The Growth of Natural Ingredients
Euromonitor International's The Growth of Natural Ingredients Consumer demand for natural ingredients and an increased desire for healthy lifestyles is directly affecting the market for personal care and packaged foods. Euromonitor International's The Growth of Natural Ingredients report analyses how suppliers are rising to meet the challenge beyond the label and what the impact will be for the ingredients industry and consumer goods companies' marketing strategies.
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Chapters: 11 | Tables: 17 | Publication date: Jul 2005
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Regional coverage
Western Europe; Eastern Europe; North America; Latin America; Asia-Pacific; Oceania; Africa and the Middle East
Table of contents
1. EXECUTIVE SUMMARY
1.1 DEMAND FACTORS
Positive factors
Negative factors
Chart 1 Sales of Competing Food Categories by Type 2002/2005
1.2 MARKET TRENDS
Food and drink
Cosmetics and toiletries
Pharmaceuticals
Chart 2 Sales of Selected Natural Products 2002/2005
1.3 COMPANY STRATEGIES
Ingredients suppliers
End product manufacturers
1.4 FUTURE TRENDS
Summary 1 Opportunities and Challenges in the Natural Ingredients Industry 2005
2. OVERVIEW AND DEFINITIONS
2.1 INTRODUCTION
Term “natural” largely unregulated
Broad definitions
Organic impacts on “natural” market
Functional food additives excluded
Misuse of the term “natural”
2.2 DEFINITIONS BY SEGMENT
Natural colourings
Natural flavourings
Cosmetics and toiletries
Pharmaceuticals
3. THE REGULATORY FRAMEWORK
3.1 PERMITTED INGREDIENTS
USA
EU
3.2 LABELLING LAWS
Codex labelling guidelines under discussion
New food labelling regulations in Russia
Food allergens labelling
3.3 ORGANIC FOOD LEGISLATION
Organic definition in the US
Ingredients permitted in organic foods
Organic definition in Europe
Organic definition in Japan
3.4 COSMETICS & TOILETRIES INGREDIENTS
Anything goes..
Regulations to be tightened
Self-regulation for organic cosmetics and toiletries
3.5 PHARMACEUTICALS
EU herbal regulations
Upcoming EU Food Supplements Directive
Regulation of natural supplements limited in the US
US Dietary Supplement laws reviewed
Herbals deregulated in Japan
4. MARKET DRIVERS
4.1 HEALTHY LIFESTYLES
Natural perceived as good
Growth of organic foods
Table 1 Sales and Growth of Organic Packaged Foods by Country 2002-2005
4.2 BACKLASH AGAINST CHEMICALS
Chemicals receive bad press
Additive scares
Controversial food additives
Summary 2 Possible Harmful Chemical Food Additives 2005
Toxins in cosmetics and toiletries
Chemicals difficult to market
Summary 3 Possible Harmful Chemical Cosmetic Additives 2005
Conventional drug scandals
4.3 RESISTANCE TO GMOS
Attitudes thawing in Europe?
Fears spreading to developing countries
4.4 CONCERN OVER FOOD ORIGIN
BSE and bird flu spark demand for “safer” foods
Traceability quells consumer fears
4.5 SUSTAINABILITY AND FAIR TRADE
A move towards sustainable farming
Ethical trading in cosmetics and toiletries
5. MARKET CONSTRAINTS
5.1 FUNCTIONAL FOODS – OPPORTUNITY OR THREAT?
Growing market for functional foods
Table 2 Sales and Growth of Functional Foods by Country 2002-2005
Running contrary to “all natural”
Opportunities for natural ingredients suppliers
Naturally healthy alternatives to functional foods
The growth in soy
The benefits of tea
5.2 COMPETITION FROM “BETTER-FOR-YOU” FOODS
The low-carb revolution
Reduced-sugar remains popular
Chart 3 The Global Market for Better-For-You Products by Type
5.3 SCIENTIFIC CLAIMS VERSUS NATURAL BEAUTY
Dermatologists give credibility to chemicals
5.4 POWER OF MULTINATIONALS
Not so natural
Impracticalities of all-natural cosmetics
Deceptive marketing?
Natural products versus scientific claims
5.5 OTHER IMPRACTICALITIES
The cost factor
Bad harvests cause supply problems
Herbals also hit
Allergy-causing ingredients may hinder growth
Controversy surrounding herbals
6. MAJOR NATURAL INGREDIENTS
6.1 FOOD AND DRINK
Natural colourings
Natural sweeteners
Natural flavourings
Natural stabilisers
Natural emulsifiers
Natural oils and fats
Natural preservatives
Natural antioxidants
Summary 4 Common Natural Ingredients Used in Food and Drink 2005
6.2 COSMETICS AND TOILETRIES
The importance of vitamins
Natural preservatives lack effectiveness
Summary 5 Common Natural Ingredients Used in Cosmetics and Toiletries 2005
6.3 PHARMACEUTICALS
Summary 6 Common Natural Ingredients Used in Pharmaceuticals 2005
7. FOOD AND DRINKS MARKET
7.1 MARKET TRENDS
All-natural snack bars showing strong growth
Table 3 Sales and Growth of All-natural Snack Bars by Country 2002-2005
Parents demand nutrition
Fruit juice and mineral water lead growth in soft drinks
Functional drinks hinder growth
7.2 NEW PRODUCT DEVELOPMENT
Summary 7 New Product Launches in the Packaged Food and Drinks Markets 2004-2005
8. COSMETICS & TOILETRIES
8.1 MARKET TRENDS
Demand driven by mistrust of toxins
Most common in products applied to skin and hair
Consumers not deterred by price
Increased distribution also a growth factor
Niche specialists expanding
8.2 NEW PRODUCT DEVELOPMENT
Baby care
Summary 8 New Product Launches in Baby Care 2004-2005
Bath and shower products
Summary 9 New Product Launches in the Bath and Shower Market 2004-2005
Hair care
Summary 10 New Product Launches in Hair Care 2004-2005
Skin care
Summary 11 New Product Launches in Skin Care 2004-2005
9. PHARMACEUTICALS
9.1 MARKET TRENDS
Herbal remedies benefit from “safe” image
Herbal remedies remain big business in Asia
Women aged 35-60 core consumers
Cost advantage over prescription drugs
The market for dietary supplements
Table 4 Sales and Growth of Selected Natural Dietary Supplements 2002-2005
9.2 NEW PRODUCT DEVELOPMENT
Summary 12 New Product Launches in the Natural Medicinal Ingredients Market 2004-2005
10. COMPANY STRATEGIES
10.1 INGREDIENT SUPPLIERS
Industry consolidation
International expansion
Diversifying supply
Focus on branding
Summary 13 Selected Ingredients Suppliers and Brands 2005
Research and development and new product development
10.2 END PRODUCT MANUFACTURERS
Marketing emphasis on “natural”
Few majors are truly natural
Acquisitions of natural and organic companies on the increase
11. OUTLOOK
11.1 FUTURE TRENDS
Clearer definitions needed
Regulatory changes pose challenge to suppliers
Research will raise quality standards
Food will incorporate more natural ingredients
Opportunity for crossover into cosmetics and toiletries?
Continued rise of ethical consumerism
All-natural cosmetics will remain a growing niche
Natural remedies will benefit from rise in self-care