Nutricosmetic Opportunity Still Viable, But Firms Must Invest In Outreach

Rather than “standing behind the brands,” nutricosmetic manufacturers are “just making a product and expecting a consumer to understand,” says brand consultant Paula Simpson. Consumers – particularly those in North America, who tend to expect immediate results – must be educated about nutricosmetics, which often take weeks or months to have an impact, she suggests.

Manufacturers looking to grow the market for nutricosmetics must step up consumer education to convince North American buyers of their products’ benefits, one consultant says.

U.S. and Canadian consumers tend to expect immediate results, which is unrealistic for a nutricosmetic because supplements intended to support the function and structure of skin often take weeks or months to have an impact, said Paula Simpson, a branding and formulation consultant, at the Nutracon conference in Anaheim, Calif.

The market has failed to take off because rather than “standing behind the brands,” manufacturers are “making a product and expecting a consumer to understand,” she said.

Without an education component, “the product is not going to do well,” she asserted during the March 7 session. Consumers “really have to be educated that this isn’t a topical skin-care product – this is a lifestyle approach.”

North American consumers also may be skeptical about the efficacy of the products, particularly when claims lack scientific credibility. Analysts have emphasized improved credibility as a way to take advantage of the potentially lucrative U.S. market (Also see "Improving Credibility Key To Nutricosmetic Success In U.S. – Datamonitor" - HBW Insight, 4 Jul, 2011.).

Nutricosmetics manufacturers also must combine messaging about a product’s health benefits with its beauty benefits.

One nutricosmetic brand with an effective approach to education is YouTheory, Simpson said. Tustin, Calif.-based Nutrawise manufactures collagen supplements and promotes them for joint health as well as skin health and “beauty from the inside and out.”

“This is a message that the consumer can understand,” Simpson said.

North American sales of nutricosmetics are a tiny portion of global sales, she noted. Sales in Asia are markedly strong – particularly in Japan, which has an accommodating regulatory framework and a consumer population interested in skin brightening and collagen treatments.

Consumers in France, Germany, Italy and Spain are embracing nutricosmetics that offer anti-aging benefits, protection from ultraviolet rays and slimming treatments. Simpson noted that nutricosmetics are accepted in European markets’ pharmacy channels, which helps to establish a connection in consumers’ minds between ingested nutricosmetics and topical beauty treatments.

Factors contributing to sluggish North American sales include regulatory challenges, the lack of a clearly defined distribution method and a consumer base that is generally less health-conscious.

Simpson added that the exit of market giants – including Nestle SA, which in 2011 decided to pull and reformulate its Glowelle products – also is “making people wonder if the category will ever grow,” she added.

In the latest update on its Facebook page, Glowelle in September 2011 said the brand is “in the process of launching a new generation” of products, but does not have “a definitive timeline quite yet” for a relaunch. The current line is not available while the brand reformulates.

How To Get It Right

Despite the lag in the North American market to date, Simpson remains optimistic. “I still believe in the next five years, nutricosmetics is going to be the market opportunity,” she said.

There are data firms can leverage on the use of supplements for skin health and beauty, she pointed out. Among the most promising are fern extract for sun sensitivity, fish oils for skin conditions like eczema and psoriasis, Lipowheat wheat lipids for collagen synthesis, Pycnogenol French maritime pine bark extract for skin hydration and elasticity, and the ceramides family of lipids for skin hydration.

The nutricosmetics industry should also take advantage of current trends to boost the market, Simpson suggested.

For example, firms can capitalize on consumers’ rising interest in natural and organic products. Placing nutricosmetics in wellness or eco-friendly spas, boutique pharmacies and yoga studios, in addition to more traditional outlets such as health food retailers – particularly Whole Foods Market Inc. – may bring the products to more consumers’ attention, the consultant said.

Companies taking a global approach with their launches, with the assumption that North American consumers will respond to the same types of products as consumers in Asia and Europe, have been largely unsuccessful, Simpson said. Products should be more narrowly targeted to specific demographics – whether baby boomers, members of Generation X, younger women or men – and any celebrity medical endorsers used to promote a nutricosmetic should fit the product and its distribution channel.

Furthermore, manufacturers should take care in how they communicate product benefits, Simpson warned. Advertising techniques that have proven effective for the beauty industry, such as before-and-after comparisons and technical explanations for how an active ingredient works, may be valuable tools for promoting nutricosmetics.

Finally, nutricosmetics manufacturers should consider partnerships with established beauty firms, particularly because the category is so new, Simpson suggested.