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Economy Impacts 9 Billion Natural/Organic Beauty Business



Published November 30, 2011
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Economy Impacts 9 Billion Natural/Organic Beauty Business

Economy Impacts $9 Billion Natural/Organic Beauty Business


Sales of natural and organic beauty products will hit $14 billion in 2015, according to Organic Monitor.
Global sales of natural and organic beauty products
are projected to hit the $9 billion mark this year, and although consumer demand remains buoyant, new research finds the growth rate is slowing because of the weak economy.

In its upcoming report,“Global Market for Natural & Organic Personal Care Products,” Organic Monitor predicts revenues will climb to $14 billion in 2015. Demand for natural and organic products has spread to every region, however sales remain concentrated in Europe and North America, noted the company.

Natural and organic products have a 2% share of global personal care product sales. In some countries—such as the US, Germany and Austria—the market share is reaching 10%. The large market share is due to high consumer awareness and extensive distribution of natural and organic products.

Wider availability is a major driver of market growth, says Organic Monitor. Natural and organic personal care products are crossing over from specialists to mainstream channels. Premium brands, such as Dr. Hauschka and Ren, are targeting high-end retailers. Other brands are entering pharmacies, drugstores, supermarkets and department stores. Companies like ADA Cosmetics and Panpuri are developing natural lines for hotels and the spa channel.

Large cosmetic companies are entering the naturals arena. Some, like L’Oréal and Colgate-Palmolive, have taken the acquisition route, while others have developed natural/organic lines. Recent newcomers, such as Garnier, Henkel and Amore Pacific, are launching certified organic products, according to Organic Monitor.
More info: www.organicmonitor.com



150 Million Spa Visits in 2010
The International Spa Association’s newly released US Spa Industry Study reveals an increase in spa visits, revenue and the total number of employees to indicate that the spa industry is recovering from the impact of the recession.

Compared to the results from the association’s last industry study, the data shows that the spa industry is growing at a moderate pace as the recovery from the economic recession begins to move forward, according to ISPA, a professional organization representing health and wellness facilities and providers in more than 70 countries.

In 2010, spas received 150 million client visits. While massage remains the No. 1 treatment received by spa-goers, skin care services are more readily available at spa locations. The study shows that skin care services were the most common type of service, with 94% percent of spas offering them. Following skin care, massage services were widely offered by 88% of spa facilities, body services (80%), salon services (66%) and complimentary or alternative therapies (30%) rounding out the top five service offerings.

The four main treatment revenue categories in the spa industry account for 79% of total spa revenue and include: massage and bodywork, skin care treatments, hair and nails. There were an average of 8,704 treatments and services per spa provided within the four categories. Retail accounts for 11% of total spa revenues with skin care products accounting for a majority of spending by spa-goers, ISPA said.


Who You Are, Hand Washing and Wellness

According data from the international Lysol HABIT (Hygiene: Attitudes, Behavior, Insight and Traits) study, released by the Global Hygiene Council, certain personality traits, good manners and occupational status appear to have a beneficial effect on personal and household hygiene practices, as well as overall wellness.

According to the study, 54% of people surveyed globally reported good personal hygiene. Researchers uncovered several novel findings that influenced hygiene scores, including conscientious or nervous personality types reported experiencing 10% fewer colds than others, and those with good manners, such as covering their mouths when sneezing, were almost two-and-a-half times more likely to have good health.

According to the study, hygiene habits varied by profession, with homemakers reporting the highest level of personal hygiene (64.5%). Students reported the worst (44.5%).
More info: www.hygienecouncil.com


Teen Beauty Spending Up Year-over-Year
Results of Piper Jaffray’s 22nd semi-annual “Taking Stock with Teens” survey indicate improving spending at the upper-income level and continued weakness for average-income teens. Also, the survey results reflect a preference by teens for value-priced merchandise at all levels of household income, but not necessarily the lowest cost, as teens report a willingness to spend on higher-priced, differentiated merchandise.

Beauty spending among upper-income teens increased 6% year-over-year, but down 2% sequentially from the spring of 2011, according to Piper Jaffray. Specifically, skin care and cosmetics represented a bigger share of overall beauty spending.

According to the survey, MAC is the No. 1 cosmetics brand for upper-income teens, but the brand fell to No. 3 among average-income teens (compared to No. 2 in the spring and the same as the fall of 2010). Victoria’s Secret remains the preferred fragrance, consistent with the past seven surveys. The combined share of the top 10 cosmetics brands continues to decline, favoring multi-brand specialty retailers such as Ulta and Sephora.

“Our Fall 2011 survey provides further evidence of a bifurcated recovery: upper-income teens are feeling more confident and willing to spend on fashion, while average-income teens continue to rationalize budgets,” said Jeff Klinefelter, director of research and senior research analyst at Piper Jaffray. “With macroeconomic uncertainty likely to continue to weigh on consumer spending, we believe fashion and overall product ‘newness’ can drive sales growth for select retailers and brands.”
More info: www.piperjaffray.com


SymphonyIRI Unwraps All the Details On Holiday Shopping 2011

The holidays are here and all eyes are on the retail sector. According to results from Symphony-IRI Group’s Holiday Shopping 2011 survey, 82% of respondents indicate that increased concern about the economy is negatively impacting holiday budgets. About half of consumers plan to spend similarly to last year when it comes to gift budgets.

On average, 26% of consumers plan to reduce gift-buying budgets this year. Among households earning less than $35,000 and $35,000 – $55,000 annually, though, 38% and 31%, respectively, are reducing spending, the Chicago-based market research company said.

For nearly three-quarters of respondents, gift-giving budgets will top out at $800 this year, according to SymphonyIRI.
More info: www.SymphonyIRI.com
ABCs, But No Time To Hand Wash?
An overwhelming number of students (89%) aged 8-17 say they always wash their hands after going to the bathroom at school. But time constraints, a lack of cleanliness and a shortage of supplies are among the major barriers to students washing their hands at school more often, according to findings from an online survey of children and parents of children within that age group.

The survey was conducted by Russell Research for the American Cleaning Institute (ACI) in order to generate insights into handwashing beliefs and behaviors in school and at home. The study was conducted in support of Global Handwashing Day, which was Oct. 15, 2011.

According to the data, the No. 1reason why kids don’t wash their hands as much as they should in school is that they don’t have the time (43%). Fifty-one percent of kids report that their teachers do not set aside time to wash hands before eating, while 63% of parents said that their child’s teachers sets aside time for them to wash their hands before eating.

Other reasons cited by students for infrequent handwashing are the lack of cleaning supplies (19%), not liking to use school bathrooms (21%), and bathrooms being “disgusting” (15%). Only 63% of kids say their school always has all the soap, water, paper towels and drying equipment needed to wash their hands. Forty-seven percent say sometimes they don’t use the bathroom because it isn’t clean.

Further down the list of reasons why students in school don’t wash their hands as much as they should are “not being reminded to” (16%) and that “no one else does it” (14%). However, 77% of kids say watching their friends wash their hands at school makes them remember to wash theirs.

While the research shows that most parents and teachers have discussed the importance of handwashing with children, implications are that frequent reminders and continued reinforcement with educational programs and campaigns are needed in order to make the lesson stick.


Are kids washing up while they are in school?
The news for parents isn’t all bad. Eighty-nine percent of students surveyed say they always wash their hands after using the toilet—yet the learning curve drops off from there. Only 65% of students always wash their hands before they eat lunch, 74% always after touching garbage, 53% always after blowing their nose, coughing or sneezing, and 60% always after gym class.

Interestingly, according to the study, nearly all parents and children (97%) agree that handwashing is one of the most important things they can do to keep from getting sick. Their behavior, however, both in and out of school doesn’t always hold water.

The research also demonstrated that school is not the only place where handwashing habits need a tutorial. At home, only 66% of parents say they have taught their children how long they should spend washing their hands, with a full 25% of parents admitting never sharing the information. Thirty-three percent of parents admit there are times when they themselves use the restroom without washing their hands, and 20% of children have witnessed their parents not wash their hands after using the restroom.

Some statistics give parents a hall pass, however. Seventy-nine percent of parents always make their children wash their hands before meals at home, and 72% say they are always reminding their children to wash their hands. And 58% of parents have donated hand hygiene products such as hand sanitizers to their child’s school.
More info: www.cleaninginstitute.org


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