Retailers to Promote Natural Cosmetics

BY Rachel Cagle
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"Back in the 1970s, “natural” and “organic” conjured up images of love-​beaded hippies, homemade soap and rustic bowls filled with hummus and granola. In the 2000s, the picture dramatically changed. Large natural products supermarket chains, social media and online influencers began educating mainstream consumers about ingredients, sustainability and small, specialty suppliers. Sales of natural and organic foods skyrocketed, with everyone from housewives to stockbrokers embracing healthy options, reports Drug Store News."

"Within a few years, grocery, drug and mass retailers had the sales and customer volume needed to enter what was once a limited market. Natural grocery chains even had trained consumers to pay higher prices, alleviating sticker shock when merchandise went mainstream." 

"Natural and organic health and beauty care now is following in the footsteps of food. Over the past 12 to 18 months, it has been exploding in traditional big-​box chains."

'Ten years ago, you visited a natural grocery store for natural products and a mass retailer for toilet paper,' said Marc De Rosa, director of sales at Dr. Bronner’s Magic Soaps. 'Today, you can get everything in one location. There are so many consumers wanting natural products that food, drug and mass have a big enough base. They have good infrastructure, and the power to slim down margins and offer natural brands at slightly lower prices.'”

"Hair care has the highest market share at 9.5%. Yet, natural and organic skin care is the strongest sales driver, according to Ecovia Intelligence (formerly Organic Monitor). Natural cosmetics are even bigger, with 2018 sales hitting $36 billion, according to Future Market Insights. In 2019, natural cosmetics should grow 4.8%, reaching $54 billion by 2027."

"Interest in natural and organic HBC reflects consumers’ growing awareness that what they put into their body is as important as what they put on it."

"How much natural and organic HBC will grow remains to be seen. Yet, if it continues to follow the growth path of what the Organic Trade Organization said is now a $52 billion organic food market, the HBC industry has much to be optimistic about."

According to AudienceSCAN, more than half of Principled Shoppers are willing to pay more for higher quality on most products, with 32.5% planning on purchasing cosmetics within the next year. Retailers can promote their natural cosmetics selections to Principled Shoppers via both digital and traditional advertisements. Last year, these shoppers took action after receiving direct mail ads, seeing TV commercials, receiving email ads and finding ads on daily deals sites such as Groupon. They're also 22% more likely than others to find ads on social media useful and 10% more likely to take action after seeing ads in both digital and print magazines.

AudienceSCAN data is available for your applications and dashboards through the SalesFuel API. In addition, AdMall contains industry profiles on cosmetics/​skin care shops and drug stores/​pharmacies, as well as lead lists at the local level. Media companies, sales reps and agencies can access this data with a subscription to AdMall from SalesFuel.