What does a natural or organic label on a beauty product mean anyway?
International market research firm Datamonitor recently addressed that sticky question. It determined there is no easy answer. Not yet, that is.
After evaluating products around the globe, researchers came to the conclusion that there are three sets of definitions now in use.
There are manufacturers that adopt a "Broad" definition wherein natural ingredients comprise 10 percent or less of the product formula; the removal of artificial ingredients is negligible and an adoption of ethical business practices (that is, ecologically-friendly) is not essential.
For those falling under its "Narrow" definition, products contain more than 10 percent natural ingredients, with significant removal of artificial ingredients. There is some evidence of ecological business practices.
The final category, "Organic" is the most stringent, whereby the inclusion of natural ingredients and removal of artificial elements are officially regulated. And there is notable adoption of ethical business practices. This smallest of segments refers to products that carry a third party stamp. For instance, in the U.S. manufacturers can seek an official organic label through a USDA certification program. Bio-Inspect is a third-party certifier in Europe.
It's no surprise that the "broad" definition is the one most widely embraced. That is not just in the U.S., but additionally in Europe, Japan and Australia, the global regions currently leading in the marketing of "natural" personal care products.
In most markets, brand manufacturers can use the word natural and organic freely, using only their conscience as a guide. But that could be changing.
Earlier this year, the Washington, D.C.-based Cosmetic, Toiletry and Fragrance Association (CTFA) announced it had forged an agreement with trade associations in Europe, Canada and Japan, to work together to harmonize global regulations.
The joint effort of these groups goes far beyond the natural/organic issue, but is seeking across the board uniformity so that what is acceptable in one market will also be acceptable in another.
"Consumers want safe products that are available and consistently regulated across the globe and companies need predictable regulatory regimes in order to maintain product innovation," declared Pamela G. Bailey, CTFA president and chief executive officer.
Europe has been leading the way, followed by the State of California, in pursuing more stringent ingredients requirements for beauty products. A consolidated movement to globalize regulations could make it easier for manufacturers operating in multiple markets. It would prevent formulating a range of products to meet varying market demands.
Those brands with third-party stamps are the minority. So how are retailers, and subsequently their customer - the consumer - to know now how "natural" a natural product really is?
Discussion Questions: Are definitions necessary for the use of natural or organic? How important are standard definitions of natural and organic to the growth of these types of products in health and beauty care categories? Is it feasible at this point to create global definitions that can be enforced?