According to a market study done by Cheong (2015), In the Australian cosmetic

market, there is an increasing demand for “natural” products that primarily features
organic oils and other biodynamic ingredients. Similary, according to the same study,
US companies could find great opportunities in niche products such as organic
cosmetics, as demand is predicted to grow at a faster rate than the demand for
traditional products. Siitan (2015) notes that over the past decade, environmental
concern and greater product awareness among consumers have been noticed. This has
led to a growing demand in natural, organic, and eco-friendly products.

According to reports compiled by the World Organic Monitor (2011) which aims
to give an overview on market analysis towards trends in personal care products and
natural cosmetics in Europe revealed that the fastest growing markets for natural
cosmetics are France, Germany, and Italy. Based on the report, the boom in the
natural cosmetic industry in Europe is due to the increase in the demand for
“chemically clean” products, which caused a greater distribution of supply of these
natural cosmetics across the region. Mason (2009) argues that the continuous increase
in demand and supply of organic cosmetics are due to the fact that consumers are
now, more than ever, concerned about the health implications and the bad effects of
synthetic chemicals in beauty products. This causes consumers to lean more towards
natural products. However, there remains a confusion over varying eco-certificates
and varieties of logos indicating the authenticity of the organic product. Consumers
are now demanding for more transparent marketing, especially in the organic
cosmetics industry. Similarly, brands that are socially and environmentally committed
are now more valued.

Organic Monitor’s initial report of Central and European organic cosmetics

industry which was published in 2013 showed an increase in the growth of the market
which is caused by increasing customer awareness. People are now more conscious
about the ingredients of traditional cosmetics and the harm it does to the human body.
Supply also continues to grow. Organic products are now being widely available
through various channels of distribution across different parts of Europe. A study
conducted by Tait (n.d.), consumer demand for cosmetics with natural ingredients are
also affecting the supply market for personal care products. According to the same
study, cosmetics and toiletry products containing natural ingredients are reviving the
growth in maturing cosmetics markets. Falk (2008) argued that the new trend of
sustainability is another factor causing the rise in the demand for organic products
such as cosmetics. When introducing new cosmetic products, manufacturers are now,
more than ever, emphasizing that they were produced in ways that are not
environmentally-damaging. Additionally, the use of organic components such as plant
extracts in cosmetics products is highlighted by consumer’s ever changing demands,
which are now increasingly concerned with the purchase of environmentally-friendly
products. According to the same study, the increased demand in natural and organic
cosmetic products is partly attributable to the harmful effects caused by chemical and
synthetic ingredients, used in many skincare and cosmetic products which can cause
undesirable side effects, especially to people with sensitive skin conditions. Due to
this, Large corporations are now attempting to follow the natural trend, which
increases its supply. In fact, according to the mentioned study by Falk (2008), it is the
first time that Procter and Gamble (P&G) has published a list of 140 fragrances which
are no longer used in their products, lowering the supply of non-organic and synthetic
products, and increasing the supply of environmentally-friendly, organic, and natural
cosmetic products.

Cheong, S. (n.d.). Asia Personal Care & Cosmetics Guide. International Trade
Administration. Retrieved from
https://www.trade.gov/industry/materials/AsiaCosmeticsMarketGuide.pdf.

Siitan, K. (2015). Consumer behavior and the i nfluence of in - store factors on

consumption of natural beauty care products in the Estonia n Market. Retrieved
from https://www.theseus.fi/bitstream/handle/10024/93676/Siitan_Kaisa.pdf?
sequence=1.

Organic Monitor. (2011). The Central & Eastern European Market for Natural
Cosmetics. Retrieved from: http://www.organicmonitor.com/200160.htm

Organic Monitor. (2013). The Central & Eastern European Market for Natural
Cosmetics. Retrieved from: http://www.organicmonitor.com/200160.htm
Mason, S. (2009). Breaking Barriers, Retail’s Natural (R)evolution. Global Cosmetic
Industry,177:S8-S12, Business Source Elite, EBSCO host.

Tait, L. (n.d.). “The growth of natural ingredients”. Euromonitor International.

Falk J., Benson L. (2008). The future of beauty. Global Cosmetics Industry. Retrieved
from: http://www.gcimagazine.com/business/management/30687394.

Emerald, M. et al. (2016). Perspective of natural products in skincare. Pharmacy &

Pharmacology International Journal. Retrieved from:
http://medcraveonline.com/PPIJ/PPIJ-04-00072.pdf