Buoyed by rising disposable incomes and discretionary spending approaching the levels similar to those enjoyed by their Western counterparts, Eastern European beauty and personal care industry managed steady gains over the last few years. The pandemic, the geopolitical shocks and the consequent inflation surge – none of them managed to derail continuous expansion of sales. This has not, however, meant a slow and steady development of the industry. Even the exorbitant price increases did not stop consumers from moving towards more sophisticated products. Be it high-tech formulations, premium ingredients, sustainability claims on packaging or anything else, increasingly well-educated shoppers continue spending lavishly on pricier items. Interestingly, this has not turned the industry into the realm of foreign multinationals despite their seemingly limitless R&D and marketing budgets. Being close to the client and by localising their brands as much as possible, local manufacturers continue maintaining and even increasing their market positions. Driving the market, skin care in particular has performed exceptionally well, registering an annual average growth rate of 7% (measured in current Eur terms) over the period 2018 to 2023. At the same time, basic categories remain stagnant, facing not just market maturation issues but also ever-expanding private label offerings.

Just as consumers gravitate towards more sophisticated products that deliver fat profit margins, brand owners have never been busier. Historically, the industry has relied on new product launches to keep consumers interested. Encouraged by previous success as well as emerging online distribution opportunities, companies ramped up their new product development activities as of late, making the best-performing categories also the most crowded. For example, moisturisers and treatments – the holly grail of the industry of late – has seen 148 new brands and sub-brands launched online since March 2021 in Czech Republic alone, according to Euromonitor International Passport Innovation system. This makes it by far the most innovative category, followed by body care with 95 launches. The deluge of new launches will put what seems thus far unsatiable appetite for novelties by Eastern Europe beauty shoppers to the test with some products inevitably set to fail.

Another important shift has happened in the distribution of beauty and personal care goods. Having already grown dynamically, e-commerce was turbocharged by pandemic-induced lockdowns. Interestingly, for a channel that is supposed to lead to a borderless world, internet retailing in Eastern Europe displays strong national and regional characteristics, defying the looming threat of platforms like Amazon or emerging Chinese sellers. Czech Republic’s Notino is the biggest success story with Polish Allegro marketplace also appreciated by consumers for the easiness of use, speedy deliveries and a product mix tailored to local preferences.

The emergence of e-commerce as a viable sales channel could not come at a better time for some local producers. Privately brand owners confide that dominant positions by market leaders within specific offline channels leave them at the mercy of retailers during negotiations, especially in Poland and Slovakia. This affects everything from profit margins to introduction of new products with retailers effectively acting as gatekeepers deciding if a certain new launch is given a chance or not. Going forward, more viable distribution options online is set to reduce brand owner’s dependence on good graces of self-owners, benefiting consumers.

By the end of 2028 the market will look quite dissimilar to the one observed today. Despite facing economic headwinds and continuation of inflationary pressures, industry is expected to continue on the path of sophistication and, by extension, growth. Geographically, the biggest growth markets will be Poland and Romania, adding EUR885 million and EUR492 million respectively which all but guarantees them to be in the crosshairs of companies planning expansion. Other markets of the region will also inch up, with average annual constant growth rates between 1% to 6%, driven by insatiable consumer appetite for novelties and experimentation.

ABOUT EUROMONITOR INTERNATIONAL

Euromonitor International is the world’s leading provider of global business intelligence, market analysis and consumer insights. From local to global and tactical to strategic, our research solutions support decisions on how, where and when to grow your business. With offices around the world, analysts in over 100 countries, the latest data science techniques and market research on every key trend and driver, we help you make sense of global markets.

Feeling inspired to see ingredients and trends in action?

Then why not visit one of the in-cosmetics events around the world?

BROWSE SHOWS

Bringing together industry leaders and professionals in the cosmetics and personal care sector, in-cosmetics Global recently hosted two pioneering Co-Lab events looking to address the significant challenge of sustainability. In addition to featuring insightful presentations from a variety of industry experts, attendees also had the opportunity to share their knowledge and experiences through a range of group activities, discussing consumer sustainability trends across the global market.  

—  

With the detrimental effects of climate change becoming increasingly evident in everyday life, the emphasis on sustainable products and practices is a growing priority for consumers worldwide.  

While the demand for sustainable cosmetics and personal care items is global, variation can be found among the different global and regional markets. With the help of its recent Co-Lab events, in-cosmetics Global sought to explore these nuances in more detail – looking at the UK and French markets in particular.  

Exploring the financials  

According to data from the Cosmetic, Toiletry and Perfumery Association Limited (CTPA), the UK and France are two of the largest markets for cosmetics and personal care products within Europe – with France sitting at EUR €12.882 billion, and the UK not far behind with EUR €10.487 billion. However, when it comes to consumer trends, habits, and preferences, they’re somewhat contrasting.  

At a more granular level, research from Cult Beauty found that French and British consumers are currently spending very similar amounts of money on beauty and personal care items; For example, the annual amount spent per person on beauty products hit £184.06 in the UK, and was slightly lower in France with £180.62 pp. However, they’re making distinct choices. 

Cost vs sustainability 

While sustainability has been identified as a priority for consumers when it comes to their cosmetics, these preferences are often being superseded by cost. Amid a global cost-of-living crisis, not only are many consumers looking to make cuts in their spending, but the products they do buy must live up to certain requirements and ideally serve them in more ways than one. For example, multi-use treatments such as makeup which doubles as skincare are likely to rise in popularity.  

Trends among UK and French consumers 

According to research house, Mintel, as environmental claims have grown, eco-friendly products have become an expectation for UK consumers in the beauty industry.  That, as cost becomes an increasing priority for consumers, brands using sustainable claims to prove a product’s value, for example, cheaper refill packs, will stand out in the market. 

When discussing the topic, beauty and personal care professionals at the Co-Lab event held in London noted that there was a big difference between consumers’ beliefs and actioning them. Though consumers have good intentions when it comes to sustainability, their concern, first and foremost, is always efficacy.  

While this is understandable, it can produce challenges for brands and formulators. To create a sustainable product, formulators may need to adjust the ingredients, quantities or process which can disrupt the efficacy and or effectiveness of the product. As such, balancing sustainability with efficacy can be a tricky task to execute.  

Across the channel , sustainability appears to be just as important to French consumers. According to data from Klarna, for 60% of consumers, it’s important that raw materials are sourced naturally and 33% believe that respect for eco practices should become mandatory. Similarly, survey data from NATRUE in 2021 found that – although many customers found it difficult to identify genuinely ‘natural’ cosmetics – they would be willing to spend more on certified cosmetic products.  

Despite this, the ongoing cost-of-living crisis has led consumers across the globe to cut back spending on non-essential items. According to research from NielsenIQ, almost half of French consumers planned to spend less on beauty products in 2023. Of the consumers surveyed, 27% said they would reduce the number of products in their regime, while 41% said they would buy cheaper products to cut back on beauty expenditure.  

Beauty and personal care professionals at the Co-Lab event hosted in Paris discussed the impact of financials on French consumers. Many of the experts agreed that some sustainable, organic, and natural cosmetic products are too expensive, and this poses obstacles even for the greenest consumers. 

A delicate balance 

Industry experts and professionals at both the London and Paris Co-Lab events agreed that moving forward, creating sustainable products, and adopting new practices will be essential in the beauty and personal care sector. However, as the saying goes, Rome wasn’t built in a day and this feat won’t be achieved overnight.  

How seamlessly and effectively these sustainable practices are able to permeate the different global cosmetics markets will rely on a number of factors. A challenge for brands in particular will be understanding sustainability from a consumer perspective and how external factors will play into the complex matrix of purchase intention. It is evident that organisations across all sides of the cosmetics value chain will need to come together to make this a reality.  

Currently, it is clear that both the UK and French beauty and personal care markets are moving in very similar directions when it comes to sustainability. While they may embark on different routes to success, and achieving their industry goals, only time will tell which markets may take the lead. What is certain, however, is that time is of the essence and change is needed sooner rather than later.  

Enjoyed this article? Get more by subscribing to our newsletter!

Feeling inspired to see ingredients and trends in action?

Then why not visit one of the in-cosmetics events around the world?

BROWSE SHOWS

One of the dilemmas of any formulator, chemist or brand owner is to ensure they choose the right ingredients in compliance with the regulatory criteria for the relevant market in the foreseeable future to avoid reformulating costs and supply chain nightmares.

On the other hand, the regulatory landscape is ever changing due to new knowledge in the field of toxicology and developing new tests’ methods to evaluate ingredients’ safety.

In this article, we will discuss the substances that are being restricted in the EU zone (27 countries) while being placed on the market in 2022.

Based on the EU regulatory format for updating ingredients’ safety, any new information will be submitted to the Scientific Committee on Consumer Safety (SCCS). This committee consists of several experienced experts in the field of human safety and toxicology and provides opinions on consumers’ safety based on the latest information. The committee usually provides its reports in response to a specific request.

The EU Commission, in 2020, committed to creating a priority list of potential endocrine disruptors that weren’t covered yet by the regulation bans under substances classified as carcinogenic, mutagenic, or toxic for reproduction (CMR). After input from EU countries, the industry, consumer organisations and the SCCS, the Commission consolidated a list of 28 substances. Many of substances in this list were reviewed by the SCCS based on the latest available data. Hence, we are expected to have several new restrictions in 2022.

Dihydroxyacetone (DHA): One of the hot topics in the regulatory field in 2022 is the restriction in concentration of this ingredient which affects self-tanning products.   Dihydroxyacetone is the aliphatic ketone, known in the industry as DHA. It is a common ingredient that may be found in many tanning and hair dye products.

This ingredient is not known to be a skin sensitiser or irritant to eyes and has a low acute toxicity profile. In 2008, The Scientific Committee on Consumer Safety (SCCS) concluded that, based on available data, the use of DHA as self-tanning ingredients can be considered as safe by 10% and safe up to 14% in the spray cabin.

However, considering the new data submitted to the commissioner in 2019, the SCCS has reviewed its previous opinion and came to the conclusion that the use of DHA as hair colourant in non-oxidative hair products (leave on) is safe to maximum concentration on 6.25% together with self-tanning lotion and face cream to a maximum of 10% in finished products.

This opinion turned into regulation from 26.02.2022 and there should be NO product available on the market from 22^nd May 2022 that contains DHA concentration above the set criteria. This regulation is only applicable in the EU and Northern Ireland and is not yet confirmed in the UK.

Methyl salicylate: It is the ester of methyl alcohol and salicylic acid and it is mainly used in cosmetic products as denaturant, flavouring, oral care, perfuming and soothing. Based on new evaluation and recent studies, the SCCS (SCCS 1633/21) has considered this ingredient as a skin sensitiser.

Since metabolic products of Methyl salicylate in the body are a salicylic acid and this ingredient is considered as a CMR 2 (reprotoxic); hence the accumulative exposure to cosmetic products containing various salicylates may impact the final safe level for consumers.

Based on this opinion, there will be a new restriction for this ingredient in various products placed on the market from Dec 2022. The below table will explain the new restriction based on each cosmetic category:

Benzophenone-3 and Octocrylene: UV filters used in cosmetic products follow the restriction set in annexe VI. If an ingredient is not listed in annex VI, it cannot be used in a formulation as a UV filter. From the annex VI, these two ingredients were listed in the EU commission priority list A for immediate review in 2021.

Octocrylene: It is the substituted acrylate listed under Annex VI (10), a light stabiliser and UV filter. Based on the recent SCCS review (SCCS 1627/21), the Committee did not consider the current evidence for octocrylene endocrine effect sufficient. The reported contact sensitiser for this ingredient was evaluated as negligible due to its widespread use and considered it as negligible.

Based on cumulative exposure, the SCCS restricted the use of this ingredient in propellant spray to 9% (from previous 10%) when used together with face cream, lip cream and hand cream containing 10% Octocrylene.

Benzophenone-3 (BP-3): This ingredient is a benzophenone derivative listed under UV filter (Annex VI/4) and as a light stabiliser function (not in annex VI). The SCCS did not consider the presented evidence as sufficient to list this substance under CMR category. However, the committee warrants further investigation. Previously this ingredient was allowed to be used by 6% (2017/238) and not more than 0,5 % to protect product formulation. Based on the new SCCS opinion (1625/20), the new restrictions are:

-Face products, hand products, and lip products, excluding propellant and pump spray products (6%: unchanged)

-Body products, including propellant and pump spray products (limited to 2.2%)

The limitation for its concentration for any other function remains at 0.5% and the warning statement should be on the label (no change on this statement) as: Contains Benzophenone-3

The restriction for both BP-3 and Octocrylene are expected to take place from third quarter in 2022.

Methyl-N-methylanthranilate (M-N-MA): It is a fragrance ingredient used in various cosmetics, including fine fragrances, shampoos, soaps, and other toiletries. Previously it was considered as safe at concentration up to 0.2% in rinse-off and 0.1% at leave-on products.

The safety concern for this ingredient was raised when being used on areas exposed to light. M-N-MA has phototoxic properties but based on the provided data using this substance with concentrations from 0.1% to 0.5% with a UV dose that realistically represents skin exposure during outdoor activities (excluding sunbathing) should not result into any phototoxic reactions.

However, the SCCS (SCCS/1616/20) did not consider this ingredient as safe when being used in sunscreen products and products marketed for exposure to natural/artificial UV light, due to possibilities of prolonged exposure. This restriction will come into place in the third quarter in 2022.

In the next part of this article, we will discuss the substances that are to be banned in 2022.

Personal Care Regulatory Ltd make sure to track ingredients restriction and update their clients’ safety assessment reports on time and regularly.

Get in touch with them for further discussion at: info@personalcareregulatory.com

Enjoyed this article? Get more by subscribing to our newsletter!

Feeling inspired to see ingredients and trends in action?

Then why not visit one of the in-cosmetics events around the world?

In the EU, the manufacture of cosmetics is governed by the EU Cosmetics Regulation. Born as The Cosmetics Directive in 1976, the Directive saw revisions in 2009 before becoming the Cosmetics Product Regulation in 2013. The version we know today spans the entire EU network in order to meet Single Market standards.

The European Single Market is a trade deal between the EU countries which attempts to make trading between member nations as easy as possible. In order for it to work for a specific product sector, there needs to be similar legislation for all member states. Applying this to the cosmetics landscape, the same labelling, packaging and safety regulations must apply across borders in order for products to be transported and sold without restrictions in the EU.

Assuming the relevant standards are met, a person or company can place their cosmetic product on the market. In turn, that person, who is usually a manufacturer or distributor, becomes that product’s Responsible Person (RP) and takes on responsibility for product safety and Cosmetics Regulation compliance.

The same standards apply to ingredients, all of which are governed by the EU Cosmetics Regulation. From banned substances with too much toxicity to pre-approved substances suitable for UV filters and the like, every product needs to meet extensive product and safety assessments.

The EU Cosmetics Regulation orders that all cosmetics products must be manufactured in accordance with the Good Manufacturing Practice (GMP), which sets out that products should be prepared in a clean environment to prevent contamination.

The final step on the road to market takes us to the Cosmetic Products Notification Portal (CPNP), managed by the European Commission. This instructs that all cosmetics products on the European market must be recorded on a centralised database.

There are lots of regulation talks happening at in-cosmetics Global 2020. Come to our skin microbiome regulation workshop.The post Your guide to EU cosmetics regulations first appeared on in-cosmetics Connect.]]> https://connect.in-cosmetics.com/regions/global/your-guide-to-eu-cosmetics-regulations/feed/ 0 7862 https://connect.in-cosmetics.com/regions/global/formulating-with-innovative-ingredients-and-your-rd-community-peers/ https://connect.in-cosmetics.com/regions/global/formulating-with-innovative-ingredients-and-your-rd-community-peers/#respond Thu, 21 May 2020 13:00:02 +0000 http://ec2-52-48-9-53.eu-west-1.compute.amazonaws.com/?p=7985 Please note: This article was written prior to in-cosmetics Global 2020 being postponed to 2021 Picture the scene: you are formulating with your peers from various cosmetic manufacturers from across the world under the guidance of international personal care ingredient experts. If the idea appeals, we have good news. At in-cosmetics Global in October, eighteen […]

Food ingredients, especially superfoods, have long been used in skincare and haircare formulations, but food from waste is a much newer and more eco-friendly development. Across the industry, from smaller beauty ingredients companies to projects spun out from academia, food waste is no longer a niche idea, but represents a serious step towards a more sustainable future for beauty brands.

Joanne Bell, brand insight and content director, Free the Birds, highlights beauty ingredient companies like Biolie, Akott and Expanscience, which have been involved in food was for years. “64% of Expanscience’s active ingredients catalogue is derived from food waste,” she affirms.  Meanwhile, Keracol, a spin-off from Leeds University, helped M&S develop its wine-waste Pure range and created a range of natural dyes and haircare products from blackcurrant pulp. Another, Revive Eco, is a Scottish indie working on a palm alternative extracted from used coffee grounds, and there are others. “The big guns ingredients manufacturers, like Cargill, BASF and IFF are all making significant investments in and recently launching food waste products from lemon peels, rambutans, blackcurrants and more besides,” explains Bell.

Another source of food wastage comes from the 20% or more of produce that gets thrown away because of how it looks. However, several studies confirm that foods with imperfections are packed with nutritional and skin health properties. The Body Shop is tapping into the trend by buying up wonky carrots and bananas which retailers refuse to sell for its Carrot facial skincare and Wonderfully Wonky Banana collection. Andrew McDougall, associate director, beauty and personal care, Mintel quotes from the research: “Higher levels of antioxidants (phenylpropanoids) were measured in the peel of scab apples than peels of those apples not infected with fungus Venturia inaequalis. And it’s not just the peel: infected leaves with scab showed up to a 20% increase in phenolic (antioxidant) compounds.”

Beauty launches using ingredients derived from food waste are on the increase and Mintel cites the following:

• Aquafaba (chickpea brine that is normally thrown away) shares properties with egg white and can be used an alternative in haircare products. Lush has launched vegan protein shampoos made with aquafaba, touting its protein and saponin properties to help protect and strengthen fine hair. “The ingredient can tell a similarly engaging story as rice proteins and water has done in the past, breathing new life into the category and building on trusted home remedies to connect with consumers,” says McDougall.
• British brand UpCircle Beauty has launched oils, scrubs and soap bars based on used coffee waste and chai spice granules.
• Food produce supplier, Daylesford Organic, has launched a Bitter Orange Hand Balm formulated with cold-pressed citrus aurantium from the peel of Seville oranges.
• Fruu is a range of natural lip balms, produced locally in small batches, that combines by-products of processed fruit waste, creating biodegradable and sustainable formulas, while also generating extra revenue for small fruit farmers.

New British bodycare brand Byre contains sweet whey powder, a by-product of milk and cheese production, and is usually thrown away. Available in Full Cream, Semi Skimmed and Skimmed body wash versions, Byre is committing a percentage of annual net sales to the UK’s Royal Agricultural Benevolent Institution.

Although the concept of food waste is an attractive one in beauty due to the sustainability story, the industry faces negative consumer perceptions around the idea. “Put simply, people felt they are less good than products made with ‘virgin’ materials and struggled on perceptions of quality and function,” remarks Bell, referring to US-based research by Yu and Lee about perceptions of upcycled personal care products. Bell conducted a quick survey of 24 members of the Free The Birds team and found that upcycled products rated only 6 out of 10 on the attractiveness to buy scale, with 50% of those asked citing the “ick” factor for their reticence. “Upcycling alone will not be enough to sway all but the most environmentally minded of customers,” she believes. “Brands will need to tread carefully to choose the right language to explain the quality of the ingredients they are using and to weave this through their storytelling in a way that positively explains the difference. Rethinking the terminology might also help: food by-products, co-products, derivatives, are more engaging ways to talk about the ingredients.”

Free The Birds, Mintel and BYRE will present at this year’s in-cosmetics Global Marketing Trends presentations in Barcelona, from March 31-April 2, 2020. https://www.in-cosmetics.com/global/

The Marketing Trends theatre is the most popular educational feature at the event. Priority Passes are available visitors to book and get a guaranteed seat in the sessions. To register and book a pass, visit in-cosmetics.com/register.

Up until recently, an Australian’s view of “ocean safe” meant “swim between the flags and watch out for sharks”. Stacey Fraser, co-founder of New Zealand beauty consultancy, Nature’s Blueprint, comments: “Ocean safe is now an everyday thought and consideration in everything we do especially with our new consumer activist Gen Z consumer. Our oceans are in crisis and we need to act now.” Fraser is noting that ocean safe formulations are becoming another important factor to the product and brand brief and applies to all components that make up the beauty product from sourcing, ingredients, formulation, packaging, ethos, marketing messaging and supporting ocean clean causes such as Sustainable Coastlines, an NZ charity that enables people to look after the coastlines and waterways through clean-up events, educational programs, public awareness campaigns and riparian planting projects.

A ban on polluting cosmetic ingredients

Plastic microbeads have long been used as an exfoliant in rinse-off cosmetics but are being phased out in several countries including the US, Canada, France, the UK, Sweden and Taiwan. UK beauty industry organization, the CTPA, believes it is a step in the right direction for marine plastic litter, but on its website states that plastic microbeads from cosmetics account for less than 1% of plastic pollution in the marine environment. Microplastics, tiny solid plastic particles or fibers often start as larger pieces of plastic debris before breaking down over time. “Government and other industries will need to look to address the major sources of plastic pollution if we are to have a wider impact on this pressing environmental challenge,” the body states.

Triclosan is widely used in cosmetic products such as bodywash, soaps and hand sanitizers for its anti-bacterial and anti-fungal properties, but has been banned in several countries including restrictions under EU Cosmetic Regulations because of the toxic effect on environmental and human health.

Meanwhile, recent research suggests that mineral based natural sunscreen ingredients, such as zinc and titanium, are contributing the bleaching of coral. “The best alternative,” advises Fraser, “is to wear a full lycra body suit.”

Ocean safe claims spread out from sunscreen

According to Mintel, concerns about cosmetics that wash off when people swim in the sea has led to the emergence of “ocean safe” or “reef safe” claims. “Initially, we were seeing these claims in sunscreen, but are starting to see them appear in skincare, soap, bath products as well as haircare,” comments Andrew McDougall, associate director, beauty and personal care, Mintel. He cites the following examples from Mintel’s GNPD survey:

• Pacifica Coconut Pro Strong & Long Creamy Oil mask, a vegan hair treatment to protect hair color, that is free from petroleum, parabens, sulfates and phthalates and claims to be “coral reef-safe” on the pack.
• Alphanova Sun Medium Protection SPF15 sun milk has a sea-and reef-safe claim front and center on the pack, accompanied by an image.
• Australian company Trilogy has an ethical range formulated with rosehip seed powder, including Exfoliating Body Balm, which it touts as an “ocean-safe” alternative to microbeads.

Another area of concern is the impact of waste wipes that typically contain plastic, take a long time to break down and can cause havoc with marine life. “Natracare launched Safe to Flush Moist Tissues, made of compostable, plastic-free fibers, without wood pulp or residues that can contaminate the water,” states McDougall. Other ocean-friendly biodegradable wipes brands include The Cheeky Panda, Happy Planet and Rawganic. “There are even facial sheet masks using materials such as bamboo fiber and organic cotton,” he observes.

Cleaning up plastics from the oceans

Pressure is growing on beauty brands to move away from single use plastics, known to be another ocean pollutant, and replacing it with recyclable plastic, aluminum, glass and other new technology. Fraser highlights natural NZ brand Ecostore that is leading an initiative and launching a limited edition run of hand wash packaged in bottles made from 100 per cent ocean waste plastic collected from South East Asia, a first for New Zealand. Ecostore partnered with international global packaging manufacturer Pack Tech to source its ocean waste plastic, which has full traceability showing where its recovered plastic is sourced.

McDougall believes the growing eco-ethical demands on brands, from younger consumers in particular, now extends the “clean” term beyond simply being safe for those using the product, to ensuring products are safe for the environment. “Brands need to improve the current level of transparency on ingredients and production methods to meet the growing demand for safer, cleaner products,” he concludes.

Stacey Fraser and Mintel will take part in next year’s in-cosmetics Global Marketing Trends presentations in Barcelona, from March 31-April 2, 2020. https://www.in-cosmetics.com/global/

The Marketing Trends theatre is the most popular educational feature at the event. Priority Passes are available visitors to book and get a guaranteed seat in the sessions. To register and book a pass, visit in-cosmetics.com/register.The post Ocean-safe beauty first appeared on in-cosmetics Connect.]]> https://connect.in-cosmetics.com/regions/global/gci-ocean-safe-beauty/feed/ 0 7420