Improving Credibility Key To Nutricosmetic Success In U.S. – Datamonitor

Nutricosmetics firms must improve their credibility among consumers to realize a potentially lucrative opportunity in the U.S., according to Datamonitor analyst Mark Whalley.

“The problem the industry is facing is demonstrating effectiveness,” Whalley said June 23 during the NutriCosmetics Summit in Las Vegas.

U.S. consumers’ interest in food and beverage products that claim to improve their appearance has been increasing – from 79% in 2009 to 87% in 2011 – and 34% said they purchased those types of products, according Datamonitor research.

Whalley said that statistic is misleading because not all those products are nutricosmetics according to industry standards. But consumers tend to think that if they are using berries or vitamin waters or products with antioxidants, they simultaneously are benefiting their health and taking steps to improve their appearance.

“So our challenge here is convincing consumers that they need to go beyond what they consume and go into the field of nutricosmetics for that added benefit,” the analyst said.

And it is a considerable challenge – 70% of consumers currently find nutricosmetic functional claims not credible. The claims are for benefits to some aspect of a user’s physical well-being, such as a candy or other product with claims to enhance the appearance of skin.

Skepticism likely contributes to a disinclination to buy. Others may be turned off because products are too expensive or do not meet expectations on a sensory level. At any rate, “consumers are certainly interested in the proposition, but they’re not yet finding it that appealing,” Whalley said.

However, the benefits are potentially substantial for firms able to overcome consumer doubts. With the global skin-care market valued at roughly $78 billion and the global hair-care market at around $48 billion, capturing even 1% of those markets would be significant. There could be a “huge reward for getting this right,” Whalley said.

“Considering the fact that nine out of 10 consumers say they’re interested in this is certainly worth persevering with.”

Distribution Strategy Is Critical

Firms could succeed in the nutricosmetics market via a savvy distribution strategy, striking a balance between credibility and availability.

Many nutricosmetics are sold online, but “there’s a certain credibility issue with the idea of buying basically drugs off the Internet, and this is something that not a lot of consumers are comfortable with,” Whalley noted.

Moving into pharmacies and specialty drugstores gives nutricosmetics display space near “highly respected” personal-care products, which increases their credibility, according to the analyst.

Beauty More Than Skin Deep

Datamonitor research shows:

• 52% of U.S. consumers are satisfied with their current appearance, up 11% from 2009.

• 70% currently find nutricosmetic functional claims not credible.

• 87% are interested in food and beverages marketed to improve appearance, up from 79% in 2009.

• 34% are purchasing those types of products.

However, many consumers do not regularly go to pharmacies, so selling nutricosmetics through that channel rather than through the convenience of e-commerce could present “a problem of low availability and consumers having to specifically go to pharmacies to seek out these products,” Whalley said.

He proposed supermarkets as an option for getting nutricosmetic products in front of consumers on a more regular basis, but the move could come with a credibility backlash depending on placement in the store.

Display among other functional benefit products – such as yogurt with probiotics – might make consumers skeptical of beauty-specific claims. “But if it’s in a cosmetic aisle, then like with the pharmacies, consumers can take a look at these products and think: ‘Actually, if it’s alongside these other reputable products, then they’ve got a much better chance of working for me,’” Whalley observed.

“Healthy Skin” Angle Could Be Advantageous

To gain a solid toehold in the U.S., it is essential that nutricosmetic marketers impact consumer perceptions and expand their own vision for the category.

“There needs to be movement beyond just the idea that these are lifestyle products with novelty,” Whalley said.

But statistics suggest nutricosmetic firms could be at a disadvantage compared with marketers in the past. “We always have this preconceived notion that consumers don’t have high [self-opinions] and this drives them to purchase more and more beauty products,” he said.

However, Datamonitor research shows 52% of consumers say they are satisfied with their current appearance, representing an 11% shift upward from 2009.

“Of course it’s a fantastic societal thing that consumers are feeling better about themselves, and certainly this leads to greater happiness, but this potentially makes it more difficult to convince them of the need for nutricosmetics,” the analyst said.

It could behoove firms to skew their messaging toward consumer health, suggesting nutricosmetics “are not about making [the user] look younger, but instead bringing about a more positive message of ‘skin could be healthier and look better,’” Whalley said.

Market Success Stories

Whalley referred to a number of case studies, noting Nestle’s Glowelle beauty drink as one that has succeeded in a skeptical marketplace ( (Also see "New Products In Brief" - Pink Sheet, 15 Sep, 2008.), New Products In Brief).

Being attached to a major food company helps consumers “trust in the efficacy of the products,” he reasoned.

Whalley noted Glowelle’s high price tag and distribution at upscale department stores seem to work in its favor.

“In certain ways this is comforting to consumers who want to believe that there’s a solid grounding to a product, and that if a product really does have such incredible benefits, it’s worth paying for,” he said.

In the candy/food nutricosmetics segment, BORBA’s Mighty Energy Gummi Mice were introduced at Walgreens in January, part of the firm’s new Inside Out Beauty Solutions line (“BORBA Enters Mass With Aspirations To Be ‘Synonymous With Innovation,’ “The Rose Sheet” Jan. 31, 2011).

“Whether or not gummi bears is an appealing format and whether or not they undermine the seriousness of the products remains to be seen, but certainly if the consumer wants to enjoy the sensory elements of consuming the beauty-from-within products, then gummi bears is an interesting format,” Whalley said.

He also highlighted new market entrant Deo perfume candy from Germany-based Beneo, which releases fragrance through the skin after being consumed.

“This is an entirely new market,” Whalley said of the concept of eating something purely to smell better.

Suppliers such as DSM Nutritional Products have begun taking fresh looks at their portfolios to see how they might cater to consumers interested in “beauty from within” (Also see "DSM Reintroduces Ingestible Ingredients In Beauty Supplements, Chocolates" - HBW Insight, 15 Nov, 2010.).

[Editor's note: This article appears courtesy of "The Rose Sheet," Elsevier Business Intelligence's source for cosmetics, skin care and fragrances industry news. Register for a 30-day risk-free trial.]

By Lauren Nardella