Comvita eyes cosmetics sector

Fairfax Media

SWEETS: The only New Zealand representative at the Natural Beauty Summit was health products manufacturer Comvita, which recently released its huni skincare range.

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Once the domain of health food stores, natural cosmetics are now a multi-billion dollar industry and major pharmaceutical companies are lining up to get a piece of the action.

Flat sales growth in the global cosmetic industry has spurred the world's pharmaceutical giants to move into natural beauty products, one of the fastest-growing spaces within personal care.

The sector includes organic products and largely chemical-free natural formulations.

Natural and organic cosmetics global sales were estimated at $US7 billion in 2007, according to United Kingdom-based market information provider Organic Monitor, up $US1b from the year before. Sales are expected to pass $US10b before 2010.

Growth for the total global personal care industry are in the 4-6% range. Total global beauty market sales are more than $US300b a year.

In May the second biannual Natural Beauty Summit was held in New York and was attended by 250 industry players, including  pharmaceutical companies.

The only New Zealand representative at the summit was health products manufacturer Comvita, which recently released its huni skincare range.

General manager skincare Leigh Kite was surprised at the number of major conventional companies present, including Alberto Culver, Procter & Gamble, Unilever, Estee Lauder and L'Oreal. "[The] presence of some of the biggest names in the conventional beauty business highlights they are watching the growth in naturals with keen interest.''

In recent years pharmaceutical manufacturers have been on an acquisition trail for natural cosmetic companies.

In 2006, L'Oreal acquired The Body Shop for $US1.4b, and Colgate-Palmolive bought 84% of natural toothpaste and deodorant manufacturer Tom's of Maine for $US100m.

Kite said the overriding message at the summit was natural cosmetics were mainstream, and were rapidly taking shelf space in retail outlets such as pharmacies and department stores.

There was confusion in the marketplace about what constituted natural or organic and Kite said the natural cosmetics industry was pushing for global harmonisation in international standards.

The move needed to happen sooner rather than later because there was a danger a lack of universal certifications could result in green-washing, causing consumers to doubt the credibility of true natural or organic products.

Retailers were also beginning to set their own standards.

US natural health retailer Whole Foods now provided cosmetic suppliers a list of 250 ingredients deemed unacceptable for its Premium Care standard, and intends to only stock brands meeting this criteria.

Another issue was the lack of a natural preservative for cosmetic formulations, meaning no product could be 100% natural and maintain a shelf-life.

"While we choose no longer to use parabens, we still have to use synthetic alternatives and they're allowed under the standards,'' said Kite.

"Ideally we'd like to replace those with natural preservatives that do just as good a job.

"Whoever comes up with it first will make a lot of money.''

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