expert Elfriede Dambacher1, Natural and Organic
cosmetics in Germany have reached over 1 million euro and took 16,5% of whole
Cosmetic Market in 2016, while market volume has grown almost 2 times in last
10 years (Elfriede Dambacher, 2018).
E. Dambacher declared on the
Natural & Organic Cosmetics Conference 2017 in Berlin and
confirmed recently in the interview (Appendix 4.): “The natural and organic
cosmetics market in Germany has become the strongest market in Europe. Approx.
9 million consumers today purchase natural and organic cosmetics several times
a year. And the demand has not ceased: In the first six months of 2017, the
industry again reported a growth of approx. 2 %.” (naturkosmetik verlag lüdge GmbH & Co. KG, 2017).
Market drivers would be such factors as: growing
consumer ecological consciousness, healthy lifestyle and increasing
accessibility of eco products. Market restraints would be: short shelf life, limited
and expensive raw material supply, lack of unified regulations policy.
The competitors landscape is divided by categories:
Established global classic cosmetic brands with natural division, natural and
nature-inspired global brands, strong local players, pharmacy brands, retailers
with own certified natural cosmetic labels and niche companies with unique
products. In order to overcome the increasing competition on the crowded
market, players should adjust strategies aimed on market differentiation,
unique proposition, product quality, innovative processes and alternative
distribution channels. The industry had faced few years ago the distribution
gap, when customers were not able to purchase natural products in the
traditional locations. On the Graphic 5 in Appendix, the current spread of distribution
channels is reflected. The most populars in 2017 are drug stores, online and
supermarkets, but with the demand growth more new locations such as concept
stores and manufactures boutiques are appearing.
Germany is one of the biggest and
mature markets around the world with own original brands, such as Dr. Hauschka,
Lavera and Weleda. The Graphic
6 from Statista shows the most purchasable brands in Germany in 2017,
where the leader is Weleda with over 40% of answers, the next ones are Alverde
with 34%, Rossman retail brand Alterra with 23%, Lavera 19% and Dr. Hauschka