By Jen Johnston as seen in Chain Drug Review, August 21, 2017
Consumer affinity for natural products has quickly extended beyond food and beverages into over-the-counter and personal care products. According to Kline Group, the U.S. market for natural personal care products has grown over 7% recently, while the U.S. market for natural O-T-C medicines has grown over 11%, fueled by growing consumer awareness and interest in using these products. As evidenced by the large amount of space allocated to supplements and health and beauty brands at Natural Products Expo West this year, the production of these products is booming.
Without clear regulation or definition, the meaning of “natural” is still somewhat in the eye of the beholder. However, natural products, in general, can be described as using ingredients that are derived from the earth and do not contain controversial chemicals such as parabens, phthalates, triclosan, BHT and microbeads.
Often the public perception of natural products is they are alternatives that allow people to experience all the benefits of mainstream products in a safer way. These statistics from NMI/ New Hope Network reveal just how skeptical and anxious the U.S. consumer is:
- 46% are concerned about chemicals in personal care products.
- 76% believe most manufacturers are focused more on profit than health.
Many retailers are facing pressure from advocacy groups such as Safer Chemicals, Healthy Families, which challenges them “to adopt policies to identify, restrict and safely substitute toxic chemicals in common consumer products.”
Target announced its set of chemical goals in early 2017, one of which states that it will “improve beauty, baby, personal care and household cleaning product categories by formulating without phthalates, propylparaben, butyl-paraben, formaldehyde, formaldehyde-donors, or NPEs (nonylphenol exthoxylates) by 2020.”
Similarly, CVS Health took a major step forward in April in advancing its efforts to address chemicals of consumer concern by announcing the removal of parabens, phthalates and the most prevalent formaldehyde donors across nearly 600 beauty and personal care products from its store brands. Costco, too, in the last few years stepped up scrutiny of chemicals by offering this comment: “We continue to work with the chemical and consumer product industries to increase our understanding in this area and to find more environmentally friendly alternatives for chemicals and practices of concern.”
Retailer decisions like these, in turn, put pressure on some mainstream manufacturers to rework their formulations. Meanwhile, it is becoming more difficult for consumers to tell the difference between natural and non-natural brands when manufacturers of conventional brands include value-based iconography and language on their packages just as the natural brands do.
Millennials, who now span from 17 to 35 years of age, are known for shopping their values, and many of these values are in line with the natural market — sustainable, eco-friendly, vegan and “free from” are just a few examples. This generation strives to live well, which they perceive as putting fewer harmful ingredients into and on their bodies. Allowing customers to shop their natural values is something e-commerce retailer Thrive Market has mastered. It allows its customers to sort by any number of values-based attributes, such as various certifications (USDA organic, Non- GMO Project), health/ingredients (full of omegas, top-eight allergen free, paraben free) and environmental/social (locally sourced, safe for a septic system). New e-commerce retailer Brandless has followed suit, also allowing for values-based shopping. So, how important is the organic connection? Is the old stereotype about the 40-something suburban white mom still accurate? As it turns out, no. Kantar Worldpanel conducted a personal care products panel and found that “Caucasian consumers are the least concerned about beauty and personal care products being organic/natural, but Asian women are much more interested. Fifty-five percent of Asian women said they prefer personal care products with natural or organic ingredients, compared with 35% of Caucasian women, 42% of Hispanic women, and 46% of African-American women.”
And while Millennials are certainly driving the natural space, 40% of women ages 35 to 49 were interested in organic/ natural beauty and personal care products, followed by 37% at ages 50 to 64 and 32% at age 65 and older. The desire for safer/natural products spans generations.
While devoted core natural shoppers may continue seeking out products at their nonconventional retailer of choice, mainstream shoppers trending toward natural will expect to see these products in drug stores near conventional brands that serve a similar purpose. After all, drug stores are known for the synergy of health and wellness, and with the meaning of natural blurring those lines, the absence of beloved natural brands speaks volumes to consumers about a chain’s alignment with their values.
For retailers unsure of where to start, websites like newhope.com highlight trends in the natural space, and Natural Products Expo West boasts over 3,000 exhibitors that may have products that are a fit for your stores.
Savvy drug stores might allow shoppers to search their e-commerce site by their values, including natural. Yet they should also find a way to help shoppers identify products at shelf that are in line with their values via signage or an instore app. They may also consider keeping on staff a health coach or naturopathic doctor who is trained in natural approaches to wellness to balance the allopathic advice that may come from the pharmacist.