Natural/Organic Consumer Products Attract Greater Market Share

The growing interest in natural and/or organic ingredients in consumer products is very similar to the interest in foods that are organic or GMO-free, gluten-free or vegan. They may include activated charcoal (in which charcoal is treated with a gas that renders it highly porous and able to absorb compounds and chemicals) or cacay oil (the oil from the cacay nut that is said help fight signs of aging). The Organic Trade Association reported that organic personal care products accounts for only 1.25% of total U.S. sales. (The U.S. Department of Agriculture defines organic personal care products as those containing at least 70% organic ingredients.)

A recent survey conducted by consulting firm CEB found that almost 50% of shoppers regularly look at personal care product ingredient labels. Older Millennials and Gen Xers are the most likely to read labels.

Organic products generally sell at higher prices than those with traditional ingredients. A growing number of consumers tout organic products as having superior texture or performance. Other proponents cite the health benefits of avoiding chemicals and potentially poisonous treatments used as stabilizers to prolong shelf life. There is currently no research data to support these claims.

The organic trend plays particularly well in a segment of the population referred to as “LOHAS,” that is, consumers who attempt to practice a lifestyle of health and sustainability. This is a well-educated group with significant purchasing power that would be interested in products such as hybrid automobiles, renewable or high-efficiency energy systems, and “Fair Trade” coffee.

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Natural/Organic Consumer Products Attract Greater Market Share, Business and Industry Trends Analysis

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