Special Newsletter - Natural & Organic
The lowdown on all that's new in the natural and organic market
According to latest forecasts from market research provider Grand View Research, the market value will reach USD$15.98 billion by the year 2020, and will continue to grow at a CAGR of 9.8% - rate that trumps all other industry categories.
Likewise, Kline Group estimated that the much larger natural cosmetics market hit $30 billion last year and also predicts that the CAGR for market will also grow at around 10% up to 2019.
More defined products and the developing markets
What is driving this growth is the fact that natural and organic products are much more clearly defined these days, which means consumers are able to identify with them more easily.
Natural and organic are also being adopted at a faster rate in many developing markets, especially in more developed Asian markets and Brazil. This reflects the fact that these consumers are picking up on the message about wellness and the environmental impact of what they buy.
This special newsletter takes a look at three key areas of the natural and organic monitor, including how Asian ingredients are influencing formulations, how technology is unlocking natural ingredient secrets and the need to be consistent with the green message.
Below is a synopsis and link to each article:
The ‘green’ sector will only grow if we have consistency in the language used
At a time when the cosmetics industry has been accused of ‘greenwashing’ and terms are bandied around and used so freely, the Soil Association says that the only way the sector is going to grow is if we have consistency in the language we use.
The topic of ‘green’ and certification is one that is often discussed in the natural and organic cosmetics market, so CosmeticsDesign-Europe.com spoke exclusively with Emma Reinhold, Trade Relations Manager at the Soil Association to discuss this.
With recent research showing that the number of ethical labels in cosmetics is increasing, it has led people to question if this may create confusion, and Emma says that this is where natural and organic companies have to make sure the language they use, doesn’t add to this.
What happens when science unlocks the secrets to natural cosmetics…
The industry has been both developing, enhancing and replicating natural ingredients for years, but what technologies are driving this area now, will it ever be possible to tinker with organic ingredients and what do consumers make of it all? We spoke to expert Judi Beerling to find out.
Beerling is the technical research manager at market research provider Organic Monitor and is an educator in the field of cosmetics chemistry, with many years of hands on industry experience.
Cosmetics Design also asked how these technologies are helping to expand the naturals category in a sustainable and cost-efficient way, while also enhancing the efficacy of many ingredients.
Although there are plenty of benefits to the synthesis of natural materials and ingredients, the jury is probably out on whether or not it is cheating, but as Beerling points out, few consumers are aware of this type of technology.
A look at how Asia's ingredients are influencing Western formulations
Consumers today are taking better care of their health all over the globe. This shift has impacted the cosmetics industry, particularly with organic or natural demand and the West has been increasingly looking to the East for inspiration and innovation.
Demand for organic cosmetic ingredients has been especially robust in ASEAN as the raw materials that global manufacturers need are easily available.
Ingredients like Moringa Oleifera for example, is used in various natural ingredients and widely cultivated throughout the region.
Associate consultant at Future Market Insights; Vipassa Kakroo told CosmeticsDesign-Asia.com that the retail sectors in Singapore, Thailand and Malaysia are particularly expected to increase the growth of premium and specialised organic cosmetics.
How many badges of honour do you need? Proliferation of ethical labels creates confusion
On the one hand you would think that the natural and organic cosmetics industry would be happy with the growing number of ethical labels making their way onto packs; however with no harmonisation and numbers increasing it could be at risk of creating confusion.
Initially the trend began because consumers were looking for eco-labelled products, leading to an increase in numbers.
Initially, ecolabels have been useful in increasing sustainability awareness and performance, but there are also credibility concerns given the proliferation and fragmentation of such labels.
According to the European Commission , almost half of EU consumers say environmental labels are not clear, whilst only 6% trust the claims made by companies; highlighting that with no clear message, it may actually create confusion.