1. NATURE’S JOURNEY

2. GLOBAL SHIFT
As consumers pursue a more sustainable and ecologically sound lifestyle, the beauty industry is responding.
There is a conscious gravitation towards brands that hack into nature for new and innovative ingredients and use techniques that support the move towards clean living.

3. GLOBAL SHIFT
Greenpeace’s Detox campaign has trail blazed for the industry, encouraging brands to eliminate all toxic chemicals from products and production processes by 2020.
With 75% of millennials now looking for sustainable offerings from their beauty brands*, the impetus for change is overwhelming.
*The Nielsen Global Survey of Corporate Social Responsibility and Sustainability

4. GLOBAL SHIFT
Environmentally friendly ingredients and manufacturing methods are at the forefront of ‘natural’ innovations being explored by global brands.
Brands are being challenged to feed a genuine hunger for natural, sustainable and ethically produced products.
Resulting in a strategic definition of cultural and corporate policies as it pertains to sourcing, developing and marketing products.

5. THOUGHT LEADERSHIP PRODUCT STRATEGY DOING GOOD TRANSPARENCY
SUSTAINABILIITY

6. PRODUCT STRATEGY

7. FORMULATION IMPACTS
Natural-based ingredients are currently in vogue due to consumer perception they are safer and better for the environment.
This represents a challenge for personal care chemists because you are essentially limiting the number of raw materials available to use.

8. ORGANIC VS NATURAL INGREDIENTS
Generally speaking, organic ingredients are those which are grown without pesticide or herbicides, and they must also be genetically modified free. Products with this claim must follow certification standards.
Natural just means ‘derived from nature’.
“Green” is also part of this category jargon. According to Merriam-Webster, the definition of green: “of the color of growing foliage, between yellow and  blue in the spectrum”. It tends to be a story of it’s own.

9. ORGANIC CLAIM* LABEL GUIDELINES
Products produced using exclusively organic methods, containing only organic ingredients, are allowed to carry a label declaring “100 percent organic” and may use the USDA Organic Seal.
Products produced using exclusively organic methods that contain at least 95% organic ingredients may use the USDA Organic Seal.
Ingredient Panel
Made With Organic
Products with less than 70% organic ingredients can only list the organic items on the ingredient panel. The USDA Organic Seal must not be used. No organic claim is allowed on the front panel of the product.
Products with 70% to 95% organic ingredients may display "Made with organic [with up to three specified ingredients or food groups]" on the front panel. The USDA Organic Seal may not be used, however products in this category MUST be certified through the same USDA organic certification process that is required for "100% Organic" and "Organic" label.
* Organic Trade Association

10. TODAY’S OBSTACLES
Creating natural formulations cost more than synthetic formulations (30% - 50% increase in cost).
Natural preservatives have advanced but still lend high risk for microbial contamination, impacting shelf-life and efficacy.
Sustaining natural claims requires heightened supply chain management, impacting volume requirements, quality control, and limited sources.
Formulation trade-offs can significantly impact performance or end user experience.

11. TODAY’S OPPORTUNITIES
Products come with value, allowing pricing to shift upward.
Raw material suppliers are committed & responding to the evolution of renewal, bio-based, organic & natural demands.
Natural “swaps” have been common practice for years.
Many brands are joining quickly & without caution, allowing transparent brands to share the spotlight.
For the most part, category practices still remain ungoverned.

12. PRODUCT DEVELOPMENT SUMMARY
Most common is the belief that a “natural” ingredient must be recognizable and not sound “chemical” – which is a viewpoint that your marketing team may want to promote to enhance consumer appeal.
It is about creating a culture & policy that allows you to market efficacious products in a manner that aligns with your customer expectations & brand objectives that allow you to sleep at night.
The ingredients inside the bottle don’t create the story.
The story creates the ingredients.

13. CLAIMS

14. SOFT CLAIMS
Consumer Study Claims – panelist usage results. (90% said hair was healthier looking)
Ingredient Story Claims – benefit derived from key active ingredient. (increases shine, adds volume … )
Free From Claims – evolving list of targeted ingredients that are not in the formula. (sulfates, parabens, animal testing ..)
Patent-Pending Claims – used once application is submitted; prior to patent being approved.

15. SUBSTANTIATED CLAIMS
Clinical Trial Claims – testing done in a 3rd party laboratory. In general fees ranging from $10,000 - $30,000
Comb Force
Heat Protection
Bending Forces
Hair Shine
Hair Volume
Anti-Frizz
Incorporating clinically-tested ingredients at an efficacious, studied dose.
Curl Retention
Friction Forces
Color Protection
Hair Breakage
Hair Suppleness
Anti-Aging

16. PACKAGING ALLIANCE
A lot of progress has been made in the world of packaging as sustainability continues to be very important factor in packaging decisions.
PCR continues to dominate as the ability to ‘Recycle’ the packaging is the most important consumer demand.
However, new Bio-Resin materials are being developed and introduced, creating continued innovation in ‘natural’ packaging. We are seeing progress in areas such as sustainable materials and lowering the supply chain carbon footprint.

17. BOTTLES Post Consumer Resin (PCR) – derived from fossil fuels
Strongest Impact/Most Affordable
Average 10-15% cost increase over standard packaging
Available in PET, HDPE & PE
Con – trends towards green in color the more you use the material & inclusions that show up in the bottle every so often. Volume requirements.
Can add the additive EcoPure to speed up the degrading process in the landfill. Increases costs 2-3% (controversial)
Ocean Plastic – derived from plastic that is gathered up in the ocean and recycled
Availability on the horizon
Processes the same as PCR

18. TUBES (2001) PCR Resin (Polyethylene) – derived from fossil fuels
Up to 70% PCR content in the body
(2013) Bio-Resin / PCR (Blend of PCR & sustainable sugar cane
66% PR / 34% Bio Resin (body) 50/50 heads
(2016) Bio Resin Green (Polyethylene) - derived from sustainable sugar cane
Can be recycled in the same streams as PE
helps lower greenhouse gas emissions for a better carbon footprint
Eco-Friendly Packaging with Renewable Source
100% recyclable
7% price increase over PCR (20% over standard packaging)
Burt’s Bees & Aveda use this material

19. ADDITIONAL ADVANCEMENTS
Bio-Locity Ink Availability (vegetable oil based vs. petroleum based) cost same.
Carbon Footprint – fuel to deliver raw materials/finished goods is becoming more of a concern, but not at the top.
Use of Solar Energy & Windpower in production (few companies are doing this today).

20. CONSUMER PACKAGING PREFERENCE
Most Important Claims for Customers:
#1 Recyclable (active participation by consumers)
#2 Recycled Content
#3 Lightweight/Reduced Packaging
#4 Use of Renewable Materials
#5 Low Carbon Footprint
#6 Free of Unfavorable Substance or Materials
#7 Biodegradable
#8 Compostable

21. MARKET SNAPSHOTS

22. aveda
Strives to examples for environmental leadership & responsibility.
Holistic beauty – organic, from the earth and good for the earth and communities.                
Pay organic certification costs for their partnering farmers.
Brand is a ‘lifestyle’ – Living Aveda is elevated on their site.
Commitment to responsible packaging (PCR & BioNatural).
Commitment to responsible manufacturing (uses Renewable wind energy – but not 100% offsetting) 6% of product are manufactured by a third party that does not purchase windpower or C02 offsets).

23. aveda Try to use ‘Green Ingredients’ whenever possible.
Their definition of a green ingredient requires that it meet at least one of the following criteria:
Naturally derived, which we define to be those for which more than 50% of the molecule comes from a plant, non-petroleum mineral, water, or some other natural source.
Certified organic. No animal testing.
Sourced from sustainable or renewable plant-based origins, and does not negatively impact the ecosystems from which they are sourced.

24. burt’s bees Plant-Based “Derived from Nature” Ingredients
99%-100% Natural (use a synthetic preservative for ‘Safety’)
No animal testing
No propylene glycol, butylene glycol, polyisobutene, parabens, phthalates, petrolatum, DMDM hydantoin, sodium lauryl, sulfate, sodium laureth sulfate, mineral oil, paraffin, or synthetic sunscreens

25. matrix biolage r.a.w “Natural” Rooted in Brand Line Extension Approach
Biolage R.A.W. is Real. Authentic. Wholesome.
Good for you and good for the environment. 
“An ingredient to be of natural origin if it is unchanged from its natural state or has undergone processing yet still retains greater than 50% of its molecular structure from the original plant or mineral source.”

26. matrix biolage r.a.w Claims they are using: 70%-100% natural origin
99% biodegradable
No silicones, No parabens, No artificial colorants
100% recycled plastic
7X more conditioning*
3X stronger hair**
*With system of Nourish Shampoo AND Conditioner vs. non-conditioning shampoo
**With system of Recover Shampoo AND Conditioner vs. non-conditioning shampoo

27. strategic approach Determine ‘Brand Story’ – Good Starting Questions:
What story to you want to tell/sell?
Why do you want to do this? What is your cause?
What do you want the consumer to understand about your commitment to organic/natural/vegan ingredients, packaging, carbon footprint?
What do you care about and why should they care about it too?
Do you want to attract a new audience? What do they care about?

28. strategic approach Walk don’t Run.
Before activating formulation, define your brand from an environmental, product formulation/ingredient & packaging standpoint.
Wrap a new product or product line (3-5 skus) around a story of commitment to “Natural”.

29. Wonder out loud
Questions

30. THANK YOU