Although green is undoubtedly the color of the future in the personal care market, companies launching new brands in this arena should remember that household budgets remain stretched and consumers may not be prepared to pay more for the privilege of an eco-friendly product, according to an analyst at market research company Mintel.
Particular care should be taken when the new launch edges close to the luxury market, argued analyst Rachele Dini, as consumers are currently averse to statements claiming ‘luxury’ and are instead turning towards those that proclaim ‘value’.
The analyst’s comments were in reference to a re-launch of US luxury brand Portico, which released a range of eco-bath and beauty products earlier this year.
Dini describes the current climate as an ‘odd time’ to launch a line of expensive discretionary items – prices hover around the $15 mark for products such as scrubs, body lotions and shampoos.
Although she said the eco-friendly orientation was in keeping with the future of the personal care market, she referred to the launch as ‘precocious’.
A ‘second mainstream’ market
The market for natural and organic personal care products was recently estimated to stand at $4.3bn by market research company Packaged Facts.
Market growth of up to 50 percent was predicted; meaning the value of the market would stand at approximately $6.6bn by 2010.
The Packaged Facts report, launched in June, stated that the market was now so significant it should no longer be referred to as an ‘alternative’ market, and instead should take on the title of ‘second mainstream’.
Key areas of growth, according to the report, are non-chemical based toothpastes, deodorants, anti-aging products, shampoo and make-up.