The transformation of the international cosmetics market is in full swing. The pandemic era and the further escalation of the climate crisis have had a strong impact on the cosmetics industry, retail and consumers. As a result of this development, the cosmetics industry is addressing issues such as a redefinition of sustainability, an increased focus on supply chains, more digitalization, and altered patterns of consumption. In this context, guidance is required. And VIVANESS 2022 is the place to get it, because the international trade fair offers answers at first hand, as well as a platform for presenting industry data and reflecting current trends, a showcase for new products and gathering place for the international beauty community. From 15 to 18 February 2022, the waiting will finally be over, when the combined BIOFACH and VIVANESS trade fair opens its door to trade visitors at Exhibition Centre Nuremberg. Following the online edition in 2021 due to the pandemic, it is back as a live and on-site event with the extra benefits of digital features.
Natural and organic cosmetics as growth driver
Many people have become reflective due to the current crises and are striving to live a more conscious life. Across all segments of society, there is a realization that a sustainable, resource-conserving healthy lifestyle doesn’t just mean happiness and satisfaction in the present but also fulfils the desire to leave a better future for the next generation. The cosmetics industry is also responding very clearly to this development and is adapting its offerings to consumer demands for natural and credibly sustainable products. This is reflected in the consistently positive sales performance of natural and organic cosmetics in Germany: With a growth rate of around 5% in the first six months of 2021, natural and organic cosmetics were able to further extend their market share. Near-natural and conventional cosmetic ranges, on the other hand, experienced a decline in sales in the single-digit percentage range during the same period. In short: natural and organic cosmetics were once again a growth generator, and the only segment in the around €14 billion (2020) German cosmetics market to enjoy growth in the first six months of 2021. This analysis was put together by Mirja Eckert from market and trend research consultancy THE NEW, in collaboration with market research institute GfK, Information Resources (IRi), IQVIA and BioVista, for the twice-yearly Natural Cosmetics Sector Monitor. As the publisher of this report on the natural cosmetics sector, she points out that: “Overall, cosmetics companies are becoming increasingly greener, are taking a more holistic and ethical approach, and are investing in sustainability. In doing so they are accommodating the growing demand from sustainably-minded consumers.” The industry expert goes on to explain: “Consumers are more informed now, and they now want brands to be transparent and convincing, so that certified natural and organic cosmetics are becoming increasingly popular.”
Sustainability trends have taken root
“The market upsets are grounded in a paradigm shift,” says Eckert. The new value systems and the changes in mindset and consumer behaviour that were taking hold even before the pandemic have been reinforced because of it, and are now resulting in specific measures and behaviours on both sides: “In the case of manufacturers, this is reflected in the natural formulations they are producing, and in consumers through the choice of brands and products that they trust,” says Eckert. Not just in Germany but internationally as well, sustainability, along with conscious and ethically appropriate consumption, are underpinning product developments in the beauty market. Water-free products, vegan cosmetics, refill systems and zero waste are here to stay. They have evolved from being a trend to become an integral part of the supply and demand. This ecological and sustainable transformation is taking place in countless bathrooms across society. The concerning outcomes of manmade environmental crises are extremely clear, and there are increasing calls for a new balance between humans and the planet. A survey of 2,000 consumers in Germany and France at the beginning of 2021 by natural and organic cosmetics association NATRUE shows that for consumers, the top priority when buying cosmetics is “naturalness”. What they understand by this is not just natural ingredients but also animal welfare, environmental compatibility, waste avoidance, sustainability, and fair trading.
E-commerce is driving sales
When it comes to sales, online channels continue to lead the field in the competition for market shares. According to market experts, omnichannel marketing will continue to gain in importance in the future and can offer a special opportunity for natural and organic cosmetic brands. Consumers are increasingly active online, where they are finding natural and organic cosmetics that meet their extremely specific and personal needs more often. Alongside the options to order from manufacturers’ web shops and on social media channels, more and more major online marketplaces like Amazon are also including certified natural and organic cosmetics in their ranges and thus increasing the availability of these brands many times over. In the bricks-and-mortar retail segment, food retailers and even discount stores have discovered the growing demand and profitability of having a natural and organic cosmetics range and are offering private labels and brand names. Novel approaches are also being adopted by fashion giants like Zalando, who is partnering with major cosmetics retailer Sephora, or H&M, who is experimenting with a shop-in-shop beauty concept.
International markets: Growth of green beauty knows no borders
Just how much demand there is in the international beauty market for natural and organic cosmetics and sustainable concepts is reflected in the numerous investments in promising small firms and/or their acquisition by major players, as reported by London-based British market research firm Ecovia Intelligence. Its founder Amarjit Sahota expects this trend to continue, with a raft of other “natural & clean brands” popping up in established companies. “The global market for natural and organic cosmetics is continuing to grow amid the pandemic,” the natural and organic cosmetics expert confirms. He estimates worldwide sales of natural and organic cosmetics in 2020 to be around USD 12 billion. “This healthy growth will continue in 2021,” Sahota is convinced. A recent market report by Global Industry Analysts, Inc. in the USA estimates the value of the global natural and organic cosmetics industry in 2020 to be even higher, at USD 18.5 billion, and predicts bright prospects for it in the next few years, with growth rates of 8%. In this context too, demand is being driven by a desire for natural products, animal welfare, protection of natural resources, consumer well-being and health.
VIVANESS: The best port of call for updates on natural and organic cosmetics
When it comes to trends and new products, facts and market analyses, VIVANESS, the international trade fair for natural and organic personal care, is the No. 1 gathering place for industry insiders from all around the world who wish to find out about natural and organic cosmetics. The four-day event provides an efficient and high-quality platform for exhibitors (290 from 42 countries at the last event) and is a reliable source of inspiration and a trend-setter for all market players. It is the best place to be to discuss the future of the natural and organic cosmetics sector! VIVANESS 2022 will reflect the fact that natural and organic cosmetics are now a fundamental part of a sustainable lifestyle. Interested parties should make a note of the dates 15.–18.2.2022 and the new Tuesday to Friday schedule!