During the past year, the European natural and organic beauty sector benefited from consumers’ increasing concern for their health and wellbeing at the expense of wider ethical issues. However, sustainability is coming sharply back into focus, especially among German consumers, who want transparency over ingredient sourcing, manufacturing and carbon footprints.

According to GlobalData’s Q1 2021 Global Consumer Survey, 29% of European consumers claim that “organic” is an essential or key driver for purchase, tying in with beauty buyers who buy natural and organic products because they think they are better for their health and wellbeing.

“Consumers are now more attentive to their health and are interested in promoting their overall wellbeing, which bodes well for products featuring natural and organic credentials,” said Lia Neophytou, senior analyst, GlobalData. She said that a natural or organic claim might resonate with consumers who have become risk-averse about using mainstream products during the pandemic.

Heightened consumer interest in natural and organic formulations led to more global market leaders launching ranges with a high percentage of natural ingredients or that feature organic ingredients. Eventually, such options will become the norm, according to Heidi Lanschützer, associate director, Mintel Germany.

“Natural and organic brands have to go beyond natural and organic to set themselves apart as the superior, trusted option,” she said.

One example is L’Oréal’s Garnier Bio skin care range (Garnier Organic in the UK). Beiersdorf’s sustainability agenda, introduced in 2020, pledges “care beyond skin,” and places the consumer, environment and society at the heart of its strategy. Its Nivea Naturally Good skin care products claim to be formulated with up to 99% natural derived ingredients and include organic ingredients, including chamomile, argan oil, aloe vera and green tea.

An Upgrade in Skin Care
Skin care is the category European consumers are most likely to buy into natural and organic claims. According to Mintel’s Lanschützer among German shoppers, skin care has the highest potential to upgrade even more users to buying natural/organic products.

Neophytou cites the following recent natural/organic skin care launches in Europe:

• Atelier Rebul, Pre + Postbiotic Hyaluronic Serum (Turkey claims innovative postbiotic technology to help balance and support the skin in a 96% natural formulation.

“The product shows that natural formulations can be sophisticated and promise results,” added Neophytou.

• Sephora Melting Cleansing Balm (Turkey), formulated with 96% ingredients of natural origin, is enriched with chlorella, a micro-algae, and polysaccharides (brown seaweed extract). Both have anti-pollution capabilities. Sugar cane residues make up 60% of the jar’s plastic packaging.

“The inclusion of algae-based ingredients help to differentiate this private label product from the competition, while demonstrating that sophisticated natural products are not exclusive to branded players,” said Neophytou.

• Garnier Bio Micellar Water (Spain) features 99% organic ingredients, is suitable for vegans and is delivered in a recyclable bottle, aligning with a circular economy.

According to Neophytou, “The product addresses demand for organic and sustainable products which, when featured together, strengthens the positioning of both.”

What Does ‘Natural’ Mean?
So what do Europeans understand by the term “natural”? According to GlobalData’s 2019 Q3 consumer survey results, the top three interpretations are: “real ingredients,” “preservative-free,” and “free from synthetic ingredients.” “Organic” enters the top three interpretations for “natural” in Turkey, Italy and Ireland. “Eco-friendly” is in the top three in Poland and the Czech Republic. And 29% of European consumers find a “vegan” product claim somewhat or very appealing, especially in Portugal, Spain and UK.

However, a great deal of confusion exists around natural and organic claims, and there is no single, industry-wide certification. In Germany, certifications such as NaTrue, Ecocert and BDIH can often be found on the packaging of botanical and herbal product launches, making it hard for consumers to find all-natural brands.

“Front of pack logos simplify decision making,” explained Lanschützer, adding that introducing rating systems to show the level of naturalness of a formulation would also aid greater transparency.

Meanwhile, luxury beauty and personal care buyers can research brands’ sustainability efforts through the Butterfly Mark, a third-party accreditation set up by Positive Luxury to help identify luxury brands that meet the highest standards of verified innovation and environmental performance. Mintel identified Grown Alchemist among prestige beauty brands with the Butterfly Mark, due to its “measurable impact and company-wide commitments to sustainability.”

A More Sustainable Industry
Since the pandemic, recyclable and reusable packaging has become a top priority for 34% of European consumers, rising to 42% in Italy, according to GlobalData’s 2020 Recovery Tracker Survey Results. Consumers across Europe are willing to engage in sustainable behavior such as recycling or reusing their product packaging.

Sustainability is a big concern for Germans who have high expectations of natural and organic brands; 82% say they should be made in a way that’s not harmful to the environment and 75% expect they should be made in an ethical manner.

“Product launch activity shows that a far higher share of natural and/or organic NPD is also vegan-friendly, cruelty-free and sustainably made and uses eco-friendly packaging,” said Lanschützer.

In the UK, the British Beauty Council launched the Sustainable Beauty Coalition to champion best practice and industry collaboration. Its Courage to Change report, based on a survey of 3,000 UK consumers, affirms that most people want and expect the beauty industry to do better. Jo Chidley, founder of The Beauty Kitchen and member of the steering group, asserts that sustainability is a complex topic and difficult to navigate, coordinate and implement, no matter what size of business.

“The Sustainable Beauty Coalition seeks to address this confusion by developing a clear strategy, roadmap and initiatives to accelerate sustainability efforts of the industry,” said Chidley.

While focused on the UK market, Chidley foresees that this initiative will provide a framework to establish industry-wide standards in other European countries, and around the world.

Clearly, natural and organic brands operating in Europe must be transparent, accountable and prepared to make changes to become more sustainable. Millie Kendall, MBE, chief executive, British Beauty Council, warns, “We will lose the respect of the consumer if we don’t.”

---

Imogen Matthews
Headington, Oxford UK
+44 1865 764918
www.imogenmatthews.co.uk
 
Imogen Matthews is a respected consultant, journalist and researcher who commentates on trends in the beauty industry. She regularly contributes to many of the world’s foremost beauty trade titles, has served on the Board of Cosmetic Executive Women (CEW UK) and won the prestigious Cosmetic Executive (UK) Achiever Award. Founded by Imogen in 1993, The Premium Market Report remains the only in-depth report to examine trends in the premium cosmetics, skincare and fragrance industry.