This article appeared in WWD Beauty Report International, a special publication of WWD.
Natural beauty is in bloom.
Once considered the treatment of choice by only a tiny audience—card-carrying members of Greenpeace and the like—it has begun filtering into the mainstream, with European retailers giving it increasing play.
In France, for instance, Printemps’s Paris flagship opened in November a 645-sq.-ft. space for alternative beauty brands, including more than one dozen organic lines, such as Erbaviva, Margherita Ghel and Phyt’s.
“We have seen a very strong demand for more than six months now,” said Fabien Petitcolin, skin care and cosmetics buyer at the PPR-owned department store. “More customers are reading the ingredients and asking for more natural and organic products. We don’t think it’s a trend. It is a long-term issue.”
France’s Galeries Lafayette department store is also getting in on the natural action. In September, it revamped its 1,000-sq.-ft. space dedicated to niche brands in its Paris flagship store to include 100% natural Dutch skin care brand Greenland and organic French brand Alma Carmel. The location has devoted more floor space to established natural names, such as L’Occitane, as well.
“The market is very interesting,” said Galeries Lafayette’s beauty and accessories director Caroline Fauvet. “There is a huge demand for natural products and brands that present an image of nature.”
Freestanding stores with a natural focus are also on the rise. Take Quebec-based Fruits & Passion, which debuted 12 food-and-beauty boutiques, each stocking 500 natural cosmetics items, across France over the past 18 months.
Of course, the natural category still represents just a fraction of the overall beauty business. No tracking firm follows the segment on a continent- or world-wide basis because it is so small and difficult to define. Yet Cosmebio, an organization in L’Isle Jourdan, France, estimates the country’s natural beauty sector to be worth 1% of the overall cosmetics market, with retail sales of ?28.8 million (£19.6 million/$33.6 million) in 2004.
Clearly, though, it is a niche on the rise. In 2004, 1,475 non-food “natural” products were introduced worldwide, up 240% from 2002, according to London-based Mintel International tracking firm. And 840 new non-food “organic” products hit the market in 2004, more than double the 350 launched around the world in 2002.
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Cosmebio reported applications for “all-natural” labels in France have increased 30% annually over the last three years. At the same time, manufacturers of natural products have become more professional.
“There has been a major shift in the industry over the past two to three years,” said Nitasha Buldeo, founder of Organic Apoteke, a Bedford, U.K.-based skin care brand. “Organics once were for people living the organic lifestyle, who were willing to put up with products that were not of the same standard as chemically based ones. Organic manufacturers are now very focused on technology and showing the efficacy [of their products].”
And natural brands have been led to take a more luxurious marketing stance for a burgeoning public desiring “eco luxury,” said Adeline Attia, director of Paris-based marketing consultancy Allegoria. “An ecological awareness is beginning, but at the same time consumers want ever more sophisticated and more glamorous products.”
“In the past two years lots of research has gone into [improving natural brands],” agreed Buldeo. “Lots of emphasis is being placed on luxury and products are no longer just safe, but also quite effective.”
Further, the growth of natural beauty has been spurred by a general move toward healthier lifestyles. In the U.K., for instance, celebrity chefs such as Jamie Oliver have been promoting organic foods. Organic products represent half of the baby food market there, according to a spokeswoman for the Soil Association, a Bristol, U.K.-based group that certifies organic products.
Such interest in organic edibles has had a domino effect, according to executives.
“Clearly, people are more and more interested in what they put on their skin as a result of the growing interest in eating organically,” said Amanda Barlow, board director of Cornwall, U.K.-based organic beauty brand Spiezia.
Also, increased awareness of the possible side effects of chemical-based ingredients and numerous scare stories in the press have helped boost interest in natural brands. Of course, health issues, such as mad cow disease and avian flu, are increasing consumer caution about topical and edible products, too.
“I believe that consumers want to know what they are using,” said Michelle Seabrook, general manager of Aspects Beauty Co.’s skin care division, which runs Care Co., a Lewes, U.K.-based on-line beauty retailer. “They appreciate that using the incorrect products on their skin can leave ongoing skin problems.”
Some executives say consumers feel more reassured using natural beauty items.
“Our products are traceable, so you know where they come from and where their components come from,” said Thierry Recouvrot, president of Florame, a St. Rémy de Provence, France-based aromatherapy brand, which recently introduced a 14-unit face care line in 1,000 French health-food and organic stores.
“Today’s consumer is extremely interested in product ingredients,” added Christin Powell, founder of San Rafael, California-based organic brand Juice Beauty. “She is more savvy and sophisticated when it comes to sifting through the onslaught of marketing claims promising youth in a bottle.”
However, with major players such as the Estée Lauder Cos.’ Aveda brand and L’Oréal’s Kiehl’s positioned in the natural market, competition is rife for independent brands, which have been forced to upgrade their image and formulations.
“To attract a larger, broader market, you must put something on shelves that’s not that dissimilar to what’s being used in normal life,” said Spiezia’s Barlow.
In the past, natural beauty products were generally of a richer and oilier texture than traditional beauty items, due to their essential oils used as preservatives. However, recent technological advances have allowed natural brands to introduce a wider variety of product textures to suit a larger audience, according to executives, who explained that less viscose formulas have also opened the way for different types of product packaging, which can include more aesthetic design, including labeling.
The Spiezia brand, with 37 organic references, is expected to ring up £500,000 in wholesale volume in 2006, a 100% rise year-on-year.
“Organic skin care in the past was old-fashioned stuff made in someone’s kitchen and sold in a glass bottle,” said Margo Marrone, co-founder of The Organic Pharmacy, a London-based brand comprising 250 organic beauty and health products. “We wanted to change that and be much more modern and glamorous, so we could compete with any brand—organic or non-organic.”
So the organic pharmacy company promoted its luxury positioning by using high-end packaging and featuring a treatment room in its London flagship store.
Beauty represents between 60% and 65% of the brand’s £1.5 million turnover, which is forecast to grow 100% in 2005 versus 2004.
“Consumers are looking for more serious treatment products,” said Juice Beauty’s Powell. “They want to see results quicker. At the same time, there is a higher demand for chemical-free, paraben-free, fragrance-free items.”
Juice Beauty executives project the company will ring up a wholesale volume of $6 million in 2005, a 200% increase over 2004.
Looking ahead, London-based tracking firm Euromonitor predicts the natural treatment, hair care and cosmetics markets will grow 8% annually worldwide between 2003 and 2008, versus a yearly uptick of just 1% for the general beauty market.
“In the future, manufacturers are likely to increase the amount of natural ingredients used in their products in order to satisfy consumers, without completely abolishing chemicals that they deem necessary to increase the shelf life or effectiveness of their products,” said Euromonitor in its recent report, called “The Growth of Natural Ingredients: Implications for Global Marketing Strategies.” “At the same time, the huge players are likely to dedicate huge marketing budgets to promote the natural aspects of their products.”