Organic personal care category ripe for development in drug
Author: Antoinette Alexander
It seems as though a growing number of consumers not only believe you are what you eat, but you are what you put on your skin.
America's obesity epidemic, the media frenzy surrounding it and the integrity of the food supply have led many people to turn to natural and organic foods. Now, that trend is gaining steam in the personal care category, and drug chains would be wise not to stand on the sidelines.
"In the last couple of years, once the [United States Department of Agriculture] organics program took effect, consumers started to understand what organic really means, and we are seeing a corresponding interest for organic personal care as a result," said Paddy Spence, president of Levlad, maker of Nature's Gate personal care products.
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In fact, the overall natural grooming market is expected to reach $5.9 billion at retail in 2008, according to a "U.S. Market for Natural Personal Care Products" report from Packaged Facts.
However, industry sources agree that, for the most part, this category remains underdeveloped, in drug outlets and that much of the category's attractive double-digit growth in recent years continues to stem from the natural product stores.
"If you go into a drug store or mass retailer, the selection of natural and organic is limited, and yet that segment is where we are seeing some of the most exciting and rapid development," noted Spence.
Suppliers agree that now is a good time for drug retailers to become dedicated players in the category. There are several reasons:
* Americans are paying closer attention to healthy diets and food safety--giving rise to successful natural grocers like Whole Foods and Wild Oats--which is translating into a holistic approach to health and fitness. Aromatherapy, yoga, natural foods and personal care products free of potentially harsh chemicals are all part of that equation.
* The science behind how best to use natural ingredients more effectively is improving, and products are more effective than ever. In the past, some consumers believed, sometimes rightly so, that using a natural product meant sacrificing efficacy.
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* There's a growing trend of converging upscale with natural and organic. The upscale shopper is equating premium with natural and organic, so by offering such products, drug chains can better position themselves against specialty retailers and attract the premium shopper.
* In general, natural personal care products have higher price points (and fatter margins), but consumers have shown that they are willing to open their wallets in exchange for a pure product that works.
Manufacturers undoubtedly are taking notice of the trend, developing innovative natural and organic personal care products for women, men and babies--the latter being an area that has seen a lot of activity lately.
One such example is Jason Natural Products, which the Hain Celestial Group snapped up last year. The company now has entered the cosmetics category with its new Lip Temptations, a three-SKU collection of moisturizing lip tints. The lip tints, which retail for $6 each, are all-natural, 100 percent vegetarian and are free of preservatives, lanolin, mineral oil or petroleum.
We looked at the marketplace and felt that there was a lack of a good natural alternative,' said Diana Wang, Jason Natural Products director of marketing, who noted that the cosmetics also could attract new consumers to the Jason brand.
Also breaking into a new beauty category is Nature's Gate with its new Advanced Skin Care line. Looking to tap into the high-growth anti-age market, Nature's Gate created the five-SKU line that contains no parabens--commonly used as preservatives--but rather is made with certified organic botanicals and is cruelty-free.
The collection features Walnut Therapy for Overnight Renewal for $24.95, Chardonnay Hydrator for Daytime for $29.95, Wrinkle Diffuser Serum with Ameliox for $29.95, Lemon Skin Brightening Serum for $29.95 and Vitamin C Texturizing Serum for $34.95.
Spence noted that over the next 12 months, Nature's Gate will release a whole range of products that further combine efficacy with science-backed organic botanicals and pure ingredients.
Meanwhile, Kiss My Face has revamped its hair care line, developing shampoos and conditioners that match in formula and fragrance. Products include Whenever shampoo and conditioner for everyday use, Big Body shampoo and conditioner for fine hair and Miss Treated shampoo and conditioner for dry and damaged hair. Complementing the line is a new mousse, dubbed Hold Up. The suggested retail price is $7.95 each.
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