Nordic natural market shows healthy growth
The Nordic market for natural personal care products is projected to show healthy growth this year. Consumer demand has remained buoyant during the coronavirus pandemic, according to new research by Ecovia Intelligence.
Natural personal care product sales have been increasing at double-digit rates. Although lockdowns and weak economic conditions have affected the retail and professional sector, consumer demand for natural & organic products has remained strong. With over a half of natural personal care product sales from specialist retailers, pharmacies and supermarkets, sales have been less affected than for conventional cosmetics & toiletries.
Denmark has the largest natural personal care products market in the Nordic region. Natural products comprise roughly 7% of total personal care products in Denmark; the market share is one of the highest in Europe. The Finnish natural personal care products market is projected to show the highest growth in the coming years. Major drivers of market growth are rising consumer awareness of synthetic chemicals in cosmetics & toiletries, widening distribution, and new product launches.
The Nordic market has witnessed a large number of new product launches in recent years. Natural & organic brands are being introduced by start-ups, large cosmetic firms, and retailers. The Nordic region now has over 50 native brands, up from about 20 in 2008. Urtekram remains the market leader, however its market share has been eroded by new entrants. Market winners are brands that are focusing on clean formulations and targeting specific market segments.