Natural HBC Market Grows Despite Economy

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WholeFoods Magazine Staff
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New York, NY—Shoppers may not consider natural health and beauty care (HBC) products discretionary purchases; rather, they’re essential. According to market research firm Packaged Facts, sales in the natural HBC market hit $8.5 billion in 2011. This marks a double-digit growth (11%) since 2005.

Within this timeframe, haircare was dubbed as the “fastest-growing category.” Such products reached $2.1 billion in sales, an 86% growth. The group says one powerful category driver is the use of haircare products as a growth strategy, “a trend that has been evident since 2007,” says Packaged Facts.

Natural personal care specialist Kiss My Face is one of many companies that can also claim growth. The company confirms double-digit growth in five of the past six years. Its strongest categories were sun care, deodorants, moisture shaves, hair care and kids’ products. “Growing consumer awareness of the benefits of using natural ingredients coupled with quality Kiss My Face products that in many instances exceed consumers’ expectations” was the driver of growth, stated Jim Healy, vice president of marketing at Kiss My Face.

In the past five years, a category that cooled a bit throughout the industry was natural makeup. It still posted strong sales with $455 million in revenue in 2011. This category faces the challenge of consumers fearing they are not as efficacious as mainstream varieties, says Packaged Facts.
These data are presented in the report Natural and Organic Personal Care Products in the U.S. from Packaged Facts.

Published in WholeFoods Magazine, February 2012