Data Tracker: Green is beautiful

Companies are responding to the global demand for naturally derived ingredients in beauty products

Across the world, the demand for naturally derived ingredients in beauty products is driving companies to dig deeper into the notion of ‘natural’ beauty. Brand behaviour and communication are being tailored around the multiple new angles that have emerged in this still undefined category. And this is opening up a range of growth opportunities for new product formulations, benefits and positioning finds a recent survey by Euromonitor International.

•Preference for naturally derived ingredients remains a priority
 

•There is a rising interest in making beauty products part of an overall healthy lifestyle, encompassing appearance, physical and mental wellbeing
 

•Brands are capitalising on extending their ranges into consumers’ fitness and relaxation activities, examples: skincare workout muscle gels, body balance aroma concentrates
 

•In addition to beauty product compositions there is a growing focus on ingredients that are left out; products with ‘free-from’ claims are not new but their relevance is on the rise
 

•The preference for clean and green labelling is seen as being inspired by similar behaviour in the food and beverages category; largest markets for food and drink products with clean labelling are the US, UK and China, which gives a strong indication to where a significant consumer base for such products in beauty is likely to form
 

•Demand for halal-certified beauty products has been growing in markets such as Indonesia, the Middle East and Western markets with large, affluent Muslim communities
 

•Consumer awareness is rising and a new growth platform for products with anti-pollution claims is opening up, but there is no definition or standardised measurement to what anti-pollution products should achieve
 

•Consumers are asking for more information and scientific proof from brands to purchase products with anti-pollution claims
 

•Beyond ingredients considerations the demand for environmental and social credentials of beauty products is growing, these are transitioning from niche to standard features
 

•As water scarcity increases across developing regions, manufacturers of rinse-off beauty and personal care products will face challenges
 

•A key priority to gain competitive advantage in developing regions is to develop affordable alternative ingredients for water-scarce conditions
 

•Companies could emulate what, for example, laundry care companies have done by developing water-efficient products for water-stressed countries
 

•Beauty players targeting the green arena face significant challenges, which include balancing cost and benefit ratios and managing consumers’ willingness, or lack of, for paying more for greener beauty