Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The market
- Select NOPC brands experience growth
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- Figure 1: MULO sales of select natural and organic personal care brands, rolling 52-weeks 2016 and 2017
- The issues
- Mainstream brands still have a place in personal care
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- Figure 2: Importance of NOPC (net), October 2017
- The opportunities
- Cross-promote NOPC brands to those practicing a wellness lifestyle
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- Figure 3: Select lifestyles of NOPC users, by personal care brand type purchased – Any personal care products (net), October 2017
- Some express ingredient safety concerns, yet don’t use NOPC
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- Figure 4: Select attitudes toward ingredient safety, by personal care brand type purchased – Any personal care products (net), October 2017
- Target High and Medium Engagers to grow sales
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- Figure 5: Share of consumer segments, October 2017
- What it means
The Market – What You Need to Know
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- NOPC sales in MULO increase for 2016-17
- Opportunity to cross-promote NOPC products as part of healthy lifestyle
- NOPC comprised of three consumer segments
- Emerging legislation, growth among Hispanics and high consumer confidence impact market
Market Snapshot
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- Select NOPC brands grow 4% in MULO for 2016-17
- Many personal care segments expand via natural brands
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- Figure 6: MULO sales of select natural and organic personal care brands, rolling 52-weeks 2016 and 2017
Market Perspective: Lifestyles of NOPC Users
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- NOPC users follow wellness lifestyle, opportunity to cross-promote
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- Figure 7: Lifestyles of NOPC users, by personal care brand type purchased – Any personal care products (net), October 2017
- Generation dictates approach to wellness
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- Figure 8: Select lifestyles of NOPC users, by generation, October 2017
NOPC Segments
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- Mintel classifies three consumer segments for NOPC
- High NOPC Engagers buy more and pay attention to ingredients
- Medium NOPC Engagers show moderate enthusiasm
- Low NOPC Engagers focused on function
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- Figure 9: Share of NOPC consumer segments, October 2017
Market Factors
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- Personal Care Product Safety Act could impact NOPC
- Hispanic population growth bodes well for NOPC sales
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- Figure 10: Population by race and Hispanic origin, 2017-22
- Consumer confidence brings opportunity for new customers
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- Figure 11: Consumer Sentiment Index, January 2007-September 2017
Key Players – What You Need to Know
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- Newer, smaller brands experience growth in MULO
- Mass players embrace NOPC trends through brands, shelf space
- Natural sub-brands struggle, official certifications not necessary
- Direct-to-consumer, biotechnology methods will help provide much needed differentiation
Select MULO Sales of NOPC
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- Established brands lose out to newcomers touting newer, relevant claims
- Brand performance tied to product segment performance
- Smaller NOPC brands exude quality, drive growth
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- Figure 12: Select NOPC brand sales performance within MULO Channels, rolling 52-weeks 2016 and 2017
What’s In?
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- Ingredient-forward, free-from brands see success
- Mass players leverage NOPC growth through new brands…
- …and more shelf space
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- Figure 13: Walgreens in-aisle display, January 2017
- Figure 14: Target end cap and in-aisle display, October 2017
- New formats, packaging create a more engaging experience
What’s Out?
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- Natural sub-lines of mainstream brands continue to struggle
- Official certifications aren’t necessary to succeed in NOPC
What’s Next?
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- NOPC brands must evolve in order to stay differentiated
- Direct-to-consumer private brands offer convenient, low cost options
- Biotechnology, local production will ease environmental challenges
The Consumer – What You Need to Know
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- Purchases of NOPC have gone mainstream
- Importance of NOPC, purchase trends support industry growth
- NOPC is appealing due to healthy, gentle, high quality perceptions
- Ingredient safety concerns prompt new purchase patterns
- Amazon held in high regard within NOPC
Brand Type Purchased
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- NOPC purchases are mainstream as consumers seek healthy options
- Mainstream brands preferred for core hygiene segments
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- Figure 15: Brand type purchased, October 2017
- Natural lifestyle, health concerns drives use in younger generations
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- Figure 16: Brand type purchased - Any personal care products (net), by generation, October 2017
- Hispanics purchase more secondary personal care products
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- Figure 17: Brand type purchased - Any personal care products (net), by Hispanic origin, October 2017
Purchase Trends of NOPC
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- NOPC importance (or lack thereof) reflected in two “camps”
- Demand surge highlights a growing industry
- Consumers pay attention to ingredients…sometimes
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- Figure 18: Purchase trends, October 2017
Appealing Drivers
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- Position NOPC products as healthy to further their appeal
- Gentle, high quality perceptions tied to ingredients, positioning
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- Figure 19: Appealing drivers, October 2017
- Women appreciate gentleness, men find high quality appealing
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- Figure 20: Select appealing drivers, by gender, October 2017
- Younger adults trust NOPC
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- Figure 21: Select appealing drivers, by age, October 2017
Attitudes toward Ingredient Safety
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- Health concerns, lack of regulation drive NOPC use
- Safety concerns prompt new shopping behaviors
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- Figure 22: Attitudes toward ingredient safety, by personal care brand purchase type – Any personal care products (net), October 2017
- Higher category engagement among women drives ingredient concerns
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- Figure 23: Select attitudes toward ingredient safety, by gender, October 2017
- Harmful ingredient perceptions heightened among Hispanics
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- Figure 24: Select attitudes toward ingredient safety, by Hispanic origin, October 2017
Retailer Perceptions
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- Amazon benefits from high penetration to capture wide appeal
- Retailer positioning aligns with consumer perceptions
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- Figure 25: Retailers and NOPC, October 2017
- 18-34s positively perceive Target, Amazon
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- Figure 26: Perceptions of Amazon and Target as NOPC retailers, by age, October 2017
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
Appendix – Key Players
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- Figure 27: MULO sales of select natural and organic personal care segments, rolling 52-weeks 2016 and 2017
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Appendix – Consumer
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- Methodology
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- Figure 28: TURF Analysis – Appealing drivers, October 2017
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