there are windows of success,” said Mr. Blischok.
According to IRI, escalating prices have bred exceptionally high price sensitivity, driving
declining demand across multiple categories, growth in private label, trial of lower-priced
brands and accelerated channel migration. In addition, long-standing consumer purchase drivers—including convenience and health and wellness—are losing some momentum. Specifically,
IRI reports that beauty and personal care categories, while not declining, have seen a significant slowdown in growth rates. Categories with high price increases have seen the largest
IRI is also offering the new IRI Economic Key Indicator Tracking service, which provides a
view of emerging market conditions, such as price and cost indices, category and private label
demand shifts and share, trips and trip mission mix shifts across channels, with monthly and
rolling quarter measures.
More info: www.us.infores.com
FOR GREEN AND
When it comes to cosmetics and personal care products, consumers like green and they like ethical busi-
ness practices, according to new data culled by market research firm Mintel.
The company latest reveals that the natural and organic personal care products market has
grown 35% since 2005 to $465 million, and the number of ethical cosmetic and skin care product hitting store shelves in skyrocketing.
“As more people call out for natural alternatives, we’re seeing rapid growth in the numbers
of natural and organic personal care products on the market,” said Christopher Haack, senior
analyst at Mintel.
So who’s buying them? The appeal of natural and organic personal care products stretches
to both men and women, but women are typically the main users, according to Mintel. In addition, Hispanics are seen as a growing market for natural and organic personal care; 74% of
their total personal care product purchases were classified as being natural and organic,
according to the firm.
Mintel Global New Products Database (GNPD) shows a 53% increase in new organic and/or
all natural product launches in the past two years. Realizing the success of natural and organic products, large retail chains have begun to partner with natural and organic manufacturers
to offer such products under an exclusive and limited time period. For example Walgreens
teamed with Yes To Carrots brand and Target aligned with the Erbaviva line of products.
(Target has just added another natural care line, this one geared for ethnic skin. See Marketing
News, p. 30 in this issue.)
Other mainstream companies are utilizing natural ingredients in their brands and opting for
certification to differentiate themselves from the competition.
Still others are differentiating themselves by promoting their ethical practices, such as supporting fair trade or charities, enlisting cruelty-free testing and using environmentally friendly packaging. Mintel’s GNPD Cosmetic Research shows that more than 2,800 ethical cosmetic
and skin care products were launched in the U.S. last year. And in just the first five months of
2008, more than 1,800 new ethical beauty products have appeared on retail store shelves.
“Beauty manufacturers have tapped into natural and ethical claims as a way to differentiate
their products,” comments Nica Lewis, senior analyst at Mintel.
“With green living a hot issue for many Americans, companies have begun to highlight their
use of natural ingredients and environmentally friendly packaging.”
“Over the past 20 years, the no animal testing claim went from niche to mainstream, thanks
to industry support,” said Ms. Lewis. Today, cruelty-free is the most widely made ethical claim
in new U.S. beauty products, according to Mintel. In 2007, approximately 1,600 beauty and personal care products were introduced with a cruelty-free claim. According to Mintel’s consumer
research, two in five American women said they look for beauty products that were not tested
According to Mintel, 12% of women cite recycled packaging as important to their beauty purchasing decision.
“Ethical packaging is currently more of a manufacturing issue, because it contributes to a
brand’s total environmental image,” said Ms. Lewis. According to Mintel, manufacturers have
released more than over 200 products with environmentally friendly packaging claims since the
beginning of the year.