Natural Body Care Continues to Rise in Retail

Sales of natural body care products are thriving, with 2007 annual retail sales, in conventional food/drug/mass (FDM) and natural supermarkets, totaling $785.6 million. The segment has experienced annual compound growth of 56.9 percent since 2004, and grew by 14 percent last year alone. Although natural body care sales are increasing in both channels, sales in conventional FDM are exploding, represented by a dollar increase of nearly 26 percent from 2006 to 2007. With only 1,038 outlets, the natural supermarket channel generates the most sales of natural body care items and has well-established traction in the department, according to SPINScan data (52-week period ending Jan. 26, 2008, versus prior 52-week period). However, as a whole, the 64,000+ conventional FDM outlets are contributing 73.7 percent, $70.9 million, of the cross-channel growth dollars.

Growth of all-natural skin care products is driven by a number of macro factors including an overall health-conscious lifestyle movement, consumer awareness of skin care and its importance to overall health, an increased availability of quality products and continued product innovation. There are a variety of factors impacting consumers and causing them to seek a more holistic and natural approach to living. This lifestyle movement is driven by the rise of pollution, global warming and various illnesses, along with an increased awareness of the environment and our bodies. Consumers are seeking natural and environmentally friendly alternatives across many sectors including natural and organic food, organic clothing, recycled and sustainable packaging, natural energy and hybrid automobiles. The overall health and wellness movement drives growth of the natural body care segment.

Specifically, trends in natural and organic food feed the growth of natural body care. Awareness of natural and organic products often begins with food and then spreads to auxiliary departments like natural body care and household cleaners. After consumers recognize the importance of what they put in their body, they begin to think about what they put on (or near) their body. Committed consumers of natural products are driving the majority of natural body care sales. Heavy buyers of natural products represent 20 percent of overall natural product sales, but account for 70 percent of natural body care sales.

The availability of high-quality, all-natural skin care products continues to increase as consumers become more aware and drive demand. Consumers are developing greater knowledge about what is absorbed into the body through the skin and therefore looking to avoid potentially harmful ingredients, such as parabens and petrochemicals, while at the same time seeking safer, non-chemical-based products that offer efficacy and purity. The popularity of natural body care is evident through the entrance of corporate manufacturing giants, such as Clorox acquiring Burt’s Bees, and the increasing availability of products in conventional FDM.

Great product innovation is underway, incorporating popular food and drink ingredients, amino acids, essential fatty acids (EFAs), antioxidants and other phytonutrients, aroma-therapeutic and botanical ingredients, herbal extracts and essential oils, nutrients and vitamins, and sustainable or renewable ingredients. Biodegradable, recycled and eco-friendly packaging is also becoming more popular. In addition, body care products are now following the National Organic Program (NOP) Agricultural Standards set forth for organic food and beverages . For a body care item to earn the organic seal it must be at least 95 percent organic, excluding water and salt, and the remaining 5 percent of ingredients must meet strict USDA regulations. Items with the organic seal must also be manufactured in a facility that operates in accordance with USDA organic rules, including how materials are received, warehoused, mixed, cleaned and sanitized. Many natural body care products contain some organic ingredients but only a handful of brands are currently eligible for the USDA organic seal. Although many products use ingredients farmed by organic or biodynamic methods, they still may not qualify for the seal.

The natural body care segment, as reflected in the data that follows, excludes products that contain non-natural, potentially harmful and toxic ingredients, such as petrochemicals, parabens, artificial color, synthetic fragrance and phthalates.

SPINS’ natural body care department includes nine categories:

• aromatherapy & body oils,
• body care kits, sets & travel packs,
• cosmetics & beauty aids,
• deodorants,
• hair products,
• oral care,
• personal care & first aid,
• skin care,
• soap & bath preparations.

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