The natural side of nonfoods

Consumers are seeking natural alternatives in the GM and HBC aisles.  There are many ways to soothe skin, clean the house and treat the symptoms of certain illnesses. Consumers are increasingly performing these tasks with natural alternatives to traditional general merchandise and health and beauty products. As shoppers become more educated, sales in several categories of natural nonfoods items are flourishing. Take supplements for example. The long time favorite among consumers seeking alternative health products, the category continues to thrive. According to SPINS, the Schaumberg, Ill.-based firm that provides analytics and consumer insights for the natural, organic and specialty products industry, sales of natural vitamins and supplements have increased. In the conventional and natural channel, excluding Whole Foods, for the 52-week period ended August 10, sales reached $5.7 billion, up 1.2% versus the same tracked period the previous year. SPINS, which partners with Chicago-based market research firm IRI to measure product sales in the conventional channel, also reports that sales of natural herbs and homeopathic products increased 5.9% to $1.1 billion in the conventional and natural channel. The category includes homeopathic medicines, which are up 3.7% totaling $300 million in sales. Industry observers say these trends are no surprise. “Consumers, because of the Internet and because of the media, are interested in non-GMO and natural and they are taking a look at how their food is sourced,” says Karen Page, national sales manager for Penn Herb Co. based in Philadelphia. “That just spills over into where the ingredients are sourced for products they use.” The Penn Herb Co. manufactures items that include vitamins, essential oils and olbas products, such as inhalers. Olbas is an oil that originated in Switzerland more than a century ago and is used to help ease breathing. “Americans in particular are interested in products that have a heritage brand name and European origin,” Page says. Natural remedies, once in strictly the realm of Whole Foods and other natural markets, are now becoming mainstream, Page says. That means if a consumer visits the local supermarket to buy a staple such as milk, they will likely be able to pick up Penn Herb Olbas Cough Syrup for their kids. “You don’t have to make an extra trip now,” she says. “It’s a good trend.” Even better for retailers, industry observers say that people are not necessarily replacing allopathic items with natural, but instead using both. That is especially true among parents seeking a remedy for their sick kids, says Yann Pigeaire, director of marketing for Similasin USA, based in Highlands Ranch, Colo. “In pediatric cough and cold, our products are used as companion products to allopathic,” he says. “People say, ‘I don’t want to pump my kid full of chemical drugs, let me try something natural.’” Similasin’s newest pediatric cough and cold products include quick-dissolving tabs for children ages 6 to 11. The company also updated its packaging. When it comes to eye care products, Pigeaire says, increasingly, consumers want natural, adding that people would rather not put chemicals in their eyes because they worry the drops stop working after a while, or may even cause harm. While allopathic eye drops have instructions telling the user not to use more than a certain number of drops per day, “We don’t have those restrictions,” Pigeaire says of Similasin products, which include Irritated Eye Relief, Dry Eye Relief and new products such as Aging Eye Relief and Complete Eye Relief. The concept of consumers using both homeopathic and allopathic treatments is relatively new and there was a time that consumers would not tell their physicians they were taking supplements that they purchased in the supermarket. Observers say that has changed, and today people seek information about alternative products from healthcare providers. According to the most recent Council for Responsible Nutrition (CRN) Consumer Survey on Dietary Supplements, 55% of supplement users trust a medical doctor for reliable information on dietary supplements. The annual survey, conducted by Ipsos Public Affairs on behalf of CRN, also notes that 56% of respondents say they spoke with their physicians about whether the supplements can have an interaction with food or drugs. Consumers who use both allopathic and natural products want to make sure the two will mix well, say observers. “Homeopathic remedies have no contraindications and can be taken in conjunction with traditional medicines if so desired,” says Louis Machin, president of Homeolab U.S.A, based in Boca Raton, Fla. The company’s newest products are Real Relief Headache & Migraine Symptom Relief and Real Relief Peaceful Sleep Enhancer. Machin says sales of homeopathic remedies for children are strong too. “Young moms are aware of the safe and effective benefits of homeopathic alternatives to traditional allopathic remedies,” he says. On the surface Of course not all natural products are taken internally. Skincare is another growing segment. According to SPINS, sales of natural skincare products totaled $492.2 million, an increase of 19.8%. Sales of natural facial cleansers and exfoliants were up 20.4%, to $92.8 million, and sales of natural body lotions and creams increased 2.9%, to nearly $80.2 million. “Consumers are definitely vocal, and they are sending a message to retailers about what they want,” says Georgette Moe, director of marketing for the Winona, Minn.-based J.R. Watkins Co. “They want natural, and they want effective products.” The J.R. Watkins Co. recently launched a line of anti-aging skincare products that contain grape seed oil and blackberry oil. “What we were hearing is consumers were looking for a way to stay youthful, and they were looking for options within the natural set,” Moe says. “There are really not a lot of anti-aging products focused on the body.” Other new products include gift-type items such as the Pomegranate and Acai Body Kit, which contains Pomegranate & Acai Hand Cream, Pomegranate & Acai Hand & Body Lotion and Pomegranate & Acai Bath & Body Oil. The items contain shea and cocoa butters, vitamin E, and other natural ingredients. Also in time for gift giving season, J.R. Watkins launched Relaxing Retreat, which contains Lavender Hand & Body Lotion and a Lavender Scented Soy Wax Candle. Moe says consumers also want natural cleaners. The company conducted a survey that found that 75% of consumers thought it was important to use natural cleaning products in their homes, but less than a quarter do use natural cleaners. J.R. Watkins offers a White Tea and Bamboo All-Purpose Cleaner, which Moe says has received positive reviews from consumers who like the effectiveness of the cleaner and the light scent. Lemon is another appealing scent, and J.R. Watkins also recently launched the Lemon Foaming Hand Soap. She says the foam satisfies people who need that visual cue to reassure themselves that their hands are clean, and kids think the foam is fun. “Kids like to use it, so it’s a good way to get kids to wash their hands,” Moe says. The company plans to launch castile soaps, which are natural soaps made with plant derivatives, in March 2015. Consumers also want other features and benefits from natural skincare products. “Assurances such as cruelty-free, fair trade labor, locally sourced and sustainably harvested have almost as much an impact on a purchasing decision as chemical-free and organic,” says Jennifer Norman, vice president of marketing for Simi Valley, Calif.-based derma e. “Progressive natural skincare brands do a great job tapping into consumers’ growing desires for safe, healthy, sustainable products that do as much good for the world as for the skin.” This fall derma e will launch Stretch Mark Crème, which is designed to diminish the look of stretch marks and help prevent new ones from forming. The formula contains argan oil, cocoa butter, coconut oil and shea butter to condition skin and help increase elasticity and resiliency; hyaluronic acid, which binds moisture to the skin; and full-spectrum vitamin E to nourish and promote self-healing. Theresa White, senior executive officer for Greeley, Colo.-based Natracare, agrees that consumers want their natural products to have other important features. Those include quality, performance, sustainability and environmental respect. The feminine care company recently launched an individually wrapped range of sanitary pads in a Normal and Long version. Natracare also extended the line to include the Ultra Extra range of organic and natural sanitary pads, which boast double layers of protection, a natural absorbent and individually wrapped pockets. Natracare also recently unveiled Organic Cleansing Make-Up Removal Wipes, which are certified organic by COSMOS, a European standard. The new wipes are free from formaldehyde releasing preservatives, synthetics, chemicals, parabens and sulfates that conventional make-up removers contain. To support the product launch the company released a video showing how a woman adds chemicals to her skin as she removes makeup. Awareness is everything While the video is meant to educate consumers about chemicals they may be inadvertently adding to their skin, other efforts can help consumers learn more about natural nonfoods in general. White says retailers should communicate with their customers at the shelf and in store. She recommends shelf tagging with organic and natural identification stickers, and also offering information in-store and online, spelling out key points regarding the benefits of organic and/or natural. Retailers should also give prominent positioning on-shelf to certified organic and accredited natural products. “Consumers will easily find their conventional products, so make it easy for them to switch up to organic by giving it the central shelf positions,” White says. “The conventional products will continue to sell at the same rate but by giving best positions for organic products you are introducing the category with confidence and allowing the consumer to trade up in the process.” Norman says the challenge for derma e and others is that many retailers have a limited assortment of natural skincare products, so consumers can end up dissatisfied. “No one would argue the merit of natural products, and few would disagree that dedicating more space to natural products is a worthwhile investment,” she says, adding that studies indicate that shopping baskets with natural products are higher in value than average. “Having a well merchandised, clearly delineated, easy-to-shop natural section stocked with the right mix of brands and products for consumers to buy perennial favorites as well as discover something new will always be key for success.” Retailers should advertise that they do offer natural products in the GM section, says Machin, from Homeolab. “Consumers need to know before planning their shopping trip that retailers carry a full assortment of homeopathic products,” he says, adding that the stores should merchandise the products within the traditional store sets.