Entrepreneurial Business Environment Analysis - Organic Hamper - Essay Example

This is one of the most foundational benefits of offering organic food and skincare products to consumers: there is a pre-existing set of attitudes and beliefs that they are less harmful than non-organic products in many different consumer markets. Leonard (2011) illustrates that the organic cosmetic industry has moved from being a niche product line and is now available in more traditional channels such as major department stores and even hypermarkets. This has been a product of years of marketing distribution improvements and brand promotions.

With more and more consumers linking quality with organic personal care products and more convenience by being available in multiple channels, companies now witness opportunities for higher profitability. The responsiveness of many companies offering organic products illustrates that the long-term opportunities for capturing broad target segments are significant. Worldwide, the organic skincare market was worth $7.6 billion USD in 2012 (Patterson 2015). The entire industry is expected to achieve a growth rate of 9.

6 percent by the year 2018 (Pitman 2013). The UK, though a smaller market than Asia, ranks as the eighth largest market for organic cosmetics and personal care products. Falk and Benson (2008) assert that the UK government has been instrumental in helping many consumer markets to understand the differences between chemical-based and organic-based personal care products which is creating higher levels of demand (and increased perceptions of value) for these products. Therefore, all indications are that the organic skincare and personal care product industry in the UK is favorable for achieving growth and profitability where there is measurable demand and beliefs about the quality of these products.

Europe, as a whole, represents the second-largest market in the world for organic skincare products. The organic skincare industry is moving toward double-digit growth as the industry is attracting new market entrants.