‘Up close and green’ – a trend gathers momentum

With increased media activity and consumer awareness, the term “green” is being used in numerous scenarios and as a result there are many different definitions of green. Translation and interpretation of the meaning of green can depend on many factors, including the industry in question and the consumer’s social and environmental awareness. The personal care sector is one market in which green is still in its infancy but is by no means insignificant – the global natural and organic market is growing at a staggering 15% to 17% per annum, according to the research company Organic Monitor. The global natural and organic market was valued at US$6.9 billion in 2007, with North America and Western Europe, accounting for a significant 65% and 28% respectively. In contrast, Asia Pacific, with a 3% market share is much less developed. Even in the regions where the green trend is booming, there still is some confusion surrounding what constitutes green. Natural and organic content are the obvious measurable parameters, but claims made on these content aspects are not regulated and are, from a purist’s point of view, sometimes subject to misuse. In Europe, the trend also extends to claims such as “free from petrochemicals”, “preservative free”, “locally produced”, “fair trade”, “not tested on animals”, “biodegradable formula” and “carbon neutral”, to name just a few. GNPD Mintel data indicates that one in seven products launched into the European market last year marketed at least one of these green claims, a significant increase from the one in ten products reported in the previous year. Within the Asia Pacific region the focus and approach to the green market is quite diverse. Australia and New Zealand appear to have the majority share with home-grown brands such as Gaia Skin Naturals, Natures Organic and the Eco Store brand. The last named was awarded the Green Ribbon Award by the NZ Ministry for the Environment in 2002. In Asian countries, natural and organic claims are less prominent, as they tackle the green trend with the use of traditional natural ingredients, cold processing and recyclable/refillable packaging. With many Asian countries having a strong heritage in natural ingredients, often founded in ancient medical practices such as Ayurveda, these products have typically been associated with the lower end of the market. Organic Monitor, however, points out that the demand for natural and organic cosmetics is growing in the Asian market, with some domestic brands keen to make a name in the naturals arena. This is especially true for the more affluent countries such as Japan and South Korea. A South Korean company, The Face Shop, has launched the Eco Vert brand, a line of natural skincare products with ECOCERT approval. Despite this, it is the European and North American brands such as Dr Hauschka and Aveda which are currently taking advantage of the developing market trend, with smaller brands such as Neal’s Yard Remedies also keen market players.

Validating green claims

With so many different claims being made, it is hard for consumers to know what to look for in order to ensure they are not being “green washed”. “Green washing” is one of the latest buzz phrases being used by the industry and media to describe how some green claims may be dishonest or misleading to the consumer. There are “Six Sins” associated with green washing:1