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Natural Products—Becoming More Natural

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Natural Products

While products formulated with a high proportion of synthetic ingredients dominate the global natural personal care market, accounting for nearly 75% of the total market share in 2014, truly natural positioning is gaining importance with consumers, manufacturers, and retailers.

Following this trend, marketers have increasingly been reformulating with a higher proportion of truly natural ingredients in their products, finds the imminent Natural Personal Care Global Series report by global consulting and research firm Kline & Company.

The popularity of natural-inspired products is higher in less mature markets, such as Brazil and some Asia-Pacific countries, where disposable income and consumer awareness regarding product ingredients are low and where distinguishing between natural-inspired and truly natural cosmetics is not as important when making a purchase.

"These reformulations are the next natural step for companies aiming to establish strong natural concepts with high importance given to the trust between the brand and the consumers. Moving upward in the natural ratings is a great way for natural brands to gain acceptance from a larger consumer base in the mid- to long-term," explains Agnieszka Saintemarie, Project Manager, Consumer Products at Kline & Company.

Consumers are willing to invest in these often pricey truly natural products but only if they deliver effective results. Therefore, marketers are increasingly focusing on product efficacy. To cater to consumers' desire to be able to easily select the right product, some marketers are becoming more transparent in their communication about the quality level of ingredients, certification, and the company's values.

Sales of the global natural personal care market increase by nearly 10% in 2014. All regions continue to surpass the overall beauty market's growth during 2014. Brazil and Asia-Pacific remain the fastest growing regions during 2014, with both expanding at double-digit rates. However, growth in China is restricted due to formulation challenges, as well as animal-testing methods. Several Western brands have actually withdrawn from the Chinese market in protest.

Growing consumer awareness of synthetic chemicals in cosmetics and toiletries and the desire for truly natural products will continue to propel the global natural personal care industry. This segment's growth is projected at a CAGR of slightly less than 10% through 2019.

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