Natural Fragrances and Aromatherapy has never been more popular. Let s Talk: Jo Chidley The Flounder November 2017

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2 Mintel are reporting that Natural and Organic Beauty/Toiletries category is growing at a 24% (CAGR) over the past 4 years significantly outpacing the 2.7% growth for the total beauty category. Natural Fragrances and Aromatherapy has never been more popular. Let s Talk: Jo Chidley The Flounder November

3 Europeans are healthier & have wellness-oriented lifestyles, so what are they looking for? The blurring of the lines between health & beauty driving the movement towards natural fragrances and aromatherapy. Consumer awareness of where, how & what is in their cosmetics is higher than ever. Scent trends, single note vs complex blends and the growing availability of natural alternatives. Corporate social responsibility (CSR) Industry-wide requirements and globalising legislation So how do you keep ahead? Consumer trends in Europe for Natural Fragrances & Aromatherapy Adapting to emerging fragrance trends and keeping up-to-date with new product developments is key for any successful natural and organic manufacturer or retailer. Continuous innovation in ingredients to include multi functionality How to make an impact in a saturated market case study on Beauty Kitchen 3

4 The convergence of health & beauty healthier, wellness-oriented lifestyles the impact of this on beauty & Natural Fragrance 4

5 Lifestyle overhaul: Convergence of health and cosmetic ingredients 5

6 Synthetic V Natural: Convergence of food and fragrance

7 Aromatherapy can give beauty health benefits Tips: Show buyers how your ingredient can help consumers maintain their health. Use the correct marketing terminology. Produce essential oils of the absolute highest quality. Your oils should be natural, pure and unadulterated. Ensure safety, reliability and good practices. 7

8 Essential Oil trends can be translated to fragrance Tips: UK, France, Switzerland and Germany are the biggest markets for Aromatherapy & essential oils Europe is the leading market for essential oils, with a 40% share of the global market in

9 Making healthy choices with increased knowledge Growing consumer awareness of sustainability, naturality and ethical labelling & how this influences personal attitudes and ultimately everyday spending habits 9

10 Scent trends growing availability of natural alternatives it s a big opportunity Tips: Determine whether there is sufficient interest in organic or fair-trade versions of your ingredients. Certified ingredients remain niche products. If your ingredients are not certified, promote the sustainable and ethical aspects of your production process. You do not necessarily need to certify your ingredients in order to demonstrate that they are fair. 10

11 Consumers are interested in everything you do! A circular economy is one that is restorative by design, and which aims to keep products, components and materials at their highest utility and value, at all times. Ellen McArthur Foundation Tips: Make your supply chain traceable, in order to make your company more interesting to new or existing buyers. Demonstrate that you take responsibility for the sustainability of raw-materials production throughout your supply chain. To learn what buyers may expect from you in terms of sustainable sourcing, read more about their sustainability initiatives. Read more about sustainability initiatives that may be interesting for your ingredient in trade press. 11

12 CSR is not just a tick box any more, it is how you run your business. Tips Learn what your buyers expect in terms of CSR (e.g. access to information, staff responsibilities and paperwork). You can often find this information on their websites or by asking them about their specific requirements. For example, read about the L Oreál sustainability programme Sharing Beauty with All or Unilever s Sustainable Living Plan. Read about B Corp! 12

13 The sustainable ingredient sourcing dilemma! Natural Certified from the UK vs Organic Certified from Brazil? Organic certified from Brazil vs locally organically farmed but not certified? Frankincense? Is the transport impact worth it? What if it needs to be airfreighted? Certification above all else? How could a marketer communicate the locally farmed to offset the lack of certification? Marketing trend beats sustainability? Return of investment vs risk? Its not as easy as it looks 13

14 It is never black and white and consumer marketing therefore plays a big role 14

15 Globalised/harmonised certification? Confusion created in all channels it s unavoidable? 15

16 How to make an impact in the natural fragrance & beauty market Multifunctional proven efficacy, with a strong story 16

17 Marketing ingredients as natural is no longer sufficient; they need to work, effectiveness is key For women who love beauty products, Beauty Kitchen is the only beauty brand that provides 100% natural, 100% effective everyday luxury beauty products with a sprinkle of fun and big dollop of transparency so you can smell, look and feel GREAT, because the products and brand 100% make a difference Tips: Conduct your testing on new or existing ingredients in order to attract buyers. It is easier to interest potential buyers in your ingredients if you can show some basic test results. If you will be marketing ingredients with active or functional properties, be sure to state clearly what these properties are. Support any claims about active or functional properties with evidence. 17

18 Continuous innovation in ingredients, sustainability & application Tips: Ensure that there is sufficient market interest before investing in the development of new ingredients. Research the biodiversity in your country, and explore your possibilities for offering innovative ingredients based on the traditional use of plants in your region. 18

19 Increasing interest in multifunctional ingredients Seahorse Plankton 100% natural, biologically proven microalgae and plant extracts, for sustainable beauty. Starts working in 24 hours to: Prolong your skins natural youthful appearance Smooth and sooth problem skin Stimulate your skins elasticity, reducing fine lines & wrinkles Hydrate and protect your skin against environmental damage Carbon neutral Tips: Do not make an ingredient multifunctional simply for the sake of being multifunctional. If you combine ingredients, ensure that the combination makes sense. Do not make multiple claims about a product if the claims are related (e.g. for different skin types). Add one claim that includes all different, but related claims. If you are unable to back all of your claims, consider using content claims (e.g. high-omega, antioxidant). 19

20 Increasing importance of marketing stories Tips: Once you know how your ingredient performs, consider how you will build your marketing story. Base your story on what makes your ingredients different. You can also promote the sustainable and ethical aspects of your production process in your marketing story or share the story of your ingredient s specific origin or the history of its use. Use your promotional materials, social media (e.g. YouTube or Vimeo) and your website to communicate your marketing stories. Show pictures and videos (e.g. of your harvesting process or the traditional use of your ingredient). Remember: A picture is worth a thousand 20 words.

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