The organic cosmetics market - Sweden

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% between 2018 and 2019. 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..Title: 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 in 2018, 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 in 2018, 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% between 2014 and 2019. 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 demand for cosmetics that cater to an older demographic is set to.### 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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• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 06/10/2020

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