Sales of clean and natural beauty and personal care products grew to nearly $30 billion at the manufacturers’ level in 2020, despite the COVID-19 pandemic wreaking havoc on many markets.
According to Kline’s recently published Natural and Clean Beauty Global Series, covering the United States, China, Brazil, and Europe, market performance largely varied by region. Some markets, such as Brazil, saw little to no change in consumption; others, such as Europe and the United States, were hit much harder. Collectively, the global market saw 2.1% growth, driven by various bright spots including a stellar performance from indie brands and self-care-oriented products.
Indie brands saw some of the strongest growth in the market, largely due to the ability to quickly pivot and adapt to the changing landscape brought on by the pandemic. Hand in Hand, from the U.S. market, saw the strongest growth, advancing 1000%. Other key players out of the United States included Hello Bello, Live Clean, and Hempz. Brazil also saw several brands more than doubling 2019 sales; they include La Vertuan, Up2You, Elemento Mineral, Care Natural Beauty, and Jaci Natural. In Europe, OnlyBio stood out as the brand to watch within the region. China’s market, meanwhile, was largely dominated by beauty conglomerates.
The natural personal care market also benefitted from the increased interest in self-care products, which included those that aid in stopping or largely reducing the spread of COVID-19 or also in boosting wellness. In the United States and Brazil, deodorants and antiperspirants — as well as personal cleansing products, including body cleansing, hand soaps, and hand sanitizers — saw a strong performance compared to 2019, due to consumers using quarantine as an opportunity to switch to naturally positioned products. In China, personal cleansing products also saw strong growth, but baby skin care and sun care products also saw a boost due to increased consumer interest in preventative and wellness-focused skin care products. In Europe, one of the hardest-hit regions, “all other” toiletries, encompassing shaving products, was the category highlight due to a strong performance from brands such as Aēsop and OnlyBio.
As we move forward through the forecast period, higher levels of consumption are expected to return, especially in markets such as the United States and Europe. Instead of prioritizing essential products, such as hand soaps and hand sanitizers, consumers will shift to sustainability and clean or natural beauty claims. Once again, indie brands will be well-poised to address these consumer needs, setting niche trends in packaging and sustainability while quickly adapting to the changing beauty landscape as the world continues to navigate the pandemic.
With independent brands on the rise in this segment, there is no better time to identify potential acquisition targets with help from Kline’s Natural and Clean Beauty Global Series report. The featured database available for all regions uncovers sales breakdowns and critical insights into each product class, category, company, and brand. For more details on the evolving industry, contact us.