"Consumers are increasingly expecting skin care products to perform their function while being safe," says Euromonitor's Claire Briney. "The presence of 'natural' ingredients, such as botanical extracts, honey and milk, produces a psychological benefit, as these ingredients are associated with comfort and 'home cooking'."
Euromonitor estimates that the global market for body care products was valued at $8.7 billion in 2004. Of this figure $7.2 billion is accounted for by general purporse body care products, which grew by 5.2 per cent compared to 2003.
A report by TNS Media Intelligence/CMR, entitled the US Market for Natural Personal Care Products, found that the natural/organic skincare, haircare and cosmetics market is expanding significantly and is expected to reach $5.8 billion by 2008, from about $3.9 billion in 2003. That means that the average annual growth for the period will be at least nine per cent.
However, the biggest growth segment was for firming and anti-cellulite body care products, which grew by a robust 14.2 per cent to reach a global market value of $1.5 billion.
In line with this, Briney says that demand for 'natural' skin care lines has increased as manufacturers have updated their products' packaging for a fresher, more upscale appearance.
Examples of this are found in the the expansion of Origins and Aveda, which has prompted smaller producers to introduce more products and rejuvenate their packaging to compete against the heavyweights.
Now what started out as a niche market for environmentally conscious consumers devoted to organic products has turned into big business.
Leading US-based natural personal care manufacturer Burt's Bees has evolved from a business selling beeswax-based lip balm and furniture polish at craft fairs into a multi-million dollar business.
The company had estimated revenues of $59.4 million in 2003. In October, the co-founder sold 80 per cent of the privately-held company to AEA Investors, a private-equity firm, for $177 million.
Many of Burt's Bees consumers like the fact all of its products specify the percentage of natural ingredients in the item. The company's cosmetics and personal care range which now includes lines such as the Carrot Seed Oil Complexion Mist are sold in a wide variety of retail outlets, from the Whole Foods natural supermarket chain and other natural foods stores to upmarket department stores such as Nordstrom's and Marshall Fields.
Stores such as Nordstrom's have noted the growing interest in 'natural' personal care products and have expanded their selections accordingly, Briney also points out.
"Along with exposing more Americans to organic foods, Whole Foods has also educated consumers about natural personal care products," she said. "Now the supermarket chain devotes considerable space to natural personal care products - moisturisers, lip glosses and toothpaste, to name a few," she said.
Organic products are also a growing trend. Juice Beauty, a manufacturer of premium organic, aromatherapeutic skin care products, was founded in 2001 and launched nationally in January 2003.
The Juice Beauty line is available not only in natural food stores such as Whole Foods supermarkets but also in prestige outlets such as beauty specialist Sephora and speciality department store Nordstrom's. Bath & Body Works newest flagship apothecary stores are now stocking this line.
On top of this both Avalon Natural Products and Tijeras Organic Alchemy introduced new organic body lotions in 2003. Avalon Organic Botanicals Hand & Body Lotion - Therapeutic Ylang Ylang contains 72 per cent certified organic ingredients.
Evidence is growing that the demand for organic- and natural-based ingredients in products segments such as body care is driving this category beyond being just a cottage industry and into mainstream cosmetics and personal care manufacturing.
And the growing number of product launches in this category and their continued success suggests this is much more than just a passing fad.