Natural and Organic Market Report 2017: Action Points

A plan of action following the Natural and Organic Market Report 2017, these points will help your business grow in the right direction

Sections in this report


GLOBAL NATURAL & ORGANIC MARKET: ACTION POINTS

What can brands do to maximise the opportunities presented by this sector? In Euromonitor’s report The Broadening Meaning of Green Beauty Senior Analyst, Beauty and Personal Care Ildiko Szalai, highlights the following action points:

• In the green market space, where accusations of greenwashing are rife, trust and transparency are key components to building brand loyalty.

• Sustainability issues offer a wide spectrum to tap into. The more comprehensive a brand can become when it comes to ethical credentials, the better placed it is.

• The huge array of natural resources, from kitchen cupboard staples to deep ocean minerals to exotic plants, allows industry players to keep innovation intense in the long term.

• Standing for social and charitable cases is not an entirely new trend in beauty, but [it is one that] brands have not yet fully exploited, and offers good opportunities for standing out with well-chosen ‘fair society’ cases.




EUROPE: ACTION POINTS

The move towards sustainability, greener ingredients, and increased brand transparency is a major market trend, as beauty products’ ethical and sustainable sourcing credentials come under close scrutiny. Brands need to prove their commitment to gain consumer trust.

The UK’s Soil Association notes that hot trends for 2017 include beauty products containing extracts from unusual food ingredients like maple, driven by ethical consumer demand for simplicity.

Clear labelling and simple messaging does not only make it easier for consumers to see if a product fits their requirements, it can help to build their trust in a brand.

Millennials are a key target group for natural and organic brands, and influencer marketing can help to educate a brand’s audience on its core values and ethics.




AMERICAS: ACTION POINTS

Promote products as part of a path to health and wellness, not just through their ingredients but also by selling them in relevant distribution channels, such as gyms or local food markets.

Explore the opportunities for natural and organic products as customisable, DIY products. Emphasise the role of the consumer in the development process, and the enjoyment that a role in the creation of the product can bring.

Keep labelling simple but informative to support products’ natural claims, while also using packaging materials effectively to encourage consumers to pick products off the shelf.

Consumer demand for natural and organic cosmetics is strengthening. Target products at specific market segments and/or for specific cosmetic solutions. Babies and pregnant mums are obvious examples but also consider segments such as teenage girls, men and health enthusiasts.




MIDDLE EAST & AFRICA: ACTION POINTS

Manufacturing organic and natural products gives brands the chance to tap into an appreciation of their countries’ biodiversity. This can create lines with sustainable domestic sales, strengthened by cultural loyalties.

Where countries have international reputations for scenic beauty, sights and wildlife, manufacturers of organic and natural personal care products can consider leveraging such popularity for overseas marketing. The Middle East and Africa region is laden with exoticism, for western consumers especially, helping exporting brands tap positive public perceptions of their countries.

Natural and organic production and markets are often new and small scale. But this is a growing segment, and demand for popular products may soon exceed demand. Companies need to think ahead: do they want to position for premium sales by developing high quality expensive products, or prepare logistics for potential mass market growth?

Avoid greenwashing at all costs. There will be fakes and counterfeits – and legitimate companies need to secure eco-certification, demonstrating their honesty – mean to be green, and deliver.




ASIA PACIFIC: ACTION POINTS

Lifestyle is a key concern for consumers in Asia Pacific: organic and natural personal care product manufacturers can prosper by tying lines to popular and fashionable modes of living. Whether it is being healthy, environmentally conscious, down-sizing or sociable – natural products can reflect these choices, and be more attractive to the self-aware and mindful.

If one concern unites the varied Asia Pacific, it is a love of food. This region has a wealth of world-beating cuisines and ingredients. Personal care product manufacturers who incorporate local food ingredients into their lines can score well in marketing and product performance.

Natural and organic personal care products are about variety and local roots – while this can underpin domestic sales, the kaleidoscope of cultures in Asia Pacific means importers wanting to spice up retailer offerings have many options.

Asia Pacific is about the art of the new. Trends change with the seasons, and the most successful brands are constantly innovating. Natural and organic personal care product companies in this region need fresh offerings to retain consumers’ interest.


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