Multinationals Jumping on Natural Cosmetics Bandwagon

London – L’Oreal’s recent launch of Seed Phytonutrients is the latest foray of multinationals in the natural & organic cosmetics market. Unilever has also launched the Love, Beauty and Planet brand in the last 12 months. Both brands are looking to capitalize on consumer demand for ‘clean beauty’ products.  
 
More Natural Product Launches (NPL) are expected from multinationals, however Ecovia Intelligence believes not all will be successful. As will be shown at the Sustainable Cosmetics Summit (www.sustainablecosmeticssummit.com/Asia/) and Natural Cosmetics Masterclass (www.ecoviaint.com/masterclass19/), the global natural & organic cosmetics market has many intricacies. Retail sales of such products have grown from almost nothing to USD 10.2 billion between 2002 and 2017.  
 
Consumer are turning to natural & organic products as they wish to avoid contentious synthetic chemicals in cosmetics & toiletries. The primary motive is avoidance of parabens, SLS / SLES, and chemicals with associated health risks. However, many consumers are also buying such products because they want to support small independent ethical brands.  
 
Prior to the NPL route, the favoured mode of entry of multinationals was acquisitions. Yet, not all have provided dividends. In 2007, L’Oreal purchased The Body Shop and the organic cosmetics brand Sanoflore. The former brand was sold off to Natura Brasil last year, whilst Sanoflore remains a ‘marginalised’ brand. Critics argue that L’Oreal’s recent purchase of the Logona and Sante brands will suffer the same fate. Since purchasing the Logocos business in August, some organic food retailers in Germany are considering delisting.  
 
Ecovia Intelligence sees consumer acceptance as a major challenge for multinationals. Research shows consumers identify with small / indie brands with green values; the same consumers will shun green products of large corporations. As has been shown at sustainability summits, the way forward maybe integration whilst differentiation: acquire natural / organic brands yet maintain their independence and core values. 
 
As ethical consumerism becomes mainstream and natural & organic products continue to make inroads in conventional channels, the multinationals cannot ignore this important trend. Large companies like L’Oreal and Unilever will continue to hedge their bets between developing green products and outright acquisitions.  
 
Market winners will be those who can successfully align brand values to consumer expectations. Others are likely to underperform as they find the green road is littered with obstacles.  
 
An update on the global natural & organic cosmetics market, including recent M&A activity and future growth projections, will be given at these upcoming events… 
 
Sustainable Cosmetics Summit Asia-Pacific  12-13 November, Hong Kong Natural Cosmetics Masterclass   15 January, San Francisco 
 
About the Sustainable Cosmetics Summit  Since 2009, the Sustainable Cosmetics Summit has been covering sustainability issues in the cosmetic & personal care industry. The international series of summits now takes place in the major geographic regions of the world. The Asia-Pacific edition will take place at The Excelsior Hong Kong on 12-13th November 2018.  
 
Natural Cosmetics Masterclass  Organised by Ecovia Intelligence, the Natural Cosmetics Masterclass will take place at Hilton San Francisco Financial District on 15th January 2019. For over 10 years, we have been hosting masterclasses and workshops at various international locations that include London, Paris, Nuremberg, Bologna, Barcelona, New York, São Paulo, Auckland, Dubai, Bangkok, Singapore, and Hong Kong. More details are on http://www.ecoviaint.com/masterclass19  
 
About Ecovia Intelligence  Ecovia Intelligence (formerly known as Organic Monitor) is a specialist research, consulting & training company that focuses on global ethical product industries. Since 2001, we have been encouraging sustainable development via our services portfolio: market research publications, business & sustainability consulting, technical research, seminars & workshops, and sustainability summits. Visit us at www.ecoviaint.com  
 
Further Information  For further information, please contact: 
 
Ms. Katie Giorgadze 
PR & Marketing Events Assistant  
Ecovia Intelligence  
Tel: (44) 20 8567 0788 
Email: press@ecoviaint.com