NFM MarketOverview2005
Natural makeup tops personal care category
C h r i s t i n e S p e h a r
he phrase natural makeup could be
T considered an oxymoron. There’s
nothing natural about being made
up, especially when you consider tradi-
tional makeup styles, which consisted of
cakey foundation, heavy eye shadow and,
well, unnatural lip colors. But just as
Madonna traded her bright red lipstick of
the 1980s for sheer gloss in the new mil-
lennium, makeup and the people who
wear it have changed.
Nowadays, more shoppers are turn-
ing to natural makeup, not only because it
creates a more down-to-earth look, but
also because it’s made with healthier
ingredients. In fact, the segment is grow-
ing by leaps and bounds. According to
SPINS, San Francisco-based information
and service provider for the natural prod-
ucts industry, cosmetics and beauty aids
Circle Reply #155
revenue grew by 20.9 percent from 2004
to 2005, making it the top seller in the
natural body care category last year.
It’s easy to see why consumers are
gaining interest in natural cosmetics. Just
as they’ve become more vigilant about
watching for dangerous ingredients in
other personal care products, like sodium
lauryl sulfate in soap and parabens in
lotions, they’re beginning to learn that
makeup can also be a carrier for poten-
tially harmful chemicals. The inclusion of
these types of ingredients is “part of a
much bigger problem in the U.S.,”
according to Bryony Schwan, Missoula,
Mont.-based national campaign director
for Women’s Voices for the Earth, a
founding member of Campaign for Safe
Cosmetics. “We don’t have a good regu-
latory system; the [U.S. Food and Drug
Administration] does not have the
authority to require premarket testing on
health and beauty product ingredients,
and so it’s left up to the public to prove
that they’re unsafe.”
The FDA can pull products off the
market once consumers have complained
about their effects. But because many of
these chemicals don’t inflict immediate,
visible damage—they’re more insidious,
causing things like cancer and birth
defects that can’t be linked to any sure
cause—the FDA is generally helpless.
“For acute effects where someone is
immediately sick, you will see much more
action from the FDA,” Schwan said.
The makeup of makeup
Phthalates, a group of chemicals
used to create smooth application and to
suspend other ingredients in a substance,
are among the chief contaminants in
makeup. According to the Environmental
Working Group, a watchdog organiza-
tion based in Washington, D.C., “Phtha-
lates are linked in animal studies to birth
defects of the male reproductive system
and are used in a wide range of beauty
products including shampoo, hair spray,
nail polish, deodorant and lotion.” In a
study published in the December 2000
issue of Toxicological Sciences, researchers
found that phthalates “demasculinize”
male fetuses by inhibiting testicular
testosterone production and encouraging
vaginal pouches and undescended testes.
Phthalates are just one of many
chemicals to be wary of in most conven-
tional cosmetics. Darlene Zembrod,
national trainer and educator for Ecco
Bella, a natural and organic beauty care
company based in Palm Coast, Fla., said
that while some synthetic materials make
producing makeup easier, they also make
it worse for the skin and body. “We don’t
use sodium lauryl sulfate, alcohols that
dry the skin, talc, which is a possible car-
cinogen, synthetic dyes or fragrances or
animal byproducts. We also avoid propy-
lene glycol and glycolic acid, which are
toxic petrochemicals that can penetrate
the skin and cause reactions like head-
aches, dizziness, dermatitis and eye prob-
lems,” she said.
Natural beauty
One reason natural makeup sales are
increasing is because shoppers are begin-
ning to see that rumors of the ineffective-
ness of natural makeup are untrue.
“Not only are [natural cosmetics] as
effective, but they also provide therapeu-
tic benefits to the skin,” said Jill Price
Marshall, spokeswoman for Hatfield,
Mass.-based Dr. Hauschka Skin Care.
For instance, she said, Hauschka’s water-
proof black mascara, the company’s top-
selling cosmetic, contains ingredients
naturalfoodsmerchandiser.com
 NFM
Natural Body Care: Top 9 Category Sales 2005 (52 weeks ending 12/31/05) vs.
2004 (52 weeks ending 1/01/05)

Product Category Current Year Sales Year Ago Sales % Change

Skin Care $122,208,207 $106,369,006 14.9%
Soap & Bath Preparations $62,840,269 $54,404,314 15.5% Across the board, natural personal care continues
Hair Products $56,903,413 $47,802,956 19.0% to post impressive sales gains. For the second year
Oral Care $38,058,446 $33,087,324 15.0% in a row, cosmetics and fragrances topped the list. Also—
Personal Care & First Aid $31,681,850 $27,859,596 13.7% on top of impressive sales gains—all categories showed
even higher growth than 2004. Body-care kits, sets and
Aromatherapy & Body Oils $29,346,316 $25,313,492 15.9%
travel packs had the largest growth gains—13.9 percent
Deodorants $15,865,057 $13,191,833 20.3% this year compared with 2.9 percent in 2004.
Cosmetics & Fragrances $14,372,043 $11,885,788 20.9%
Body-care Kits, Sets & Travel Packs $6,167,340 $5,414,047 13.9%

such as black tea to calm and soothe,

neem extract to strengthen and prevent
bacteria, and rose wax to nourish and pro-
tect. Hauschka has had 50 percent growth
in its cosmetics category over the past two
years, Price Marshall said. “Customers
respond because our decorative cosmetic
products are held to the same stringent
quality standards that our skin care prod-
ucts are held to. None contain synthetic
dyes, synthetic fragrances, ethoxylised
raw materials, silicones, parabens or other
petroleum products.”
The concept of not only masking
imperfections, but also working to improve
them, is another reason the natural makeup
category is booming. Annemarie Börlind of
Germany’s Vice President of Education and
Training Linda Upton said her company’s
Caring Color Collection is made with non-
toxic botanical base ingredients that are
compatible with the skin’s natural oils and
sebum, and also contain jojoba oil, vitamin
E, lecithin, wheat germ protein, carnauba
wax, candelilla wax and shea butter. “These
ingredients nourish, hydrate, replenish oils
and protect against free-radical and other
environmental damage,” Upton said, and
also contributed to a doubling of Börlind
cosmetics sales last year.

Putting customers’ best

faces forward
When marketing natural makeup,
the two most important strategies are to
offer a clean, inviting sampling area and
to have a staff member available to
answer questions, not only about ingredi-
ents, but also about how to choose the
most flattering makeup. “It would dra-
matically improve retailer sales if there
were someone on staff dedicated to talk-
ing to consumers about skin care, who
was able to recommend products based
on color and skin tone, such as an
esthetician or some other trained profes-
sional,” said Laura Setzfand, director of
marketing for Culver City, Calif.-based
Zia Natural Skincare.
Upton said while customers might
not need an initial incentive to peruse the
natural makeup section, it is important to
create a friendly sampling atmosphere to
prevent them from walking out the door
empty-handed. “Customers are actually
coming into stores and requesting natural
makeup because they’re learning that just
like with food, you can get purer beauty
enhancement products that have no
potential for side effects. The retailer’s
job, then, is to create an area where peo-
ple can experiment and do so in a sanitary
manner. We’re talking presentation, as
opposed to having problems with key
selling points,” she said.
See MAKEUP on page 66
Circle Reply #156
The Natural Foods Merchandiser
June 2006 65
NFM MarketOverview2005
Convey quality message Natural Body Care: Top 10 Subcategory Sales 2005 (52 weeks ending 12/31/05) vs.
2004 (52 weeks ending 1/01/05)
Product Subcategory Current Year Sales Year Ago Sales % Change
MAKEUP from page 65 Facial Lotions & Creams $36,429,631 $31,764,063 14.7%
And, as always, ensure that you’re knowledge- Body Lotions & Creams $33,379,611 $29,562,331 12.9%
able about the benefits of natural beauty care prod- Shampoo $24,569,700 $20,968,093 17.2%
ucts. “Retailers can focus on educating their con- Toothpastes & Toothpowders $23,355,914 $20,196,872 15.6%
sumers about the safety and effectiveness of natural Bar Soap $19,259,952 $16,920,550 13.8%
cosmetics. A consumer needs to know that they are Liquid Soap $17,717,512 $15,243,159 16.2%
not sacrificing quality for health when choosing a
Facial Cleansers & Exfoliants $15,360,955 $13,184,098 16.5%
natural product,” said Price Marshall. And by stock-
Body Wash & Bath Gels $15,152,058 $12,389,491 22.3%
ing your shelves with natural makeup, you certainly
won’t risk sacrificing your sales gains, either.
Essential Oils $14,907,383 $12,821,824 16.3%
Christine Spehar is a freelance writer in Boulder, Colo. Conditioner $14,614,717 $11,867,278 23.2%
Source: SPINScan

Within natural body care, all 10 subcategories

posted double-digit growth. Conditioners and
body wash and bath gels led the pack, finish-
ing neck and neck at 23.2% and 22.3 % sales
growth respectively.

Three tiers work

MEDIA from page 58

shows dedicated to keeping the public up

to date on current information. However,
even having a qualified staff member
make an occasional guest appearance on a
regular radio show can have dramatic
results. “Whenever our staff nutritionist
visits a radio show to talk about a specific
supplement or health condition, a bunch
of people come in wanting more informa-
tion,” said Serena Frye, health and beauty
department manager at Strawberry Fields
natural market in Urbana, Ill.

Spread the word

Another way to make sure you have
a voice of authority, both inside and out-
side your store, is by creating a Web site,
newsletter, custom magazine or other
educational literature that will keep cus-
tomers informed. And you don’t have to
stop there: If you really want to encour-
age consumer knowledge about supple-
ments, think big. “What you have to do
if you are a retailer is not only protect
your own reputation, but help protect
the category and the right to have alter-
native remedies sold freely on retail
shelves. The best way to do that is get
involved in and invest in your trade asso-
ciation. Supporting the National Nutri-
tional Foods Association is incredibly
important,” said Tawse.
Essentially, the best way to manage
consumer knowledge about supple-
ments—both good and bad—is with a
three-layered approach. The bottom or
base layer is making sure your staff is
always armed and ready to supply cus-
tomers with credible and up-to-the-
minute answers and information. The
middle layer is using in-store offerings
such as literature, a reference library,
lectures and credentialed experts to
ensure your store is seen as a credible
resource. And at the top should be the
message you put out into the world
through local and national media outlets
and industry associations. “We all have
to work a little harder to protect and
earn consumer trust, but the payoff is
worth it,” said Frye.

Linda Knittel is a freelance writer in
Portland, Ore. She is the author of User’s
Guide to Natural Remedies for Depres-
sion (Basic Health Publications, 2003).
Circle Reply #157
66 The Natural Foods Merchandiser
June 2006 naturalfoodsmerchandiser.com