Natural cosmetics – An uninterrupted trend

Particularly at times of crisis, many people feel the need to give themselves a treat and spoil themselves, according to the result of an online survey by corporate consultant BBE Retail Experts of Cologne, Germany. The associated ranking of preferred places to shop includes several addresses for natural cosmetics in the Top Ten. A current study by BBE Retail Experts in cooperation with Munich corporate consultant Dr. Wieselhuber & Partner GmbH, communication agency Serviceplan, and Facit Marktforschung – both also based in the Bavarian state capital – shows that consumer priorities are clearly changing from the mean-is-cool mentality to more awareness of value for money, which focuses more strongly on product quality. Among the 3,000 German consumers interviewed, organic, health and wellness are rated more important than cheap prices. This change in values proves that the health and wellness megatrend is continuing and that more and more people are becoming critical consumers and also placing more emphasis on enjoyment of life. (picture: wellness-area at Vivaness)

“Natural cosmetics are reaching more users every day,” says industry expert Elfriede Dambacher. This is confirmed by the analysis of the panel data of the German consumer researcher GfK, Gesellschaft für Konsumforschung, in Nürnberg: The number of natural cosmetics customers in Germany rose by around 28 % from the end of 2006 until the end of 2008. Despite this dynamic development, there is still a lot of potential for further market penetration. Of the currently more than 2 million natural cosmetics customers, 54 % buy natural cosmetics only once a year and 46 % twice a year. The increasing availability of certified natural cosmetics in all trading formats means there are good prospects for a rapid expansion of market presence. (picture: Product presentation at the Vivaness)

Consumers find manufacturers’ and trade brands with the BDIH label in pharmacies and drugstores, organic food and health food stores, department stores, and at food retailers and discounters. A lot of growth is still possible and not just in the newer sales channels, but in the traditional organic food shops too. Here sales in 2008 rose by 13.9 % over the previous year’s period to reach 106 million euros, according to the Biovista Trade Panel, Ettlingen, Germany. Whereas the market share of the organic food shops remains relatively constant at around 22 %, the health food stores showed a declining trend last year. Growth in the sector is driven by the drugstores with their private labels at starter price level and they expanded their market share from 29 to 31 % in 2008. Pharmacies and the food retailers defended their share of 10 and 8 % respectively. Perfumeries and department stores with innovative concepts are on the up, but sales are currently still at a low level. (picture: Natural cosmetics area at a organic food store in Germany) 

Natural cosmetics export business is in excellent shape and manufacturers assess development abroad as more promising for the future than the German market. The strongest European markets include Germany, Great Britain, France and Italy. Many manufacturers are delighted with the great interest in their natural cosmetics range in the Asian region. The US market offers four times as much turnover as the European market and this should remain so in the future. The study entitled “The Age of Naturals” by the American market researcher The Benchmarking Company shows that 93 % of US consumers are willing to try out a brand of certified organic cosmetics. However, a good 60 % agree with the statement that it is difficult to recognize real natural cosmetics. (picture: Börlind concept store in Milan/ Italy)

The many new labels and test symbols introduced in 2008 have not made orientation easier for trade and consumers. In Germany, the BDIH symbol – now more international – has been joined by the Natrue label. This defines three quality levels and is designed for international use. Cooperations have already been agreed with industry associations in various countries. The publication of the Cosmos standard is the interim goal of the many years of efforts by European natural cosmetics certifiers and associations to achieve common, harmonized standards. Certification on the basis of the new standard is expected to start in autumn 2009. In the USA, three new standards are currently being established for natural cosmetics: the NPA standard of the Natural Products Association, the NSF standard of the National Sanitation Foundation, which specifies that the products must contain at least 70 % organic ingredients, and the cosmetic test symbol of the Organic and Sustainable Industry Standards, Oasis, which is supported by large companies like Aveda and Hain Celestial. Similar efforts towards a quality label are also being made in Latin America and the Asia-Pacific region. Opinions differ on the importance to be attached to labels. Many consumers buy on the basis of brand confidence and are less guided by test labels. The BBE study states: “Brands offer emotion and confidence. Brands signal both individuality and the feeling of belonging.” (picture: International label of the German association BDIH)

Many new green cosmetic brands are currently capturing the international market. The spectrum ranges from inexpensive trade brands to luxurious green glamour products. This broad spectrum of products is reflected in diversified and innovative marketing concepts. Natural cosmetics are highlighted in flagship stores, natural cosmetics departments in pharmacies, organic stores and perfumeries, and on department store counters. The industry’s innovative power and dynamic are increasingly and noticeably stimulating the whole cosmetics market. (picture: A lot of other labels and certifications are on the market)

Tip: The natural cosmetics segment again presented a lovely show of beauty products to the 46,771 international trade buyers at BioFach and Vivaness in 2009. Almost half the visitors sourced information about the trends and new products at Vivaness. The innovative products and concepts of the 205 natural cosmetics exhibitors from 24 nations delighted the visitors in the day-lit hall 7A and parts of hall 7. Apart from Germany with 100 exhibitors, the most strongly represented countries were France, Italy, Austria and Switzerland. Natural cosmetics professionals from all over the world gather again in the Exhibition Centre Nuremberg from 17–20 February 2010.