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May 14 – 16, 2017Dubai International Convention and Exhibition Centre, UAE

Shifting shelves in the cosmetics sector: The Natural & Organic Success Story

Shifting shelves in the cosmetics sector: The natural & organic success story

IntroductionThere has been a significant increase in the number of exhibitors showcasing their range of natural and/or organic products at Beautyworld Middle East in recent years. The Natural and Organic section was launched at the 2015 edition as a dedicated area for showcasing only the greenest products. These developments are indicative of the recent growth spurt in the natural and organic cosmetics (NOC) market.

Beautyworld Middle East recently issued a report on the trends that are driving growth in the NOC market. Here, we look at the market in different categories outlining examples of companies and products that have NOC product lines.

Huge strides have been made in the cosmetics industry in recent decades when it comes to hazardous chemicals.Many products have been reformulated and more are in the process of complete overhauls. With consumers more conscious about what they are buying, companies must listen to the trends and evolve their products if they are to survive. This has brought about a shift on shelves, with more NOC products being made available for the discerning shopper. Euromonitor International, official research partners for Beautyworld Middle East, break the natural and organic cosmetics (NOC) market down into four broad categories:

1. Commercial players with natural lines/brandsWith some analysts predicting a 10 per cent cumulative average growth rate (CAGR) to 2020 for the NOC sector, is it any surprise that the global cosmetics giants are jumping on the bandwagon? From acquiring well established brands in the natural sector, to adapting popular product lines, it is clear that the key players in the beauty and personal care market are out to expand their organic product portfolios.

Already, French cosmetics giant L’Oréal has acquired Kiehl’s in 2000, taken over The Body Shop in 2013 and its most recent ‘natural’ purchase was of Carol’s Daughter, a company specialising in natural hair care products.

Not to be left behind, American giant Estée Lauder very recently acquired natural skin care brand Rodin Olio Lusso, to add to its natural cosmetics portfolio which already included Origins since its launch in 1990. Similarly, Japanese giant Shiseido Group acquired Bare Escentuals in 2010. Shiseido Group’s vision for 2020 is a mid-to-long-term strategy for accelerated global success through organic growth and acquisitions.

Other giants such as Beiersdorf and Unilever are tailoring their already established products introducing a natural or organic line to some of their ranges. Nivea launched its Pure & Natural range in 2011, made without parabens, silicones, colorants or mineral oils. Similarly, Timotei, a brand that was always known for its natural credentials, launched a certified organic range, Timotei Organic Delight in 2012. It is also free from parabens, silicones and colorants and contains 100 per cent natural fragrances and 99 per cent natural ingredients, 15 per cent of which are from certified organic farms.

2. Private labels with natural lines/brandsEuromonitor International cites Pantene Pro-V, Balea Professional, Weleda and dm alverde Naturkosmetik as examples of private labels that are now also offering natural and/or organic products. The attraction of private label brands is that they offer similar products to the big brands but at a more competitive price point.

Some of these private labels have been promoting natural products for many decades such as Weleda with its historically successful organic brand. Launched in 1921 it has very clear standards for its products and everything it uses is NOC and follows sustainable fair trade practices. Although, with the proliferation of big players entering the NOC beauty and personal care market, Weleda will need to strengthen its promotional strategy if it is to hold onto its market share in the NOC segment.Product tailoring is also popular amongst the private labels category with brands such as Pantene, alverde and Balea all going natural. Pantene brought out a Nature Care range with a promotional campaign: “the power of nature and science come together”. Similarly, drugstore chain dm has also come in on the act with its private label brand Balea offering natural and organic skin care and hair care ranges at very affordable prices.

3. Local/regional playersAccording to Euromonitor International research, Brazilian Natura Cosmeticos SA was the only NOC brand to rank in the top ten in the global beauty rankings in 2014, coming in at 9th place. In Brazil it is one of, if not, the industry leader in cosmetics, fragrances and toiletries and is available in seven Latin American countries, and France. The largest cosmetics maker in Latin America, Natura’s unique selling proposition is the development of products based on the biodiversity of the Brazilian flora. As reported in an article by Forbes, in 2014 it received a ‘Benefit Corporation’ sustainability certification for “its high standards of environmental and social stewardship and transparency among business”. Aroma Cosmetics, a European producer of personal care products and cosmetics debuted their latest organic skin care brand, Lexira at the 2016 edition of Beautyworld Middle East. The luxury brand is based on pure Bulgarian rose oil, grown organically in Bulgaria’s Valley of Roses.

4. Niche brandsThere are some wonderful success stories when it comes to NOC personal care brands. In fact, niche brands are probably the best of the best when it comes to the natural beauty industry. Human+Kind is a natural beauty and skincare company that launched at Beautyworld Middle East in 2011 with just four products and no distribution network. Five years on and they have a presence in more than 20 countries around the world, and their product range is growing too having added skin brightening creams and hair care products to their portfolio.

Skin & Tonic London launched in 2014 with eight certified organic, sustainable skincare products with the mantra that each product should only contain seven ingredients. By the end of 2015 four more products were added to the range which is becoming increasingly popular.

Conclusion

There is a clear shift in consumer preferences when it comes to what people are willing to use on their hair and skin. Finding products that are effective without exposing the skin to harmful substances is becoming priority. With such a shift in trends, beauty products that contain unsafe ingredients are becoming a rarity. The availability and choice in NOC beauty and personal care products is growing rapidly. Such growth means there is a broad spectrum of natural and/or organic products available, from more affordable mass market brands, to premium and luxurious products including some spectacular niche brands.

Visit Beautyworld Middle East to explore a range of NOC products and stay abreast of the latest trends emerging in the NOC beauty and personal care sector.