BEAUTY | NATURAL AND ORGANIC

New breed of natural, organic products

Hybrid products are making consumers take notice
Call it the year of the crossover consumer.

In the past, shoppers indicated desire to buy

products they consider natural. However, many
sat on the sidelines, stymied by concern over
product efficacy and high tickets.

A new breed of hybrid natural products hitting

mass market shelves are swaying consumers
to select these items because they have fewer
caustic ingredients. The biggest offenders con-
sumers want to avoid are parabens, sulfates,
phthalates and mineral oils. They also dont
want beauty items tested on animals or that
sully the planet. And theres interest in gluten-
free formulas, too.

This past holiday season, drug chains such

as CVS and Walgreens, along with mass mer-
chants and specialty purveyors including Target
and Ulta Beauty, used heavier-than-usual cus-
tomer traffic to expose these natural offerings.
The message: We are in this business and you
dont need another shopping stop to buy good
for you products.
Kline & Co. estimated the natural beauty and
personal care market represented $36 billion in
2015 in manufacturer sales. Retailers and indus-
try experts believe it is growing at a 20% clip.
While the term natural remains murky and rel-
atively unregulated in many categories in the
United States (except for 11 ingredients), con-
sumers have a clarion call. They know what
they dont want to see in products, said Cozy
Friedman, the founder of SoCozy, a lineup of
hair care items formulated with what she calls
no nastys.
Indeed, the term free of is emerging as part of
more marketing campaigns.
Even if an item is less than 100% naturally de-
rived, shoppers feel they are doing something
Consumers are reading ingredient labels before making a purchase, and are interested in using natural,
green and sustainable beauty and personal care products that are free of parabens, sulfates, phthalates
and mineral oils.
better for themselves. Many customers even
seek out websites, such as The Environmental
Working Group, where they can get an analy-
sis of products and the chemicals they contain
(see EWG Verified sidebar on page 3).
Kline has been at the forefront of noting swell-
ing demand for green, sustainable and natural
products. According to the research experts,
consumers are becoming increasingly aware
of the harmful synthetic ingredients used in
product formulations. As a result, they increas-
ingly opt for products that are natural or, at
least, that they perceive to be natural due to
brands claims of exclusion of certain chemi-
cals and inclusion of naturally derived ingredi-
ents. In other words, Kline said products once
considered niche are becoming mainstream.
Less chemicals, more potential
Research firm Mintel also echoed the po-
tential of beauty and personal products with
fewer chemicals. Interest in natural formula-
tions presents an opportunity for the saturated
market, as trusted and easily recognizable in-
gredients alleviate concerns about chemicals,
pollution and unfamiliar ingredients, said a
Mintel spokesperson.
As highlighted by Mintels Global Beauty and
Personal Care Trend Gastronomia, the rise of
natural product trends paired with the strong
association between diet and skin is driving the
emergence of food-based and probiotic facial
skin care. Indeed, consumers are most likely
to be using or are interested in using products
with vitamin C (85%), fruit-based ingredients
(78%), oatmeal (78%) and honey (76%). Fur-
ther supporting this trend, 72% of consumers
use or are interested in using products featur-
ing probiotics.
CONTINUED ON PAGE 2

1 / February 2017 DRUGSTORENEWS.COM

BEAUTY | NATURAL AND ORGANIC
CONTINUED FROM PAGE 1
Millennials of course are a catalyst for growth.
But a new Harris Poll found that it isnt only
younger shoppers leading the brigade. The
survey found that a majority of women over the
age of 35 years old believe buying green beau-
ty is important to them.

According to the survey, more women read and

reread products ingredient labels before mak-
ing a purchase, in order to steer clear of certain
nasty ingredients.

This natural inspired trend is gaining traction

from retailers and suppliers, alike.

Target has natural planograms, signage and

special endcaps with such brands as Seaweed
Bath Co., Yes To, Pacifica, Aura Cacia, Fig &
Yarrow, Zum Mist and Shea Moisture. Soon,
about 150 stores will be stocked with special
Korean beauty items, many naturally positioned
and handpicked by Alicia Yoon, the founder of
Peach & Lily.
CVS is making more room for natural entries.
Some of the logos include Ahava, Skin Fix and
Organic Doctor. Dr. Hauschka, a line once only
available in spas and specialty stores with cer-
tified natural and gluten-free ingredients, is on
CVS shelves. The chains Nuance by Salma
Hayek also highlights natural ingredients.
Burts Bees also has a major presence as CVS
elevates its look. CVS Alex Perez-Tenessa, VP
of merchandising in beauty and personal care,
asserts that there is a direct link between con-
sumer interest in health and well-being and
the quest for lines with fewer caustic ingre-
dients. Hes enthused by prebiotic lines sla-
ted for debut this year. He sees natural person-
al care and beauty as categories drug stores
can own.
A fine-tuned staff
Walgreens beauty staff is fine-tuned to help
direct customers looking for better for you
formulas. On a recent trip to a Midwest loca-
tion, a shopper was directed to lines such as
No7. Shea Moisture, Yes To and Burts Bees for
her desire to shop more natural. This customer
also was treated to an analysis of her skin type,
which not only assesses her skin, but also iden-
tifies what color foundation, lipstick and blush
Targets natural planograms, signage
and special endcaps feature beauty and
personal care brands such as Seaweed
Bath Co., Yes To, Pacifica, Aura Cacia, Fig
& Yarrow, Zum Mist and Shea Moisture.
best suit her complexion. The company also
features the Botanics line of natural and organ-
ics in many stores, with more getting reset to
feature the growing brand.
Retailers are making major merchandising
moves, bringing more of the items once only Hain Celestials Live Clean is selling in
sold in stores with natural sections or chains fo- conventional aisles in Canada, appealing
cused on natural items to mainstream shelves. to consumers who have not frequented
natural products departments.
Thats supporting the rollout of Live Clean, a
line from Hain Celestial already selling strongly
in Canada. Hain also owns natural brands that ucts that dont have the ingredients causing
have flourished in natural planograms, includ- consumer concern, yet offer obtainable price
ing Jason, Alba and Avalon Organics. points, Fernandez said.
What differs Live Clean from Alba, Avalon Kline experts see this as an important change
and Jason is that retailers are putting these in thinking. One of the key drivers of growth
into conventional aisles, explained Roseann is the migration of natural brands to the mass
Fernandez, head of marketing and innovation market, where key mass retailers allocate shelf
at Live Clean. That opens up discovery for space to truly natural brands, driving consum-
customers who hadnt been frequenting natu- ers in their purchase decisions for truly natural
ral departments. versus naturally inspired brands, a Kline re-
port proposed.
We feel this appeals to the crossover con-
sumer. A lot of work went into this line to find And thats just the beginning. Retailers see big
that middle ground where we can offer prod- CONTINUED ON PAGE 3

2 / February 2017 DRUGSTORENEWS.COM

BEAUTY | NATURAL AND ORGANIC
CONTINUED FROM PAGE 2
opportunities, especially in a drug-store set-
ting, for more medi-derm therapeutic skin care
many of these lines have natural positioning.
ral positioning for rapid-fire growth, including
Shea Moisture, Physicians Formula, Yes Too,
Burts Bees (which recently crossed over into
food with protein shakes), Carols Daughter,
Dr. Bronners, Aveeno and Yardley. The natu-

$36 billion
Manufacturer sales in the
2015 natural and organic
beauty market
Differing brand approach
Other brands also are looking to move into the
mainstream. Theres a flood of new entries look-
ing to attract that crossover consumer. Beyond
Hain Celestial, there are new items from OGX,
now under Johnson & Johnson. We are on the
forefront and leading the hair-care category to
offer free-of products more widely to consum-
ers, said Dana Paris, CMO of Vogue Interna-
tional. The companys latest, Maui Moisture, is
a prime example, she said.
Numerous brands have leveraged their natu-
ral ingredients in Shea Moisture, in fact, helped
attract an audience beyond multicultural shop-
pers. An up-and-coming item addressing both
cellulite and self-tanning called SkinnyTan also
is a natural line. Neutrogena positions its Light
Therapy Acne Mask as a more natural remedy
for acne because it operates under LED light-
ing rather than chemicals typically tapped for
acne medications.
LOral in January snapped up three skin care Vogue Internationals Maui Moisture
brands from Valeant for $1.3 billion. One of Heal & Hydrate Shea Butter Shampoo
those new brands, CeraVe, plays in the natural contains coconut milk and pure
solution space on shelves, buyers said. macadamia oil in its ingredients.
Smaller brands also see the natural revolu-
tion as a door open for them. Gabriel Cosmetics Buyers said they are prepared to slice shelf
is a case in point. Its namesake brand and sister space to conventional products that are not
line ZuZu Luxe launched on Targets website last moving quickly and clear the space for more
year. An upstart called clair Naturals is eyeing naturally positioned beauty and personal care
expansion. Bee Bald is gaining shelf space with items throughout 2017 to serve the desires of
its natural product lineup for mens grooming. the crossover shoppers.

EWG Verified helps shoppers avoid toxic ingredients

The EWG Verified program now has 833 top- EWG president and co-founder. There are the European Union has banned or restrict-
rated personal care and cosmetics products dozens of product choices in every category, ed more than 1,000 ingredients, the United
in its roster. It also extends EWGs SkinDeep long lists of chemical ingredients to study States has only done so with 11 chemicals
database to the next level. and market claims designed more to soothe restricted or prohibited by the U.S. Food and
and spin than to inform. EWG Verified is the Drug Administration.
Items that bear the mark must score in the wilderness guide that consumers have been
green range and meet EWGs verification waiting for. According to the EWG, many cosmetics
criteria, which include compliance with strict chemicals are designed to penetrate the
ingredient standards, good manufacturing EWG-Verified products include cosmet- skins inner layers, and consequently, some
practices and high levels of labeling. ics like foundations, blushes, eye shadows, common cosmetics ingredients turn up in
Shoppers can quickly spot items that meet eyeliners, lipsticks and lip glosses; skin care peoples bodies. Every day, the average
stringent ingredient and transparency re- products such as lotions and moisturizers; woman uses 12 products that contain 168
quirements. EWGs mark was designed to shampoos and soaps; and many more per- different ingredients. The average man uses
help consumers identify healthier products, sonal care products. six products daily with 85 unique ingredients.
right at the point of purchase. Some ingredients are endocrine disruptors
The mark prevents companies from hid- chemicals that interfere with the bodys
Lets face it, when a shopper sets foot in the ing potentially harmful ingredients behind hormones that are linked to reproductive
personal care product aisle, shes walking terms such as fragrance. What makes this system disorders, fertility problems and other
into a consumer wilderness, said Ken Cook, important in the United States is that while health issues, EWG said.

3 / February 2017 DRUGSTORENEWS.COM