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LITTLE FALLS,
NJ, October 31, 2007 – As the “green”
products trend continues to advance, consumer
demand for natural personal care products is driving
a major shift from niche distribution channels
to more mainstream mass retail outlets. This is
fueling a sharp increase in sales, according to
a newly published study by worldwide consulting
and research firm Kline
& Company.
“For a long time, natural products have been the domain
of health and organic food stores––niche retailers with
a core group of loyal customers,” says Karen Doskow,
project manager for Kline’s Consumer Products practice.
“Naturals are now becoming commonplace in the aisles
of national chain grocery and discount stores like Wal-Mart
and Target. This will have a major impact on the competitive
landscape of the personal care market.”
Kline’s in-depth report Natural
Personal Care 2007: Competitive Brand Assessment
and Ingredient Analysis indicates
that the move to mass retail could help promote
a revival of sorts among long-established yet little-known
natural products companies like Jason Natural Products
and Avalon Natural Products. However, it also makes
them prime candidates for acquisition by the major
players in the personal care market.
“These small natural companies could pose a threat to
the major consumer product marketers, but rather than
try to compete with each other, it’s likely we will
see strategic acquisitions. Today’s announced acquisition
of Burt’s Bees by Clorox is a perfect example,” says
Doskow. At first glance, it may seem like an unlikely
fit, but Clorox, which is already solidly entrenched
in the mass channels, will provide Burt’s Bees access
to this wider distribution network, and Clorox gets
a foothold in the fastest growing, high-margin segment
of personal care.
Key acquisitions could also steer greater regulation
of product ingredients, a move which would benefit
both marketers and consumers. Currently, the naturals
market is virtually unregulated in the United States,
which means that authentic natural manufacturers
must face off against mainstream imitators and “greenwashing”
practices––slick marketing that only sounds natural.
Kline conducted an ingredient analysis for the
natural product brands marketed by the 26 key
“Some brands aren’t quite as natural as one may be led
to believe,” Doskow says. “Many companies find it
very difficult to walk the line between efficacy
and being natural.” NaturalPersonal
Care 2007: Competitive Brand Assessment and Ingredient
Analysis includes profiles of
26 key players in the naturals market, as well as
a critique of their raw materials formulations.
For more information about this market study, go
to www.klinegroup.com/reports/y632.asp
or contact Carrie Mellage a +1-973-435-3412 or carrie_mellage@klinegroup.com.
About Kline
Kline is a worldwide consulting and research firm
dedicated to providing the kind of insight and knowledge
that helps companies find a clear path to success.
The firm has served the management consulting and
marke research needs of organizations in the chemicals,
materials, energy, life sciences, and consumer products
industries for nearly 50 years. For more information,
visit www.KlineGroup.com.
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