revenue, 2011 – 2018 (USD million)

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Global Organic Personal Care Products Market 2012 – 2018

List of Tables TABLE 1

Global Organic Personal Care Products Market Snapshot

19

TABLE 2

Drivers for organic personal care market: Impact analysis

24

TABLE 3

Restraints for organic personal care products market: Impact analysis

28

TABLE 4

North America organic personal care products market revenue, by type, 2011 2018 (USD millions)

TABLE 5

Europe organic personal care products market revenue, by type, 2011 - 2018 (USD millions)

TABLE 6

49

Asia Pacific organic personal care products market revenue, by type, 2011 - 2018 (USD millions)

TABLE 7

45

57

Rest of World organic personal care products market revenue, by type, 2011 2018 (USD millions)

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Global Organic Personal Care Products Market 2012 – 2018 About Us Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thoU.S.nds of decision makers. TMR’s experienced team of Analysts, Researchers, and Consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.

Each TMR syndicated research report covers a different sector — such as pharmaceuticals, chemical, energy, food & beverages, semiconductors, med-devices, consumer goods and technology. These reports provide in-depth analysis and deep segmentation to possible micro levels. With wider scope and stratified research methodology, our syndicated reports thrive to provide clients to serve their overall research requirement.

Copyright © 2013 Transparency Market Research All Rights Reserved. This document contains highly confidential information and is the sole property of TMR. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of TMR.

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Global Organic Personal Care Products Market 2012 – 2018

Chapter 1 Preface 1.1

Report Description 

To define and measure the global organic personal care products market with respect to products available



Detailed analysis of the market structure by identifying various sub-segments of the global organic personal care products market



Forecast trends of the global organic personal care products market and its various sub-segments, with respect to major geographies of the world



Identify the market trends and drivers of the global organic personal care products market along with risk and opportunities available for growth of the industry



Strategically analyze each submarket with respect to individual growth trends and contribution to the overall global personal care products market

This report categorizes the organic personal care market into the following product types: 

Skin care



Hair care



Oral care



Cosmetic



Others (deodorants, feminine hygiene products, etc)

The geographies covered in this report include North America, Europe, Asia Pacific and Rest of the World (RoW).

Apart from these geographies, the report also covers organic personal care products market analysis in countries such as U.S., Mexico, Canada, Germany, France, U.K., Russia, Italy, Spain, Japan, China, India, South Korea, Thailand, Taiwan, and Brazil.

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Global Organic Personal Care Products Market 2012 – 2018 1.2

Market segmentation

1.2.1 Global organic personal care products market segmentation, type and geography FIG. 1

Global organic personal care products market segmentation, type and geography Organic personal Care products

Type

•Skin care • Hair care • Oral care •Cosmetics •Others

Geography

North America

Europe

Asia Pacific

RoW

• U.S. • Mexico • Canada

• Germany • France • United Kingdom • Russia • Italy •Spain •Others

• Japan •China • India • South Korea •Thailand •Taiwan •Others

• Brazil • Others

Source: Transparency Market Research

1.3

Research scope

This report provides a strategic analysis of the global market for organic personal care products, and growth forecast for the period from 2012 to 2018. The scope of the report includes competitive analysis of market segment based on product for different regional market. The report also strives to compile together a broad view of the characteristics of organic personal

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Global Organic Personal Care Products Market 2012 – 2018 care products market by providing historical data from 2011 and a forecast of up to 2018 along with detailed analyses in terms of revenues.

The report also identifies various factors, affecting the market growth, which includes market drivers, restraints, and opportunities. These factors determine various trends which exist in the market and their impact on the growth. Inflation is not a part of pricing in this report. The global organic personal care products market size is provided in terms of revenue. Market revenue are defined in USD million. Market size and forecast for each product type is provided in the context of global as well as regional markets.

1.4

Research Methodology

For the research report, we conducted in-depth interviews and discussions with a wide range of key industry participants and opinion leaders. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. We reviewed the key players’ product literature, annual reports, press releases and relevant documents for competitive analysis and market understanding. Secondary research also includes a search of recent trade, technical writing, internet sources and statistical data from government websites, trade associations and agencies. This approach has proven to be the most reliable, effective and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.

Secondary Research The secondary research sources that were referred to include, but are not limited to: 

Company websites, annual reports, financial reports, broker reports, investor presentations and SEC filings



Industry trade journals, scientific journals and other technical literature



Internal and external proprietary databases, relevant patent and regulatory databases



National government documents, statistical databases and market reports

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Global Organic Personal Care Products Market 2012 – 2018 

News articles, press releases and web-casts specific to the companies operating in the market

The sources for secondary research include but are not limited to: 

Nutraceuticals magazine



NSF international



USDA organic skincare



Company annual reports



IFOAM



ECOCERT (France)



Certech (Canada)

Primary Research We conducted primary interviews on an ongoing basis with industry participants and commentators in order to validate data and analysis. A typical research interview fulfills the following functions: 

It provides first-hand information on the market size, growth trends, competitive landscape, future outlook, etc.



Helps in validating and strengthening the secondary research findings



Further develops the Analysis Team’s expertise and market understanding



Primary research involves E-mail interactions, telephonic interviews as well as face-to-face interviews for each market, category, segment and sub-segment across geographies

The participants who took part in this process included, but were not limited to: 

Industry participants: CEOs, VPs, marketing/product managers, market intelligence managers and national sales managers



Purchasing managers, technical personnel, distributors and resellers

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Global Organic Personal Care Products Market 2012 – 2018 

Outside experts: Investment bankers, valuation experts, research analysts specializing in specific markets



Key opinion leaders specializing in different areas corresponding to different industry verticals

List of companies contacted during primary research include but are not limited to: 

Estee Lauder



Bare Escentuals



L'Oreal



Colgate - Palmolive

Models Where no hard data was available, we used modeling and estimates in order to produce comprehensive data sets. A rigorous methodology was adopted in which the available hard data was cross referenced with the following data types to produce estimates: 

Demographic data: Population split by segment



Macro-economic indicators: GDP, etc



Industry indicators: Expenditure, technology stage & infrastructure, sector growth and facilities



Data was then cross checked by the expert panel

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Global Organic Personal Care Products Market 2012 – 2018

Chapter 2 Executive Summary The global market for organic personal care products was worth USD 6,915.8 million in 2011 and is expected to reach USD XX million in 2018, growing at a CAGR of XX% from 2012 to 2018.

2.1

Global organic personal care product market revenue, 2011 - 2018 (USD Million)

FIG. 2

Global organic personal care product market revenue, 2011 - 2018 (USD Million) 14,000.0

10,000.0 8,000.0 6,000.0

2,000.0

7,607.4

4,000.0 6,915.8

Revenue (USD Million)

12,000.0

2011

2012

2013

2014

2015

2016

2017

2018

Source: Nutraceuticals magazines, NSF international, USDA organic skincare, Primary interview, Transparency Market Research

The major factor driving the growth of the market is increasing consumer health awareness. In addition, widening distribution channels and launch of new products are some of the other factors contributing to the market growth. But due to shorter shelf life of the organic products and high prices of the raw materials are the major growth barriers of the market.

The skin care segment dominated the global organic personal care products market and occupied 32.1% of the total market in 2011, followed by the hair care and cosmetic segment that occupied 25.4% and 21.6% of the market share, respectively.

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Global Organic Personal Care Products Market 2012 – 2018

North America is expected to maintain its lead position in terms of demand and is expected to command 35.2% of the global organic personal care products market revenue share in 2018, followed by Europe. Europe is expected to occupy 28.6% of the global market in 2018.

2.2

Global Organic Personal Care Products Market Snapshot

TABLE 1 Global Organic Personal Care Products Market Snapshot Parameter Global Market Revenue (USD Million)

2011

2018

6,915.8

XX

CAGR (%) 2012 - 2018

Geographic share (%), by revenue

Key product type share (%), by revenue

Revenue: XX% North America: 34.8%

North America: XX%

Europe: 29.0%

Europe: XX%

Asia-Pacific: 24.0%

Asia-Pacific: XX%

RoW: 12.1%

RoW: XX%

Skin care: 32.1%

Skin care: XX%

Hair care: 25.4%

Hair care: XX%

Oral care: 13.8%

Oral care: XX%

Cosmetic: 21.6%

Cosmetic: XX%

Others: 6.9%

Others: XX% Bare Escentuals: XX%

Key player share (%), 2011

Estee Lauder: XX% Burt's Bee: XX% Others: XX%

Source: Transparency Market Research

High growth is expected to raise the market share of the organic personal care products in the overall personal care industry. Launches of new products are stimulating the market growth. Moreover, the entries of large multinationals are making organic products more visible and accessible to the consumers. With many new and different organic products marketed in the market consumer confusion is a major concern for the industry. As many new companies are entering the market tends to be more fragmented. Moreover, as the market matures, opportunities are tends to become scarcer.

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Global Organic Personal Care Products Market 2012 – 2018

There are many brands available in the market, however very few have a significant market share. The market for organic personal care products are highly fragmented as the top nine companies occupied more than 50% of the market share in 2011. The rest of the market is occupied by various small and private players. Some of the major players of the market are Bare Escentuals, Aveda, Origins (Estee Lauder), Burt's Bee (The Clorox Company) and The Body Shop, kiehls (L'Oreal).

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Global Organic Personal Care Products Market 2012 – 2018

Chapter 3

Organic Personal Care Products – Industry Analysis

3.1

Introduction

The organic personal care products are manufactured from natural ingredients of plants extraction under eco-friendly conditions. They include the products such as body care, facial care, sun care products, conditioners, shampoos, hair colors, mouthwash, toothpaste, mascara, lipstick, foundations, feminine hygiene products, deodorants etc. These products do not contain the synthetic chemicals such as parabens, phthalates, petrochemical and aluminum salts. Ecocert, Soil Association, Cosmebio, ICEA, BDIH, OASIS, NPA, NSF are the various standards available in Europe, Asia-Pacific, North America, and other regions in order to regulate and certify the organic products in the regions. In addition to this international and regional initiatives such as Cosmos and NaTrue also came into existence to standardize the organic personal care industry.

The organic personal care products market is segmented into different types including skin care, hair care, oral care, cosmetic and others. Skin care products include facial care products such as moisturizers, cleansers etc; body care products such as foam bath, lotions, etc.; sun care products such as lotions, sun screen, etc. Organic hair care products include shampoos, conditioners, hair colors and styling products. Organic oral care products includes toothpastes, mouthwashes etc. Organic cosmetics include foundation, mascara, lipstick, etc. And the others segment includes deodorants, toiletries, and feminine hygiene products etc. Organic skin care products dominate the global organic personal care market which is followed by organic hair care products.

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Global Organic Personal Care Products Market 2012 – 2018 3.1.1 Classification of o rganic personal care product FIG. 3

Classification of Organic personal care products Organic personal care products

Skin Care products

•Facial care •Body care •Sun care

Hair care product

•Shampoos, •Conditioners •Hair color •Styling products

Oral care products

•Toothpastes •Mouthwashes

Cosmetics

•Foundation •Mascara •Lipstick •Color cosmetics

Others

•Deodorants •Toiletries •Feminine hygiene products

Source: Transparency Market Research

Organics are the fastest growing segment of global personal care industry. Rising concerns for health safety, increasing green consciousness and growing consumer’s awareness of hazards of synthetic chemicals have fueled the demand for organic personal care products. With the high growth of the industry many major personal care manufacturing companies are entering into the manufacturing of organic personal care products. Low consumer understanding of organic personal care products, curbing pseudo-organic products competing with organic products multiple standards creating consumer confusion are few of the factors dampening demand the demand of organic personal care products

North America is the major and well developed market for organic personal care and the other major personal care products manufacturing nations include Germany, France, Italy, United Kingdom, Spain, Russia and Brazil. U.S. is the most attractive market in North America where as Japan is experiencing an organic boom and dominates the organic personal care market in whole Asia Pacific.

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Global Organic Personal Care Products Market 2012 – 2018 3.2

Value chain analysis

3.2.1 Value chain analysis of global organic personal care market FIG. 4

Value chain analysis of global organic personal care product market Direct online marketing

Raw material suppliers •Earth Supplied Products LLC •Actives International •BioChemica Int’l, Inc. •Bio-Botanica Inc

R & D and design •L’Occitane en Provence •Kiehl’s •Arbonne

Manufacturers

•Aveda •Burt's Bee •Jason Natural Products •Body Shop •Natura Cosméticos S.A.

Distribution

Consumers

•Retailers •Marketing agreements •Collaborations •Online stores •Wholesalers

•Men •Women •Beauty Salons •Health Spas

Moderate level of vertical integration Source: Transparency Market Research

The basic raw materials used in the making of organic personal care products include essential oils, herbs, herbal extract, vitamins and preservatives. Raw material distributors and suppliers such as Earth Supplied Products LLC, Actives International , BioChemica Int’l, Inc., BioBotanica Inc supply various raw materials and ingredients to the manufacturers of the organic personal care products for R&D and manufacturing of organic personal care products. The R&D activities help to remove the harmful effects of the raw materials which is followed by the process of product manufacturing.

The manufacturing process includes in-house production of goods through owners brand or through contract manufacturers. Finished goods completes the manufacturing process including the packaging of products. The finished organic personal care products are then distributed to consumers through various distribution networks. Premium organic personal care products have been sold through department stores in most of the major markets. In recent years, the slow market growth rates and rising competition are pushing brands towards new other distribution channels such as direct sales, specialty retail stores, drug stores, pharmacies, mass merchandisers such as Wal-Mart and target, supermarkets such as Loblaws and Safeway,

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Global Organic Personal Care Products Market 2012 – 2018 hyper market, and the online stores such as Walgreens, Amazon.com, Drugstore.com, Sephora.com, Vitacosthave developed, offering consumers other opportunities to purchase premium products. The Body Shop, L’Occitane en Provence and other such companies carry out direct marketing and have developed their own distribution network, while some are engaged in third party distribution agreements. For instance, in December 2012, Eastman Chemical Company extended its exclusive sustainable personal care products distribution agreement with Ross Organic that allows Eastman Chemical Company to distribute its organic personal care products in U.S. Many companies are aiming at strengthening their distribution to increase their market penetration. Direct online marketing is also one of the popular distribution channel used by the manufacturers of organic personal care products such as L’Occitane en Provence, Kiehl’s, Avalon Organics, etc.

The organic personal care industry is characterized by moderate level of forward vertical integration. Manufacturers of organic personal care products such as Bath & Body Works, Yves Rocher, Clarins, Kiss My Face, etc. are also involved in the distribution of products to the end users through various distribution channels such as specialty stores, online marketing, retail stores, etc. Typical end users for organic personal care products include men, women, beauty salons and health spas, etc.

3.3

Market Drivers

3.3.1 Drivers for organic personal care market: Impact analysis TABLE 2

Drivers for organic personal care market: Impact analysis 2012 – 14

2014- 16

2016 -018

Market Drivers Impact Increasing consumer health awareness

XX

XX

XX

Widening distribution channels

XX

XX

XX

New product launches

XX

XX

XX

Source: Transparency Market Research

3.3.2 Increasing consumer health awareness Many health risks are associated with the use of synthetic personal care products due to the presence of chemicals, such as phthalates, petroleum based chemicals, parabens, aluminum

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Global Organic Personal Care Products Market 2012 – 2018 salts etc. This has resulted into the shift of consumer preference towards organic personal care products which are sustainable and non toxic. More over the consumers look for safety assurance of the products they buy and aim to use organic personal care products which not only protects their health but also the environment. Organic personal care products are growing in popularity among the end users due to their eco-friendly nature. Thus the increase in consumer health awareness will continue to drive the growth of organic personal care market during the forecasted period.

3.3.3 Widening distribution channels In personal care industry product availability and retail shelf space plays a very important role in creating the demand of the product. Distribution is a key success factor in current organic personal care industry. Rising competition and comparatively slow market growth rate of organic personal care market has made the companies to focus on increasing product penetration in global market. Supermarkets, drugstores, mass merchandisers, club stores etc plays vital role in distribution of organic personal care products. Rising consumer demands for green products is driving the shift from niche distribution channels to mainstream mass retailers. Mass merchandisers such as Wal-Mart and target are introducing organic personal care products. Moreover, supermarkets such as Loblaws and Safeway are also expanding product ranges. This has resulted into the sharp increase in sales of organic personal care products. At present even if the organic personal care products are making inroads in drug stores, beauty retailers, pharmacies and mass market retailers the specialist retail outlet still constitute the major share in the market. Moreover salons, spas and beauty centres were also found to be increasingly useful to reach end users. 3.3.3.1

FIG. 5

Global organic personal care market, distribution channel share, 2011 Global organic personal care market, distribution channel share, 2011

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Global Organic Personal Care Products Market 2012 – 2018 3.4

Restraints

3.4.1 Restraints for organic personal care products market: Impact analysis TABLE 3

Restraints for organic personal care products market: Impact analysis 2012 –14

2014- 16

2016 -18

Market Restraints Impact Short shelf life

XX

XX

XX

Cost constraints

XX

XX

XX

Source: Transparency Market Research

3.4.2 Short shelf life Since personal care products are expected to have a longer shelf life, shorter shelf life of organic personal care products is the another factor which is holding back the demand of consumers. Synthetic products are loaded with large amount of preservatives in order to preserve their attributes. However, organic personal care product manufacturers have a hard time to find the organic ingredients as an alternative to synthetic preservatives. The organic products with no preservatives or one with all natural preservatives have a short shelf life, or need to be refrigerated. As companies seek alternative to synthetic preservative, the organic personal care industry as whole is moving forward on this challenging issue. For instance, Aubrey Organic has developed a preservative with grape seed extract and vitamins which helps to extend the shelf life of organic personal care product.

With the further development in this field manufacturers can overcome the hurdle of short shelf life of organic personal care products. Thus impact of these restraints is expected to shift from medium to low in the years to come.

3.4.3 Costing issues compared to synthetic products Organic personal care products are generally sold at premium prices and their prices ranges from 3 to 5 times from that of synthetic personal care products. Cost constraints has been remained the major restraint holding back the growth of organic personal care market. Key factors affecting prices of organic personal care products includes, cost intensive product certification process, high and volatile prices of key raw materials, and labour intensive

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Global Organic Personal Care Products Market 2012 – 2018 3.6 FIG. 8

Porter’s five forces analysis Porter’s five forces analysis Supplier Power High High

Threat from substitutes Low Low

 High cost of switching suppliers  Volatile raw materials  Creditable threat of forward integration

 Focus on research and development to develop cost effective organic personal care products  Pseudo labeled organic products

Degree of Competition High High

Buyer Power Low Medium

 Frequent mergers and acquisition  Focus on product innovation to reduce product pricing and capture market share  Large and fragmented group of companies are present in the market  Intense competition at domestic level

 Highly unorganized end users  Well established brands  As product quality and origin are of importance, buyers may not choose to switch between established brands

Threat from New Entrants Medium High

 Capital Intensive technology  Favourable regulatory policies  Branding plays a critical role in the organic personal care market  Rapid growth in demand

Source: Transparency Market Research

3.6.1 Bargaining power of suppliers The suppliers of raw material to the personal care product market include suppliers of plants oils, vitamins, or a range of herbs and many more. Raw materials account for more than 50% of organic personal care products costs in general. Cost competitiveness remains key for large marketers, while niche markets can support the inclusion of high-end specialty ingredients. Also, there is significant threat of forward integration from raw material suppliers getting into the manufacturing space to develop products.

In addition, cost of switching raw material vendors is high owing to the strict regulatory compliance required while sourcing raw materials. With increasing demand for natural

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Global Organic Personal Care Products Market 2012 – 2018 Escentuals, Aveda and Burt's Bee are the market leaders making market penetration highly complex for new entrants.

Thus, competition in the market is expected to remain high over the next six years.

3.7 Market Attractiveness Analysis FIG. 9

Organic personal care market, by product 10.5%

Market Growth Rate (CAGR)

10.0% 9.5% 9.0% 8.5% 8.0% 7.5%

Skin care

Hair care

Oral care

Cosmetic

Others

Source: Nutraceuticals magazines, NSF international, USDA organic skincare, Primary interview, Transparency Market Research

Skin care products are the largest segment in terms of revenue and will continue to dominate the organic personal care product market in future growing at a rate of XX% with the highest market attractiveness. The market is witnessing growth owing to increasing consumer awareness towards personal health and hygiene and rising concerns regarding skin care. Second lead is occupied by hair care segment which is expected to grow at a rate of XX% is also a highly attractive market. The major factors contributing to the growth of this segment are launch of new products and widening distribution channels.

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Global Organic Personal Care Products Market 2012 – 2018 3.8

Organic personal care market: Company market share analysis

FIG. 10

Company market share, 2012

Bare Escentuals

Estee Lauder

Burt's Bee

The Hain Celestial Group

Harvest Partners

L'Oreal

L'Occitane

Tom's of Maine

Yves Rocher

Others

Source: Nutraceuticals magazines, NSF international, USDA organic skincare, Primary interview, Transparency Market Research

The organic personal care products market are the highly fragmented market with the top nine players occupied more than XX% of the market in 2012. Bare Escentuals occupied XX% of the market share in 2012. Companies such Estee Lauder (Aveda, Origins), Clorox (Burt's Bee), Hain Celestial Group (Jason Natural Products, Avalon, Alba) and Harvest Partners (Arbonne, Nature's Gate) occupied similar market share ranging from XX% to XX%. Premium brands are targeting high end retailers. While, others brands are targeting supermarkets, drugstores, pharmacies and department stores. Retailer’s private labels are becoming prominent and are most successful in the organic personal care products markets.

Large cosmetics companies such as L’oreal (The Body Shop, kiehls) and Colgate – Palmolive (Tom's of Maine) has adopted the acquisition strategy to enter the organic personal care products markets and occupied XX% and XX% of the market share in 2012. While companies

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Global Organic Personal Care Products Market 2012 – 2018

Chapter 4 Organic Personal Care Products- Product Segment Analysis 4.1

Global organic personal care products market, by product type: Overview

Organics is the fastest growing sector in the global personal care industry. The organic personal care products are replacing synthetic personal care products. The demand for chemically clean personal care products has grown considerably in recent years due to the rising consumer awareness about the possible dangers of harmful chemical used in synthetic personal care products. The personal care products made with agricultural ingredients that meets handling, processing and labeling standards of regulatory authorities such as Ecocert, USDA, Cosmebio, ICEA, BDIH, OASIS, NPA, NSF are mainly termed as organic products. The organic personal care products include skin care, hair care, oral care, cosmetics, toiletries, female personal hygiene and deodorants. Organic skin care products are the most widely used organic personal care products globally.

4.1.1 Global organic personal care products market revenues share, by product type, 2011 and 2018 FIG. 11

Global organic personal care products market, revenue share by product type, 2011 and 2018 2011

2018

6.8% 32.2%

21.5%

13.9%

Skin care

25.5% Hair care

Cosmetic

Others

Oral care

Skin care

Hair care

Cosmetic

Others

Oral care

Source: Nutraceuticals magazines, NSF international, USDA organic skincare, Primary interview, Transparency Market Research

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Global Organic Personal Care Products Market 2012 – 2018

Chapter 5 Organic Personal Care Products Market- Regional Analysis 5.1

Global Organic personal care products market: geographical overview

The global organic personal care industry is spread around the world, with many countries currently producing and exporting organic personal care product. Traditionally, Europe and North America are the major markets for organic personal care products. In recent times, increase in the demand for organic personal care products in Brazil, Mexico, China, India, and South Korea have gained the attention of manufacturers for the expansion in these countries.

5.1.1 Global organic personal care products market, revenue share by geography, 2011 and 2018 FIG. 17

Global organic personal care products market, revenue share by geography, 2011 and 2018 2011

2018

12.1%

34.8% 24.0%

29.0%

North America

Europe

Asia Pacific

RoW

North America

Europe

Asia Pacific

RoW

Source: Nutraceuticals magazines, NSF international, USDA organic skincare, Primary interview, Transparency Market Research

The awareness of organic personal care products has increased to almost all regions but North America and Europe is the major contributor of the growth. In 2011, the organic personal care products markets was dominated by North America which occupied 34.8% of the market share and is expected to maintain its dominance for the next five years. The market is witnessing growth partly due to increased awareness about the organic principle and mainly due to entry of

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Global Organic Personal Care Products Market 2012 – 2018 new multinationals which are making organic products more easily accessible and visible for the consumer. Europe which occupied 29.0% of the market in 2011 is expected to lose out its market share in future. The Asia Pacific market is expected to increase its share in the global organic personal care products market by XX% from 2011 to capture XX% of the global market in 2018. The growth in the market is driven due to rising green consciousness and growing awareness and affinity for organic ingredients. Rest of the World (RoW) is also expected to lose market share from 12.1% in 2011 to XX% in 2018.

5.1.2 North America organic personal care products market revenue, by type, 2011 - 2018 (USD million) TABLE 4

Segment

North America organic personal care products market revenue, by type, 2011 - 2018 (USD millions)

2011

2012

2013

2014

2015

2016

2017

2018

CAGR % (2012 – 2018)

Skin care

XX

XX

XX

XX

XX

XX

XX

XX

XX

Hair care

XX

XX

XX

XX

XX

XX

XX

XX

XX

Oral care

XX

XX

XX

XX

XX

XX

XX

XX

XX

Cosmetic

XX

XX

XX

XX

XX

XX

XX

XX

XX

Others

XX

XX

XX

XX

XX

XX

XX

XX

XX

Total

XX

XX

XX

XX

XX

XX

XX

XX

XX

Source: Nutraceuticals magazines, NSF international, USDA organic skincare, Primary interview, Transparency Market Research

The North America organic personal care product market by revenue in 2011 was valued at USD XX million. It is expected to reach USD XX million in 2018, growing at a CAGR of XX% from 2012 to 2018. The revenue generated by skin care segment in North America is expected to grow at a CAGR of XX% from 2012 to 2018. Hair Care is the largest product segment in terms of revenue and has the highest expected growth. The total revenue generated by hair care segment in 2011 was USD X million and is expected to reach USD XX million in 2018. The revenue generated by oral care segment is expected to reach USD XX million in 2018, growing at a CAGR of XX% from 2012 to 2018, whereas the revenue generated by cosmetic segment is expected to grow at a CAGR of XX% from 2012 to 2018.

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Global Organic Personal Care Products Market 2012 – 2018 5.1.3 North America organic personal care products market, revenue share by country, 2011 - 2018 (USD million) FIG. 18

North America organic personal care products market, revenue share by country, 2011 and 2018 2011

US

Mexico

2018

Canada

US

Mexico

Canada

Source: Nutraceuticals magazines, NSF international, USDA organic skincare, Primary interview, Transparency Market Research

As seen above, U.S. is the region with the largest market share in organic personal care products market. In 2018, revenue of U.S. is expected to account for XX% of the total organic personal care products market, up XX% from its 2011 share. Mexico which occupied XX% of the market in 2011 is expected to lose out its market share in future. 5.1.3.1

U.S. organic personal care products market, 2011 – 2018(USD million)

Due to the strong awareness of organic principles in North America, the U.S. market offers the greatest potential for organic personal care products. Moreover, launch of new products is stimulating the market growth. The entry of large multinationals is making organic products more accessible to the consumers. Most of the leading manufacturers of organic- personal products includind Bare Escentuals, Aveda, Origins, The Hain Celestial Group, L'Occitane etc are based in U.S.

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Global Organic Personal Care Products Market 2012 – 2018 FIG. 19

U.S. organic personal care products market revenue, 2011 – 2018 (USD million)

4,500.0 Revenue (USD Million)

4,000.0 3,500.0 3,000.0 2,500.0 2,000.0 1,500.0 1,000.0 500.0 2011

2012

2013

2014

2015

2016

2017

2018

Source: Nutraceuticals magazines, NSF international, USDA organic skincare, Primary interview, Transparency Market Research

The U.S. organic personal care products market generated revenue of USD XX million in 2011. By the end of 2018, the revenue is expected to reach up to USD XX million, growing at a CAGR of XX% from 2012 to 2018. 5.1.3.2

Mexico organic personal care products market revenue, 2011 – 2018(USD million)

Mexico is another biggest market in North America for organic personal care products. The market is witnessing growth due to the rise in purchasing power of the consumer owing to the increased access to various types of credit which have permitted the Mexican consumer to access the better quality products which have increased the demand for organic personal care products.

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Global Organic Personal Care Products Market 2012 – 2018

Chapter 6 Company Profiles 6.1

Aveda Corporation

4000 Pheasant Ridge Drive Blaine, Minnesota 55449 U.S. Tel: 1-612-783-4000 Website: www.aveda.com

6.1.1 Company overview Aveda Corporation is a Minnesota, U.S. based company headquartered in Blaine. It was founded in the year 1978. Aveda has manufacturing plants producing skin care products, perfumes, life style products, cosmetic products & hair care products. The company's skincare products consist of treat/correct, cleanse/tone, and moisturize/protect. Its styling products encompass curls/waves hair sprays, gels, and shines. The company's body care products include moisturize, exfoliate, cleanse, shave, and sun care products. It also provides makeup products for eyes, lips, cheeks, and face. The company also operates chain of salons/spas and stores. They operates in various locations including Canada, U.S., the United Kingdom, Austria, Australia, Denmark, Belgium, France, Hong Kong, Germany, Iceland, Italy, Ireland, Jamaica, South Korea, Japan, Malaysia, Luxemburg, Switzerland, the Netherlands, Norway, New Zealand, Spain, the Puerto Rico, and Taiwan. It operates as a subsidiary of Estee Lauder Companies, Inc. The company had about 500 employees at the end of December 2011.

6.1.2 Financial overview The company reported annual sales of about USD 9.71 billion for the financial year ended 2012 with a rise of 10% from 2011.

6.1.3 Business strategy Estée Lauder Companies Inc strategy is to primarily focus on cosmetic market from mass beauty product to prestige beauty product. The company focuses on launch of new prestige beauty products and supports the launch of its new product by means of dynamic advertising on both social & commercial media, increasing the spending on advertising in some select countries

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Global Organic Personal Care Products Market 2012 – 2018 which has resulted in an increase in its customer base. The company also focuses attention on expanding its operations by geographic expansion in existing as well as other untapped growing economies of the world

6.1.4 SWOT analysis Strengths  

Strong presence in almost all of the major markets for personal care products

Weaknesses 

Premium price products



Large working capital required

Growing credibility

Opportunities



To become entirely organic certified company to increase the brand value



Influencing worldwide consumers

Threats



Financial instability



Competition from similar products

6.1.5 Recent developments In 2012 Aveda launched its newest hair care product line called Invati which was well received by the customers & lifted Estee lauders overall hair care product sales.

6.2

Amway

Amway 7575 Fulton Street East Ada, MI 49355-0001 U.S. Tel: 1-800-253-6500 Website: www.amway.com

6.2.1 Company overview Amway is one of the world’s largest direct selling companies, headquartered in Ada, Michigan, U.S. It was founded by Jay Van Andel and Rich DeVos, in the year 1959. Amway offers a wide

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