GCI Magazine 04 April 2017 by Bel SPA

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NEW

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CONTENTS 18

APRIL 2017 | VOLUME 185, NUMBER 4

FEATURES 12 Emotionally Invested

The makeup purchase becomes an experience in itself. BY HANNAH SYMONS

18 Why Color Cosmetics Are a Beauty Anomaly

In an uncertain world, cosmetics are a rare, safe investment, if marketers respect three key trends. BY DR. KURT JETTA

22 More Than Makeup

Multifunctional color cosmetics bring the “wow” to beauty. BY LISA DOYLE

26 Color Out Loud

Makeup, beauty’s growth engine, is about more than color, offering new anti-pollution benefits, ethical options and more.

30 Top 20 Global Beauty Care Company List

Based on 2016 sales of beauty and personal care only

34 Finding the White Space in Natural Personal Care

How Olivina identified a niche and fast-tracked from formulation to shelf in nine months.

BY JACK CORLEY

DEPARTMENTS 6 Spark: Beyond Color BY JEB GLEASON-ALLURED

8 Markets & Trends 39 Skin/Sun/Anti-aging 44 Hair 48 Cosmetics 52 Bath/Body/Fragrance/Grooming

2 Contents Global Cosmetic Industry | April 2017

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CONTENTS 34

EDITORIAL

Director Editor in Chief Research Analyst Assistant Editors

Digital/Social Media Editor

Jo-El M. Grossman Jeb Gleason-Allured | 1-630-344-6069/jallured@allured.com Nicole Urbanowicz | 1-630-344-6053/nurbanowicz@allured.com Jennifer Novoseletsky | 1-630-344-6045/jnovoseletsky@allured.com Savannah Saunders | ssaunders@allured.com Brooke Schleehauf | 1-630-344-6032/bschleehauf@allured.com Lisa Schryver | 1-630-344-6068/lschryver@allured.com Audrey Latimer | 1-630-344-6067/alatimer@allured.com

ADVERTISING SALES Business Development Manager Kim Jednachowski | 1-630-344-6054/kjednachowski@allured.com Business Development Manager Paige Crist | 1-630-344-6060/pcrist@allured.com Fragrance Coordinator Kasia Smialkowski | 1-630-344-6025/ksmialkowski@allured.com

AUDIENCE DEVELOPMENT Marketing Specialist Marie Galvan Marketing Assistant Alyssa Derby Customer Service 1-888-399-0899/customerservice@gcimagazine.com

DESIGN Graphic Design Manager Senior Graphic Designer Production Manager

Lisa Hede Hon Bannapradist Bryan Crowe

CORPORATE

Partner & President Partner & CEO Controller Digital Products Director Executive Assistant

Janet Ludwig George Fox Linda Getner Rose Southard Maria Romero

OTHER ALLURED PRODUCTS Allured Business Media 1-630-653-2155 • fax 1-630-653-2192 336 Gundersen Drive, Suite A Carol Stream, IL 60188-2403 USA www.Allured.com

RESOURCES 55 Products & Services Showcase 56 Advertiser Index

Alluredbooks Cosmetics & Toiletries Bench Reference Cosmetics & Toiletries magazine Cosmetics & Toiletries magazine: Portuguese edition Cosmetics & Toiletries Summit Skin Inc. magazine Face & Body Midwest Spa Conference and Expo Face & Body Northern California Spa Conference and Expo Face & Body Southeast Spa Conference and Expo Perfumer & Flavorist magazine World Perfumery Congress Flavorcon

Subscriptions: Subscribe online: www.GCImagazine.com/subscribe In the US, telephone: 1-888-399-0899, Outside the US, telephone: 1-847-559-7557 (9 AM–5 PM Central, Mon-Fri) | Fax: 1-847-291-4816 E-mail: customerservice@gcimagazine.com Print subscriptions: Available free to qualified individuals located in the United States. All other countries may subscribe to the digital edition. Periodicals Postage paid at Carol Stream, Illinois, and additional mailing offices. Change of address: Give both the new and old addresses. Allow two months for a change to become effective. Global Cosmetic Industry (ISSN 1523-9470) is published eleven times per year as Jan., Feb., March, April, May, June, July/Aug., Sept., Oct., Nov. and Dec. issues by Allured Business Media, 336 Gundersen Drive, Suite A, Carol Stream IL 60188-2403 USA. Copyright 2017. Free subscriptions to Global Cosmetic Industry are available to qualified individuals. The publisher reserves the right to determine qualification of free subscriptions. Replacement issues are available only through single copy sales. Single copies: $20; GCI Directory Issue: $35 (Add $10 per order shipped to Canada; add $15 per order to all other countries.) Periodicals postage paid at Carol Stream IL 60188 and additional mailing offices. POSTMASTER: Please send address changes to Global Cosmetic Industry, PO Box 3009, Northbrook, IL 60065-3009. Change of address: Give both the new and old addresses. Allow two months for a change to become effective.

Members of the American Business Media. All correspondence regarding business, editorial, advertising and production should be sent to Global Cosmetic Industry, 336 Gundersen Drive, Suite A, Carol Stream, IL 60188-2403 USA.

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Allured Business Media makes all attempts to publish accurate information; however, this publication may contain technical inaccuracies or typographical errors. The reader assumes all risks concerning the suitability and accuracy of the information within this publication. Allured Business Media assumes no responsibility for and disclaims all liability for any such inaccuracies, errors or omissions in this publication and in other documents referred to within or affiliated with this publication. www.GCImagazine.com

4 Contents Global Cosmetic Industry | April 2017

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SPARK

| BY JEB GLEASON-ALLURED

Beyond Color

JEB GLEASON-ALLURED Editor in Chief jallured@allured.com @GCI_Magazine

GLOBAL COSMETIC INDUSTRY MAGAZINE EDITORIAL ADVISORY BOARD ALISA MARIE BEYER Coastal Salt & Soul

MARIE ALICE DIBON Alice Communications, Inc.

ADA POLLA Alchimie Forever, The Polla Beauty Group

ART RICH, Ph.D. A. Rich Development

RICK RUFFOLO R4 Innovations

CRISTINA SAMUELS Mode Cosmetics

LAURA SETZFAND Epiphany

ixty-one percent of U.S. women reported using makeup in 2016, according to a recent CEW beauty trend briefing delivered by NPD’s Karen Grant. That represents a gain of 2% since 2014.; put another way, that’s 2.5 million more women using makeup. At the same time, launch activity in the makeup segment rose 24% year-over-year between 2015 and 2016, reflecting significant dynamism. It shouldn’t be a surprise that color cosmetics are booming. In the age of FaceTime, Skype and the selfie, the face has become more prominent than ever in our daily interactions. At the same time, makeup products and formats are able to evolve rapidly, with some fast-fashion brands boasting the ability to introduce new SKUs from concept to market in a matter of weeks, while offering a low pricepoint. The pace and diversity of launches in the crowded makeup field have created new opportunities for direct-to-consumer brands, as well as innovations such as Kat Von D’s Everlasting Flash program at Sephora, which introduces new products for 48 hours during the first week of every month, allowing quick-moving consumers to snap up the new products before they hit stores. This enables the brand to create short-term scarcity without sacrificing on sales volume. Finally, in the post IT Cosmetics and alphabet cream world, multifunctional offerings are all the rage, offering enhanced benefits including SPF, pollution defense, hydration and more. For brand founders and marketers, the possibilities are virtually endless. n

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6 Spark Global Cosmetic Industry | April 2017

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Defy standard beauty routines.

Rejuvenate hair from the inside out. Reverse visible signs of skin aging. Let us be a part of your next innovation.

Visit us at NYSCC Suppliersâ&#x20AC;&#x2122; Day May 2-3 2017, Booth #803 ulprospector.com | carecreations.basf.com

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MARKETS & TRENDS BABY BOOMER BEAUTY BY THE NUMBERS Millennials get all the headlines but baby boomers have a serious interest in beauty— and the spending power to back it up.*And, because of improving lifestyles and medical advances, boomers are bound to enjoy longer, healthier, more vibrant lives than their predecessors. Recently, Women’s Marketing** took a closer look at the influential boomers, offering insights into their attitudes and beauty needs. • 52% of boomer women say that they use beauty products to look good • 38% of boomer women are interested in anti-aging claims • 60% look for products with moisturizing/hydrating properties for dry skin • 50% state their main reason for buying products is replenishment • 13% said they only seek out new products that will work better than their current brand’s products • <5% said they would buy something unplanned • 60% said that previous personal experience remains their biggest purchase influencer • 43% of boomers prefer branded products over private label • 14% say they purchase upscale beauty brand products *According to figures cited by Full Tilt Marketing (www.fulltiltmarketing.net), baby boomers have an annual spending power of $2.3 trillion, compared to $600 million for millennials. **www.womensmarketing.com

Beauty in the Cloud Last year, Croda introduced a range of demo formulas focused on enhanced sensorial qualities, including a cloud formulation that transformed from a unique marshmallowy texture to a water-like format when rubbed on the

Peter Thomas Roth’s Water Drench Hyaluronic Cloud Cream Hydrating Moisturizer “drenches skin with moisture drawn right from the atmosphere.”

skin. Now, new beauty products touting “cloud” concepts abound. Most recently, Glossier launched its Cloud Paint in conjunction with the 2017 Oscars. The blush is available in shades such as Puff, Beam, Dusk and Haze. The lightweight gelcream formula offers sheer, buildable coverage. In skin care, Peter Glossier’s Cloud Paint debuted on the 2017 Oscar red carpet. Thomas Roth introduced And, finally, Dior launched the its Water Drench Hyaluronic Cloud Diorsnow Brightening Refining Cream Hydrating Moisturizer ($52.00 Moist Cloud Crème ($120.00), which 48 ml/1.6 oz), which “drenches skin contains lightening zinc gluconate with moisture drawn right from the microcapsules that reduce the atmosphere,” according to the brand. production of sebum on oily skin areas, The 30% hyaluronic acid cream offers leaving pores diminished and skin 72 hours of hydration and contains feeling refined. n ceramides, Silab’s ProHyal+ and antioxidant elderberry.

8 Markets & Trends Global Cosmetic Industry | April 2017

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THE PERFECTIONISTS BEHIND PICTURE-PERFECT.

For years, we’ve partnered with the world’s leading beauty brands in creating exceptional packaging. But true beauty is more than skin deep – and now our capabilities go deeper too. We’re putting our expertise to work with a full spectrum of packaging and product development solutions for beautifully integrated products that shine, inside and out.

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Because Fusion means partnership. Harmony.

B E AU T Y. M A D E E F F O R TL E S S .

A perfect marriage of form and function.

F U S I O N P KG . C O M | 8 6 6 . 5 8 7. 1 1 5 2

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MARKETS & TRENDS

Capturing Emerging Skin Care Trends

oday’s Japanese masking trend is tomorrow’s emerging U.S. skin care craze. That’s the conclusion of a recent Google Beauty Trends Report***, which leverages the company’s vast data capabilities to track the ways in which skin care trends cross borders and manifest uniquely based in local cultures. Google drew from data generated in the United States, France and Japan to identify and compare skin care trends. The analysis noted that skin care skews more natural in Dahliana Naturals’ 30 Second Beauty France, more technical in Japan and more experiential in Rescue is just one of countless vegan skin care products searched by the United States. consumers over the last year.

Vegan on the Rise With ethical beauty in general on the rise, it’s no surprise that vegan skin care searches have grown by 83% year-overyear in the United States, according to Google. Top veganrelated searches included soap, skin care, ChapStick, face wash, lotion and body wash.

Spiking Search Terms Google identified what it termed “Rising Stars,” search terms which are relatively new and experiencing a recent spike in search volume. It’s too early to tell which, if any, of these will have staying power, but they could signal tomorrow’s leading trends. Among the United States, Japan and France, the recently emerging terms included: • bath ball/bath bomb (United States and France) • coal mask/charcoal face mask/charcoal for skin (United States and France) • carbonated face wash (Japan)

***www.thinkwithgoogle.com

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Masking the Planet Masks are having their moment. According to data from NPD, the masking market grew worldwide in 2016 at a rate of 24–53%, depending on the region. At the same time, according to Google researchers, the top 10 mask-related skin care videos in the United States, France and Japan received 98 million total views last year. Top mask-related searches over the last year included: • charcoal/charcoal blackhead mask • blackhead • eye mask • clay mask • sheet mask Charcoal masks are among the fastest growing skin care search terms, according to Google data.

Fastest-growing Terms Google outlined the top search terms, from which Global Cosmetic Industry extracted the fastest-growing queries. As with Rising Stars, these terms may not have longevity, but several may emerge as early indicators of forthcoming industry trends. In the United States, the fastest-growing terms by search volume were: • black bath bomb: 9,757% • carbonated bubble clay mask: 2,188% • charcoal mask: 274% • bath bombs: 100% • facial cleanser: 85% • Aztec clay mask: 72%

• lips (up 12,533% in France, 394% in the United States and 35% in Japan) • body (up 190% in the United States) • heels (up 695% in Japan) Top concerns for consumers searching for masks included: • acne • oily skin • hydration/dry skin

DIY Masking

The fastest growing product search terms in France included: The Elizavecca Milky Piggy Carbonated • blackhead mask: 198% • face mask: 165% • organic coconut oil: 85%

The fastest-growing mask-related searches showed interest in masking beyond the face. Top terms, by volume, included:

Face Mask is in line with top skin care searches in Japan; the trend could easily transfer to other markets.

DIY mask searches rose year-over-year, primarily in the United States, though leading French search terms included “homemade moisturizing face mask.” In the United States, the top DIY searches included: • DIY face mask • DIY charcoal mask • DIY peel-off face mask • blackhead mask DIY n

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COLOR OUT LOUD

EMOTIONALLY

INVESTED The makeup purchase becomes an experience in itself.

b s c n n

S • In a crowded makeup market, creating experiences around the purchase is a key competitive advantage.

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• Brands can leverage artificial scarcity, create events around launches or even build a fast-fashion “see it now, buy it now” model to generate loyalty.

S t l i l b t g

In any guise, the fun and frivolity of the beauty industry makes it an ideal breeding ground for the interlacing of experiential threads across the value chain.

• Experiential purchasing can protect brands from dupes and create greater consumer engagement.

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Color Out Loud

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Global Cosmetic Industry

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JUST PEACHY

| BY HANNAH SYMONS, Beauty and Personal Care Analyst, Euromonitor

o experience more in everyday life is to actively engage in physical doing, establish an emotional connection or create meaningful memories. In any guise, the fun and frivolity of the beauty industry makes it an ideal breeding ground for the interlacing of experiential threads across the value chain. However, one pivotal process, which until recently has been largely overlooked, is the purchase itself. Amidst sustained double digit growth projections for color cosmetics through the end of the decade, adding value on novel merit, besides the obvious innovation avenues, will be necessary to keep up momentum.

Scarcity Breeds Loyalty The limited edition is becoming more commonplace in the $57 billion global color cosmetics market, but considering that a model of short stock supplies does not have obvious positive revenue repercussions for a brand, in what way is it profitable? According to Euromonitor International’s 2016 Beauty Survey, only 25% of female color cosmetics buyers claimed to always buy the same brand or product, a statistic which leaves brands much room for improvement. The industry’s idea is that the exclusivity of limited editions fosters long-term brand loyalty, emotional buy-in and a sense of belonging, something that is arguably of much higher value than fickle or impulse shoppers, despite these delivering greater volumes. Take reality star Kylie Jenner’s color cosmetics brand; this is built upon small volumes and frequent launches, which generate maximum frenzy. If brands are going to keep consumers waiting, they at least need to do it graciously.

Editor’s note: Peach is in. Royal Peach Palette by Kylie Cosmetics ($35; above) contains 12 pressed powder eyeshadows in peach hues. The colors include Sorbet, a matte finish light tangerine; Seashell, a metallic finish pink champagne; Peachy, a matte finish bright peach; Royal, a satin finish bright royal blue; Queen Bee, a metallic finish shimmering caramel; Duke, a metallic finish red copper; Duchess, a metallic finish bright cinnamon; Sandy, a matte finish medium tan; Mojito, a metallic finish golden green; North Star, a metallic finish soft lilac; Crush, a satin finish peachy pink; and Cinnamon, a matte finish burnt orange. This product also contains a medium-sized tapering brush. Too Faced has also introduced peach-themed makeup, including Sweet Peach Eye Shadow Collection Palette ($49.00), Sweet Peach Glow Peach-Infused Highlighting Palette ($42.00; below), Sweet Peach Creamy Peach Oil Lip Gloss ($19.00) and Sweet Peach Papa Don’t Peach Blush ($30.00), as well ass Soap & Glory’s Peach Party Blush Powder ($15.00).

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COLOR OUT LOUD (Continued from Page 13)

Kylie Jenner’s color cosmetics brand is built upon small volumes and frequent launches, which generate maximum frenzy.

Launch as a Shared Experience In December 2016, a five-figure-strong sea of emotionallycharged super fans sat in an orchestrated digital queue for the biggest launch of the year. These were not teenage boyband aficionados, nor were they festival goers hankering after a much-coveted ticket to Coachella. These frenzied punters were serious beauty worshippers, awaiting the rerelease of the sold-out Too Faced Cosmetics Sweet Peach collection (see Just Peachy). One month earlier, Too Faced Cosmetics was acquired in spectacular fashion by Estée Lauder for $1.4 billion, the largest acquisition in the company’s history. Evidently, you can put a price on this unparalleled level of hysteria, but it is a high one. The Too Faced Cosmetics’ strategy involved a dedicated holding pen for shoppers to wait in a virtual queue, which updated a countdown clock and queue position in real-time. This was a genius multi-pronged approach to shopper appeasement. First, if there is a queue, people will join it. By building anticipation this way, Too Faced heightened its desirability because, clearly, if a relaunch warrants a queue, then the prize is worth waiting for. Second, the real-time element promotes interactivity; Too Faced fans flocked to social media to share their queue positions, like entering a virtual race. This shared experience, or perhaps Kat Von D Beauty, mutual frustration, allowed individuals owned by LVMH’s to stake a claim in a community while, to Kendo division, some extent, pacifying the usual resentment has found its own of queuing. The brand also astutely avoided way to combat the “dupe” and loss a customer service nightmare by making of customers by the long wait and risk of the product selling manipulating the purchasing process. out all part of the fun.

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Accept No Substitute Ultimately, none of these gimmicks entirely dampen consumer appetite, leaving open opportunities for a number of credible fast-fashion challengers to get in on the action by reproducing so called “dupes,” or duplicates, of products. Whether the customer is priced out, or the product is sold out, cheaper and more easily accessible alternatives are

Urban Decay grew its value share of premium color cosmetics in the United States by riding a wave of extravagant makeup palettes and “vaults” that targeted the passionate and brand-devoted, making them less imitable.

offered by everyone from Nyx to Catrice, the latter of which achieved a value CAGR of 44% between 2010 and 2015. Kat Von D Beauty, owned by LVMH’s Kendo division, has found its own way to combat the “dupe” and loss of customers by manipulating the purchasing process. The brand’s Everlasting Flash program takes cues from fashion’s see-now, buy-now movement by releasing regular limited quantities of new launches online and the remaining stock in store weeks later. The initiative has the best of both worlds: long-term revenue of high stock volumes, with the hype of limited editions, not to mention striking a tactical balance between online and offline traffic. L’Oréal’s Urban Decay similarly mitigates the threat of successful duplication, but by putting less focus on measurable features like color shade or efficacy, and more on the pastime of collecting, like that of a hobby. The brand grew its value share of premium color cosmetics in the United States from negligible in 2010 to 2% by 2015 by riding a wave of extravagant makeup palettes and “vaults” that targeted the passionate and brand-devoted, making them less imitable. The value of this type of emotional investment, increasingly cultivated through exclusivity, should not be overlooked and will set brands apart as the marketplace buckles amid intense overcrowding. n

s. www.GCImagazine.com

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COLOR OUT LOUD

WHY COLOR COSMETICS ARE A BEAUTY ANOMALY In an uncertain world, cosmetics are a rare, safe investment—if marketers respect these three key trends. • Color cosmetics are capturing coveted and growing demographics, benefiting hugely from e-technologies and increasing their cache as a permissible indulgence among women. • Younger buyers are likelier to be “beauty enthusiasts” who find the process of learning about beauty and actively seeking product information a pleasurable one. • However, for brands to leverage these trends, they must be engaged in the social media channels where their consumers live and ensure they can be found in the retail channels these shoppers prefer.

| BY DR. KURT JETTA, TABS Analytics

t’s been a rough couple of years for consumer packaged goods (CPG), with most categories across retail sectors running flat. From fashion to foods, the order of the day in most of these sectors has been “retail populism”: consumers responding coolly to new niche and upscale promotions in order to seek greater value in mass market offerings. But there’s one undeniable exception to this wisdom: color cosmetics. In fact, the cosmetics industry has several unique trends contributing to its success. The latest market research shows a sharp rise in millennial and Hispanic buyers, an explosion of purchasing related to social media engagement and a strong core of consumers who view cosmetics as their main “indulgence” purchase.* *www.tabsanalytics.com/beauty-webinar-recording

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Global Cosmetic Industry

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The cosmetics market, in short, is enjoying favorable trends that other retail sectors have long chased with less success. If you want to lock in gains in this uncertain economic atmosphere, you should pay attention to these trends.

The Rise of Millennial and Hispanic Buyers For any marketer who wants to get into the minds of millennials, the best place to be is beauty. This is truly a bellwether industry. Plenty of retailers have lost sleep—and revenue—chasing 18- to 34-year-old buyers and the U.S.’s growing Hispanic market. Only in cosmetics have those efforts paid off, with heavy buyers skewing significantly younger than in other CPG sectors. Sephora and Ulta, clearly, appeal to younger buyers, but Walmart, too, is showing real growth, largely on the They’re continuing to drive strength of its brand assortment decisions, bringing many of those diversity focused niche brands to their massive consumer base. growth at standalone stores like Sephora and in specialty brands What Works and What Doesn’t in Retail like Milani. And they’re transforming the industry. There is a rapid rise in awareness among consumers of Sephora and Ulta, clearly, appeal to younger buyers, niche brands, particularly mass market lines like elf, Nyx but Walmart, too, is showing real growth, largely on the or Milani, which are appealing to younger, more diverse strength of its brand assortment decisions, bringing many consumers. These niche brands also have a lot more space of those diversity focused niche brands to their massive for growth—their name recognition is half to two-thirds consumer base. that of most legacy brands. But their impact on revenues is Contrast those fortunes with declines in cosmetics considerable. purchases at department stores like Macy’s and Nordstrom. Millennials’ and Hispanics’ product preferences also These are companies dealing with macro issues, to be sure, show up where cosmetics purchases are happening. but they’re not doing themselves any favors with their Specialty channels like these account for nearly half of approach to this high-volume beauty sector—one that transactions and just over 50% of retail dollars spent on remains focused on an older, less diverse consumer base. beauty products.

Social Engagement Matters

There is a rapid rise in awareness among consumers of niche brands, particularly mass market lines like elf, Nyx or Milani (pictured), which are appealing to younger, more diverse consumers. www.GCImagazine.com

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One key reason for cosmetics’ outlier success among millennials is that online and social media sharing really matters in this sector. Almost half of heavy cosmetics buyers say they consulted online reviews to help make their purchasing decisions; strong, rising pluralities cited online product demonstrations or new techniques learned from social media as purchase factors. Online reviews rank second to friends and family among younger buyers’ preferred sources of inspiration. For Sephora shoppers, YouTube is a close third. Last year alone, YouTube saw 1.8 million beauty videos posted, accounting for 45 billion views. Those are Bieberesque numbers—and they’re driven not by big brand campaigns and productions, but by user-generated videos. Color Out Loud 19

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COLOR OUT LOUD

It’s difficult to understate the impact of this visual medium and its basic building unit, the how-to makeup tutorial performed by the girl next door. This kind of shareable content not only creates its own viral superstars, but spreads a fresh message of self-empowerment: Anybody can steal this look in a few simple, dramatic steps. Heavy purchasers of beauty products also report a high reliance on social media—its importance jumping five points in each of the past two years; interest in YouTube shot up 25% last year, and Facebook grew by nearly 50%. Instagram and Snapchat are making significant gains, too.

consumer is: different niches will see different kinds of engagement and success on different platforms. Facebook, by virtue of its ubiquity and video integration, drives meaningful sales. Instagram drives significant engagement, but isn’t generating big sales numbers … yet.** Don’t forget about blogs and review sites—both play growing roles in buyers’ decisions in far-reaching ways as discussed below. The only social media loser among beauty purchasers is Twitter, which saw a decline in interest in 2016. Known for political pith, it’s the least visual of these media platforms.

Know Your Social Channels It’s easy to lump all these disparate online platforms together as “social,” but marketers need to understand their differences and keep a strong focus on where their

Younger buyers are likelier to be “beauty enthusiasts.” They want to know about the latest trends, which they can see online long before store displays may be updated. A Shift Toward Indulgence Despite prevailing consumer uncertainty in the economy, heavy buyers seem to be shifting where they make their indulging and luxury purchases—from fashion and apparel to cosmetics. One third of cosmetics purchasers say they regularly indulge on expensive makeup. Why? One factor is increased product choice and availability. The average number of beauty product types consumers buy is growing significantly in recent surveys.*** Higher-income buyers continue to drive interest in niche offerings, while lower-income buyers are trying new brands and influenced by brand-specific assortment decisions by big retailers like Walmart. In short, women have more opportunities to “trade up” to new brands or offerings.

Independent Shoppers Add to that the explosion of online and social, and consumers can buy pricey offerings with new confidence— and less outside help. As online research has grown among

Plenty of retailers have lost sleep—and revenue—chasing 18 to 34 year-old buyers and the U.S.’s growing Hispanic market. Only in cosmetics have those efforts paid off.

**Editor’s note: While Snapchat and Instagram are millennial-centric social media platforms, YouTube maintains a strong position among influencers due to its ad revenue-sharing model. ***www.tabsanalytics.com/beauty-webinar-recording

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buyers, there’s been general decline in interest in beauty advisors at retail stores. While never terribly popular, their drop in appeal since 2014 has been profound, especially among younger buyers who engage directly with products on-shelf.

Beauty Enthusiasm And that’s the key: Younger buyers are likelier to be “beauty enthusiasts.” They want to know about the latest trends, which they can see online long before store displays may be updated. The process of learning about beauty and actively seeking product information is a pleasurable one for the majority of enthusiasts. Most say they spend as much as they feel they can afford to on makeup—a remarkable statement about any product category or brand.

One-third of cosmetics purchasers say they regularly indulge on expensive makeup. Be Ready for Emerging Shifts Add it all up, and color cosmetics are currently in a unique position: They’re capturing coveted and growing demographics, benefiting hugely from e-technologies and increasing their cache as a permissible indulgence-buy among women. Legacy brands such as L’Oréal and Revlon are doing fine, and newer niche lines are finding plenty of market share available to them. But even though the industry is on solid ground, there’s plenty of movement below the surface. Department stores and pharmacies are at a crossroads and have to decide if they will retool their cosmetics departments to slow the bleeding. The upsides of social and online are considerable, but much of it is beyond marketers’ reach, where reviewers and testers value independence and authenticity over paid campaigning. And luxury attitudes can sour fast in an uncertain economy. Industry leaders are ideally placed to ride the trend—but must watch out for quick changes. n

KURT JETTA, PH.D. is the CEO, founder and lead product developer for TABS Analytics, which he started in 1998. He is a member of the board of directors and chairman of the audit committee for JM Global Holdings (NASDAQ: WYIGU), a publicly held company with the objective of acquiring and growing consumer brands. He is also the director of the Research Unit of the Economics of Consumer Marketing, which is a part of the Center for International Policy at Fordham University. www.GCImagazine.com

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MORE THAN

MAKEUP Multifunctional color cosmetics bring the “wow” to beauty. | BY LISA DOYLE

• Multifunctional cosmetics that deliver skin benefits are not only here to stay, but are expected to grow significantly across several categories. • Anti-pollution and environmental protection is certain to continue to trend as skin care bridges over into cosmetics. • When it comes to multifunctional cosmetics, it’s not just what a product does that matters—it’s how it’s accessed and what the package can do for the consumer.

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reat news for cosmetic brands and their loyal following alike: the BB creams and CC creams that have recharged the beauty-meets-skin care business are only the tip of the iceberg. Multifunctional cosmetics that deliver skin benefits are not only here to stay, but are expected to grow facebook.com/gcimagazine

significantly across several categories. For instance, the global organic personal care market is projected to grow at a CAGR of around 9.8% over the next decade to reach approximately $25.7 billion by 2025, largely due to the impact of multifunctional products.* *www.reportlinker.com

Global Cosmetic Industry

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“We are very sensitive to offer such products to our customers because multifunctional ingredients are very powerful,” said Pauline Martin, global communications and events manager, Givaudan Active Beauty. “They allow for formulations with a high degree of added value, and overall they claim multiple benefits for the products while rationalizing the cost in use.” Keep an eye on the following trends our experts say will impact multifunctional cosmetics in 2017 and beyond.

Anti-pollution Color Anti-pollution and environmental protection are certain to continue to trend as skin care bridges over into cosmetics—especially in light of growth in the disposable income of the populations of many of the surging high-pollution markets in India

www.GCImagazine.com

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There’s a real opportunity for the beauty industry to take more action to help protect our skin against harmful airborne toxins. and Asia. In recent years, Lancome launched its successful City Miracle CC Cream, touting it as having been tested in some of the world’s most polluted cities. There also exist vast market opportunities in the West, which has been slower to adopt anti-pollution claims. According to a recent survey of

more than 2,000 Americans conducted by Morning Consult on behalf of H2O+ Beauty, 66% of people still do not protect their skin against pollution. The research found that 62% of women would be more likely to purchase products if they protected the skin against environmental pollutants, compared to 55% of men.

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“The data indicates a serious rift between general awareness of the damage that pollution can cause to your skin, and the understanding that you can shield your skin from harm with certain products,” said Joy Chen, CEO of H2O+ Beauty. “There’s a real opportunity for the beauty industry to take more action to help protect our skin against harmful airborne toxins.” Ingredient suppliers are responding to this opportunity with new innovations. For instance, BASF’s PatcH2O hydra-protect technology, based on the association of three film-forming biopolymers—pullulan, alginate and hyaluronic acid—and a hydrating complex of glycerin, serine, trehalose and urea. “PatcH2O offers an efficient technical solution to meet the needs of two rapidly expanding markets of hydration and anti-pollution ingredients,” explained Manasi Chavan, Ph.D, BASF’s manager, technical service team, personal care, North America. “This unique, patentapplied technology forms a hydric barrier that significantly protects skin from cytotoxicity and oxidative stress induced, respectively, by PM2.5 and BaP. This technology offers immediate, long-term and sustained hydration benefits.” Givaudan’s Neurophroline, which is extracted from the seeds of the wild indigo plant, is also engineered to fight pollution’s ill effects on the skin. “Neurophroline blocks cortisol production and promotes the release of

Via a partnership with E-Ink, the Texen branch of PSB Industries has brought interactive smart tech into cosmetic packaging.

HCP’s Push and Pull lipstick is a versatile pack applicable for lipstick, contouring, strobing and color correcting.

relaxing neuropeptides, offering antiaging, anti-pollution and anti-oxidant properties in the skin,” said Martin. “It has also shown a very fast recovery of skin luminosity, an improvement of skin color, a reduction in skin redness and a complete recovery from a tired look in one month.”

Argan-infused Beauty Super ingredient argan oil has been working its way out of the niche and into the mainstream beauty market for more than a decade, expanding from skin care (Moroccanoil Pure Argan Oil, Vita Liberata Passionflower & Argan Dry Oil Broad Spectrum SPF 50 and Josie Maran Whipped Mud Mask Collection) to hair care (Moroccanoil Treatment, Madison Reed Root Touch Up and Bumble and bumble Hairdresser’s Invisible Oil) to color cosmetics (Too Cool For School Dinoplatz Lip Balm, Bite Beauty Line & Define Lip Primer and Urban Decay Brow Beater Microfine Brow Pencil). Ingredient are responding to these with ethical ingredient innovations. For example, BASF has been partnering with women’s cooperatives in Morocco to bring argan-based ingredients into personal care since 2001. “Arganyl, a leaf extract high in flavonoids, has excellent antioxidant properties, along with the ability to inhibit MMP and collagenase to help preserve the skin’s extra-cellular matrix,” said Chavan.

“With its high content of flavonoids, it is an excellent antioxidant ingredient that protects the skin against three types of pollutions to inhibit ROS and RCS induction, along with inhibiting IL-8 release. And, in addition to protecting against pollution, Arganyl also protects elastin and collagen from degradation.” Lady Burd Cosmetics’ Miracle Beauty Oil uses argan oil to its full potential. “Skin oils are not new to skin care, but they have become extremely popular—with good reason,” said Tanya Diaz, product developer at Lady Burd. “Miracle Beauty Oil contains a blend of oils such as argan oil, marula oil, black currant seed oil and more, which are super packed with fatty acids and vitamin antioxidants. It can be mixed into foundations to add a boost of radiance and life, helping make-up look more like naturally beautiful skin.”

Look on the Bright Side As the emphasis on skin care in Asia gradually shifts from whitening to brightening, the beauty goal of healthy, radiant skin is being shared around the world, creating new opportunities for savvy suppliers. “Ronaflair pigments provide numerous benefits, including opacity, transparency, soft focus effects, skin adhesion, color correction, texture improvement and increased mattifying for less ‘caking’ in eyeshadows and powders,” explained Phil Linz, EMD’s manager of cosmetic applications. “They also provide that illumination and radiance to formulas, which is so essential to many of today’s products.”

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Brightenyl from Givaudan also aids in illuminating skin. According to Martin, “Brightenyl is a bio-boosted, skin-brightening, pore-reducing and color-correcting active, protecting and perfecting the skin’s complexion by restoring its healthy and natural tone again.” Meanwhile, Sensient Technologies has introduced Sensibright Dual White WD, a novel concept of TiO2 pigment coated with skin-brightening active ingredients. Sebastien Massard, Sensient’s marketing manager, North America, said, “This hybrid product provides immediate skin whitening due to its pigment content, but also progressively releases illuminating active ingredients—alpha arbutin and licorice extract—onto the skin for longterm efficacy.”

For many makeup brands, innovation is driven by consumers’ appetite for more active makeup with an immediate ‘wow’ effect and additional skin care benefits. Innovative Applicators When it comes to multifunctional cosmetics, it’s not just what a product does that matters—it’s how it’s accessed and what the package can do for the consumer. HCP’s Push and Pull lipstick is a versatile pack applicable for lipstick, contouring, strobing and color correcting. “The pack is operated by pushing the lipstick at one end of the pack, which then allows access to the lipstick at the other end,” said Stephanie www.GCImagazine.com

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Lady Burd Cosmetics’ Miracle Beauty Oil uses argan oil to its full potential.

Rowntree, product manager, HCP. “The brand Cover FX used our Push & Pull lipstick for their innovative Click Stick, a customizable beauty tool that empowers makeup connoisseurs to conveniently customize their makeup wardrobe. This clever product offers a choice of 36 global shades of Correct, Cover or Enhance Clicks to upload into the Click Stick, transforming it into the perfect portable tool to correct, conceal, contour, highlight, strobe and illuminate the complexion.” And, via a partnership with E-Ink, the Texen branch of PSB Industries has brought interactive smart tech into cosmetic packaging. Using near field communication, a miniature screen embedded in a makeup compact and case can connect to an enabled smartphone and provide tutorials, tips and product details on-demand to the end user—taking multifunctionality to a new level. As Massard noted, “For many makeup brands, innovation is driven by consumers’ appetite for more active makeup with an immediate ‘wow’ effect and additional skin care benefits.” n

LISA DOYLE was formerly the associate editor of Global Cosmetic Industry and is a freelance writer in the Chicago area. Her work has also appeared in Skin Inc., Salon Today, Modern Salon, Master Barber and Writer’s Digest.

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COLOR:

OUTSIDE THE

LINES

Makeup, beauty’s growth engine, is about more than color, offering new anti-pollution benefits, ethical options and more.

ixty-one percent of U.S. women reported using makeup in 2016, according to a recent CEW market briefing by Karen Grant of NPD. That represents a gain of 2% since 2014, or, put another way, 2.5 million more women using makeup. This comes as product launches in the segment jumped 24%, year-over-year, in 2016, creating significant sales gains. But today, makeup is about more than color.

Color Cosmetic Market Figures According to Kline Group’s preliminary market figures from its forthcoming Cosmetics & Toiletries USA report (www.klinegroup.com/ @GCI_Magazine

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reports/cia1.asp), the color cosmetics market in the United States was valued at about $14 billion at the retail level, up 5.2% from 2015. The market breakdown by product category was: • Face makeup: 38% • Eye makeup: 36% • Lipsticks and lip glosses: 19% • Nail polishes: 7% Growth drivers included luxury brands such as IT Cosmetics and Anastasia Beverly Hills, according to Kline Group, as well as the expansion of brands such as Charlotte Tilbury that offer solution-based products to help consumers achieve a specific look. Critically, according to Kline Group’s analysis, the natural/no makeup look Global Cosmetic Industry

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, g

and bold statement lips (ex: Urban Decay Vice Lipvault) and shimmery eyes contributed to growth in the makeup segment.

GLOBAL MAKEUP BY THE NUMBERS $57

Ethical Color Green, clean, ethical beauty is on the rise, driving the expansion of retailers like Credo and reshaping the product mixes of others, including Bluemercury. According to a Euromonitor analysis*, consumers are more concerned about the natural/ organic status and environmental and ethical records of their skin care and hair care products, compared to color cosmetics. But that doesn’t mean makeup is off the hook. From animal welfare to waste reduction to water efficiency and beyond, consumers in every category are increasingly focused on the impact of their product purchases. The market is already filled with natural-touting brands (Milk Makeup Sunshine Skin Tint SPF 30, Tarte Tarteist Lip Crayon, Bite Beauty’s The Lip Pencil, etc.) and vegan offerings (Tarte Double Duty Beauty Shape Tape Contour Concealer, BH Cosmetics Carli Bybel 14 Color Eyeshadow & Highlighter Palette, Pacifica Devocean Lipstick, etc.).

billion

global color cosmetics market, 2015 (Euromonitor)

$14.3 billion

$75

billion

U.S. color cosmetics market, 2015 (Euromonitor)

global cosmetics market by 2021 (Statista)

5.2%

CAGR of global eye makeup market through 2020 (Technavio)

www.euromonitor.com, www.statista.com; www.technavio.com

ethical, clean and green beauty, and understands the frustrations of consumers, including cancer survivors, who have had trouble finding alternatives to conventional beauty products. Leveraging resources such as the Campaign for Safe Cosmetics and Environmental Working Group’s toxicity database, Adams was able to educate herself on viable ingredient Ethical Beauty Early Adopter and product swaps. Adams told Global Cosmetic Kristin Adams founded Afterglow Industry that her brand is transparent Cosmetics during the early rise of about the ingredient content of its * products, including ethical sourcing, www.euromonitor.com the limits of natural and organic sourcing, as well as labels such as Leaping Bunny and emerging ethical issues such as the use of mined minerals. Focusing on truthfulness boosted Afterglow Cosmetics’ direct-to-consumer online market approach, which allowed the brand to find its well-educated niche consumers. These consumers, who range in age from their 20s to Afterglow’s Organic Infused Eco Eye Shadow Palette is refillable; their 60s, are interested photo by Kat Squibb. www.GCImagazine.com

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in sustainability and don’t necessarily chase every trend, Adams explained. These consumers are focused on their health and wellness and are understanding about the relatively short shelf lives of natural products. And, because many of the brand’s formulations incorporate ingredients such as jojoba and grapeseed extract, they boast a built-in skin care component. Afterglow’s pricepoints and natural focus appealed to salons and spas, as well as dermatologist and even chiropractic offices, where detoxing practices are often highlighted. While the core of the business remains direct-to-consumer, Afterglow remains focused on the human, tactile elements of the brand, including an open container return policy. The next move for the brand is to enhance the sustainability of its packaging, including its refillable palette. Adams reflected that many mainstream brands are now getting into the natural and ethical beauty space, which has pushed Afterglow to define itself in a crowded market. At (Continued on Page 30) Color Out Loud 27

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COLOR OUT LOUD

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the same time, she said, formulations are getting progressively better as the quality of ingredients for natural and ethical products continues to improve.

Color Defense Ingredient suppliers have taken the lead in anti-pollution, with innovations such as Lipoid Kosmetik’s HerbaShield

URB, a COSMOS-certified botanical active comprising watercress, horsetail and nettle extracts that provides protection for skin against urban pollution; Indena’s Vitachelox botanical compounds, which act as antipollutants, skin protectors, free-radical scavengers and chelating agents; and Greentech’s forthcoming ingredient,

which will fight against biological damages caused by pollution, providing long-lasting, breathable protection for skin that restores balance, radiance and a smooth texture. Anti-pollution claims are rife in the skin, sun and hair care sector, according to a Euromonitor analysis, but color is gaining momentum.

TOP 20 GLOBAL BEAUTY CARE COMPANIES Based on 2016 sales of beauty and personal care products only. See footnotes for details. Rank

Company

2016 Sales

L’Oréal

$27.2 billion ^

Unilever

$21.2 billion a^

Procter & Gamble Co.

$18.3 billionb

Colgate-Palmolive

$12.9 billionc

Estée Lauder Companies

$11.3 billion

Shiseido

$7.28 billion^

Beiersdorf

$5.90 billion d^

Amorepacific

$5.55 billion^

Johnson & Johnson

$5.47 billion

LVMH

$5.21 billion f

Kao Corp.

$5.15 billion g^

L Brands

$5.1 billion ^^

Reckitt Benckiser

$5.02 billionh^

Coty

$4.35 billion

Avon

$4.12 billioni

Henkel

$4.04 billion j^

Mary Kay

$4 billion k

Chanel

$2.9 billion l

LG Household & Health Care

$2.62 billionm^

Natura

$2.43 billion ^

Beauty and personal care sales only; total sales in U.S. dollars: $55.4 billion Grooming and beauty sales, only; total sales: $65.3 billion Personal Care, Oral Care and Home Care sales only; total sales: $15.2 billion d Consumer Business Segment sales only; excludes its industrial adhesives unit, total company net sales in U.S. dollars: $7.10 billion e Beauty (formerly skin care) and oral care customer franchise sales only; total sales to U.S. and International Customers: $71.89 billion f Perfumes and cosmetics sales only; total sales in U.S. dollars: $39.54 billion g Beauty care only; total sales in U.S. dollars: $12.5 billion h Hygiene division sales, includes depilatory and acne products as well as home; total sales in U.S. dollars: $12.2 billion i Beauty sales only (skin care, fragrance, color cosmetics); total revenue: $5.72 billion j Beauty care sales only; total revenue: $19.68 billion k Based on a corporate statement; 2016 results not available as of press time l Cosmetics and perfume sales for 2015 ($1 = 0.8949 euros); 2016 results not available as of press time m Cosmetics sales only; total sales: 6.1 trillion won ^ Converted to U.S. dollars based on the closing interbank foreign exchange rate on Dec. 31, 2016 ^^ Beauty sales only (Victoria’s Secret/Bath & Body Works); based on a statement from the company’s corporate communications department. Total 2016 sales: $12.57 billion.

“We made good progress in the first year of our transformation plan, exceeding our cost savings targets, improving our profit margin, and significantly strengthening our balance sheet,” said Sheri McCoy, Avon’s CEO, following the release of its 2016 results. “However, the financial results for the fourth quarter were disappointing, largely due to the decline in active representatives and an unexpected increase in bad debt expense. As we move into 2017, we are taking actions to deliver more consistent performance across our markets, with representative engagement remaining a key priority in our growth plan, while navigating continued challenging global economic and political headwinds.”

b c

For fiscal 2016, LVMH noted that the markets of the United States and Europe were strong, as was Asia (excepting Japan), while Sephora “strengthened its position in all its markets and in digital.”

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Brands touting anti-pollution activities include Clinique Super City Block Oil-Free Daily Face Protector Broad Spectrum SPF 40, which “protects against sun and environmental damage with broad-spectrum UVA/ UVB sun block and antioxidants”; Natasha Denona Foundation X; Giorgio Armani Beauty Maestro Fusion Makeup Octinoxate Sunscreen SPF 15; Nars Smooth & Protect Primer Broad Spectrum SPF 50 Sunscreen; and Dr. Jart+ Air Mesh.

When it comes to investments, Murphy’s priorities are relatively simple: great brands with appealing positioning, vibrance, authenticity and products that address consumer needs in a unique way. This is just the start. According to Mintel figures, nearly 40% of Asia Pacific beauty product launches featured an anti-pollution claim. Growth markets included Thailand, Japan, China and Australia. What will it take for the claim to go big in the United States?

Funding the Future The makeup category has performed well, according to Kevin Murphy, managing director of Encore Consumer Capital, which has a track record of investing in brands such as Lorac, Tarte and butter London. Citing “fundamental consumer interest in the category,” Murphy appeared positive about its continued growth. The barriers to entry are relatively low, he continued, creating opportunities for passionate founders with unique brand and marketing

strategies. Many of these innovators are able to gain market traction and create new niches or categories. In addition, wellness is generating new ways to engage the consumer, he said, which in turn creates greater acquisition interest from larger corporate players. All of this adds up to a strong investment market in beauty. Finally, the beauty space has experienced substantial changes and disruptions to its channels. Murphy explained that beauty’s marketing approaches and channel shifts have moved faster than other consumer product categories, with department stores quickly ceding ground to outlets such as Sephora and Ulta, which have in turn been impacted by the rise of e-commerce and direct-to-consumer brands. Murphy described the current state of affairs as both daunting and exciting and wholly driven by the end consumer, who isn’t tethered to beauty’s traditions. When it comes to investments, Murphy’s priorities are relatively simple: great brands with appealing positioning, vibrance, authenticity and products that address consumer needs in a unique way. He added that me-too products are to be avoided and that, in a crowded market, it can sometimes be a challenge to identify the slight differences among brand offerings. Of course, the fundamentals still apply. Murphy noted that investors must confirm the general health of any potential investment. It’s also critical to asses the leadership. Murphy expressed a preference for driven founders and/ or strong management teams, as well as teams that are generally enjoyable to work with. In the beauty space, many founders come from non-traditional, nonbusiness backgrounds, but are typically quite smart and intuitive about their brands. Murphy explained that these types of founders can be effective and capable of working in a fast-paced environment. What investors bring to the table is ignition capital and business advice for

Kristin Adams, founder of Afterglow Cosmetics; photo by Kat Squibb.

issues such as hiring decisions and marketing investments. Combined, these teams can bring a business to a higher level more quickly than would have been possible with the founder working alone. In working with Tarte, which has since been acquired by Kose, Murphy identified a strong-performing prestige color makeup business with an exceptional founder, Maureen Kelly, and management team. butter London, on the other hand, was performing well in the generally ailing nail category. In addition, Murphy noted that the brand was able to pursue color makeup beyond nails, creating new growth opportunities. Lorac Cosmetics, a relatively recent investment, has benefitted from a new senior management team, which has worked to build upon the brand’s fundamentals and modernize its marketing strategy. The brand has expanded into Ulta and Kohl’s, launched new products and now boasts a new name: Lorac Los Angeles. From a strong investment environment to new claims and benefits, color cosmetics remain poised for future growth. n SUBSCRIBE TO GCI’s NEWSLETTER

for the latest news and launches. www.GCImagazine.com/newsletter

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BEAUTY CASE STUDIES

• An ascendant “right to know” has converged with the power of social media to reshape the relationship between brands and their consumers. • The demand for greater transparency has coincided with a boom in natural and organic personal care, creating new market opportunities. • One brand, Olivina, leveraged these macro trends by identifying unmet needs in the marketplace, particularly with men in search of effective and natural personal care.

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Beauty Case Studies

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FINDING THE WHITE SPACE IN NATURAL PERSONAL CARE How Olivina identified a niche (natural male grooming) and fast-tracked from formulation to shelf in nine months. | BY JACK CORLEY, Custom Essence

first started writing about natural and organic personal care for Global Cosmetic Industry 13 years ago. Interestingly, some of the “drivers” for the popularity of natural personal care products I made reference to back then remain the same, i.e. health and wellbeing and a well-informed and discriminating consumer base. A marked difference in today’s market is the rise of the millennial generation and their insatiable appetite for information on the products they are considering. Yes, they are as interested in health and wellness issues as their baby boomer and gen-X parents.

Meanwhile, Sundale Research has placed 2016 year-over-year growth of the U.S. NOPC (natural and organic personal care) sector at 8.5%, with a retail value of $16.5 billion.b Presuming that the total 2016 personal care product sales estimates of $85 billion hold up, close to 20% of all retail sales in the category now come from the NPC side. That compares to 10% in 2005.

Close to 20% of all retail sales in the personal care category now come from the natural product side.

Natural and Organic Personal Care Market Data Natural personal care (NPC) includes products used for personal health and hygiene such as body talc, body scrub, toothpaste, tooth brushes, tongue cleaners, tooth powder, bathing salts, bathing gel, body wash, essential oils, moisturizers, skin creams, face wash, hair oil, hair shampoo, hair conditioner, soap, and nail and cuticle care products. Not too long ago you would be hard-pressed to find more than just a cursory mention of new natural personal care (NPC) products in beauty publications, and obtaining accurate and relevant data was scarce and inaccurate. Today, there is no shortage of statistics with respect to the size and growth rate of the NPC market. For instance, Kline & Co. has forecasted the natural personal care market to be worth $46 billion by 2018. And Grand View Research has estimated that the organic personal care segment worldwide will total $25.11 billion by 2025.a a

www.klinegroup.com, www.grandviewresearch.com

www.GCImagazine.com

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From Niche to Big Business The NPC industry has moved from niche and small to mass market and big. Part of this transformational shift is related to millennials demanding safer (or safer-seeming) products from their CPG companies. This has resulted in a flurry of acquisition activity as CPG companies try to react quickly to consumer desires and acquire as many “green” brands as possible. A good example is Unilever, which recently purchased Seventh Generation for a reported $700 million. It was also rumored that Unilever was in discussions with natural lifestyle player The Honest Company. b

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BEAUTY CASE STUDIES

Karyn Trumbach began developing Olivina in January of 2016 and launched the line that October.

Enhanced Scrutiny Simultaneously, the growth and relevance of new technologies (smart phone apps) provides consumers with tools to fully research the ingredients and CSR practices of brands while strolling down the aisle of their favorite store. One application, SmartLabel, tells consumers what an ingredient is, why it’s in the product, what it does and, often, where it comes from. Similarly, The Environmental Working Group (EWG), a nonprofit, non-partisan organization that is a strident opponent of the conventional personal care and beauty industry, has developed a “Healthy Living” app for smart phones. The app allows consumers to review the organization’s ratings of 120,000 food and personal care products. Product safety, or the appearance of safety, is the driver toward increased transparency. CPG companies have evolved from “trust me, the product is safe,” to virtually full disclosure in a

few short years because of pressure from nongovernmental organizations like the EWG. Consumers’ “right to know” has also been fueled by their direct engagement with brands via social media. Every brand manager is dialed in to these comments, which can appear on the company or brand websites, social media presences, or influencer blogs dedicated to NPC discussions.

Using Transparency to Build a Brand Many brand managers are now using social media as a tool/vehicle for collecting raw and often insightful evaluations of their brands that can be applied to their brand strategies. One such brand is Olivina. Karyn Trumbach, director of product development/brand management for Olivina, has a strong background in NPC development from her 17 years at Aubrey Organics. She wore two

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hats at the latter brand, one as the lab director and formulator and the second as product development manager. Trumbach had been following NPC social media feeds and recognized a consistent message: men are growing more facial hair, and they are more inclined to want to research and purchase their own personal care products. Around the same time, Trumbach met Joseph Moore, president and chief executive officer of DesignWorks Investments, Olivina’s parent company.c Moore felt that the men’s natural segment “has been terribly underserved,” with too few great options. He and Trumbach shared a belief that whitespace existed for an accessible, relevant men’s grooming line that also met the market’s natural and organic demands. It was Trumbach’s formulation background that helped fast track the project, which she began shortly after joining Olivina in January of 2016. The result was a vintage-look natural c DesignWorks Investments is also the parent company of Paddywax, Vineyard Hill Naturals and DesignWorks Ink.

men’s line that launched on October 26, 2016. The line includes Hair, Face and Body All-in-One Wash; Rinse Out/Leave-In Conditioning Cream; USDA Organic 2-in-1 Shave Prep and Beard Oil; Flash Foam Shave Cream; Exfoliating Soap Bar; Aluminum Free Deodorant; Natural Fragrance Cologne; USDA Organic Olive Oil Lip Balm in Bourbon Vanilla, Ginger Citrus and Juniper Mint; and USDA Organic Restorative Hand Rescue. Natural 100% soy wax candles, in three natural fragrances round out the range. Inspired by the craft cocktail tradition of Olivina’s Nashville headquarters, the signature items are scented like bourbon, mixed with cedar and vanilla. Prices range from $4 to $40.

Inside the Mind of the Modern Male “Millennial’s preferences are driving the uptick in personal grooming trends,” said Trumbach. “They want a classic, streamlined approach to grooming, as well as a luxury experience.” When creating the Olivina line, Trumbach ultimately considered the ingredient quality first and foremost: “The fragrances had to be

Along with its signature Bourbon Cedar craft cocktail-inspired fragrance, Olivina’s 2017 product launches will include Juniper Tonic and Ginger Beer scents. www.GCImagazine.com

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Olivina’s line includes exfoliating bar soaps.

stunning, and meet high quality standards—no phthalates or parabens, and only natural origins, especially since transparency is a major concern of the modern male customer. We found amazing natural, yet designer-quality, fragrances that suit our customer perfectly.” Along with its signature Bourbon Cedar craft cocktail-inspired fragrance, Olivina’s 2017 product launches will include Juniper Tonic and Ginger Beer scents. “Having a great partnership with our fantastic perfumers made this project so much fun,” said Trumbach. “What can I say—I love the ginger citrus smell and taste of a good Moscow Mule. And this Ginger Beer fragrance is spot-on. And now I get to wash my hair with it!”

Staying Tuned-in As the NPC market evolves, it is critically important that brand managers remain dialed in to all trends affecting the PC market. Because although the world continues to embrace a “green” lifestyle, the NPC market remains heavily influenced by the marketing and product introductions of the largest PC brands, which do not necessarily embrace or emphasize natural as part of their marketing or brand identity. n

JACK CORLEY is president of Custom Essence Inc.’s natural fragrance division. He is member of the Natural Product Association Personal Care and Home Care Standards Committees, and a Joint Committee member of the NSF-305 task force.

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SKIN/SUN/ANTI-AGING Anti-pollution’s Untapped Potential A recent study conducted by H2O+ Beauty found that 66% of people still do not protect their skin against pollution. CEO of H2O+ Beauty, Joy Chen, said, “The data indicates a serious rift between general awareness of the damage that pollution can cause to your skin, and the understanding that you can shield your skin from harm with certain products… There’s a real opportunity for the beauty industry to take more action to help protect our skin against harmful airborne toxins.” According to the study: Biossance has expanded its presence in Sephora, with a line of six products and new packaging. All of the products are formulated with renewably sourced plant-based squalane. The brand’s new elegant green packaging is made from renewable sugar cane fiber with pure petal labels and copper detailing. The range comprises a weightless probiotic gel moisturizer that helps the skin maintain a healthy biome, thus reducing the effects of stress; 100% Squalane Oil, a weightless hydrating oil; Squalane + Antioxidant Cleansing Oil, which is antioxidant-rich and removes longwear makeup and other skin impurities; Squalane + Vitamin C Rose Oil, which firms and evens skin tone and texture of the face; Squalane + Probiotic Gel Moisturize; and Squalane + Peptide Eye Gel, which reduces puffiness and dark circles.

• 33% of consumers do purchase skin care products that help protect against pollutant such as those found in car exhaust, factories, power plants and secondhand smoke. • 68% of people indicate that they were more likely to purchase a product that protects their skin against the sun. • 62% of women would be more likely to purchase products if they protect skin against environmental pollutants, compared to 55% of men.

Sundial has broken into the prestige skin care category with the launch of Nyakio. Sold exclusively at Ulta, the range is powered by ethically sourced indigenous ingredients from around the world. The formulations, priced between $22 and $49, are inspired by the familial recipes of Nyakio Kamoche Grieco, a first-generation American of Kenyan descent. The range is intended for all skin types, is broken down into five regimens, including cleanse, exfoliate, restore, moisturize and treat, and comprises 16 SKUs, including: Sweet Almond Cleansing Oil Balm, Kenyan Coffee Face Polish, Chinese Rice Exfoliating Cleansing Powder, Kenyan Coffee Body Scrub, Kenyan Coffee Lip Polish, Manketti & Mafura Anti-Aging Oil, Marula & Neroli Brightening Oil, Maracuja & Yangu Soothing Oil, Baobab Lip Balm, Tamanu Firming Face Balm, Baobab Youth Infused Daily Defense Crème, Red Ginseng Line Smoothing Eye and Lip Cream, Quinoa De-puffing & Firming Eye Cream, African Black Soap Purifying Mud Mask, Chamomile Soothing Sleep Mask, and the Global Beauty Starter Kit, comprising the Sweet Almond Cleansing Oil Balm, Kenyan Coffee Face Polish and Tamanu Firming Face Balm. www.GCImagazine.com

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Lip Balm: Winning on the Shelf Fun, portable and modern. That’s what female consumers prefer when it comes to lip balm packaging, a category that is projected to grow more than 4% by 2020 to $2 billion, according to packaging company TricorBraun. The company conducted research using focus groups made up of females ages 11-30 who had used lip balm on a weekly basis during the past six months. They answered questions regarding purchase motivators, preferred packaging aesthetic, function and formats of the stick, traditional jar, modern jar and the upcoming pop jar. The results were as follows. Stick format: Simple, convenient, hygienic, portable, but “easy to lose.” Modern jar format: trendy, easy and hygienic. Pop jar format: fun convenient, appealing, but consumers want to “avoid touching the product.” According to the company, features such as intuitiveness, having a fun factor, trendiness and visual appeal outrank size, ease of opening/closing, cleanliness and portability.

Rachel Murphy, industrial designer at TricorBraun, said, “Our industrial design team fully understands that it’s not enough to design a beautiful package. It must be useful, meaningful and relevant to consumers’ lives. In this demographic, germ-free application was very important. Consumers make their purchases based on products that work for their personal needs, so through package design we need to deliver the best possible user experience. Only then can packaging help build brand loyalty and win on shelf.”

The Beard Products for Men collection by Cosmewax helps to take care of the beard and skin. The collection includes Beard Cleansing Gel, Beard Oil, Hydrating Day Gel, Beard Balm, and Beard & Moustache Molding Wax. Each product hydrates and nourishes the skin and hair in order to easily sculpt the beard and eliminate dry, peeling skin. Key ingredients include glycerin, peppermint herbasol, almond oil, jojoba oil, vitamin E and shea butter.

Chinese cosmetics firm Jala Group has successfully bioprinted Asian skin via 3-D technology. Working with Bearskin Creations of France, the breakthrough will allow Jala to evaluate ingredients and formulations on Asian skin. “There are specific differences between Asian and Caucasian skin in terms of structure and texture, and acquired factors such as diet, environment and air pollution, as well as the Asian preference for avoiding any exposure to the sun can affect skin characteristics,” according to a Jala announcement. “The huge success of the multinational cooperation plays a vital role in promoting the development and testing of more advanced and safer cosmetics that meet the skin needs of Asian consumers.”

Olay has joined the long list of beauty brands that have launched mobile apps. Olay Skin Advisor was designed with artificial intelligence technologies to help women better understand their skin and determine what products will work best for their personal needs. After taking a selfie, Skin Advisor will analyze a woman’s face to determine her “skin age,” or how old/young she looks and what areas of her face are driving that age. Skin Advisor then asks a series of questions regarding her skin concerns and product preferences. The user receives a personalized product regimen based on what products have worked best for women like her—those who have the same concerns, preference, needs, etc.

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Clarisonic’s first anti-aging offering, Smart Profile Uplift ($349) promises to combine the power of sonic frequency cleansing with a new firming massage experience. The two-in-one skin care device features a silicon Firming Massage Head that produces 27,000 micro-firming massages over three minutes while helping to boost the skin’s absorption of skin care products. Using Clarisonic’s smart microchip technology, the device automatically adjusts to the optimal cleansing or firming frequency needed for each brush and massage head included in the Smart Profile Uplift set. Brush heads include: Revitalizing Cleanse, Firming Massage and Turbo Massage Body.

Photo credit: DuPont

DuPont has launched Genenecare OSMS MI (INCI: Inositol), an osmolyte that helps protect and energize the skin by regulating water balance within skin cells and preventing damage from heat and UV radiation.

HydraTint ProMineral Broad Spectrum Sunscreen SPF 36 ($55) is a lightweight, oil-free sunscreen with a universally flattering natural hint of color to even out all skin tones. The sunscreen can be worn alone or as a primer under makeup. HydraTint contains antioxidants to help reduce skin damage due to collagen degradation caused by UV light, and protects from UVA radiation and air pollution. Key ingredients include TriHex technology, green tea extract and vitamin E.

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The Hero Project’s Vit C-30 Ultra Brightening Serum is an anti-aging treatment ideal for skin that is fatigued, sun damaged or in need of a boost. The serum helps restore brightness, clarity and flexibility to the skin, and features a molded 30 mL glass bottle by Virospack. The bottle features a classic dropper to accurately dispense three to four drops to the face, neck and décolleté to tighten and brighten the skin. The dropper allows for a restitution of about 99.3% of the product, according to the supplier, while the thick glass bottom provides weight to the packaging. Vit C-30 retails for $50 at www. theheroproject.co.uk.

Dermaflash’s at-home dermaplaning device will now be offered online at Ulta.com. The device exfoliates the skin in a three-step process consisting of a prep cleanser, dermaplaning using the device and a post-exfoliation soothing treatment.

Age Reverse Hand Rejuvenator ($65) is a two-step process that uses the Hand Rejuvenator Peel and the Hand Rejuvenator Cream to help rid the hands of loose skin and dark spots for a smooth and flawless look. The peel gently exfoliates the skin to prepare it for the cream, restoring hydration and firming the skin on the hands. The peel is to be used daily at night, while the cream is used twice throughout the day. Key ingredients include citric acid, neoglucosamine, citrafill and apple stem cell extract.

Gattefossé’s Gatuline Link n Lift (INCI: Fructose (and) Glycerin (and) Water (aqua) (and) Aesculus Hippocastanum (Horse Chestnut) Extract) helps to minimize eye contour wrinkles, crow’s feet, the under-eye area and tear troughs. According to the company, the eye contour is thereby redesigned and facial expressiveness recovered.

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Indena’s Vitachelox (INCI: Vitis Vinifera (Grape) Seed Extract (and) Camellia Sinensis Leaf Extract (and) Quercus Robur Bark Extract) comprises a selection of botanical compounds designed to act as anti-pollutants, skin protectors, free-radical scavengers and chelating agents on various common pollution-induced triggers.

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Rahn AG’s Defensil-Soft (INCI: Propanediol (and) Albatrellus Ovinus Extract (and) Citric Acid) reduces skin discomfort and irritation within minutes, increases the heat-pain tolerance of normal and ultrasensitive skin, prevents IR-aging with protection against IR-induced heat stress, and improves the skin’s tolerance toward irritants in cosmetic formulations.

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Meet the Product Junkie Why curly haired women and girls buy more than twice as much hair product as their straight-haired friends. | BY MICHELLE BREYER, TextureMedia

ook in the cabinet of any curly haired woman and the odds are you’ll find dozens of products— cleansing conditioners, deep conditioners, leavein conditioners, styling puddings, styling gels, curl creams, co-washes, clarifying cleansers and moisturizing shampoos. Even if her shelves are filled to the brim, she’s probably still on the lookout for her next “Holy Grail” product. Diane Mary Montalto, who has wavy hair, said, “I’m scared to count how many products I have; it may be close to triple digits.”

A Big Hair Care Spend The textured hair consumer spends an average of $82 on hair care products over a three month period, while straighthaired consumers average $40 during that same period, according to TextureMedia LLC’s TextureTrends ’17, which provides the most compelling proof yet that texture—curls, coils and waves—is one of the most dynamic, fastest-growing, most profitable segments in the hair care industry. Two decades ago, few products existed for textured hair, even though more than 60% of the population has wavy, curly or coiled hair. TextureMedia’s NaturallyCurly was founded in 1998, providing textured hair consumers with education and styling tips, salon listings, and product reviews and shopping opportunities, all sorted by texture type rather than ethnicity. Since then, the number of products on the market has grown exponentially, and many brands have launched on NaturallyCurly because of its ability to reach this diversity of consumers. Today, the NaturallyCurly community has a social reach of 26 million a month, reflecting its diversity.

Heavy Product Users “I am a product junkie mostly out of necessity,” said MacKenzie Hunter, who has a bathroom full of products for her tight curls. “Considering how different seasons affect 44 Hair Global Cosmetic Industry | April 2017

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THE TEXTURED HAIR CONSUMER: DATA INSIGHTS According to data collected in TextureTrends* 2017: • 91% of textured hair women continue to look for products, even if they’ve found their “Holy Grail” product. • Dryness, frizz and styling options are the top three concerns for wavy and curly women, while dryness, hair growth and detangling continue to be top concerns for coily women. • 69% of women with textured hair have worn their hair straight in the past three months. • 73% of those with wavy hair have worn their hair straight in the past three months, more than any other textured hair consumer. • 67% of curly haired girls have straightened their hair in the past three months. • 64% of coily haired women have worn their hair straight in the past three months. • 25% percent of all textured hair women have worn a protective style in the past three months to contain and defend their length and ends; particularly:

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64% wore braids, twists and faux locs. 32% wore wigs. 52% did their own protective styles. 24% of women with textured hair don’t go to a salon to have their hair done. 31% of women with textured hair visit a salon at least once every few months, vs. 44% of women with naturally or chemically straight/relaxed hair. The tighter the texture, the less likely she is to go to a salon more than a few times a year. 42% of wavy women go to a salon. 31% of curly women go to a salon. 22% of coily consumers go to a salon. Reviews, ingredients and price are the most important attributes of a new product for the textured hair consumer, with reviews trending up by eight percentage points over last year.

*TextureTrends ’17 (https://corp.naturallycurly.com/texturetrends-research-suite) draws from more than 3,000 consumers of all ethnicities and texture types, including consumers with naturally straight hair and those who use chemical relaxers. It explores many areas of purchwasing behavior and product usage, including awareness, spend, retail preferences and brand loyalty. TextureTrends ’17 also includes several new categories about the textured hair consumer, including hair care regimens, details about protective styling and caring for children with textured hair. Rather than coming out as an annual report, this year’s TextureTrends report now surveys consumers twice a year. Instead of a static report, TextureTrends is now presented as a web-based analysis tool that provides on-demand access to data on key demographics, shopping habits, behaviors and needs of textured-hair consumers for real-time decision making. The user now has access to advanced tools that enable them to customize the data on demand to create and export tables and charts for presentations. Last year, TextureTrends took the question directly to the consumer. It conducted a survey of more than 700 curly, coily and wavy respondents to determine how they want to shop for their hair care products, and whether it differs by ethnicity.

my hair, I use different products. I usually keep a lookout for sales of products I know have good reviews for my hair type. I use up to five a day usually.” Angeliz Rivera Melendez, who has struggled with her tight curls since she was a child, said a video on NaturallyCurly inspired her to head to her local beauty supply store in search of products to cope with her dry, frizzy, damaged hair. “I just stared at all those hair products without knowing what to buy,” Rivera Melendez recalled. Since that day, she regularly scours reviews and purchases new hair products every two to four weeks—“with every paycheck, faithfully.” In one year alone, Rivera Melendez tried products by SheaMoisture, Cantu, Africa’s Best, Renpure, Jessicurl, Miss Jessie’s, Aunt Jackie’s, DevaCurl, As I Am, O’goyi, Kinky Curly, CHS Curl Keeper, Sedal, Carol’s Daughter, Aussie, Honey Baby, Creme of Nature, Suave, Tresemme, Dove and Palmer’s. “At this time, I might have over 70 different products,” she said. “It is quite overwhelming to stand in front of so many products cooking up my next ‘cocktail.’ I promised myself and my sister I would abstain from buying more products www.GCImagazine.com

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until I finished what I have. But then I thought, ‘How can I recommend what I haven’t tried?’” As the appetite for these products soars, this trend shows no signs of slowing down. For brands and retailers in this category, it is essential to stay abreast of the latest consumer trends.

Retail Controversy In 2016, Sephora launched a major initiative, It’s a Curl Thing, and brought in a number of curl-specific brands to attract the textured hair consumer. Other large retailers, including Walmart and Target, have sections devoted to texture. With dozens of new brands and products catering specifically for curly hair launched each year, every major hair care brand now offers products for textured hair, including Garnier, Tresemme and Pantene. The breakneck rate of change taking place in the texture category, and how intricately texture is intertwined with ethnicity, has produced its share of controversy. The question of where the products should be stocked, how and Hair 45

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to whom they should be marketed, and even who should own the companies that manufacture these products have been topics of debate. A growing number of retailers and brands—including heritage ethnic brands—are striving to attract a more diverse customer base. For some, this desire to appeal to a range of ethnicities and texture types has sparked a negative reaction from their traditional customer base. SheaMoisture’s award-winning #BreakTheWalls campaign tackled the question of whether hair care products for women of color should be “segregated” in the ethnic aisle, and promoted the idea of the “New General Market”—one focused on inclusion and diversity. Some industry insiders bristled at SheaMoisture’s bold statement, contending that dramatic changes could endanger many of the ethnic heritage brands originally created for black women by reducing—or even eliminating— the space now dedicated to that category. The results of TextureMedia’s Hair Care Aisle Study** showed that textured hair consumers would prefer to shop for their hair care products and brands in a section organized by hair texture or concern rather than by ethnicity. Overall, only 4% of textured hair consumers believe hair care products should be organized by ethnicity.

The breakneck rate of change taking place in the texture category, and how intricately texture is intertwined with ethnicity, has produced its share of controversy. “No matter what ethnicity, or gender, we all want to take care of our hair in some capacity ... I would rather focus on uniting consumers than dividing them,” said one respondent. n

MICHELLE BREYER (michelle@texturemediainc.com) is the co-founder of content and **The Hair Care Aisle Study is a part of TextureTrends’ ongoing expansion, providing a growing tool kit of research offerings for the industry. In addition to the TextureTrends Analysis Tool, the TextureTrends Insights Suite includes syndicated and custom research.

Schwarzkopf’s Gliss Hair Repair product line ($9.99 each) addresses hair repair, color protection and volume using hairidentical keratin technology. The collection is designed to help restore dry hair, breakage and split ends; color-treated, tinted and highlighted hair; and fine, lifeless hair that lacks volume. The line includes: Gliss Ultimate Repair, Gliss Ultra+ Moisture, Gliss Color Guard, Gliss Oil Nutritive and Gliss Extra Volume.

ecommerce platform NaturallyCurly.com and TextureMedia (https://corp.naturallycurly.com). By engaging beauty enthusiasts through original content, branded entertainment, social media, product reviews and commerce, TextureMedia influences up to $5 billion in hair care sales each year. Its monthly social, consumer reach is 26 million across a portfolio of digital brands, including its Market Research & Insights division, CurlyNikki and NaturallyCurly.

Color Full Hair Care System by Rahua ($10–$62) comprises a shampoo, conditioner and hair mask formulated to protect colortreated hair. Rahua oil molecules create a positive charge that pushes color pigmentation deep into the hair shaft for longer color endurance. Amazonian minerals reduce color fading by restoring color pigments deep in the hair shaft, while color pigments on the exterior layer of each strand of hair are encapsulated with a colorfading barrier for longer-lasting color vibrancy. Key ingredients include Rahua-ungurahua oil, Amazonian lilac clay (minerals), flaxseed oil, safflower seed oil, cranberry seed oil, morete oil and hibiscus extract.

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Designed with unique textile patterns, Nubian Heritage has updated its body care collections with packaging that pays homage to the diversity of healing traditions and cultures that are represented in the Nubian Heritage family of products. The beauty company offers an array of bath and body care products, but its mainstay is African Black Soap, which the company debuted in the U.S. 25 years ago. The African Black Soap Facial Care Collection features a pattern that complements the ingredients’ detoxifying properties, symbolizes purity and commemorates the strong community identity that textiles have in Africa, with each community having its own design. The Coconut and Papaya collection’s pattern highlights the ingredients’ renewing properties. The package symbolizes the sun and is typical of prints and textiles from the Caribbean, which feature elaborate geometric designs made in a reverse appliqué process. The Abyssinian Oil and Chia Seed collections’ packaging complements the ingredients’ revitalizing properties. The package pattern symbolizes faith and honors the rich textile history of Ethiopia.

The Unseen’s flagship Fire hair dye changes color based on temperature. The thermochromic ink is reportedly formulated to be safe for the scalp. When cold, dyed hair appears dark; the hotter it gets, the lighter and more vibrant it becomes. Variations include black to red, black to white, silver to powder blue, blue to white and black to yellow. The semi-permanent color lasts for a few washes and reportedly does not damage hair more than other semi-permanent dyes. The formulation reportedly benefits from polymeric stabilization and will be commercially available later this year.

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Quick, easy and at your fingertips. That is the mindset that consumers have become accustomed to in the age of smartphones and countless shopping apps. Unilever is utilizing digital tools that it says, “give consumers easy and instantaneous access to product information beyond what is on the product’s label.” SmartLabel is one such tool that informs consumers on ingredients, product advisories and third party certifications for the products they use. Unilever explains that while using the SmartLabel app, consumers can scan the UPC barcode to be taken directly to the product’s SmartLabel page. Brands such as Clear, Dove, Nexxus, Suave and Tresemme are participating.

The Dove Dermacare Scalp collection of hair care products ($5.99 each) is targeted to women and features a moisturizing formula that keeps hair healthy while also ridding the scalp of dandruff. The Dermacare Scalp series includes Pure Daily Care 2in1 and Shampoo, Invigorating Mint 2in1 and Shampoo, and Dryness & Itch Relief Shampoo and Conditioner.

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Givaudan Active Beauty has launched an active cosmetic ingredient, PrimalHyal Gold (INCI: PEG-8 Caprylic/Capric Glycerides (and) Water (and) Octyldodeceth-25 (and) Sodium Hyaluronate), which is part of the company’s hyaluronic acid (HA) range. This ingredient is produced by biofermentation—a sustainable manufacturing process—which allows the incorporation of hydrated HA into oilbased formulas such as pressed powders, body oils, sun care oils, lipstick, lip glosses, mascaras, balms and any anhydrous formulas.

Perfect Selfie HD Photo Finishing Powder ($22) by Wunder2 is formulated with high-resolution and Vanishing Veil technology that helps create a poreless look. The ultra-soft powder eliminates the appearance of pores, wrinkles and shine while promoting an elastic-like effect, which allows the skin to move without makeup setting into fine lines. The paraben- and oil-free formula is a universal shade for all skin types.

The Gold Bomb Collection by ISH was created by celebrity makeup artist Joey Maalouf to celebrate the brand’s anniversary. Products in the collection feature skin conditioning ingredients, such as sunflower seed oil, shea butter and coconut oil. The collection includes the Gold Bomb allover highlighter; Shadow Sticks, available in Chocolate, Bronzie, Goldie and Rustie; and Shimmy Shadows, available in Get Low, Disco Ball, About Last Night, Party in Pink and Champagne Champaign.

Evita Joseph Asare, creative and marketing director for Joseph, has journeyed through engineering to become a provider of makeup products for the African woman. The young Ghanaian woman taught herself about cosmetology. She became interested in how different products worked with different skin tones, which resulted in the creation of her beauty brand. The Liptended Liquid Matte Lipstick comes in 11 shades that are named after towns and cities in the 10 regions of Ghana. Her continued search for simple tools and accessories for makeup encouraged her to start Joseph with a team of makeup artists. Soon after, she was able to provide African women with affordable cosmetic choices. 48

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Beauty App Roundup A range of brands and services continue to roll out new beauty apps that enhance the consumer experience. For example, the Glam App provides consumers with an at-home makeover with a click of a button. The app delivers stylists who can do anything from a simple nail polish change to a full-blown makeover right to the consumer’s door. Meanwhile, YouCam Makeup has partnered with Charlotte Tilbury to allow consumers to virtually try on the brand’s 12 Hot Lips lipsticks. And ModiFace recently debuted its new augmented reality technology, Light Field Rendering, which makes it easier to adjust for a range of makeup shades in an array of lighting conditions. Finally, Benefit Cosmetics has commemorated the launch of its new They’re Real! Double Lip, a two-in-one lip liner and lipstick, with the launch of the Real Full Lips video generator. Users can log onto Benefit’s website and create a custom animated video featuring the eight shades of the lipstick/ liner duo.

Anisa International has debuted five new collections of beauty tools, including the New Naturals (pictured), which offers substitutes to animal fibers; the SQ + Collection, which comprises tools for sensitive and mature skin; the Fan Kabuki Eye Collection, which is customized for the eye area for featherweight distribution of powder; the Flat Foundation Collection, which comprises fibers designed for targeted product placement and less absorption; and the Brush Cleaner Collection, which helps to restore, repair and refresh brushes.

Ballet Nudes by Essie Gel Couture consists of six long-wear nail polishes ($11.50/each) that provide gel-like shine. Each bottle is designed to mimic the choreographed twirl of a ballerina. The colors include Satin Slipper, a silky champagne ivory; Lace Me Up, a misty rose pink; Hold the Position, a coral peach pink; At the Barre, a soft cinnamon nude; Perfect Posture, a periwinkle powder blue; and Closing Night, a soft shimmer gray.

L’Oréal Paris has celebrated its iconic Voluminous Original Mascara with a new campaign, “The Original,” which includes celebrities such as Diane Keaton, Julianne Moore, Barbara Palvin, Soo Joo Park, Debbie Harry, and transgender model and trans rights activist Hari Nef. The product is the top-selling mascara in the United States and is available in original black and new blue shades. “We are excited to bring together trailblazing individuals in celebration of the mascara that women have loved for over 25 years,” said Tim Coolican, president, L’Oréal Paris USA. “They each embody the essence of Voluminous Mascara, originals who continue to be fresh, creative and confident. With this campaign, we want to encourage everyone to embrace their originality, take chances and make a statement, whether they have used Voluminous Mascara for years or are discovering it for the first time.” 50 Cosmetics Global Cosmetic Industry | April 2017

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As traditional retailers such as department stores decline, brands have begun rolling out their own boutique beauty stores. Now, Make Up For Ever has opened a flagship store at 731 Lexington Avenue in New York, featuring its live makeup tutorial experience, Go Pro Makeup. The Go Pro Makeup three-sided bar is a no-pressure experience that allows up to seven guests “to learn and play with various makeup techniques at their leisure, or sit for complimentary group classes to learn with the guidance of a ... professional makeup artist, at no cost or obligation to purchase.” Similar concepts have been rolled out in Paris, Singapore and London. Makeup artists are on hand for tutorials, advice and shade selection. The bar features a moving conveyor belt that cycles different sets of products for specific looks (ex: Pro Sculpting Palette, Highlight and Contour Set, Pro Light Fusion highlighter and Ultra HD Pressed Powder) past guests for them to self-select their preferred style. Each station features a makeup mirror, disposable wands and other hygiene tool (ex: Make Up For Ever Artisan Brushes), a USB port for charging mobile devices, and hooks for bags and coats.

Morphe’s Liquid Lipsticks ($12.99 each) feature a longlasting liquid cream formula in 22 colors that include shades of nude, plums, reds and blues. The lipstick dries matte with a strong color that doesn’t require touch-ups. Key ingredients include beeswax, cucumber, chamomile flower extract and aloe leaf extract.

Glossier announced Cloud Paint as its latest product launch. The cosmetics company, with a devoted social media following, went outside its norm for this product announcement by releasing the cream blush to makeup artists before the 2017 Oscars. Celebrities such as Taraji P. Henson, Chrissy Teigen and Best Actress award winner Emma Stone, donned Cloud Paint on the red carpet. Cloud Paint features a lightweight, gel-cream formula for sheer, buildable coverage. The blush is available in four shades: Puff, Beam, Dusk and Haze.

www.GCImagazine.com

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BATH/BODY/GROOMING/FRAGRANCE RPC Bramlage and RPC beauté developed the deodorant stick for Clarins’ Azzaro Wanted for men deodorant. The cylindrical-shaped stick, available in 20 ml, 25 ml, 40 ml, 50 ml, 75 ml and 100 ml sizes, features a square edge and straight lines, rendering it appropriate for men’s fragrance lines. The packaging has been silk-screen printed and hot stamped. The pack was sleeved by RPC beauté following assembly. The sticks are fillable from the top, while the 20 ml and 75 ml versions can also be filled from the bottom.

The key to America’s fragrance market may be in the hands of millennial men, according to a recent analysis from Mintel.com’s Michelle Strutton. The report noted that 59% of male 18-34 yearolds use personal care products in order to smell good, creating new opportunities for lotions, shower gels and body sprays. Younger men tend to favor products that offer scent plus an additional benefit, such as cleansing and skin care. The result is a market with strong potential growth in formats such as travel-sized products, sprays and roll-ons.

Spectra Packaging has introduced a new fun-shaped kid’s bath pack prototype. Jonathon Powell, sales director for Spectra, said, “We’ve given our new containers a touch of branding which really brings the designs to life.”

Pacific Shaving Company’s Single-Use Shaving Cream Minis ($7.99) allow for single-use shaving cream to travel anywhere and still provide a clean shave. The minis moisturize the skin after use with a concentrated formula that leaves no residue or mess behind. Key ingredients include triethanolamine, myristic acid, water and sodium C14-16 olefin sulfonate.

Procter & Gamble is making waves with a new product launch, Old Spice Hydro Wash Body Wash, and a reformulation of its Head & Shoulders brand. The body wash has been added to the brand’s “Hardest Working Collection” and promises superior hydration with 20% hydromoisturizing complex providing a thicker, richer lather. The company has also rolled out a new scent in the collection, Steel Courage. Additionally, Head & Shoulders has reformulated its dandruff products to include a 3 Action Formula in all of its shampoo and conditioner collections. The 3 Action Formula was developed with micro zinc mineral particles that cleanse, protect and moisturize the scalp, helping to create a stronger foundation for more resilient, beautiful hair.

52 Bath/Body/Grooming/Fragrance Global Cosmetic Industry | April 2017

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PIER 92, NEW YORK

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MAY 10 & 11, 2017

New York . Monaco . Shanghai www.luxepack.com

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BATH/BODY/GROOMING/FRAGRANCE

Customizable fragrances are becoming one of the strongest trends in the fragrance segment. The newest player in the game is Scent Trunk, a company specializing in finding consumers fragrances based on a guided process with an at-home Scent Test kit. How it works: The scent test allows customers to smell six core scents–citrus, woods, aromatic, floral, amber, chypre–and then report what they do or do not like. Perfumers then create a custom formula based on the customer’s response. The original fragrance is available for $11.99/month. Customers can receive the same fragrance each month or customize a new one.

Jeen International has introduced Jeecide AA (INCI: Benzyl Alcohol (and) Benzoic Acid (and) Sorbic Acid), a preservative for natural and organic shampoos, conditioners, skin care serums, creams and lotions. The company’s Jeecide AA Plus (INCI: Benzyl Alcohol (and) Pentylene Glycol (and) Benzoic Acid (and) Sorbic Acid) can be used at a higher percentage in formulations, compared to Jeecide AA, while staying at or below the maximum permissible limits in challenging application.

Consumer goods giant, PZ Cussons, has collaborated with independent design agency, Hark, to launch the new Bayley’s of Bond Street brand. The antibacterial hand wash is the first product to be released from the new Bayley’s of Bond Street’s bath and body collection. Positioning of the products centers on giving customers a taste of the sophistication normally reserved for Bond Street shoppers at an affordable price. Drawing from its original perfume archives, PZ Cussons has concocted a quintessentially British scent, with contemporary influences. The culmination of this process is four new fragrances, including Orange Blossom and Honey, Rose and Raspberry, Cucumber and Bergamot, and Wild Bluebell and Waterlily.

Hoppin’ Fresh Deodorant ($24.50) by Ursa Major is a natural deodorant that kills and controls bacteria and odor. This product doesn’t block sweat glands with aluminum, but with eucalyptus. The deodorant absorbs excess moisture and soothes sensitive skin for 24-hour protection. Using a non-staining formula, this product is natural and toxin-free. Key ingredients include eucalyptus, kaolin clay, ginger, rosemary, grapefruit, chamomile and lemon.

54 Bath/Body/Grooming/Fragrance Global Cosmetic Industry | April 2017

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PRODUCTS and SERVICES CONTRACT MANUFACTURING

showcase PACKAGING

PRIVATE LABEL

PACKAGING

To reserve space in this section, contact

Kim Jednachowski kjednachowski@allured.com 1-630-344-6054

www.GCImagazine.com

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Products and Services Showcase 55

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AD INDEX The Advertiser Index is provided as an additional service for readers to obtain information on companies and their products. The publisher assumes no liability for omissions or errors.

PAGE

ADVERTISER

PHONE

WEB SITE

AMETEK Brookfield

1-508-946-6200

www.brookfieldengineering.com

BASF

1-973-245-6000

www.carecreations.basf.com

Berjé, Inc.

1-973-748-8980

www.berjeinc.com

Bioscreen Testing Services

1-310-214-0043

www.bioscreen.com

Biosil Technologies, Inc.

1-201-825-8800

www.biosiltech.com

Campo Research Pte Ltd.

11-656-383-3203

www.campo-research.com

Centerchem, Inc.

1-203-822-9800

www.centerchem.com

Classic Cosmetics, Inc

1-818-773-9042

www.classiccosmetics.com

Corum, Inc.

886-2-8751-6060

www.corum.com.tw

Cosmetic Group USA, Inc.

1-818-767-2889

www.cosmeticgroupusa.com

Cosmopak USA/Cosmopak Europe

1-516-767-9119

www.cosmopak.com

Elé Corporation

1-708-442-9100

www.elecorporation.com

Fusion Packaging

1-214-747-2004

www.fusionpkg.com

HCP Packaging

1-203- 924-2708

www.hcpackaging.com

Lady Burd

1-800-345-3448

www.ladyburd.com

Lipotec, LLC

1-201-850-1213

www.lipotec.com

Luxe Pack New York

(33)-474-73-16-90

www.luxepack.com

Pilot Chemical Co.

1-513-326-0600

www.pilotchemical.com

Spectra Colors Corp.

1-201-997-0606

www.spectracolors.com

Sun Deep Cosmetics, Inc.

1-800-985-2228

www.sundeepinc.com

U.S. Nonwovens Corp.

1-631-952-0100

www.usnonwovens.com

Vantage Specialty Ingredients, Inc.

1-973-345-8600

www.vantagegrp.com

Welch Holme & Clark Co., Inc.

1-973-465-1200

www.welch-holme-clark.com

YonWoo/PKG

1-631-981-8701

www.pkggroup.com

Cover 3 23 14–15 Cover 4

1 Cover 2 21 9 28–29

56 Ad Index Global Cosmetic Industry | April 2017

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