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.
>> Click here to read the full Natural and Organic Market report <<