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Natural Personal Care Market
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Apr 1, 1996
165 Pages - Pub ID: LA414
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- Executive Summary
The Products
- Scope of Report
- History of Market
- The Controversy Over Definitions
The Market
- Sales Estimates in Industry Are Rare and Vary Widely
- Natural Personal Care Market Reaches $1.3 Billion in 1995
- [Table] Estimated Size of Natural Personal Care
- Market, 1991-2000 (retail dollars)
- Natural Personal Care Products Projected to Exceed
- $1.7 Billion in Year 2000
- Skincare and Haircare Products Predominate
- Market Composition by Sales Channel
The Marketers
- A Great Number of Marketers—Different Ones
- Dominate Each Sales Channel
- Freeman and Del Prominent Mass Market Producers
- Health Food Stores Offer More Brands
- Marketing and Product Trends
- From Core Natural Products to Fringe
- Aromatherapy and Alpha-Hydroxy Acids Spearhead Growth
- Advertising and Promotion
Distribution and Retail
- Large Marketers Distribute Direct to Large Outlets
- Smaller Marketers and Retailers Work Through Middlemen
- A Wide Range of Gross Margins
- Location and Display in Mass Market
- The Specialty Store Environment
The Consumer
- Women Ages 34 to 49
- "Ecologists"
- Upscale, but Not Sharply Upscale
Methodology
- Basis for Sales Estimates
The Products
Scope of Report
- Personal Care Products Which Make a Primary
- Marketing Claim That Their Ingredients Are Natural
- Secondary Characteristics: No Animal Cruelty,
- Kind to Environment
- "Natural" and "New Age"
- Focus on Retail
- Skincare, Haircare, Bath Products, and Oral Hygiene
- No Foods, Supplements, or Medicines
- No Products Which Do Not Make "Natural" Claim;
- No Mostly Synthetic Products
- But Few Products Within Market Are All Natural
History of Market
- Fear of Chemicals
- "Natural" Means Safe and Wholesome
- From Health Food Store to Mass Market
The Controversy Over Definitions
- Skepticism Within the Industry Itself Over Use of the Term "Natural"
- The Chemist's Perspective
- Natural Ingredients Are Modified to Function in Products
- Need for Preservatives Limits the Percentage
- of Natural Ingredients in Natural Products
- No Official FDA or CTFA Definition of "Natural"
- CERES Principles Provide Voluntary Guidelines
- for Natural Companies
Safety and Efficacy of Natural Personal Care Products
- FDA Has No Guidelines for Safety of Natural Products
- Natural Products Are Presumed Safe Based on Traditional Use
- Some Natural Ingredients Are New, or Are Being Used in New Ways
- Critics Cite Purity and Consistency Problems of Naturals
- Marketers Answer Criticism
- Adulteration Can Limit Usefulness of Natural Products
- Efficacy on a Par with Other Personal Care Products
- Claims Based in Science and Tradition
- Claims Similar to Those for Other Skincare
- and "Cosmeceutical" Products
Common Ingredients in Natural Personal Care Products
- Thousands of Ingredients
- Commonly Used Natural Preservatives
- Many Natural-Sourced Ingredients Are Patented
- Some Natural Ingredients Avoided in Natural
- Personal Care Products
- Popular Animal-Derived Ingredients in
- Natural Personal Care Products
- Geographical Themes in Natural Ingredients
- Ingredients Popular in Several Natural Personal Product Categories
- Popular Skincare Ingredients
- Popular Haircare Ingredients
- Natural Toothpaste Ingredients
- Popular Bath Ingredients
Product Forms
- Product Forms Duplicate Those of Mainstream
- Some Forms Are Unique to the Natural Market
Packaging and Labeling
- Much of Packaging Is Same as for Other Personal
- Care Products—and Varies with Product Form
- Environmentally Friendly Packaging and the Sin of Plastic
- Natural-Theme Packaging
The Market
- [Graphic] Size of Natural Personal Care Market,
- By Outlet Type: 1991-2000 (retail dollars)
Market Size and Growth
- Sales Estimates in Industry Are Rare and Vary Widely
- Basis for Sales Estimates
- Natural Personal Care Market Reaches $1,344 Million in 1995
- [Table] Estimated Retail Dollar Sales and Growth
- of Natural Personal Care Market: By Outlet Type,
- 1991-1995 (retail dollars); Outlet: Specialty, Health
- Food, Mass Market, and Department Stores
Factors in Future Market Growth
- A Fresh Market Grows with a New Kind of Store
- Will Specialty Store Growth Stall?
- Market Rests on Long-Standing Consumer Concerns
- Deregulatory Mood of Congress a Plus
- "Green" Will Remain a Hot Issue
- Aging of the Baby Boomers Promotes Growth
- of Skin, Bath, and Hair Coloring Products
- The Allure of Novelty
- Signs of the Market's Maturity Are Mixed
- Value Brands May Depress Prices
- The Possibility of Consumer Disenchantment
Projected Market Growth
- Natural Personal Care Products Projected to Exceed
- $1.7 Billion by Year 2000
- [Table] Projected Retail Dollar Sales and Growth
- of Natural Personal Care Market: By Outlet Type,
- 1995-2000 (retail dollars); Outlet: Specialty, Health
- Food, Mass Market, and Department Stores
Market Composition
- Skincare and Haircare Each a Little Over 25% of the Market
- Product Introductions as Clues to Market
- Composition Within Individual Personal Care Categories
- Market Composition Within Skincare
- Market Composition Within Natural Haircare
- Market Composition by Sales Channel
- [Graphic] Share of Natural Personal Care Sales:
- By Sales Channel, 1995 (based on retail dollars)
- Products Are Not Seasonal
- Nor Is Geography a Factor
The Marketers
The Marketers
- Around 400 Companies Market Natural Personal
- Care Products in the United States
- Reasons for the Large Number of Marketers
- Retailer/Marketers with Specialty Shops
- Department Store Brands
- Minor Brands from Major Cosmetics Companies
- Mass Market Companies
- Important Health Food Marketers
- Direct Marketing Companies: Avon and Mary Kay
- Aromatherapy/Bathcare Specialists
- List of Major Marketers and Brands
- [Chart] Major Marketers of Natural Personal Care Products;
- Marketers: Aubrey Organics, Aveda Corp., Avon Products,
- Body Shop, Carme, Clarins, Cosmair, Del Laboratories,
- Freeman Cosmetic Corp. H20 Plus, Jason Natural Cosmetics,
- Levlad, Leiner Health Products, Origins Natural Resources,
- S.C. Johnson, Tom's of Maine
Suppliers of Natural Ingredients
- Demand Creates Industry
- Aloecorp
- Amerchol (Union Carbide)
- Bio-Botanica_, Inc.
- Croda, Inc.
- National Starch and Chemical Company
- Other Suppliers
The Retailer-Marketers
- Boutiques Lure Customers from Department Stores
Competitive Focus: Aveda
- From Hair Salon to Natural Personal Care Marketer
- "Plant-Derived" Ingredients and Environmental Causes
- Rapid Expansion of Product Line and Outlets
Competitive Focus: The Body Shop
- The World's Leading Specialty Retailer of Natural Cosmetics
- Has Shaped the Natural Personal Care Market with Green Stance
- No Advertising; Inspired Publicity
- Backlash in 1994
Competitive Focus: Crabtree & Evelyn
- Natural Personal Care Products as Gift Items
- Natural and Environmentally Friendly
- Full-Service Retail Philosophy
Competitive Focus: H2O Plus
- Started with Bathcare
- H2O Plus Versus The Body Shop
- Expanding Product Lines Beyond Bath and Shower
- Efforts to Expand Distribution
Competitive Focus: Origins Natural Resources (Estee Lauder)
- An Experiment for Estee Lauder
- Specialty Retailer/Department Store Marketer
- Natural Products with an Unpretentious Style
- Marketing Techniques Unusual for Cosmetics Industry
- Four Years to Gather Momentum
The Marketers
Competitive Focus: Aubrey Organics
- Health Food Stores and Mail Order
- Products Shipped Direct
Competitive Focus: Bristol-Myers Squibbs' Clairol
- Mainstream Hair Coloring Company Makes a
- Second Run at the Natural Market
- Product Launched Same Year as Hair Coloring of Smaller Companies
- Powerful Resources Go into the Coloring Launch
- Natural Instincts Obeys the Rules of the Natural Products Market
Competitive Focus: Clarins
- French-Based Marketer Stressing Natural Ingredients Since 1954
- Clarins Triumphs Over L'Oreal's Biotherm
- Large Functional Promises Plus Natural Image
Competitive Focus: Del Laboratories
- A Natural Brand Created for Mass Market at the Right Time
- A Miniature "Body Shop" Within the Drugstore
- Gradually Expanding Product Line
- Focus on the Economy-Minded Customer
Competitive Focus: Freeman Cosmetics Corporation
- An Extensive Product Line for Mass Market
- Mid-Priced, High End of Mass Market
- Eye on Discount Stores
- Good Capitalist Image Typical of Industry
- Rapidly Increasing Ad Budget
Competitive Focus: Tom's of Maine
- A Family-Owned Business Based on Natural Toothpaste
- From Health Food Stores to Mass Market
- Natural Personal Care and "Common Good Capitalism"
- Competitors So Far Unsuccessful in Eroding Tom's Share
Marketing and New Product Trends
- Pace of New Product Introductions Is Rapid and Increasing
[Graphic] Natural Personal Care New Product
Introductions, 1990-1995
- Introductions in Terms of Stockkeeping Units
- [Table] Natural Personal Care Introductions:
By Category, 1990-1995 (SKUs); Category: Skincare,
Haircare, Bathcare, Soap, Suncare, Cosmetics, Fragrances,
Intimate Hygiene, and Other
- From Core Natural Products to Fringe
- A Bathcare Revolution
- Bathcare Revolution Assists Natural Personal Care
- Aromatherapy Defined
- A Mature Product Category in Europe; Growing Fast in U.S.
Aromatherapy Products Named for Their Effects
- Price Varies Considerably
- Aromatherapy as a Secondary Product Attribute
- Was 1994 the Peak Year for Aromatherapy?
- Alpha-Hydroxy Acids Drive Skincare as Aromatherapy
- Drives Bathcare
- Hair Coloring
- [Chart] New Natural Aromatherapy Product Introductions
(1993-1995); Marketers: Arizona Natural Resources,
Aura Cacia, Lunar Farms, Oshadhi, Starwest Botanicals,
Anthe-Essence, Aphrodisia Naturals, Blackmores, Cosmetic
Group International, Natural Attitudes, Natural Brands,
Nature's Elements, TCCD International, Tisserand Aroma-
Therapy, Avalon Natural Cosmetics, Bare Escentuals,
Bath and Body Cosmetic Group, Body Shop, Desert
Essence, Earth Science, Freeman Cosmetic, Frontier
Cooperative Herbs, Jason Natural Cosmetics, Laboratoire
Cosbionat, Wive's Tales
- [Chart] New Natural Personal Care Product Introductions
with Alpha-Hydroxy Acids (1992-1995); Marketer:
Clearly Natural Products, Del Laboratories, Edna, Elizabeth
Arden, European Mystique, Freeman Cosmetic Corp. Fruit
of the Earth, Gary Null & Associates, General Nutrition
Centers, Jason Natural Cosmetics, Kolmar Laboratories,
Leiner Health Products, Nailene, Nature's Gate Natural
Cosmetics, Pacific Beauty Products, Phytomer Laboratories,
Rachel Perry, Sothys, Beauty Naturally, Beiersdorf,
BioCosmetic Research Labs, Cosmania, Looking Grrreat!,
Nature's Elements, Naturistics Division, Noevir Co., Orjene
Natural Cosmetics, Perfect Natural Products, Pureline,
San Francisco Soap, North Pacific Naturals, Paul Penders
- [Chart] New Product Introductions: Natural Hair
Coloring (1990-1995); Marketers: Lotus Brands, Aveda
Corp., Clairol, Advanced Salon Technology, Dena Corp.,
Oasis Brand Products, Antica Erboristeria, Logona Natur-
kosmetik, Colora, Paul Penders
Measured Advertising Expenditures
- Information Based On CMR Data
- 1994 Advertising Approached $35 Million
- Print Is Medium of Choice
- Equal Amounts Spent on Haircare and Skincare
- [Table] Natural Personal Care Ad Spending Compared
with Personal Care Ad Spending Overall: By Personal
Care Category, 1994 (dollars and percent); Categories:
Haircare, Skincare, Toilet Soaps, Women's Fragrances,
Bath Toiletries and Misc. Toiletries, Misc. Beauty Aids
and Supplies, Makeup, Facial Cleansers, Dental Supplies,
Deodorants, Other
- 29 Advertisers in 1994; 10 Spent Over $1 Million
- Clarins Was Top Spender with $5.4 Million
- Kao Corporation in Second Place with $5 Million
- Bristol-Myers Squibb Is Third Place Spender
- Aveda Spends $3.3 on Assortment of Products
- Specialty Shops Responsible for Very Little Measured Advertising
- [Table] Measured Advertising Expenditures for Natural
Personal Care Products: By Major Advertisers, 1993-1994
(dollars); Advertisers: Clarins, Kao, Bristol-Myers Squibb,
Aveda, Shiseido, S.C. Johnson, Freeman Cosmetics,
Tanning Research Labs, ET Brown., Estee Lauder, Tom's of Maine
Advertising Positioning
- Ads Target Women
- Positioning Differs with Category and Product Benefits
- But Some Themes Dominate All Categories: Science,
- Nature, Tradition, and Ethics
- Validation Through Science
- Nature Is Associated with Health, Purity, and Innocence
- "Nature" and "Natural" Used Constantly in Ad Copy
- Tradition Backs Claims and Creates Image
- Some Ads Highlight Ethical and Environmental Concerns
- Positioning on Luxury
- Magazines' Editorial Environments Strongly Support Ads
Consumer Promotion
- Promotion and Publicity Are on a Large Scale
- Donations to Environmental Causes
- Other Socially Responsible Stances
- Product Literature, Catalogs, and Other Publications
- Free Sampling
- Special Trial Offers
- Coupons
- Trial Sizes and Value Paks
- Refunds
- Sweepstakes—Rare but Not Unknown
- Point-of-Purchase Displays
Trade Promotion
- Floor Displays and In-Store Advertising
- Quantity Discounts
- Trade Shows
- Trade Advertising
- Trade Ads Appear Frequently
- Ads Make Case for Brand, Category, and Profits
- Trade Ads Also Trumpet the Marketing Plan
- Suppliers' Trade Ads
Distribution And Retail
Distribution
- Large Marketers Distribute Direct to Large Outlets
- Smaller Marketers and Retailers Work Through Middlemen
- Some Distributors Specialize in the Health Food Channel
- Diverters Move Department Store Products Through Mass Outlets
At the Retail Level
- Retail Shares of Natural Personal Product Market
- A Wide Range of Gross Margins
- Location and Display in Mass Market
- The Specialty Store Environment
The Consumer
The Consumer
- Hard Survey Data Rare in Market
- A Female Consumer
- "Ecologists"
- Older than Other Personal Care Users
- Upscale, but Not Sharply Upscale
- The Attitude of "Generation X"
Appendix I: Company Profiles
The Body Shop International, PLC
- Created the Specialty Market for Natural Personal Care
- Retail Sales of £ 500 Million at 1,210 Stores
- 44% of Turnover in the United Kingdom
- A Company Founded on Political Correctness
- Quantifying a Social Conscience
Bristol-Myers Squibb Company/Clairol
- Multinational, Multifaceted Giant
- Clairol Founded in 1931
- 1950—the Miss Clairol Breakthrough
- 1990s—Aiming for Tighter Focus
Estee Lauder Companies, Inc./Origins Natural Resources
- A World Leader in Prestige Skincare, Makeup,
- and Fragrance Products
- 39% Share Where Sold
- Net Sales by Region
- Products Sold in Prestige Sales Channels
- Privately Held Until 1995, Still Family Run
The Limited, Inc.
- Net Sales Just Under $8 Billion in 1995
- 12 Brands: 12 Store Chains
- A Balance of Mature and Growing Businesses
Shiseido Company, Ltd
- A Leading International Marketer of Prestige Cosmetics
- Net Sales of ¥ 540 Billion in Fiscal 1995
- A Dedication to "Graceful Aging"
- Cosmeceutical and Natural-Sourced
- An Environmental Credo
Appendix II: Selected Minor Marketers
- [Chart] Selected Minor Marketers of Natural Personal Care Products;
Marketer: ABBA Products, Abkit, Abracadabra, Alba Botanica
Cosmetics, Alpa Cosmetics, American Outback, Andrew Jergens,
Arizona Natural Resources, Artmatic Cosmetics, Aura Cacia,
- [Chart, cont.] Autumn Harp, Avalon Natural Cosmetics, Bain de Terre,
Bare Escentuals, Barth's Nutra Products, Beauty Naturally, Ben
Rickert, BertSherm Products, Bio-Health, Blackmores, Bodyography,
Bonne Bell, Boots, Borlind of Germany, Burt's Bees, Cabot Labora-
tories, Clearly natural Products, Cosmania, Cosmyl, Country Life,
Country House Products, Creative Care, Creighton's Naturally,
Degu American Corp., Deodorant Stone Manufacturing, Deodorant
Stones of America, Dep Corp., Devi, E.E. Dickinson, E.T. Browne
Drug Co., Earth Science, earth preserv, Earth Friendly Products,
Edna, Emerald Forest, Equilibrium Laboratories, Frank T. Ross &
Sons, Fredericksburg Herb Farm, French Transit, Frontier Coopera-
tive Herbs, Fruit of the Earth, Gary Null & Associates, General
Nutrition Centers, H20 Plus, Hain Food Group, Hairobics, Helene
Curtis, Home Health Products, Homeolab, Hospital Specialty, Iodus
Cosmetics, J.R. Liggett, Kimberly-Clark, Kiss My Face, La Ligne
Alchimique, Nature Brands, LaBella, Leiner Health Products, Life
Tree Products, Lily of Colorado, Limelight, Lissee Cosmetics, Looking
Grrreat!, Lotus Brands, Lotus Pads, Lunar Farms, Masada Marketing,
MEM Co., Mentholatum Company, Minnetonka Brands, Mishpat,
Mode de Vie, Monoi & Cosmetic, Nailene, Native American Naturals,
Natracare, Naturade Products, Natural Elegance, Natural White,
Naturally Healthy Hair Products, Nature Cosmetics, Levlad, Madaus
Murdock Schwab/Nature's Way Products, Nature Brands, Nature's
Acres, Nature's Elements, Nature's Answer, Nature's Goodness
Products, Nature's Family, NeemAura Naturals, New Cycle Products,
Nirvana, Noevir Co., Northern Products Marketing, Oasis Brand
Products, Ohio Hempery, Oils of Aloha, Omega Nutrition USA, Onyx
Labs, Walnut Acres/Organic Farms, P. Leiner Nutritional Products,
Pacific Beauty Products, Pagel's American Ginseng Farm, Para
Laboratories, Paragon Productions, Paul Penders, Penny Island
Personal Care Products, Perfect Natural Products, Perfective Cosmetics,
Pharmagel Corp., Philip B. Botanical, Phillips Nutritionals, Phytomer
Laboratories, Pro-Line Corp., Pure Touch Therapeutic Body Care,
Pureline, Quantum, Rachel Perry, Red Rose Distribution, Redmond
Products, Rejuvenol, Reviva Labs, San Francisco Soap, Scentsational
Products, Schroeder & Tremayne, Set-N-Me-Free Aloe Vera Company,
Shane health, Sherwood's of England, Shikai Products, Shiseido
Cosmetics, Sinclair & Valentien, Sothys, St. Ives Laboratories, Starwest
Botanicals, Stevens Skin Softener, Sun Pharmaceutical, Sunfeather
Herbal Soap Co., T.N. Dickinson, Tahiti Naturel, TCCD International,
Terrain, TerraNova, Thursday Plantation, Tisserand Aromatherapy
Total Beauty, Tropical Soap Co., Tsumura International, Tushies
Division, Vagosang, Vermont Country Soap Corp., Vigorol, Vitol
International Walnut Acres, WellBody Laboratories, Western Pleasure,
Wysong Corp., Zandu USA, Zenue
Appendix III: Examples Of Consumer And
Trade Advertising And Promotion
- Consumer Advertising
- Trade Advertising
- Supplier Trade Ads
Appendix IV: Addresses Of Selected Marketers
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