The share of organic and natural cosmetics in the $270 billion global cosmetic market is growing at a fast pace
In the last issue we had discussed how petroleum and cosmetics are related. Just to remind our readers, basic ingredients in many cosmetic products have their origin in petroleum.
Distinct fragrances used in lotions, shampoos, and other cosmetic products are because of certain aromatic hydrocarbons that are also derived from petroleum. Dermatologists and beauty experts have always pitched against the use of petroleum based materials in cosmetic products. In recent times organic and natural cosmetics have not only surfaced in the market, but are also fast increasing their share in the overall global cosmetic market, which is worth over $270 billion. This article is an attempt to peep into the world of organic and natural alternatives to petroleum in the beauty care products, and explore possible business opportunities in the segment.
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What are natural cosmetics?
Ordinary commercial cosmetic products, which include even those that are manufactured by well-reputed brands, often contain toxic and chemically-potent substances capable of causing long term adverse impacts on human skin. Some people, in fact, exhibit immediate health problems upon use of such products. However, more and more people around the world are growing aware of the dangers of using chemical cosmetics. This has led to a steady rise in the demand for certified organic skin care and cosmetics.
But what are natural and organic cosmetics and who certifies certain products to be organic or natural? Most users of natural and organic cosmetics are not aware of what the terms natural and organic refer to in the context of cosmetics. To a common person, natural cosmetics would be those that are not made using any chemical ingredients and processes. This definition may look simple, but in the world of cosmetics it is far from being clear. Natural and organic cosmetics are mostly used synonymously.
There are, in fact, differences between the two. Natural cosmetics replace the carcinogenic products derived from the petroleum base. Ingredients in natural resources are obtained from plants and natural sources. In fact, products are labeled quite often as natural in many countries, including the US, even if only 70 percent of the ingredients used in them are from plants and natural sources. The products that are thus sold can have some chemicals as their ingredients—chemicals that are supposedly not harmful to our skin.
| Exact data is not available in India about the size of the organic and natural cosmetic products. But it is less than 5 percent (of the total cosmetic market of India). — Veena Seetharama Annadanaa Chief Consultant, Organic Agribusiness Consulting |
“White mineral oil is a safe, effective, time-proven ingredient preferred by many formulators,” says David S. Morrison (as quoted in various journals), an expert in the field of personal care.
According to the US National Organics Program (NOP), a natural substance is derived from a plant, mineral or animal source, without having undergone a synthetic process.
Others emphasize on 100 percent organic ingredients to be classified as organic.
“Organic products go one step ahead (of natural cosmetics), says Veena Seetharama Annadanaa, Chief Consultant, Organic Agribusiness Consulting. She says, “Organic products are those which use plants and herbs grown organically.”
Toronto-based Organic Make Up Company, which believes in 100 percent organic ingredients, defines natural ingredients as those that have not undergone any synthetic process and that are derived from plants, animals or minerals. The company includes those ingredients as natural that are refined through physical as well as biological processing. Ingredients obtained through simple technologies in use in a conventional kitchen are also considered natural by the company.
The common person has taken natural and organic products as one, and the greatest advocates of the use of natural ingredients in cosmetic products have also not raised much hue and cry about this. They seem satisfied that natural ingredients are slowly replacing carcinogenic ones. They also know making organic cosmetic products is possible only with the greater acceptance of organic ways of farming.
Guidelines and certifications
In the US, which is the largest market for natural cosmetics, the organic cosmetic industry is flooded with new companies that claim to have organically manufactured products. In India, there have been some companies that claim to be selling natural and organic products. But they are mostly natural, and not strictly organic, for the products often on sale do contain some chemicals.
Guidelines for certifying natural and organic products are far from being clear. A number of certifying agencies prescribing different standards for natural and organic cosmetic products exist in Europe. These included Soil Association (UK), Ecocert/Cosmebio (France), BDiH (Germany), ICEA (Italy), and Bioforum (Belgium). They have now agreed (in November 2008) to develop common standards for natural and organic cosmetics. Certifying of products (as natural or organic) will start from April 2009. These agencies can, however, still be able to develop separate standards as long as the baselines are met. The move is analogous to what has occurred in the organic food industry where the EU has minimum standards for organic agriculture and food products.
Another Europe-based initiative called NaTrue has been set up in association with German Cosmetic, Toiletry, Perfumery and Detergent Association (IKW) and US global standard like OASIS, NSF and NPA.
Hopefully, these new common guidelines will ensure the products that are put up for sale by cosmetic companies do live up to their claims for being truly organic. Consensus as of now is that the products using more than 70 percent ingredients from plants or other natural sources are described as natural products.

written by Organic cosmetics, July 31, 2009
written by Dr. Pravin Khare, June 05, 2009
When the raw materials are from the certified sources it means there are negligible or no synthetic chemicals. These synthetic pesticides and fertilizers are toxic and causes n number of diseases. If one uses these ingredients than there may be good quality products in the market. Restricting the use of parabens and glycols are added advantage. Certifying agencies bringing standards to certify these products has naturally won faith in the consumers. Companies are investing in their R&D to prepare more and more safer and naturally or organic certified ingredients in their products. Organic cosmetics products will be best suited to the skin and as most of the ingredients are plant based, they are biodegradable and environmental friendly.
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