Natural and Organic Personal Care Consumer - US - December 2015

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Limited regulation and saturated natural market creates blurry product lines
Figure 1: Difficulty identifying and stricter regulations of natural and organic personal care products, July 2015
Few adults are loyal to natural and organic personal care products
Figure 2: Personal care product use, by brand type, July 2015
Older adults most green focused; yet for the most part don’t purchase NOPC products
Figure 3: Only use natural and organic personal care brands, by generation, July 2015
The opportunities
Parents are purchasing NOPC products; offer online subscription
Figure 4: Only use select natural and organic personal care brands, by presence of children in household, July 2015
Promote the health benefits of NOPC products, particularly to older adults
Figure 5: Health reasons for purchasing natural and organic personal care products, by age and gender, July 2015
Create an experience in natural food stores
Figure 6: Shopped natural food stores most often for any personal care products, by various demographics, July 2015
What it means
THE MARKET – WHAT YOU NEED TO KNOW
NOPC sales grew in natural supermarkets
Sales of organic and non-GMO increase
Number of natural products and lack of regulation weaken natural claims
Parents lead the way in NOPC purchasing; opportunity to grow
MARKET PERFORMANCE
NOPC product sales in natural channels continue to increase
Figure 7: Natural supermarket sales of select personal care products, at current prices, rolling 52 weeks September 2013-September 2015
MARKET BREAKDOWN – NATURAL CHANNELS
Skincare brings in the most revenue; oral care growing rapidly
Figure 8: Natural supermarket sales of select personal care products, by segment, at current prices, rolling 52-weeks ending Sept. 8, 2013 and Sept. 6, 2015
MARKET PERSPECTIVE
Increasing sales of organic and products with organic ingredients
Figure 9: Natural supermarket sales of select natural personal care products, by organic ingredient content, at current prices, rolling 52-weeks ending Sept. 8, 2013 and Sept. 6, 2015
Sales increase of products verified as non-GMO
Figure 10: Share of natural supermarket sales of select natural personal care products, by presence of GMO ingredients, at current prices, rolling 52-weeks ending Sept. 8, 2013 and Sept. 6, 2015
MARKET FACTORS
Majority of personal care launches claim to be natural
Figure 11: Share of personal care product launches with natural claim, November 2014-November 2015
Certification and standardized is still unregulated
Many new NOPC products are launched online
Figure 12: Percentage of personal care product launches (with a natural claim) and change of share, by store type, 2010-14
Parents lead the way in NOPC purchasing; opportunity to grow
Figure 13: Parental status, presence and number of children, by personal care user type, July 2015
Figure 14: Uses mix of mainstream and natural and organic personal care brands, by parental status, July 2015
KEY PLAYERS – WHAT YOU NEED TO KNOW
Segment sales of select natural and organic brands increasing
Value options and ability to measure up to mainstream products struggle
Unique formats and formulas could boost NOPC sales
MANUFACTURER SALES OF SELECT NATURAL AND ORGANIC PERSONAL CARE PRODUCTS
MULO performance of select NOPC brands
Segment sales of select natural and organic personal care products
Figure 15: Manufacturer sales of select natural and organic personal care brands, by segment, 2014 and 2015
WHAT’S WORKING?
Aveeno leads sales of select skincare, lotion, and sun protectant brands
Figure 16: MULO sales of skincare products, at current prices, rolling 52 weeks September 2013-September 2015
Ogx leader in hair care sales
Figure 17: MULO sales of haircare products, at current prices, rolling 52 weeks September 2013-September 2015
Suave Naturals loses sales as newer NOPC soap brands have big gains
Figure 18: MULO sales of soap products, at current prices, rolling 52 weeks September 2013-September 2015
Natural and organic oral care sales boost the total oral care market
Figure 19: MULO sales of oral care products, at current prices, rolling 52 weeks September 2013-September 2015
WHAT’S STRUGGLING?
A lack of value-focused natural and organic introductions
Figure 20: Share of natural and organic product launches, by private label, November 2014-November 2015
Natural and organic deodorants may not stand up to mainstream
Figure 21: MULO sales of deodorant products, at current prices, rolling 52 weeks September 2013-September 2015
Natural or organic hair coloring options are limited
Figure 22: MULO sales of hair coloring products, at current prices, rolling 52 weeks September 2013-September 2015
Consumers are critical of The Honest Company sun protectant
WHAT’S NEXT?
Stricter regulations in the personal care industry proposed
Powder face cleansers emerging among natural brands
Activated charcoal gaining popularity in NOPC products
Natural brands have a wipe for everything
THE CONSUMER – WHAT YOU NEED TO KNOW
Overall green attitudes remain similar to 2013
A small few exclusively use natural and organic
NOPC users shop many locations; mainly mass merchandisers
Product claims help identify products that align with consumer needs
Consumers have conflicting perceptions of NOPC products
Personal benefits are the top reason for purchasing NOPC products
ATTITUDES TOWARD GREEN LIVING
Attitudes toward green living remain largely unchanged
Figure 23: Attitudes toward green living, September 2013 and July 2015
Natural and organic personal care users have greener attitudes
Figure 24: NOPC Users’ attitudes toward green living, by user type, July 2015
Older generations more concerned with environment and health
Figure 25: Select attitudes toward green living, by generation, July 2015
Figure 26: Attitudes toward price and research, by generation, July 2015
Children in household impact green action and attitudes
Figure 27: Attitudes toward green living, by children in household, July 2015
Green attitudes are similar across race and origin
Figure 28: Attitudes toward green living, by Hispanic origin and race, July 2015
NATURAL AND ORGANIC PERSONAL CARE PRODUCT USE
A small number exclusively purchase natural and organic brands
Figure 29: Personal care product use, by brand type, July 2015
Age and income factor into natural and organic personal care use
Figure 30: Select personal care product use, only use natural and organic brands, by age and income, July 2015
Parents of young children are a key target for natural and organic brands
Figure 31: Select personal care product use, only use natural and organic brands, by presence of children in household, July 2015
Asian adults most likely to solely use natural and organic products
Figure 32: Select personal care product use, only use natural and organic brands, by race and Hispanic origin, July 2015
RETAILERS SHOPPED
Mass merchandiser the lead location for personal care products
Figure 33: Retailer shopped most often for any personal care products, by user type, July 2015
Profile of NOPC users who shop natural food stores
Figure 34: Shopped natural food stores shopped most often for any personal care products, by various demographics, July 2015
Profile of NOPC users who shop online
Figure 35: Shopped online most often for any personal care products, by various demographics, July 2015
IMPORTANCE OF PERSONAL CARE PRODUCT CLAIMS
Most product claims are important to NOPC product users
Figure 36: Importance of claims, top two box, by user type, July 2015
Millennials and Seniors differ on claims’ importance
Figure 37: Importance of select product claims, top two box, by generation, July 2015
Figure 38: Importance of free-from claims, top two box, by generation, July 2015
Added vitamins and safe ingredient claims important to parents
Figure 39: Importance of personal care claims, top two box, by parental status, July 2015
Hispanics lean on claims most; Black and Asian adults look to some
Figure 40: Importance of select claims, top two box, by Hispanic origin and race, July 2015
PERCEPTIONS OF NATURAL AND ORGANIC PERSONAL CARE PRODUCTS
Availability and transparency could be barriers to purchasing
Figure 41: Availability, transparency, and health perceptions of natural and organic personal care products, by age, July 2015
Health impact and the need for natural and organic line extensions
Figure 42: Health, product line extension, and skepticism perceptions of natural and organic personal care products, by user type, July 2015
Figure 43: Health, product line extension, and skepticism perceptions of natural and organic personal care products, by Hispanic origin and race, July 2015
Uncertainty surrounds the impact on the environment
Figure 44: Environmental perceptions of natural and organic personal care products, by age, July 2015
REASONS FOR PURCHASING NATURAL AND ORGANIC PERSONAL CARE PRODUCTS
Adults purchasing NOPC do so primarily for the personal benefits
Figure 45: Personal benefit reasons for purchasing natural and organic personal care products, by age and gender, July 2015
Supporting the environment is secondary
Figure 46: Environmental reasons for purchasing natural and organic personal care products, by age and gender, July 2015
To feel good about oneself does drive purchasing, particularly for dads
Figure 47: Aspirational reasons for purchasing natural and organic personal care products, by parental status, July 2015
Performance compared to mainstream products is not a motive
Figure 48: Performance reasons for purchasing natural and organic personal care products, by age and gender, July 2015
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations
Terms
APPENDIX – MARKET
Figure 49: Natural supermarket sales of select personal care products**, by presence of GMO ingredients, at current prices, rolling 52-weeks ending Sept. 8, 2013 and Sept. 6, 2015
Figure 50: Natural supermarket sales of select personal care products, by organic ingredients and naturally positioned, at current prices, rolling 52-weeks ending Sept. 8, 2013 and Sept. 6, 2015