Summary of our market study

As of 2020, the organic cosmetics market has been demonstrating strong growth on a global scale, with Europe being the largest consumer, followed by North America. While specific numbers post-2020 aren't provided, previous trends indicated a projected global market size reaching $54.5 billion by 2027 with a compound annual growth rate (CAGR) of 5.21%. The Swedish market, in particular, showed significant expansion, expected to exhibit a CAGR of 16.57% from 2017 to 2025 and anticipated to double its market share from 5% to 10% of the total cosmetics market by 2025. In 2018, Sweden imported roughly twice as much cosmetics as it exported, with a coverage rate decrease from 52.8% to 52.0%. Norway emerged as Sweden's top export destination for cosmetics.

Swedish consumers have been identified as health-conscious, with a majority opting for organic cosmetics to mitigate negative impacts on stakeholders, including themselves, animals, and the environment. The market has seen a rise in e-commerce sales and consumer preference for quality and eco-friendly labeling over lower prices. The production of organic cosmetics is governed by COSMOS standards, and the market is dominated by global entities like L'Oréal Groupe alongside domestic players. Regulatory frameworks from the European Union and Sweden's national laws provide a structure within which this market operates.

Analyzing the Flourishing Swedish Organic Cosmetics Market

In recent years, the Swedish organic cosmetics market has been demonstrating robust growth, driven by heightened consumer consciousness around health, ethics, and environmental sustainability. This burgeoning market, while still a niche, accounting for an approximate 5% of the total cosmetics sector, is projected to surge, potentially doubling its market share by 2025. The compelling force behind this growth can be attributed to several core trends. Firstly, Swedes are increasingly aware of the potential harms associated with traditional cosmetics, and this knowledge is rapidly shaping purchasing behaviors. Traditional cosmetic ingredients which raise health or ethical concerns have propelled consumers towards organic alternatives, where the product narrative centralizes around well-being and responsible sourcing. The Swedish market also finds impetus from a return to plant and root-based fundamental ingredients in skincare, with many consumers perceiving them to be more effective than their synthetic counterparts. Brands that understand this, like trueorganicofsweden, leverage natural elements such as the Jojoba plant for their age-slowing and hydrating benefits.

Another influential trend is consumers' financial capacity to support cleaner, greener products. Swedes, with one of the highest per capita expenditures in the European Union, estimated between €190 and €200, are well-positioned to drive demand in the organic cosmetic space. From a company perspective, market data indicates a level of concentration, with giants like L'Oréal capturing significant market share. However, e-commerce is increasingly reshaping distribution dynamics, with a notable increase in online sales of cosmetic products, rising by 35%. Looking at import and export data, Sweden exhibits a higher tendency to import cosmetic goods than to export, with imports nearly double the value of exports. Neighboring countries like Norway, Finland, and Denmark are primary trade partners, indicative of regional brand loyalty and product preference. The Swedish consumer's profile is diverse yet distinct: many buy organic products to address specific skin concerns, limit environmental and ethical impact, or to maintain a coherent, eco-conscious lifestyle. A majority of consumers are well-informed about organic cosmetics, with over 50% of survey respondents indicating a clear understanding of the term. This suggests a mature market with discerning consumers who prioritize quality, brand reliability, and ethical labelling over the price. As the country experiences an aging population with life expectancy expected to rise significantly by 2070.

The Key Market Contenders in Organic Cosmetics

The organic cosmetics market is an arena with varying levels of competition and a blend of both esteemed global giants and determined domestic players. Each has carved out its niche, riding on the waves of consumer preferences and ethical considerations.

Global Behemoths Pioneering the Organic Shift

  • L'Oréal Groupe, a name synonymous with beauty and cosmetics, is not just the behemoth of the conventional cosmetics market but is also making significant inroads into the organic sector. With a portfolio teeming with popular brands, L'Oréal is not resting on its laurels in the organic domain either. The company has shown its commitment to sustainability through acquisitions that bolster its organic offerings, such as the acquisition of Logocos Naturkosmetik. L'Oréal prides itself in incorporating organic derivatives into some of its well-established brands, including Garnier and La Provençale.
  • Another titan in the beauty sphere is Estée Lauder, a company revered for its premium quality and luxury beauty products. Estée Lauder has an expansive global presence and a brand portfolio that caters to the high-end market segment. Their journey into organic and sustainable products represents an adaptation to evolving consumer desires for environmentally conscious beauty solutions.
  • These global giants demonstrate an insightful understanding of the market, adapting and shifting their strategies to encapsulate organic, sustainable principles. Their expansive reach and hefty influence make them formidable players in the organic cosmetics playground.

Swedish Dedication to Organic Beauty

  • Among the domestic champions in Sweden is Invima AB, a company that may not share the mammoth scale of its global competitors but holds its own with a firm grasp on the nuances of the Swedish market. This homegrown entity has tapped into the surge in demand for organic cosmetics, demonstrating the potential for specialized, local players to find success in a market full of international juggernauts. Invima's dedication to catering to the specific tastes and ethical considerations of the Swedish consumer showcases the effectiveness of a targeted, localized approach in the organic beauty industry.

These three companies, each with different scales and approaches, delineate the diverse strategies afoot in the organic cosmetics market. Whether through broad-reaching global influence or focused domestic operations, the key players in organic cosmetics have one thing in common: they are all navigating the intricate dance of delivering beauty products that align with the increasing global demand for sustainable, organic, and ethically sound practices.

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Summary and extracts

1 Market overview

1.1 Definition and Introduction

The organic cosmetics market is a sub-segment of the cosmetics market. A cosmetic product includes any substance used to clean, moisturize or alter a person's skin, hair, nails or teeth.

Cosmetics can be divided into two categories:

  • Beauty products which includes make-up, perfume, skin cream;
  • Hygiene products which includes shampoo, soap, deodorant.

Natural and organic cosmetics are made from raw materials, ultimately causing less harm for the body and the environment. Organic cosmetic products are certified by various private labels such as BDIH , NaTrue or EcoCert. These aim to ensure that the usage of chemicals or products of animal origin such as silicone, paraben, PEG (polyethylene glycol), synthetic dyes and perfumes, etc., are not included in the end-product. However, as we will develop in section 4.3, labelling remains subject to uncertainty, and terms such as "organic" are often diluted.

The global market for organic cosmetics is booming. Sweden is also experiencing strong growth, driven mainly by increased consumer awareness and health trends. 

The Swedish market is relatively concentrated when looking at company sales, where L'Oréal prevails in terms of market share. Moreover, E-commerce is gaining prominence as a distribution channel of organic cosmetics.

1.2 The global market's growth

Source: ****

The global market for organic and natural cosmetics is projected to grow at a strong pace of CAGR *.**% per year to reach $**.* billion in ****.

Europe is the largest consumer of this product category, followed by North America. Moreover, hair products will see the highest growth in demand (***) until **** according to ...

1.3 The domestic market signals strength

Source: ****

The Swedish market for organic cosmetics represented a mere *% of the total cosmetics market size in ****. Nevertheless, the market is growing at rapid pace, and between **** and **** the market is expected to demonstrate a CAGR of **.**%. This implies that in **** the market share of the organic cosmetics in Sweden will ...

1.4 International Trade

This section analyses Sweden’s trade with cosmetics. Data is retrieved from UN Comtrade and in particular we use the code **** – “Cosmetic and toilet preparations; beauty, make-up and skin-care preparations (***), manicure or pedicure preparations "  in order to obtain the figures below.

Although this code is not specific to organic cosmetics per ...

2 Demand Analysis

2.1 Profile Analysis: The Swedish Consumer

Overview

In general, three types of customers can be identified for organic cosmetics: first, we find consumers who buy organic products to treat or mitigate skin problems. Secondly, we find a customer segment which looks to limit effects on for example the environment or animals involved in the production. By using ...

2.2 Demand Trends

Increasing life expectancy

Source: ****

The Swedish population is ageing and living longer. This is evident from the graph above, which shows that the life expectancy for women will increase from **.* years in **** to **.* in **** (***). For men, the increase will be *.* years which will put the life expectancy in **** to **.* years. 

For ...

3 Market structure

3.1 Market Overview

Source: ****

*this is the distribution in **** for cosmetics overall, so it is a proxy for organic cosmetics and may vary slightly.

3.2 Production

According to COSMOS organic cosmetics contain five categories of ingredients:

Water; Mineral elements; Physically processed agro-ingredients; Chemically processed agro-ingredients; Other ingredients.

Each category of ingredients must comply with specific requirements and different regulations. In addition, it is necessary to identify the percentage of organic products in each category. For more information ...

3.3 Distribution

In Sweden, approximately ** natural and organic cosmetics brands are distributed through eight primary retailers which include The Body Shop, Medstop Apotek, Åhlens, Kronans Droghandel, Apoteket and Nature – Livets apotek, Life – Naturligt Hälsa, and Kicks.

The Swedish cosmetics market is characterized by intense competition in the sector and is dominated by ...

4 Analysis of the offer

4.1 Product Analysis

Labelling in cosmetics can cause confusion; for instance, products which are natural are not necessarily organic. The FDA states that they have no exact definition of organic cosmetics, and the same applies in Sweden. Nevertheless, in general, if different criterions are adhered to, it is plausible to assume that a product ...

4.2 Price Analysis

Source: ****

The graph above depicts the evolution of prices in the Swedish cosmetics market. In particular, we use the code **** “Cosmetics” from the Swedish National Statistics Office (***) to identify the evolution of prices.

The base year is ****, where the value is ***; accordingly, a value of *** means that, on average, prices have ...

4.3 Supply Trends

Labelling and certification

Although there are no bodies with exact defintions of an organic product, labelling is an important step in the process of identifying products which adhere to the organic paradigm.  However, many consumers express a difficulty in navigating through the djungle of different labels. The fact that so many ...

5 Regulation

5.1 Current Regulation

Regulation within cosmetics is strict, and in particular there are specific rules and guidelines around marketing. 

Sweden is impacted by EU regulation. On this level, we find the following guidelines: 

Regulation (***); Regulation (***) No ***/**** of ** July **** laying down common criteria for the justification of claims used in relation to cosmetic products

Moreover, ...

6 Positioning of the players

6.1 Segmentation

  • Estée Lauder
  • IsaDora (Invima AB)

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Latest news

Beauty: Estée Lauder cautious about 2024 - 02/05/2024
  • - Acquisition of Tom Ford for $2.3 billion
  • - Double-digit growth in Clinique sales, across all geographic regions
Estée Lauder unable to keep pace with L'Oréal - 20/08/2023
  • Estée Lauder saw sales fall by 10% to $15.9 billion in its offbeat 2022/2023 full year
  • Estée Lauder acquired the Tom Ford brand for $2.3 billion.
Estée Lauder buys a breath of fashion air with Tom Ford - 16/11/2022
  • Estée Lauder's acquisition of Tom Ford: $2.3 billion.
  • Foundation of the Tom Ford brand: 2005.
  • Estée Lauder has owned the Tom Ford Beauty license since: 2006.
  • Estée Lauder fourth-quarter fragrance sales: $579 million.
  • Estimated potential of Tom Ford Beauty for Estée Lauder: over one billion euros in two years.
  • Tom Ford will remain the brand's creator until the end of 2023.
Estée Lauder acquires Tom Ford for $2.3 billion | Estée Lauder acquires Tom Ford for $2.3 billion - 16/11/2022
  • - Estée Lauder buys Tom Ford for $2.3 billion
  • - The deal is expected to close in the first half of 2023.
  • - Tom Ford founded his label in 2005.
  • - Tom Ford Beauty launched its fragrance and make-up line in 2006 with Estée Lauder.
  • - Estée Lauder expects Tom Ford Beauty to sell $1 billion worth of products a year within two years
  • - Tom Ford's license to Ermenegildo Zegna for apparel, accessories and underwear lines is extended and expanded.
  • - The license currently granted to Marcolin for Tom Ford eyewear will also be extended.
Cosmetics: Chinese confinements affect Estée Lauder - 18/08/2022
  • Estée Lauder is the potential buyer of Tom Ford, valued at 2.5 billion euros.
  • - The group is forecasting sales growth of between 3% and 5% for fiscal 2023, below the expected growth of 7%.
  • - China is Estée Lauder's leading market, where the company is impacted by health restrictions and the Covid19 zero policy.
  • - Asia-Pacific generated just over a billion euros in the fourth quarter, down 23% year-on-year.
  • - Hainan Island welcomed 81 million travelers in 2021, with tourist numbers up 25.5%.
  • - Estée Lauder forecasts adjusted earnings per share of between 5% and 7% for 2023, well below the 10.5% forecast. s.
Estée Lauder to close 10-15% of its stores worldwide - 26/08/2020
  • Closure of 10 to 15% of Estée Lauder stores.
  • Reduction of 1,500 to 2,000 positions.
  • Main impact zones: Europe and North America.
  • Stores affected: Estée Lauder, Bobbi Brown, La Mer, Too Faced flagships and mainly M.A.C. boutiques.

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Estée Lauder
IsaDora (Invima AB)

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the organic cosmetics market | Sweden

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