in-cosmetics trends presentations review 2013 Imogen Matthews Fragrance in cosmetics was a brand new topic for the in-cosmetics marketing trends presentations in Paris, which was covered in a full morning of presentations and round table discussions. The programme included a range of diverse presentations detailing the latest global beauty trends with insights and analysis from leading research agencies and consultancies. These included sessions tied to the H2O theme, covering issues such as sustainability and the role of water in personal care products. Tuesday 16 April Global beauty ingredients: new strategic segments for growth Speaker: Nikola Matic, Project Manager, Kline & Company The global personal care industry is valued at $300bn by Kline & Company and growing by 4.5% annually. Kline Project Manager, Nikola Matic, believes that this reflects the sector’s ability to weather the recession better than other businesses. As a result, there is increasing demand for cosmetic ingredients, with some segments still to reach their growth potential. The market for personal care ingredients is valued at between $14bn and $18bn, with the specialty market showing moderate to high average growth. Europe and the US represent the bulk of sales, but are falling behind Japan, China SE Asia and India in terms of growth. Matic provided a breakdown of companies and ingredient strengths by region, which showed the big multinationals, dominating most markets, including China. “The top five suppliers account for a 29% volume share in China,” he explained. Surfactants account for 31% of volume sales of specific ingredients, followed by conditioning polymers and emollients. UV absorbers are the fastest growth category, up 5% year on year by volume. Antimicrobials are also growing above average, reflecting the move away from parabens. “The ingredients market isn’t that dynamic, even for those materials highlighted, and where there are decreases, such as in silicones, they are not particularly significant.” However, in China, silicones have high growth potential and there is strong demand for conditioning polymers, mild surfactants and antidandruff agents. What’s on the horizon for Beauty 2020? Speaker: Emmanuelle Bassmann, Managing Director, In-Trend Ltd According to Emmanuelle Bassmann, there are four key concepts which will determine the future of cosmetics in 2020. “The new dermis is fat,” she began. “Research shows that wrinkles don’t only happen in the dermis, but in the fat layers, which have a role in rejuvenating skin, an area targeted currently by aesthetic medicine companies.” Bassmann’s second concept was that the sun should not be regarded as our enemy. Skin needs a healthy dose of sun, so sun protection formulations will need to allow the skin to harness the benefits, such as vitamin D. Another trend will be for skincare that works on an emotional level, made possible by allowing the brain and the skin to communicate via neurotransmitters. Finally, the 1 role of moisturisers will also come under scrutiny, as scientists show that the skin may be better off, and less sensitive, by rebalancing itself without the barrier of cream or oil. Bassmann predicts that foams will become big, as they can be used to cover large areas of the body easily and are good for delivering actives. Ingredients to watch are Aminofill, a new anti-ageing active, and 5-FU, a skin cancer drug with rejuvenation properties. Make-up trends Speaker: Ramaa Chipalkatti, Analsyst, Datamonitor Drawing on data and insights from Datamonitor TrendSights, Ramaa Chipalkatti highlighted eight key sub-trends that are important for make-up. Some of these tied in with changes in buying behaviour resulting from the recent debt crisis. Efficient and Effective reflects how consumers want high performance, yet economically priced products that save on time. “50% of global consumers rely on products and services that help them save time,” Chipalkatti quoted from Datamonitor’s research. “Two thirds say they are too busy to look after their appearance, but feel pressure to look good.” This reflects the trend for multifunctional BB Creams and the next generation CC Creams. There are even DD Creams on the horizon, which stand for Daily Defence for tougher areas of the skin, such as the feet and body. Bargain Hunting is another sub-trend, linked to the growth in at-home treatments based on salon-style or professional products. Personalisation is at the heart of the Right for Me sub-trend, with products such as custom-blend make-up {e.g. Maybellie Fit Me Foundation}. Mood-based cosmetics that react to the individual’s skin and change colour are part of this trend. Chipalkatti also discussed the growth in Informed Shopping, whereby consumers will research products before they buy. “We are habitual and buy the same products. Brands need to disrupt this habit,” she observed. The growth in online video reviews and apps will help consumers make new choices. Panel Discussion: Water management and global efficiency Panel members: Jacques Euler, Beauty Care Water & Waste Sustainability Leader, Procter & Gamble; Jean Baptiste Bayart, LCA Project Manager, Quantis; Gaëtane Suzenet, Managing Director, Dream Eau et Milieux; Hervé Rosse Carre, Environment Department Manager, Afnor; Jean-Florent Campion, Sustainable Development Manager, R&I, L’Oreal. Moderator: Celina Rocquet, Consultant The panel debated the sustainable use of water in the cosmetics industry and the new Standard ISO 14046 which is due to go to the vote this summer. Jean Baptiste Bayard, LCA Project Manager, Quantis, discussed the need for an ISO, but pointed out that the science is not complete enough to have one standard, so the ISO will need to be modified. Quantis are putting together a water database so that companies can access this to gain clues about water consumption. Bayart also stressed the importance for educating consumers on the sustainability of water through the wash-off products they use in the bath or shower. 2 Sustainability is at the heart of P&G’s business model, including looking at the formulation and how the product is used with water, as well as working with experts such as WWF and Aqueduct to see the local impact on water use in the community. Euler, Beauty Care Water & Waste Sustainability Leader, P&G, highlighted that existing plants can be modified to become more sustainable, although building a sustainable plant from scratch is best. L’Oreal use a lifecycle approach to evaluating water consumption and are particularly looking at rinse-off products, with three products having been fully evaluated for issues such as biodegradability of formula, end of life use and environmental footprint. “More evaluation is needed of products before switching to a new model, as the science is still incomplete,” pointed out JeanFlorent Campion. Rethinking Beauty: Exploring new growth models Speaker: Irina Barbalova, Head of Global Beauty and Personal Care Research, Euromonitor International According to Euromonitor, the global beauty industry is looking in better shape than it did during the depths of the recession in 2008/9, and has recovered its equilibrium. Although the mass market dominates at $16bn, the premium sector powered ahead in 2012 and is worth $4bn, with strong revenues from the US, China, Brazil and Saudi Arabia. Premium skincare was a highpoint, but nail polish was another noteworthy product category, growing by 13% {+23% in the US}. “We call it the Nail Index,” commented Barbalova. “It’s about expressing individuality with a luxury feel at an affordable price.” Men’s skincare is another high point, which has been increasing three times that of women’s skincare, due to a focus on simplicity, health and solutions-based products. Barbalova highlighted several key trends in beauty today, including Universal Solutions, which are found in multi-functional products. “BB and CC Creams are pushing multi-functionality and offer time saving, convenience and value for money,” she affirmed. She also discussed the relationship and crossover between fashion and cosmetics. Apparel brands are crossing over into beauty, such as Wrangler and Triumph which infuse fabrics with aloe vera and other anti-cellulite or moisturising ingredients. “Beauty has been more resilient than fashion and so fashion brands are looking to benefit from this growth with affordable beauty offerings,” she said. A cosmetic chemist’s guide to the internet Speaker: Perry Romanowski, Vice President, Brains Publishing “There is so much information on the internet, that you don’t know what’s true and what isn’t,” said Perry Romanowski, who is a cosmetic consultant and also writes books, blogs and runs forums through his website Cosmetics Corner. He pointed out that online information is not well organised, is not always reliable and is a “time suck”. His internet productivity tips included limiting your time, focusing on a goal, automate as much as your can, turn off email alerts and disconnect regularly. Key internet productivity tools include reference websites providing reliable research and good beauty and science blogs, including his own The Beauty Brains and 3 killerinnovation.com. Romanowski suggested that everyone should be aware of what’s written about them online and that they should regularly monitor their profile and reputation. Wednesday 17 April Fragrance in Cosmetics Patrick Saint-Yves, President, French Perfumers Society, introduced the Fragrance in Cosmetics sessions, by saying: “Most people talk about find fragrance when they think about fragrance. However, the fragrance compounds market is divided into thirds: fine fragrance, personal care {where the profit lies} and fabric/aircare. We should underline the fact that fragrance is not used just for technical reasons, but to impact on consumers’ emotions.” Consumer insights – Scent trends and Innovation Emmanuel Moeglin, Global Fragrance & Personal Care Analyst, Mintel Mintel has researched global fragrance consumer habits by asking 5,000 respondents. The research shows that consumers often choose a personal care product predominately for the scent. For example, in Europe, a nice smell in shower gel is the second main attribute, which is almost as close as functionality. In the US, 36% buy bath and soap mainly by scent and 42% for extra moisturisers. Even in product categories where functionality is key, scent scores highly: 44% of US respondents rate pleasant smell or scent when choosing a shampoo or conditioner. “Scent is a priority when shopping for a personal care product. Understanding this, manufacturers are putting more importance on scents and enhancing creativity, quality and the sensory experience of toiletries,” stated Moeglin. The most popular scent in toiletries is floral, but there has been a strong trend for gourmet/edible, green/herbal/woody and fantasy notes. Moeglin suggested opportunities in linking scent to functional benefits, such as playing with the natural texture of ingredients e.g. raspberry pips for exfoliation. Fragrances in cosmetics and personal care products: current regulatory status in Europe Speaker: Anne Dux, Vice President Science and Regulatory Affairs in charge of European Affairs, FEBEA There are several different pieces of regulation relating to perfume ingredients and perfumes which have been updated, including REACH/CLP, Regulation {EC}1223/2009, the IFRA code of practice and SCCS. Amendments to the IFRA Code of Practices {2} are now issued every two years from 2013, based on new scientific developments. These contain either new usage restrictions or revisions of existing usage restrictions. The 47th Amendment was issued in spring 2013. The 1223/2009 article 20 changes cover fragrance-free claims. As from 11th July 2013, products with one of the 26 perfume substances listed can no longer say they 4 are fragrance free, nor any perfume component that is used, even if its main use is not as a perfume. There will also be stricter controls on allergen declarations. The SCCS made fragrance allergen recommendations to ban certain ingredients and increase the use of patch tests, but was met with criticism because patch tests do not show the real exposure of perfume. Formulation challenges Speaker: Dr Jonathan Warr, Global Leader, Fragrance R&D, Takasago Hypoallergenic issues for citrus, aromatic lavender and rose-floral types were highlighted. Dr Warr stated that the industry has responded by creating low allergen accords that smell like the original, educating consumers to evolve their tastes and the commercial development of novel or less used materials. The move towards natural ingredients demanded by consumers includes challenges such as cost, olfactive gaps, fragrance stability and product stability. In terms of future challenges, Dr Warr looked at health and sustainability. An ecolabel is now being extended to cosmetics as well as household detergents. Global products face challenges, such as the ban on CFCs and in Europe, the total ban on fluros, has resulted in more butane-propane mixes. In the US, the Clear Air Act limits the amount of vapour pressure, meaning these cannot be used, so a fluro-based product is used instead. As far as REACH is concerned, there are many products about to be banned, meaning that olfactive groups are lost and data gaps must be filled. Round Table: Pleasure, Wellbeing and Emotion Panel members: Arnaud Montet, Global Consumer Science Director, Flavors & Fragrances, IFF; Claudie Willemin, President Société Française de Cosmétologie {SFC}, Francis Herbert & Isabelle Ferrand, Cinquieme Sens; Denis Ducreux, Neuroradiology Dept, Bicetre Hospital, CNRS. Each panel member contributed a short presentation from how the brain processes smell to the value added benefits for fragrance in cosmetics. Arnaud Montet explained that character and memorability, the olfactive fit to the brand and concept all make people want to buy a product. Francis Herbert revealed that he had met many marketing managers who consider the addition of fragrance to be a cost, not an investment in a product. “They may have the best formulation, innovative packaging and communication, but if it doesn’t generate emotion with the customers, then there will be a lack of loyalty. Fragrance is key and will generate purchases.” Claudie Willemin explained that fragrance is one of the first things a consumer will notice when buying a cosmetic of personal care product. “Emotions must fit the concept and the performance of the product. The brand must impart wellbeing and self esteem to the customer.” She cited Ambre Solaire and Nivea as two long-standing brands where the fragrance has become the memory of the brand, triggering hedonistic emotion. Panel discussion: Water & Biology – New perspectives in skincare innovation Panel members: Pascal Bordat, PhD, in Pharmaceutical Sciences; Helene Duplan, Head of Skin Pharmacology and Pharmacokinetics, Laboratory R&D, Pierre Fabre 5 Dermo-Cosmetique; Daniel B Yarosh, Senior Vice President, Basic Science Research, Estee Lauder Companies Moderator: Celina Rocquet, Consultant Helene Duplan talked about the discoveries regarding water in the skin. “70% of hydration is in the skin and water is constantly regulating according to temperature, humidity and UV,” she explained. “Sometimes skin cannot respond, such as in older people.” Daniel B Yarosh talked about measuring transepidermal water loss. “If you use tape strips to test, you will find a difference by age –an older person would not need as many tape strips to raise transepidermal water loss. You never know how good it is till you need it.” He gave the example of flying, when the skin rapidly loses water 30 minutes after take-off and by landing can feel dry. The solution is to put water back, but this can take a few days after the dry skin has been sloughed off. Water is not the only thing needed by the skin, which needs ingredients, such as antioxidants, to repair it. Pascal Bordat pointed out that stress, inflammation and the environment are linked to dry skin. He suggested three strategies: the use of humectants, developing actives and molecules to enhance skin quality and the formulation of the product itself. Different cultures can be more susceptible to dry skin: for example Asian consumers are very demanding and always want more moisture, which is a genetic reason. Yarosh believes that it is important to educate consumers about dry skin before it becomes a problem. Beauty drinks, mix-it-yourself, sustainability: the role of water in beauty, trends & innovation Speaker: Christopher Lindsley, Global Skincare Analyst, Mintel According to Mintel research, moisturising claims have increased from 26% in 2009 to 32% of all product launches in 2012, even in colour cosmetics. Spa water is the most commonly used water source in skincare, accounting for 78% of facial skincare launches in 2012. Lindsley gave examples of new skincare launches which specify the use of water from a particular source, such as Skyn Iceland Arctic Hydrating Balm, which uses glacier/glacial water. Other water sources include the use of “wild water” in Dermalab Water Shock and deep sea or lagoon water in Asian skincare launches. Lindsley also examined the trend for beauty drinks and supplements. “Consumers are aware that drinks can offer more than just hydration,” he stated. “A third of consumers in France, Germany and Italy agree that water with vitamins is more healthy than water alone. 3 in 10 UK consumers would pay more for water with added vitamins.” The trend for beauty drinks is strongest in the Asia Pacific, where teas and juices with added Chinese herbs or collagen are increasing in popularity. In the future, Lindsley believes manufactures will play with the state of water in skincare products to offer a more sensorial approach. Communicating the use of “sustainably sourced” ingredients is increasing and will provide a new way of differentiation, while prestige brands will tap into more exclusive sources, such as water from Everest or underground lakes. 6 E-commerce’s final frontiers: Impulse and curation Speaker: Antonia Branston, Senior Analyst –Retailing, Euromonitor International According to Euromonitor, online retailing is still comparatively small but is growing faster than retail, especially department stores, supermarkets and pharmacies, which are all losing share. However, beauty specialists, drugstores and hypermarkets are all gaining. Skincare accounts for 9% of global online sales, which at $9bn is by far the most successful category, followed by colour cosmetics and haircare. Branston outlined the differences between retail and online behaviour and showed how impulse buying, associated traditionally with shopping in-store, could be harnessed by e-tailers. For example, click and collect, same day delivery, easier returns, convenient location and not being locally available are all compelling reasons to purchase products online. Curated beauty products will help consumers choose from the plethora of products available in different channels, as will the availability of beauty boxes. However, Branston maintained that the financial model for boxes is unclear, because they tend to provide more product samples than the consumer wants. In the future, Branston sees that impulse shopping will become easier using mobile technology. Barcodes, QR codes and digital watermarks will become the norm when buying online. Premium beauty trends Speaker: Imogen Matthews, Market Researcher, Imogen Matthews Associates According to The Premium Market Report 2013, growth within the UK premium beauty market slowed in 2012 to +5%, from +11% the previous year. Matthews suggested this trend may be indicative of a change in consumer purchasing behaviour caused by the recent economic downturn. “One in ten 25-34s are trading down to cheaper beauty products as premium brands are likely to be seen as an indulgence,” she commented. Despite this slowdown, there continues to be large numbers of niche brand launches, especially within the premium skincare category. Matthews warned that niche brands need to research the category they want to launch into if they are to be noticed by retailers. “Look at what the competition is doing well and offer the same to the retailer,” she advised. Older women tend to be ignored by the beauty industry, according to data from the report Older Women: the Forgotten Demographic, which shows that women over 45 spent nearly £2billion on cosmetics and toiletries in 2011. Respondents aged 50-90 complained that they could not relate to younger models used in beauty advertising, nor do they believe anti-ageing claims. “Skincare brands should focus on providing skin comfort and moisturisation and drop anti-ageing claims. They should use less aggressive language, such as pro-ageing or healthy ageing,” maintained Matthews. 7 Thursday 18 April Mood Cosmetics Speaker: Michaela Peck, Analyst, Datamonitor Mood cosmetics have been around since the 1970s, but are increasing in popularity in terms of four consumer trends identified by Datamonitor. They are: novelty, wellbeing, product specificity and time scarcity. The first, novelty, covers make-up consumers who are ‘variety seekers’ in search of novelty and fun, who are experimental rather than habitual shoppers. However, experimentation is moderated by consumer scepticism, which is as high as their scepticism towards banks. Consumers are adopting a more holistic approach to beauty, which has been identified as one of Datamonitor’s five pillars of wellbeing. Physicians Formula, Happy Booster, Mood Boosting Make-up is one example. Peck identified new routes for mood cosmetics, including ways of optimising, rather than simply improving consumer mood, such as mood tracking via smartphone apps. “Consumers can build mood-based regimes from this information. One day brands will have access to this kind of information,” maintained Peck. Future developments will see the mood concept moving beyond products such as colour-changing lip glosses to moodenhancing haircare with neurocosmetic benefits that work on the brain. Beauty trends 2014 and beyond –From lifestyles to cosmetics concepts Speaker: Diana Sexauer, Managing Partner, SpringPool GmbH {on behalf of DSM} According to Diana Sexauer, there are three consumer profiles that hold potential for manufacturers. Ambition and optimism is represented by young women in their 20s living in big cities who are keen to climb the career ladder but also play hard in their spare time. They have an enthusiasm for life and are status-orientated, e.g. try to dress as if they have more money than they have. They want products to fit their busy lives, so claims such as multi-functional are likely to be popular. They are also interested in anti-fatigue/anti-ageing products, but prefer more positive ways to say this. Enveloped statement refers to women in their late 20s/30s who are interested in gadgets and are very aware of the technological revolution. They see beauty as something to be improved inwardly and outwardly and like unusual products that use science. For them, white is the new tan. Departure from tradition is the third concept which includes men and women interested in tradition and authenticity and going back to nature. They dislike clutter and concentrate on quality that is not pretentious. They stick to a regime and products that are high quality, use traditional ingredients and ones that promise nourishment and resilience. Beauty trends & inspiration: what’s next from Asia? Speaker: Florence Bernardin, General Manager, Information & Inspiration The key global trends which Asian companies are addressing are lack of time, the quest of wellbeing and proactive ageing. Bernardin identified “no time” as a key issue in Japan, China and Korea, where people work long days and have long commuter 8 journeys. “Increasingly, they are looking for products that do two things at once, in bed, while commuting or at the computer,” she explained, giving examples such as micromists {e.g. Kanebo Evita Firststage Beauty Care Mist} that can be sprayed on over make-up. Due to lack of time, consumers might be persuaded to turn to skincare products that work when sleep, helping to reset and infuse the skin with active ingredients. “Sleep is the key to restoring skin that hasn’t slept enough,” commented Bernardin. Another approach is to offer consumers shorter routines with concentrated benefits. The BB/CC creams typify this, but there are also all-in-one gel products that combine a lotion, essence, make-up base and mask etc., and a trend for all-in-one face wash and lotions. Bernardin highlighted some of the new formulations and textures that are popular in Japan, including foams, and jellies which turn to liquid on the skin or contain fragrance. Colour is an important angle as it can be used to show up ingredients, or experiences, such as Blue Olay, giving the impression of water. Niche brands: Formula for success Interviewees: Rebecca Hopkins, Co-Founder & Director, Balance Me; Katrin Steinbach, Innovation & Research Manager, Cosnova GmbH Interviewer: Angelika Meiss, Editor-in-Chief, COSSMA Each brand owner gave a short presentation on the challenges of a small brand starting out and competing in the global beauty markets. Balance Me is a natural toiletries brands which started in 2005 as a “kitchen table” brand and was spotted by department store group John Lewis, which led to nationwide distribution. The products display the percentage of natural ingredients on the pack and use sophisticated textures that are results oriented at accessible prices. The brand’s success has also been due to the sampling of good sized products in magazines and Glossybox, the sampling box scheme. “We stand by our philosophy and never deviate,” explained Hopkins. Cosnova produces Catrice and essence, both high quality and low priced make-up ranges. Essence, aimed at consumers aged 14-25, is Europe’s number one cosmetics brand, which is also sold globally. Catrice targets the over 25s and has more premium appeal at affordable prices. “Social media is very important as they are both young brands, so we use Facebook, twitter and also online communities,” stated Steinbach. The brand values include offering honest, reliable products and never overpromising. Sourcing from the sea: Opportunities and sustainability challenges Speaker: Amarjit Sahota, President, Organic Monitor, plus two case studies with Algothem and Agrimer/Thalasso Organic The search for new ingredients has resulted in a lot of new marine ingredients being formulated for cosmetics. However, the challenge is in sourcing them, because they are a lot more fragile than land-based ones. Sahota gave statistics on the potential for marine ingredients, explaining that only 10% of the 2 million species have been found and that out of 30,000 marine algae, only 50 are used in cosmetics. “The challenge is how to tap into the rich source of marine life without disrupting the ecosystem. Sustainable sourcing programmes exist mainly for agricultural-based ingredients, but there are no sustainable charters for marine life,” he pointed out. Giving examples of 9 companies who are working in a sustainable manner, he talked about German-based Ocean Basis, whose Oceanwell range is based on algae-based actives derived from the sustainable sourcing of macro-algae. Lacote produces a leading anti-cellulite product range in Italy, which uses Guam seaweed which can be collected from the seabed only once a year. Algotherm presented on seaweed as a source of innovation for cosmetic ingredients and explained how it was one of the first organisms on earth and produces two thirds of the planet’s oxygen. There are micro- and macro-algae which can be differentiated by their colours and shapes. Each species has a unique composition of bioactive molecules, which Algotherm use to create its skincare products. Thalasso Organic, a professional skincare range which includes exfoliators, massage products, bath & shower and face care products based on seaweed, gave further statistics on the market for marine ingredients, including that Brittany accounts for 85% of French production. Organic certification for marine seaweeds is covered by certification in the open sea. There also exists natural resources management which covers the harvesting of volumes based on customer forecasts, a harvest register and harvesting charter. Talking about my generation: The marketing challenges presented by an ageing population Speaker: Mark Beasley, Managing Director, rhc advantage Beasley maintained that women face more pressures than men to keep an attractive and youthful appearance, especially as they grow older. He identified three challenges presented by our ageing population: the scale and impact of demographic change, understanding the attitudes to age and ageing of society and of older people, and reviewing and revising marketing strategy and practice. “According to an online survey by Boombox Marketing, women look to cosmetics to combat feelings of invisibility. It’s a constant theme in research, yet older women are hardly ever represented in beauty campaigns,” he stated. Beasley cited Imogen Matthews’ report entitled “Older Women: the Forgotten Demographic”, which centres around understanding the usage and attitudes of women over 50 regarding beauty products. “One of the many interesting findings is a clear rejection by the respondents of the concept of ‘anti-ageing’ –a recurrent theme right across all my research sources,” he explained. “Older women, it seems, are less concerned with looking younger, as seems to be assumed by the cosmetics industry, and more concerned with looking healthy and feeling comfortable.” His own research report Marketing and Mature Audiences states: “When older people are featured in advertising, it is likely to be in a stereotypical, patronising or negative way.” The report pulls together 20 ways in which the old rules do not apply to age and ageing. For example, “age disruption” includes new ideas of age and ageing, which recognises that we are active consumers for longer, lead longer, healthier lives and refuse to accept or conform to our chronological age. 10