Kline: Trends point to truly natural products

TRULY natural ingredients are finding their way into more natural personal care products despite the widespread use of synthetic ingredients, reports the Natural Personal Care Global Series by global consulting and research firm Kline & Company.

 

Demand for truly natural products amid growing consumer awareness of synthetic chemicals in cosmetics and toiletries will continue to spur the global natural personal care industry, which is forecast to grow at less than 10% CAGR through 2019. Global sales rose by nearly 10% last year, with all regions surpassing overall growth in the beauty market sector. 

 

Brazil and the Asia-Pacific were the fastest-growing regions, both expanding at double-digit rates. Growth in China was restricted by formulation challenges and animal-testing methods. Several Western brands, including Weleda, Lavera, and Pangea, have withdrawn from the Chinese market in protest.

 

 

Although products containing a high percent of synthetic ingredients dominate the global market with nearly 75% total share in 2014, the trend for truly natural ingredients is gaining the support of more consumers, manufacturers, and retailers. A growing number of marketers are reformulating products with a greater proportion of truly natural ingredients. 

 

This is mirrored by the increasing number of consumers adopting products containing predominantly natural ingredients, especially in mature markets such as the United States and Europe. Despite the prevalence of only natural-inspired products in the U.S. and Europe last year, shifts in the natural positioning of several U.S. and European brands, including Avalon Organics, JĀSÖN, Annemarie Borlind, and Melvita, received higher ratings in 2014 compared with previous years, based on Kline’s ratings system, which analyzes brands’ naturalness on a scale of 1 to 10 with 10 being completely natural.  

 

In less mature markets such as Brazil and some Asia-Pacific countries, however, the popularity of natural-inspired products is higher. In such areas, disposable income and consumer awareness about product ingredients remain low. Distinguishing between natural-inspired and truly natural cosmetics is not as important a purchasing decision.  

 

Marketers are placing greater emphasis on product efficacy with consumers being willing to invest in truly natural products only if they deliver effective results. Some companies are pursuing increased transparency in communicating the quality level of ingredients, certification, and company values to meet consumers’ demand to easily select the right product.

 

According to Kline & Company Consumer Products project manager Agnieszka Saintemarie, “These reformulations are the next natural step for companies aiming to establish strong natural concepts with high importance given to the trust between the brand and the consumers. Moving upward in the natural ratings is a great way for natural brands to gain acceptance from a larger consumer base in the mid- to long-term.”  

 

The Natural Personal Care Global Series provides a global overview of the market for natural and organic cosmetics and toiletries. It also gives deep insights on the markets in the U.S. and Europe. The comprehensive analysis focuses on key trends, developments, challenges, and business opportunities, and features natural ingredient ratings using Kline’s proprietary rating scale.