Retailers seek right mix in organic, natural beauty labels

The natural beauty category is poised to post some of its strongest growth in years, but confusion remains in just what consumers consider natural and organic.

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“Our research shows that consumers overall are looking to improve their health and wellness,” said Sarah Jindal, senior innovation and insights analyst, beauty and personal care at Mintel, which recently published its Mintel Beauty and Personal Care Report called Forward 2025. “Beauty brands will need to partner with food, drink and leisure brands to create healthy living product ranges with ingredients and claims that complement one another.”



The uptick in natural volume has already commenced. According to 52-week Nielsen data for the period ended Dec. 19, 2015, the natural/organic color cosmetics category was up 4.3% over the same period in 2014 — slightly above the average 3% for conventional beauty. “Naturals will continue to grow because Millennials gravitate to the lines, and consumers are more aware of ingredients in products,” said a top mass market buyer. Multicultural consumers have been ahead of the trend with nearly half (48%) of Italian and Spanish consumers buying natural and organic personal care products because they believe the products are better for their health, according to market research.



Jindal predicted that the swing to natural will prompt a shift from making beauty in labs to what she calls kitchen beauty. “There is no better way of knowing the ingredients of a product than preparing it yourself. Attitudinal changes toward natural ingredients have acted as a catalyst, pushing the rise of products that can be made at the kitchen table, while still reflecting the latest beauty styles — and is driven by a desire for consumers to feel in control of their beauty products,” she said.

But even with notable growth and a glowing future, retailers said they are challenged to truly understand just what degree of natural beauty consumers crave. Navigating the natural maze will be one the biggest challenges that buyers face as they try to procure the right mix. Compounding the matter, there are numerous and confusing “seals” validating that items are natural and loose regulations to make sure manufacturers hold up to standards. Moreover, natural manufacturing still seems to come with additional production costs that retailers are hesitant to pass on to shoppers. And, recent legislation to ban microbeads means many manufacturers need to rework formulas.



One buyer for a major chain put it best. “Natural beauty is a tricky subject. Natural has to be defined carefully. Do you mean pure? Vegan? Not tested on animals? Honestly most of these traits are not just expected by customers,” she explained.



Still, there are brands emerging appealing to the natural consumer who wants to be able to buy beauty at mass doors rather than seek out specialty purveyors. The two biggest and fastest-growing are Burt’s Bees and Physicians Formula’s Organic Wear. Merchants said there are others gaining traction, such as Yes To, Shea Moisture, Alba and Dr. Hauschka.

Retailers singled out Organic Wear’s mascara as the only 100% natural, 70% organic mascara in mass doors. Company president Jeff Rogers noted two new launches under the portfolio for 2016 — a mascara created for the link between women who work out and seek natural beauty, called Work It, along with a Work It Tinted Face Cream with SPF 30.

Still, there is a segment of natural consumers that drug stores don’t expect to cultivate. “The `earth muffin’ natural lines are real fringe, and most mass customers don’t really care that much," buyers said. "It’s a very high-end direction and can cost more to be green. Those who are very strict probably won’t be my beauty customers.”