Rising consumer awareness of natural and organic products is fuelling product sales across the region, according to a new study by Organic Monitor.
Asia has one of the fastest growing markets for natural & organic cosmetics, with sales revenues projected to exceed US$ 1 billion in the coming years. The new study shows the largest market is in China. In spite of many green brands boycotting the Chinese market, it remains the most prominent in Asia. High-end brands are coming into the Chinese market, attracted to the rising purchasing power of its consumers. Japan has the second largest market for natural & organic cosmetics in Asia.
Concept stores are the most important channel for natural & organic cosmetics. Many brands – Western and Asian – are opening stand-alone stores or salons for their brands. The American company Aveda is the frontrunner, operating concept salons across Asia. A growing number of Asian brands, such as Forest Essentials, are also investing in concept stores to raise visibility and awareness of their product ranges.
Standards are becoming increasingly important, with a growing number of brands taking the certification route. Ecocert standards are the most popular, having the highest adoption rate among Asian brands.
Organic Monitor finds greenwashing a major challenge for natural and organic brands in the region. Asia is rife with brands making false natural / organic marketing claims, with some placing fake logos and symbols on product packs. As a consequence, there is a high level of consumer confusion about natural and organic cosmetic ingredients.
To help overcome these challenges, Organic Monitor will be hosting dedicated workshops on natural & organic cosmetics in Asia later in the year.
