Rebecca Madley-Wright11.01.04
The Health & Beauty America (HBA) show, organized by CMP United Business Media, Princeton, NJ, held in late September, played host to a brand new conference called Inside Beauty this year. The conference was created by Nutraceuticals World magazine in partnership with HBA to bring together executives from both the personal care and nutraceuticals market. Over 100 hundred attendees from companies such as Esteé Lauder, Procter & Gamble, Avon, Capsugel, Aveda, Alticor, GlaxoSmithKline, OmniPak/NBTY, ADM, Cognis, Johnson & Johnson, Unilever and Shaklee were on hand to discuss the possibilities of developing products that truly marry health and beauty.
The conference-exclusively sponsored by DSM Nutritional Products, Inc., Parsippany, NJ-kicked off its one-day affair on Tuesday, September 28th. The distinguished list of presenters included Loren Israelsen, president, LDI Group, Inc. Salt Lake City, UT; Diane McEnroe of the New York City, NY-based law firm Sidley Austin Brown & Wood; Anthony Almada, founder and chief scientific officer of IMAGINutrition, Laguna Niguel, CA; Laurie Demeritt, president and COO of the Hartman Group, Bellevue, WA; Dr. Barry Sears, creator of The Zone Diet and founder of Zone Labs, Danvers, MA; Darrin Duber-Smith, president, Green Marketing, Nederland, CO; Tanya Seaton, lead analyst-U.S. Consumer Markets, Datamonitor, New York, NY; and Terry Lemerond, president and founder of EuroPharma, Green Bay, WI.
Skin is the largest organ in the body, so it should be no surprise that the health and beauty world are coming together to create both topical and internal solutions, which have a positive influence on appearance. Skin is itself a reflection of good health and consumers are already making this connection and demanding products that address their health AND beauty needs. In this vein, HBA and Nutraceuticals World felt this conference would be a great opportunity to bring these worlds together to discuss both the issues and opportunities in relation to supplements, food and personal care products, and how these worlds can work together to achieve a common purpose: developing true health and beauty products.
The personal care industry may have more in common with the dietary supplement industry than previously thought. At the same time, both worlds are each governed by a different set of rules and regulations. These were the underlying themes tackled by the first session of the day, which was lead by LDI Group's Mr. Israelsen and Sidley Austin Brown & Wood's Ms. McEnroe, who both gave a comprehensive overview of the regulations, trends and issues that the executives must know about each other's market in order to work together.
The goal of Ms. McEnroe's speech was to bridge the gap between cosmeceuticals and dietary supplements. She said while opportunities exist in both segments, there are limitations as well.
Ms. McEnroe began her presentation by differentiating between a "cosmeceutical" and a dietary supplement. The biggest difference, she said, relates to the claims that can be made for a dietary supplement versus a cosmeceutical. Although cosmeceutical is a term that has been used frequently over the years, it is not recognized by FDA as a regulatory category. In contrast, dietary supplements are recognized by FDA and therefore must abide by a set of regulations outlined in the Dietary Supplement Health & Education Act (DSHEA). "FDA has shown its concerns for both cosmetic and dietary supplement products recently," she said. "If companies are interested in making cosmetic or structure/function claims (in the case of dietary supplements), it is highly recommended that companies seek expert review of potential claims."
Ms. McEnroe also emphasized safety and efficacy, indicating that these aspects of product development must be established for both dietary supplements and cosmeceuticals to be successful. Importantly, she noted, "The literature that speaks to the efficacy of an ingredient, or ingredients, in a finished product does not apply to a topical product containing the same ingredient, or ingredients."
Mr. Israelsen also discussed ways in which personal care and dietary supplement (and food) companies can work together by pointing out some high profile partnerships (Procter & Gamble/Pharmavite and Nestlé/L'Oreal) that have already been formed in the "Inside Beauty" arena. Forming a partnership is a no-brainer, according to Ms. Israelsen, who said the two markets already share a very similar consumer base. In addition, he said, consumers have an intense interest in self-care and are becoming acutely aware of how food, medicine and the environment affect their health and appearance. Now is the perfect time to take advantage of the synergies that exist in these markets.
In his presentation, Mr. Israelsen also urged personal care companies to make certain they are aware of the rules and most recent regulatory developments before considering the launch of a supplement skin care line. This is where he said partnerships could be most effective. "Part of the burden can be relieved by partnering with companies that maintain strong expertise in the dietary supplement market," he offered. "Keep in mind that consumers will be looking for a one-stop shopping experience when addressing their health and beauty needs in the future. Companies should be working to develop a seamless brand that addresses health and beauty needs in one product line."
Mr. Israelsen said antioxidants are likely to lead the charge in the "Inside Beauty" market due to high awareness surrounding the category. Furthermore, antioxidants have a long history of inclusion in both topical and internal products. Mr. Israelsen also highlighted other ingredients certain to find a place in both internal and topical formulations that address health and beauty needs. Among the ingredients he discussed were coenzyme Q 10 (CoQ10), lycopene, soy, seaweed extracts and omega 3 fatty acids.
IMAGINutrition's Mr. Almada chaired the second session of the day, which included information relative to formulating products that address health and beauty. His particular presentation focused on whether or not it is possible to achieve a topical product effect when taking something internally. He said in order for supplement skin care products to be successful they must have human functionality and be anchored in science. To that end, Mr. Almada went over in detail a series of studies that examined both cosmeceutical and dietary supplement products and their effects on the skin. He also highlighted ingredients where the science shows a topical effect by application on the skin or by ingestion.
Mr. Almada handed over the second session to The Hartman Group's Ms. Demeritt, who discussed weight/loss management trends from a consumer perspective. Based on The Hartman Group's 2003 study, "Obesity in America: Understanding Weight Management from a Consumer Perspective," Ms. Demeritt said all of the triggers for losing weight are appearance driven. These triggers for consumers include clothes that no longer fit, seeing oneself in the mirror, seeing oneself in photographs, seasons (summer swimsuit season, New Year's resolutions) and ceremonial events like birthdays or weddings. According to Ms. Demeritt, consumers use the stomach as the intial site of self weight assessment, however, the most critical region is the face, which is always "on stage" in everyday life.
As for marketing messages, Ms. Demeritt said it is very important that companies understand and speak the language of consumers when it comes to weight management. She also said it is important to realize that consumers are very interested in a sense of community when it comes to weight loss/management; they want a friend not an authoritative figure to tell them what to do or how to do it. As such, Ms. Demeritt believes the language created around these products is absolutely critical to success.
The last speaker in the second session of the day was Zone Diet creator Dr. Sears, who discussed the role of inflammation in health and skin care. According to Dr. Sears, inflammation is intimately associated with many diseases including obesity, type II diabetes, heart disease, cancer and Alzheimer's disease. Inflammation is also the underlying cause of the aging process, which, if curtailed, could prevent the onset of these diseases and in turn create a healthier appearance. In the body, Dr. Sears said, there is a complex orchestration of inflammatory and pro-inflammatory events. Some inflammatory events are associated with pain and have been remedied through a variety of products. However, he said, the most insidious form of inflammation is "silent" inflammation because it leads to many chronic diseases. The balance of arachidonic acid (AA) and eicosapentaenoic acid (EPA) in the blood is a good indicator of wellness, illness and the rate of aging, according Dr. Sears. In addition, the balance of proteins, carbohydrates and fat will play a crucial role in controlling hormonal inflammation.
The skin is deteriorating faster than ever before and Dr. Sears said the possibility for developing topical and interntal anti-inflammatory skin care products is very real. One of the keys to combating inflammation is highly refined fish oil, which if taken for a period of 30 days can in most cases change the inflammation profile in the human body. As for who is responsible for the inflammation epidemic amongst consumers, Dr. Sears pointed his finger toward the processed food industry. "The processed food industry got us into this mess and they will be the ones that get us out," he said. "I just hope they address the issue before the U.S. healthcare system collapses."
The moderator for the last session of the day was Green Marketing's Mr. Duber-Smith, who presented an overview of the natural personal care and dietary supplement segments to show where there is overlap and opportunity. Given the slow growth in the supplement market and mainstream personal care market, both are in need of significant growth and supplement skin care seems a viable opportunity.
Mr. Duber-Smith quoted market research from the Natural Marketing Institute (NMI), Harleysville, PA, which indicates that more than 10 million Americans are "integrated" users of natural/organic personal care. (Integrated natural/organic personal care users are defined as those who have used such products for more than a year on a regular and consistent basis.) It is this segment, according to Mr. Duber-Smith, that is likely to use supplements in all categories-vitamins, minerals, herbs, condition-specific. More important, this segment is also more likely than any other to use supplements on a daily basis that have a skin benefit. For now, he says the supplement skin care segment is in the introductory stage of the product lifecycle. For the future, however, Mr. Duber-Smith said merchandising will be an important factor for companies to consider. They will have to decide where to sell this new generation of products-in the supplement section, personal care section or bundled with topical care products.
Kicking off the next presentation was EuroPharma's Mr. Lemerond, who discussed the company's founding philosophy and day-to-day operations. EuroPharma is the embodiment of the "beauty from the inside out" trend. It believes that outer beauty and inner health are intimately connected, which is why it offers both natural skin care products and internal remedies to treat the body whole. In April, the company introduced a supplement skin care line called Body Confident™, which it describes as a complete system of supplements designed to battle the forces of aging on the inside and the outside. The line includes eight "age-defying" formulas, which are positioned to diminish the appearance of fine lines and wrinkles, detoxify the body to create healthier looking skin and support healthy hair growth. Mr. Lemerond believes firmly that supplement and personal care companies can only strengthen their position in the market and truly make consumers healthier by complementing their product lines with both inner and outer body solutions.
Wrapping up the day was Ms. Seaton from Datamonitor. She presented the highlights of Datamonitor's most recent report, "U.S. Functional Food, Beverages & Supplements: Inside-Out Health & Beauty," which was put together in cooperation with Nutraceuticals World. For her presentation, "Emerging Functional Health & Beauty: You Are What You Eat," she focused on the beauty foods/supplements trend. Ms. Seaton claims consumer demand for more measurable, visible benefits is on the rise across all consumer packaged goods (CPG) categories. Further, she said, attention is now widening to encompass beauty needs as well as health needs. "Indeed, consumers cannot help but link the appearance of health, with health itself," she said. "Magazine articles and repeated exposure to all kinds of media builds the association between models with glossy, shiny hair and glowing, smooth skin, with people who are healthy and full of vitality." Ms. Seaton continued, "Given the trend toward external beauty, or at least the appearance of well-being, and the understanding that ingestible products can meet this need, it is clear where the acceptance and success of functional ingestibles with external health benefits fits in."
While this trend is new to the U.S., it is not new to regions like Japan and Europe. Indeed, Ms. Seaton said Japan is at the forefront of the beauty ingestibles trend, although it is almost exclusively comprised of functional foods and beverages since supplements as a category are not quite as popular. One of the products recently launched in Japan was borne out of a partnership between Coca-Cola and Shiseido. These companies came together to release a beverage called Body Style Water, a functional beverage, and Body Stylish Mist, a cosmeceutical product. The beverage was launched by Coca-Cola and is described as a grapefruit flavored functional beverage. The mist was launched by Shiseido and is described as a grapefruit-scented functional body mist. Both products were launched on the same day in April this year and both use similarly branded packaging incorporating both companies' names, which in fact call to mind a slim smooth female body. The beverage itself is a diet beverage that purports to create a slender physique and a firmer skin.
The inside-out beauty trend is also alive and well in Europe, although mainly from a supplement perspective. The most recent noteworthy launch is that of Innéov Firmness, which was the result of a 50:50 partnership between L'Oréal and Nestlé. Ms. Seaton said the relationship between the two companies clearly combines Nestlé's research experience in nutrition and food safety with the dermatological experience of L'Oréal. "Scientists are currently working on the line extensions and it is said that by the end of the year, consumers may be able to buy Innéov pills to thicken hair and tackle cellulite," Ms. Seaton said.
Moving to the U.S. market, Ms. Seaton mentioned the frequently referenced brands in the market that speak to health and beauty needs, including Avon VitAdvance and Olay Vitamins. She also mentioned a notable but minor beauty foods player called Ecco Bella. This company has produced a line called Health By Chocolate, which includes chocolate bars and confectioneries. Interestingly, this line was created under the advisory of a dermatologist, so perhaps it is no surprise that the products target health and beauty.
Ms. Seaton concluded her presentation by discussing how to capture consumers with these types of products. Like Ms. Demeritt, she said the language surrounding these products is and will be critical. "In order to play in the ingestible beauty products market and capture consumer interest, it will be very important to provide positive, upbeat messages that reinforce the relationship between health and beauty," she said. Furthermore, companies must focus not only on U.S. baby boomer women, but also younger consumers and importantly, men.NW
The conference-exclusively sponsored by DSM Nutritional Products, Inc., Parsippany, NJ-kicked off its one-day affair on Tuesday, September 28th. The distinguished list of presenters included Loren Israelsen, president, LDI Group, Inc. Salt Lake City, UT; Diane McEnroe of the New York City, NY-based law firm Sidley Austin Brown & Wood; Anthony Almada, founder and chief scientific officer of IMAGINutrition, Laguna Niguel, CA; Laurie Demeritt, president and COO of the Hartman Group, Bellevue, WA; Dr. Barry Sears, creator of The Zone Diet and founder of Zone Labs, Danvers, MA; Darrin Duber-Smith, president, Green Marketing, Nederland, CO; Tanya Seaton, lead analyst-U.S. Consumer Markets, Datamonitor, New York, NY; and Terry Lemerond, president and founder of EuroPharma, Green Bay, WI.
Developing the Concept
Skin is the largest organ in the body, so it should be no surprise that the health and beauty world are coming together to create both topical and internal solutions, which have a positive influence on appearance. Skin is itself a reflection of good health and consumers are already making this connection and demanding products that address their health AND beauty needs. In this vein, HBA and Nutraceuticals World felt this conference would be a great opportunity to bring these worlds together to discuss both the issues and opportunities in relation to supplements, food and personal care products, and how these worlds can work together to achieve a common purpose: developing true health and beauty products.
High Speed Trends on Track: Health & Wellness Enhancing Beauty
The personal care industry may have more in common with the dietary supplement industry than previously thought. At the same time, both worlds are each governed by a different set of rules and regulations. These were the underlying themes tackled by the first session of the day, which was lead by LDI Group's Mr. Israelsen and Sidley Austin Brown & Wood's Ms. McEnroe, who both gave a comprehensive overview of the regulations, trends and issues that the executives must know about each other's market in order to work together.
The goal of Ms. McEnroe's speech was to bridge the gap between cosmeceuticals and dietary supplements. She said while opportunities exist in both segments, there are limitations as well.
Ms. McEnroe began her presentation by differentiating between a "cosmeceutical" and a dietary supplement. The biggest difference, she said, relates to the claims that can be made for a dietary supplement versus a cosmeceutical. Although cosmeceutical is a term that has been used frequently over the years, it is not recognized by FDA as a regulatory category. In contrast, dietary supplements are recognized by FDA and therefore must abide by a set of regulations outlined in the Dietary Supplement Health & Education Act (DSHEA). "FDA has shown its concerns for both cosmetic and dietary supplement products recently," she said. "If companies are interested in making cosmetic or structure/function claims (in the case of dietary supplements), it is highly recommended that companies seek expert review of potential claims."
Ms. McEnroe also emphasized safety and efficacy, indicating that these aspects of product development must be established for both dietary supplements and cosmeceuticals to be successful. Importantly, she noted, "The literature that speaks to the efficacy of an ingredient, or ingredients, in a finished product does not apply to a topical product containing the same ingredient, or ingredients."
Mr. Israelsen also discussed ways in which personal care and dietary supplement (and food) companies can work together by pointing out some high profile partnerships (Procter & Gamble/Pharmavite and Nestlé/L'Oreal) that have already been formed in the "Inside Beauty" arena. Forming a partnership is a no-brainer, according to Ms. Israelsen, who said the two markets already share a very similar consumer base. In addition, he said, consumers have an intense interest in self-care and are becoming acutely aware of how food, medicine and the environment affect their health and appearance. Now is the perfect time to take advantage of the synergies that exist in these markets.
In his presentation, Mr. Israelsen also urged personal care companies to make certain they are aware of the rules and most recent regulatory developments before considering the launch of a supplement skin care line. This is where he said partnerships could be most effective. "Part of the burden can be relieved by partnering with companies that maintain strong expertise in the dietary supplement market," he offered. "Keep in mind that consumers will be looking for a one-stop shopping experience when addressing their health and beauty needs in the future. Companies should be working to develop a seamless brand that addresses health and beauty needs in one product line."
Mr. Israelsen said antioxidants are likely to lead the charge in the "Inside Beauty" market due to high awareness surrounding the category. Furthermore, antioxidants have a long history of inclusion in both topical and internal products. Mr. Israelsen also highlighted other ingredients certain to find a place in both internal and topical formulations that address health and beauty needs. Among the ingredients he discussed were coenzyme Q 10 (CoQ10), lycopene, soy, seaweed extracts and omega 3 fatty acids.
The Internal & External Beauty Equation
IMAGINutrition's Mr. Almada chaired the second session of the day, which included information relative to formulating products that address health and beauty. His particular presentation focused on whether or not it is possible to achieve a topical product effect when taking something internally. He said in order for supplement skin care products to be successful they must have human functionality and be anchored in science. To that end, Mr. Almada went over in detail a series of studies that examined both cosmeceutical and dietary supplement products and their effects on the skin. He also highlighted ingredients where the science shows a topical effect by application on the skin or by ingestion.
Mr. Almada handed over the second session to The Hartman Group's Ms. Demeritt, who discussed weight/loss management trends from a consumer perspective. Based on The Hartman Group's 2003 study, "Obesity in America: Understanding Weight Management from a Consumer Perspective," Ms. Demeritt said all of the triggers for losing weight are appearance driven. These triggers for consumers include clothes that no longer fit, seeing oneself in the mirror, seeing oneself in photographs, seasons (summer swimsuit season, New Year's resolutions) and ceremonial events like birthdays or weddings. According to Ms. Demeritt, consumers use the stomach as the intial site of self weight assessment, however, the most critical region is the face, which is always "on stage" in everyday life.
As for marketing messages, Ms. Demeritt said it is very important that companies understand and speak the language of consumers when it comes to weight management. She also said it is important to realize that consumers are very interested in a sense of community when it comes to weight loss/management; they want a friend not an authoritative figure to tell them what to do or how to do it. As such, Ms. Demeritt believes the language created around these products is absolutely critical to success.
The last speaker in the second session of the day was Zone Diet creator Dr. Sears, who discussed the role of inflammation in health and skin care. According to Dr. Sears, inflammation is intimately associated with many diseases including obesity, type II diabetes, heart disease, cancer and Alzheimer's disease. Inflammation is also the underlying cause of the aging process, which, if curtailed, could prevent the onset of these diseases and in turn create a healthier appearance. In the body, Dr. Sears said, there is a complex orchestration of inflammatory and pro-inflammatory events. Some inflammatory events are associated with pain and have been remedied through a variety of products. However, he said, the most insidious form of inflammation is "silent" inflammation because it leads to many chronic diseases. The balance of arachidonic acid (AA) and eicosapentaenoic acid (EPA) in the blood is a good indicator of wellness, illness and the rate of aging, according Dr. Sears. In addition, the balance of proteins, carbohydrates and fat will play a crucial role in controlling hormonal inflammation.
The skin is deteriorating faster than ever before and Dr. Sears said the possibility for developing topical and interntal anti-inflammatory skin care products is very real. One of the keys to combating inflammation is highly refined fish oil, which if taken for a period of 30 days can in most cases change the inflammation profile in the human body. As for who is responsible for the inflammation epidemic amongst consumers, Dr. Sears pointed his finger toward the processed food industry. "The processed food industry got us into this mess and they will be the ones that get us out," he said. "I just hope they address the issue before the U.S. healthcare system collapses."
A Match Made in Dollars: Marrying Health & Beauty
The moderator for the last session of the day was Green Marketing's Mr. Duber-Smith, who presented an overview of the natural personal care and dietary supplement segments to show where there is overlap and opportunity. Given the slow growth in the supplement market and mainstream personal care market, both are in need of significant growth and supplement skin care seems a viable opportunity.
Mr. Duber-Smith quoted market research from the Natural Marketing Institute (NMI), Harleysville, PA, which indicates that more than 10 million Americans are "integrated" users of natural/organic personal care. (Integrated natural/organic personal care users are defined as those who have used such products for more than a year on a regular and consistent basis.) It is this segment, according to Mr. Duber-Smith, that is likely to use supplements in all categories-vitamins, minerals, herbs, condition-specific. More important, this segment is also more likely than any other to use supplements on a daily basis that have a skin benefit. For now, he says the supplement skin care segment is in the introductory stage of the product lifecycle. For the future, however, Mr. Duber-Smith said merchandising will be an important factor for companies to consider. They will have to decide where to sell this new generation of products-in the supplement section, personal care section or bundled with topical care products.
Kicking off the next presentation was EuroPharma's Mr. Lemerond, who discussed the company's founding philosophy and day-to-day operations. EuroPharma is the embodiment of the "beauty from the inside out" trend. It believes that outer beauty and inner health are intimately connected, which is why it offers both natural skin care products and internal remedies to treat the body whole. In April, the company introduced a supplement skin care line called Body Confident™, which it describes as a complete system of supplements designed to battle the forces of aging on the inside and the outside. The line includes eight "age-defying" formulas, which are positioned to diminish the appearance of fine lines and wrinkles, detoxify the body to create healthier looking skin and support healthy hair growth. Mr. Lemerond believes firmly that supplement and personal care companies can only strengthen their position in the market and truly make consumers healthier by complementing their product lines with both inner and outer body solutions.
Wrapping up the day was Ms. Seaton from Datamonitor. She presented the highlights of Datamonitor's most recent report, "U.S. Functional Food, Beverages & Supplements: Inside-Out Health & Beauty," which was put together in cooperation with Nutraceuticals World. For her presentation, "Emerging Functional Health & Beauty: You Are What You Eat," she focused on the beauty foods/supplements trend. Ms. Seaton claims consumer demand for more measurable, visible benefits is on the rise across all consumer packaged goods (CPG) categories. Further, she said, attention is now widening to encompass beauty needs as well as health needs. "Indeed, consumers cannot help but link the appearance of health, with health itself," she said. "Magazine articles and repeated exposure to all kinds of media builds the association between models with glossy, shiny hair and glowing, smooth skin, with people who are healthy and full of vitality." Ms. Seaton continued, "Given the trend toward external beauty, or at least the appearance of well-being, and the understanding that ingestible products can meet this need, it is clear where the acceptance and success of functional ingestibles with external health benefits fits in."
While this trend is new to the U.S., it is not new to regions like Japan and Europe. Indeed, Ms. Seaton said Japan is at the forefront of the beauty ingestibles trend, although it is almost exclusively comprised of functional foods and beverages since supplements as a category are not quite as popular. One of the products recently launched in Japan was borne out of a partnership between Coca-Cola and Shiseido. These companies came together to release a beverage called Body Style Water, a functional beverage, and Body Stylish Mist, a cosmeceutical product. The beverage was launched by Coca-Cola and is described as a grapefruit flavored functional beverage. The mist was launched by Shiseido and is described as a grapefruit-scented functional body mist. Both products were launched on the same day in April this year and both use similarly branded packaging incorporating both companies' names, which in fact call to mind a slim smooth female body. The beverage itself is a diet beverage that purports to create a slender physique and a firmer skin.
The inside-out beauty trend is also alive and well in Europe, although mainly from a supplement perspective. The most recent noteworthy launch is that of Innéov Firmness, which was the result of a 50:50 partnership between L'Oréal and Nestlé. Ms. Seaton said the relationship between the two companies clearly combines Nestlé's research experience in nutrition and food safety with the dermatological experience of L'Oréal. "Scientists are currently working on the line extensions and it is said that by the end of the year, consumers may be able to buy Innéov pills to thicken hair and tackle cellulite," Ms. Seaton said.
Moving to the U.S. market, Ms. Seaton mentioned the frequently referenced brands in the market that speak to health and beauty needs, including Avon VitAdvance and Olay Vitamins. She also mentioned a notable but minor beauty foods player called Ecco Bella. This company has produced a line called Health By Chocolate, which includes chocolate bars and confectioneries. Interestingly, this line was created under the advisory of a dermatologist, so perhaps it is no surprise that the products target health and beauty.
Ms. Seaton concluded her presentation by discussing how to capture consumers with these types of products. Like Ms. Demeritt, she said the language surrounding these products is and will be critical. "In order to play in the ingestible beauty products market and capture consumer interest, it will be very important to provide positive, upbeat messages that reinforce the relationship between health and beauty," she said. Furthermore, companies must focus not only on U.S. baby boomer women, but also younger consumers and importantly, men.NW
