Spotlight on naturals and organics in Asia

Through such areas as the use of novel vegetable substances, green chemistry, traditional medicine and even bio-tech treatments, IMAGINE will showcase the most exciting aspects of naturals and organics with a strong Asian bias. As an introduction to IMAGINE, Personal Care catches up with naturals and organics expert Amarjit Sahota from Organic Monitor. In answering questions, he shares his views about the market in Asia, examining labels, marketing, green chemistry, challenges, business opportunities and more.

Personal Care: How popular are natural and organic cosmetics in Asia?

Amarjit Sahota: Asia has a small market for natural and organic cosmetics compared to other regions. However, the market is showing rapid growth. From research we have undertaken, we find that natural and organic cosmetics are becoming very popular in, for example, Japan, South Korea, Taiwan, Hong Kong and Singapore.

Personal Care: Are there any major developments in the field of natural and organic labels in Asia?

Amarjit Sahota: Unlike Europe and North America, we are not seeing widespread adoption of natural and organic symbols and logos in Asia. The major reason for this is that no Asian agency has developed natural and organic cosmetic standards. Because of the lack of regional standards, Asian companies are adopting European ones. In the last two years, Korean and Japanese companies have adopted European natural and organic cosmetic standards. For instance, the Korean company The Face Shop launched an Ecocert-certified range of organic cosmetics last year. The products are available in The Face Shop concept stores across Asia.

Personal Care: In what way do natural and organic products and consumer requirements in Asia differ from those in Europe and North America?

Amarjit Sahota: European and North American consumers are slightly more sophisticated when they purchase cosmetic products – they consider ethical and environmental factors much more than Asian consumers. This is a reason why ethical brands are far more popular in these regions than in Asia. However, Asian consumers are generally less price-sensitive when it comes to beauty products and are more willing to pay a high price for quality cosmetic products. This factor is responsible for the popularity of premium natural cosmetics such as Dr Hauschka and Jurlique in Asia. Another factor is that Asian consumers are more likely to spend on spa and beauty treatments than European and North American consumers. This makes spa and salon brands more popular and successful in Asia. For instance, the American naturals brand Aveda has spa and beauty institutes in various Asian countries.

Personal Care: Are sustainable development and green chemistry popular concepts in Asia?

Amarjit Sahota: Compared to Europe and North America, these are relatively new areas and have not been taken up much in Asia. But sustainability has already come to the forefront in the more mature markets of Japan and South Korea. Cosmetic companies and ingredient companies in these territories are increasingly looking at sustainability and green chemistry. Also, large chemical companies such as Cognis and Croda are deploying global green chemistry strategies, which are also being implemented in their Asian operations. This is having a knock-on effect on finished product manufacturers who are slowly learning about these principles.

Personal Care: What role can ingredient suppliers from outside Asia play in educating Asian finished product manufacturers?

Amarjit Sahota: Ingredient suppliers in other regions can play an important role in educating cosmetic manufacturers on the importance of sustainability. They can inform them of green chemistry techniques, ethical sourcing, sustainable practices, and also changes in consumer behaviour. Cosmetic manufacturers who are looking at sustainability and /or wishing to formulate products for the changing consumer dynamic will be the most receptive to these ingredients. It is these “early adopters” who are likely to be most successful in the natural and organic cosmetics market.

Personal Care: What are the major challenges facing the development of naturals and organics in Asia? What can Europe/North America contribute to Asia and vice versa?

Amarjit Sahota: In one word: education. Asian consumers are slowly becoming more aware of natural and organic cosmetics – they are learning about the differences between conventional cosmetics and natural/organic products. But more needs to be done to educate consumers on sustainability, ethical and environmental factors that are involved in producing natural and organic cosmetics. Apart from education, there are major challenges in formulations and technical processes. Asian consumers are seeking “chemically-clean” and sustainable cosmetics. Unfortunately, Asian companies generally do not have the technical know-how to produce natural and organic cosmetics. We (Organic Monitor) undertook a dedicated workshop at in-cosmetics Asia 2008 in Bangkok because of this reason. Cosmetic formulators and ingredient suppliers came from across Asia to learn about developing natural and organic cosmetics, and learned about formulation and technical issues. Because of the lack of such technical knowledge, we are planning to run another workshop in Asia this year.

Personal Care: What do you see as the most lucrative opportunities for Asian producers?

Amarjit Sahota: Natural and organic is the fastest growing sector of the global cosmetics industry. With the international natural and organic cosmetics market growing by over US $1 billion a year, there are great opportunities for all types of companies: raw material and cosmetic ingredient suppliers as well as manufacturers of finished cosmetic products. Already, many of the raw materials used in natural and organic cosmetics such as vegetable oils, herbs, and plant materials come from Asia. The region is an established source of organic ingredients for the food and cosmetic industries, having 2.9 million hectares of organic farmland. However, most of the processing currently occurs in Europe and North America. There are openings for Asian companies to supply raw material and cosmetic ingredients for the natural and organic cosmetics market. There are also ample openings for finished product manufacturers. High demand for natural and organic cosmetics is leading Western brands to capitalise on the growth opportunities in the Asian market. These brands have high transportation and importing costs, and Asian companies should be able to provide similar quality products at much lower prices and prove successful in Asia, and also around the globe.