Slovak organic cosmetics lovebrand Noili receives further investment for product development and expansion
The initial investment provided to Slovakia’s Noili by the CB Growth ONE fund to build a premium local cosmetics brand will now be complemented by funds raised in a campaign on Crowdberry’s investment platform. Currently, the first tranche of the investment has been secured out of the target amount of €267,000. The brand will use the capital to further expand and co-fund new product development, with the ultimate intention of Noili becoming an attractive acquisition target.
The organic cosmetics segment is particularly interesting for investors, because it is growing at a rate 80% faster than other areas of the cosmetics industry.¹ The reason for this growth is not only the target population's interest in high-quality skincare free from preservatives and other additives, but also the high margins. This market reached a size of $9.8 billion in 2021 and is expected to grow at an average annual rate of 8.9% (2022–2030 CAGR).² This is also linked to Noili's strategic direction, which foresees an exit and a buyout of the brand – a widespread trend in the organic cosmetics segment, with major players such as Beiresdorf AG, L'Oréal, Procter & Gamble Company, The Estée Lauder Companies Inc, Unilever and others actively consolidating the market.
Natália Jašková, Crowdberry's investment manager, assesses the brand's position within the cosmetics segment in the following way: “Noili belongs to the premium skincare segment, where customers have lower price elasticity of demand, so the current geopolitical events have not had a negative impact on the brand. On the contrary, these companies are continuously growing. In the context of the growing trend towards healthy lifestyles, whether it is healthy food or cosmetics with quality ingredients, people are generally willing to invest more in themselves. This presents an opportunity to increase brand value, which is ultimately one of the parameters that investors are responding to."
Currently, Noili is a well-established brand on the Slovak market, as evidenced by the interest of distributors, cooperation with local influencers and top model Daniela Peštová. In recent months, it has been rapidly expanding its presence in the Czech Republic and foreign distributors are already showing an interest in it. It is, therefore, highly likely that Noili will soon fulfil its international ambitions.
¹ McKinsey & Company, květen 2020
² Grand View Research (https://www.grandviewresearch.com/industry-analysis/organic-skin-care-market)