Organic food versus organic cosmetics; generalist market versus niche market: which one to choose?
If you are sensitive to environmental issues and want to change jobs to carry out an activity more in line with your ethics, in addition to the different jobs to work in the environment, as a franchise, you mainly have the choice between two markets for your reconversion : that of organic cosmetics and that of organic food. Make way for the duel of organic markets.
Consumer profiles of organic products
Cosmetics or food : these products both attract similar targets whose profiles are closely studied, year after year, in particular by Agence Bio, which periodically commissions analyzes of the sector.
It thus emerges from the latest to date that the consumer of organic products is always a young woman, between 25 and 50 years old, belonging to CSP+. However, thehe Covid-19 pandemic seems to have shifted the lines slightly: organic has attracted new profiles and reinforces the feminine character of the persona.
Thus, of the 15% of new organic consumers in 2020, 21% were young people aged 18 to 24, 20% belonged to CSP- and 17% were women.
It also appears that the top 4 reasons for current consumption of organic products are as follows:
- 61% to preserve one’s health;
- 48% to preserve the environment;
- 39% due to the greater availability of these products in the usual places of purchase ;
- 38% for ethical or social issues.
Finally, the study notes a strong correlation between the fact of adopting a specific diet and the consumption of organic products: there is a higher prevalence of vegetarian, flexitarian, gluten-free, lactose-free, vegan, vegan, chrono- nutrition, paleo diets and raw food consumption among consumers of organic products.
The organic food market
Since 1999, the organic market has recorded average growth of 10% per year, sometimes with growth peaks of 15%, as in 2007 for example. The organic market thus recorded growth of 82% between 2011 and 2016 and then doubled between 2016 and 2021 to reach today more than 13 billion euros annually.. According to experts, growth in the sector should remain at an average of 10% per year for the next few years.
In detail, organic food alone represented 8 billion euros in 2018 (up +16% compared to 2017). In 2020, again, specifies Agence Bio, the value of purchases of organic food products increased by 1.4 billion euros, an increase of nearly +11% compared to 2019.
On the consumer side, the signals are all green:
- A majority of French people say they buy more fresh products (57%) and more seasonal products (57%);
- Nearly 6 out of 10 French people (59%) prefer local products and short circuits;
- The “home cooked” is gaining more and more followers (55%; +8 points vs 2019).
- Thus, more than 6.5% of the food consumption of French households is devoted to organic products.
Finally, it appears that the French are increasingly abandoning mass distribution in favor of small businesses, organic stores and direct purchases from producers. Mass distribution thus lost 3 points of market share, while city center organic franchise stores recorded growth of +16% (independents having fallen, for the second consecutive year, by -3.4%).
The organic cosmetics market
Following the trend of the global organic market in France, the organic cosmetics segment has also been on the rise for several years.
Thus, according to the Xerfi research institute, in 2020, organic and natural cosmetics represented a market of 972 million euros, up +8% compared to 2019.
Still according to Xerfi, driven by the “clean beauty” trend, the organic and natural cosmetics market should see sales jump 12% in value by 2023reaching nearly 1.4 billion euros in turnover and, above all, rising from 6.4% to 8% of the global cosmetics market.
The study also reveals, interestingly, that in this segment, the organic pioneers are holding out against the cosmetics giants, who have just converted in the face of ever-increasing consumer demand. These brands historically positioned in organic cosmetics are still in the lead today in terms of market share.
Interesting fact, finally: organic stores, specialized organic cosmetics shops, pharmacies and parapharmacies are the main distribution channels for organic cosmetics. Large distribution, for the moment still, is lagging behind.
A situation that should certainly not last: the giants of conventional cosmetics will indeed be able to boost mass distribution in an attempt to catch up with the pioneers of the sector.
The outcome of the duel is therefore clear: the two markets, that of organic food and that of organic cosmetics, are both buoyant and meet consumer expectations. However, organic food franchises seem to be doing well since their stores are distribution channels for both organic food products and organic cosmetics.