The surge in consumer interest in, and adoption of, natural personal care products around the globe has driven outstanding growth in this segment of the market even as the overall industry has posted lukewarm results, according to a report from market research firm, Kline.
The report also states that naturals will continue to pull ahead of the pack with stellar growth expected in key emerging markets, including Asia. Buoyed by a longstanding tradition of herbal remedies, Asia remains the largest market for natural personal care in the world, but now ranks second to Brazil in its pace, posting double-digit growth in 2010. Here, truly natural formulations hold a larger share at nearly one-fourth of the market, but growth in natural-inspired products is gaining strength as consumers demand mass products at lower prices. Also poised for double-digit growth, the market for naturals in Asia is expected to surge by a nearly 14% CAGR through 2015, buoyed by rapidly increasing urban population and greater awareness of natural products, especially in China, India, and Indonesia. Renewed interest for natural products – and a change in the perception of naturals from that of cheap alternatives to mass brands – is creating healthy competition and encouraging domestic brands to invest in research and development to improve product quality. The dominance and wide acceptance of herbal natural products in China and India will ensure ongoing demand in the natural segment.
