New horizons for organic personal care products

Most leading manufacturers of organically certified cosmetic and personal care products have reported consistent sales growth in Europe, Asia, and North America during the previous five years. A recent report published by UK based Organic Monitor seeks to isolate the most significant trends in consumer behaviour which are believed to underlie future potential within this popular market. Organic Monitor’s report was developed through the process of interviewing new and seasoned consumers of natural personal care products in the UK.

Within the survey’s sample distribution, 89% of consumers cited the avoidance of synthetic chemicals as an important reason for choosing products based on natural ingredients. It was interesting to discover the extent of consumer awareness with respect to the potential hazards of chemical compounds used in conventional formulations. Parabens were identified as a cause of concern for approximately one third of the sample, while Sodium Lauryl Sulphate and Sodium Laureth Sulphate were perceived as a potential health risk by a smaller group within the sample.

One of the surprising revelations was the relatively low percentage of consumers who based purchasing decisions upon well recognised symbols or logos. This points to the apparent complexity and challenges involved in differentiating and marketing many of these products in a competitive environment. A practical description of these issues is also available in Organic Guide’s recent interviews with Melissa Jochim from Juice Beauty and Inka Bihler from Dr. Hauschka Skin Care.

Another key finding was the fact that 79% of the sample indicated that they would be willing to pay a premium for organically certified products. Further questioning revealed that relatively few consumers would consider paying more than 30% extra for the benefits associated with organic certification. While this amount might seem like a reasonable estimate to cover the additional costs associated with organic production and manufacturing procedures, there are several considerations which consumers must bear in mind.

The availability and relative cost of organically certified ingredients is highly variable and subject to production constraints and other sources of market instability. Compared with mainstream suppliers of conventional products, the organic sector is relatively small and the majority of individual companies cannot easily facilitate the economies of scale which result in low cost products. Finally, the real compliance costs associated with organic certification are frequently higher than those publicised through relevant agencies.