ProTip: Health and wellness continue to be a top priority for consumers across all retail categories, whether it’s organic products in grocery, or specific attributes within beauty and personal care. Consumers care about what is going on and in their bodies — and beyond that, they’re also paying attention to how products are manufactured, packaged and tested. (Click here to jump to the full RL Pro Analyst Take below.)
Omnichannel shoppers seriously research what they purchase, whether that’s by looking for relevant attribute keywords online, educating themselves on ingredients and materials, or engaging with brands on social media to discover new products.
Sherry Frey: Across the store, we continue to see growth in four major areas (data ending Aug. 6, 2022, vs. three years ago):
- Animal welfare (up 37%);
- Environmental (up 25%);
- Social responsibility (up 22%); and
- Sustainable packaging (up 18%).
For the personal care and beauty space, ingredient trends like paraben-free, sulfate-free and phthalate-free are strong and continue to grow, while animal welfare claims like “humane” and “vegan” fall into that mid-growth state. We’re always watching what’s emerging — high growth now, but also growing across categories — and see reef-safe, plastic-free and clean-label to be key. One thing, in particular, we are seeing in the consumer search data is a marked increase in reef-safe, aluminum-free and refillable packaging.
I would also add that I think the most dramatic shifts are happening around products with a sustainable packaging attribute. For example, NielsenIQ data found that products in the health and beauty category with sustainability claims had profound sales increases. Comparing overall sales in 2021 vs. two years prior:
- Sales of health and beauty products with an “eco-friendly packaging” claim are up 248% and nearly $20 million by volume.
- Sales of products that are “Tetrapak certified” are up almost 200% for the same period.
- Items that are “plastic-free” are up by 172% in sales and by $61 million by volume.
- Those with a “reusable packaging” claim are up 122% in sales compared to two years prior.