Although growing at a fast rate (about 15 per cent a year), the market for natural and organic cosmetics in the Nordic countries remains smaller than the European average, which is surprising considering the popularity of organic foods in the region.
According to the market researcher, market share for organic and natural cosmetics stands at 2 per cent in the region, compared to 4-5 per cent in some of the leading Western European countries.
In contrast, Nordic consumers spend approximately double that of other Europeans on organic foods.
Not only is the market smaller than in other European countries, it is also dominated by international players. In Finland, for example, imported brands, from North America, Australasia and Europe, make up about 95 per cent of the natural cosmetic sales.
Prominence of the Nordic Swan
Organic Monitor suggests that the reticence from domestic brands to enter into this market could be related to the prominence of the Nordic Swan eco label, which measures the environmental profile of a product. The label is present on a wide range of cosmetics and toiletries and has been the focus of domestic brands for many years.
“With Nordic companies focusing on the Nordic Swan eco-label, consumers are turning to imported brands when seeking ‘chemically-clean’ cosmetics,” the market research company said.
These international brands often focus specifically on one distribution channel, according to Organic Monitor, which highlighted UK company REN skincare that has been concentrating on the beauty retailers and department stores. In contrast, US brand Aveda has been focusing on spas and salons in order to make inroads into the region.
Although domestic companies are currently not well represented in the market, Organic Monitor does expect interest to grow.
“Most interest is coming from Danish companies, but hardly any interest from companies in other countries,” a spokesperson for the market research company told CosmeticsDesign-Europe.com.
“We expect more Nordic companies to enter the market as they realise the growth opportunities in this emerging market,” the spokesperson added.