Natural and Organic Personal Care Consumer - US - December 2017

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The market
Select NOPC brands experience growth
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
Figure 2: Importance of NOPC (net), October 2017
The opportunities
Cross-promote NOPC brands to those practicing a wellness lifestyle
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
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
Figure 5: Share of consumer segments, October 2017
What it means
THE MARKET – WHAT YOU NEED TO KNOW
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
Select NOPC brands grow 4% in MULO for 2016-17
Many personal care segments expand via natural brands
Figure 6: MULO sales of select natural and organic personal care brands, rolling 52-weeks 2016 and 2017
MARKET PERSPECTIVE: LIFESTYLES OF NOPC USERS 
NOPC users follow wellness lifestyle, opportunity to cross-promote
Figure 7: Lifestyles of NOPC users, by personal care brand type purchased – Any personal care products (net), October 2017
Generation dictates approach to wellness
Figure 8: Select lifestyles of NOPC users, by generation, October 2017
NOPC SEGMENTS
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
Figure 9: Share of NOPC consumer segments, October 2017
MARKET FACTORS 
Personal Care Product Safety Act could impact NOPC
Hispanic population growth bodes well for NOPC sales
Figure 10: Population by race and Hispanic origin, 2017-22
Consumer confidence brings opportunity for new customers
Figure 11: Consumer Sentiment Index, January 2007-September 2017
KEY PLAYERS – WHAT YOU NEED TO KNOW 
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 
Established brands lose out to newcomers touting newer, relevant claims
Brand performance tied to product segment performance
Smaller NOPC brands exude quality, drive growth
Figure 12: Select NOPC brand sales performance within MULO Channels, rolling 52-weeks 2016 and 2017
WHAT’S IN?
Ingredient-forward, free-from brands see success
Mass players leverage NOPC growth through new brands…
…and more shelf space
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?
Natural sub-lines of mainstream brands continue to struggle
Official certifications aren’t necessary to succeed in NOPC
WHAT’S NEXT?
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 
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
NOPC purchases are mainstream as consumers seek healthy options
Mainstream brands preferred for core hygiene segments
Figure 15: Brand type purchased, October 2017
Natural lifestyle, health concerns drives use in younger generations
Figure 16: Brand type purchased - Any personal care products (net), by generation, October 2017
Hispanics purchase more secondary personal care products
Figure 17: Brand type purchased - Any personal care products (net), by Hispanic origin, October 2017
PURCHASE TRENDS OF NOPC 
NOPC importance (or lack thereof) reflected in two “camps”
Demand surge highlights a growing industry
Consumers pay attention to ingredients…sometimes
Figure 18: Purchase trends, October 2017
APPEALING DRIVERS
Position NOPC products as healthy to further their appeal
Gentle, high quality perceptions tied to ingredients, positioning
Figure 19: Appealing drivers, October 2017
Women appreciate gentleness, men find high quality appealing
Figure 20: Select appealing drivers, by gender, October 2017
Younger adults trust NOPC
Figure 21: Select appealing drivers, by age, October 2017
ATTITUDES TOWARD INGREDIENT SAFETY
Health concerns, lack of regulation drive NOPC use
Safety concerns prompt new shopping behaviors
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
Figure 23: Select attitudes toward ingredient safety, by gender, October 2017
Harmful ingredient perceptions heightened among Hispanics
Figure 24: Select attitudes toward ingredient safety, by Hispanic origin, October 2017
RETAILER PERCEPTIONS
Amazon benefits from high penetration to capture wide appeal
Retailer positioning aligns with consumer perceptions
Figure 25: Retailers and NOPC, October 2017
18-34s positively perceive Target, Amazon
Figure 26: Perceptions of Amazon and Target as NOPC retailers, by age, October 2017
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
APPENDIX – KEY PLAYERS 
Figure 27: MULO sales of select natural and organic personal care segments, rolling 52-weeks 2016 and 2017
APPENDIX – CONSUMER 
Methodology
Figure 28: TURF Analysis – Appealing drivers, October 2017