NIQ Global Intelligence plc · NYSE:NIQ
NIQ Global Intelligence — Expo West 2023
23 slides from NIQ Global Intelligence's conference presentation, 2023
Slide 1: The State of Natural Beauty
The State of Natural Beauty Expo West 2023 Anna Mayo, VP Beauty Vertical © 2023 Nielsen Consumer LLC. All Rights Reserved.
Slide 2: Anna Mayo, VP, NIQ Beauty Vertical
Anna Mayo VP, NIQ Beauty Vertical anna.mayo@nielseniq.com LinkedIn: https://www.linkedin.com/in/anna-mayo/ © 2023 Nielsen Consumer LLC. All Rights Reserved. 2
Slide 3: NIQ Strategy: Markets Measured, The Full View of the Beauty Marketplace
Markets Measured The Full View of the Beauty Marketplace +90 Worldwide Uncover blind spots and stay ahead of emerging trends with a holistic view of beauty consumers Understand the purchase drivers within the full omnichannel marketplace with more coverage: Beauty Supply, Department Stores, Drug, Gr
Slide 4: Today's Sustainable Consumer
Today's Sustainable Consumer © 2023 Nielsen Consumer LLC. All Rights Reserved.
Slide 5: Growing consumer concern around global warming escalating in 2019
Growing consumer concern around global warming escalating in 2019 Until COVID disruption but momentum has continued to build back 2011 2013 2015 2017 2019 2021 Global Warming – Top Concern 30 25 20 15 10 5 0 Global warming Health Economy Source: The Conference Board Global consumer confidence in col
Slide 6: The impacts and costs of climate change are being felt across society
The impacts and costs of climate change are being felt across society 1980 - 1999 2000 - 2019 Natural disasters 4212 7348 Climate related disasters 3656 6682 Floods & storms 2938 5288 Human lives lost 1.19M 1.23M People impacted 3.25B 4.2B Cost of disasters $1.63T $2.97T 6 © 2022 Nielsen Consumer LL
Slide 7: Some sustainable behaviors have become a way of life
Some sustainable behaviors have become a way of life And others will become a greater focus in the future Size of bubble - % who do each action Mainstream adoption 70% Avoid waste Eat leftovers 60% Room to grow 50% Minimise electricity Recycled packaging Will do more in future 40% Niche/ Emerging be
Slide 8: US consumers hold brands, themselves and retailers to be most responsible for sustainable progress
US consumers hold brands, themselves and retailers to be most responsible for sustainable progress 34% 32% 28% 38% Farmers/ Energy providers Producers Vs 25% globally Vs 28% globally Local government Vs 28% globally 24% Retailers 44% Vs 29% globally Global/ enviro agencies Vs 24% globally 16% Indepe
Slide 9: What makes a brand sustainable?
What makes a brand sustainable? Is there a disconnect between companies and consumers? Claims that make a brand sustainable 55% 50% 45% Sustainable packaging Reduced/ zero Responsible sourcing waste 40% Eco-friendly Sourced locally 35% Importance Protection of natural Better for planet resources 30%
Slide 10: Beauty Evolves Sustainably
Beauty Evolves Sustainably © 2023 Nielsen Consumer LLC. All Rights Reserved.
Slide 11: Clean and Sustainable beauty continues to evolve
Clean and Sustainable beauty continues to evolve Clean beauty 1.0 Clean beauty 2.0 Clean beauty 3.0 • Ingredient focused • Sustainability focused • Ethics focused • Clean beauty • Vegan, biodegradable, refillable • Fair trade packages • Paraben-free, sulfate-free, phthalate • Ethical treatment, fair
Slide 12: NIQ Free from 23
Total beauty & personal care $47.6B +6.2% NIQ Free Free from paraben $30.0B +9.8% from 23: Free from 23 Free from paraben + sulfates $20.5B +11.3% harmful ingredients including parabens, sulfates, phthalates, Free from paraben + sulfates + formaldehyde, mica, triclosan, phthalates $8.3B +17.1% paba,
Slide 13: Clean ingredients are widespread, animal welfare shows growth, sustainability on the leading edge
Clean ingredients are widespread, animal welfare shows growth, sustainability on the leading edge Clean Ingredients Animal Welfare Sustainability • Paraben Free • Humane • Biodegradable 64.0% of BPC, +9.9% 22.5% of BPC, +14.4% 1.6% of BPC, + 14.4% • Sulfate Free • Vegan • Plastic free 48.0% of BPC,
Slide 14: Sustainably re-thinking beauty packaging
Sustainably re-thinking beauty packaging Shoppers are searching sustainably: ■ Refillable packaging +90% ■ Aluminum Free +27% ■ Reef Safe +26% ■ Biodegradable +11% ■ Solid Form +6% Amazon.com Ulta.com Sephora.com • Refillable packaging • Reusable +38% • Cruelty Free +35% +96% • Cruelty Free +27% • B
Slide 15: Clean beauty enthusiasts interested in
Clean beauty Topics mentioned by those who posted about clean enthusiasts ingredients on Instagram interested in non-toxic natural formulations renewable energy sustainable conscientious recyclable greenwashing claims EWG verified compostable nothing artificial reef safe plastic free preservative fr
Slide 16: Clean and cruelty free top among younger and older generations
Clean and cruelty free top among younger and older generations; vegan while lower consideration above average index with younger generations What characteristics do you look for when purchasing beauty products? Boomers / Gen Z Millennials Gen X Traditionalists Clean 43.6 39.5 30.6 32.3 Cruelty free
Slide 17: How to move forward
How to move forward Sustainability is top of mind for beauty consumers, and they are overwhelmingly putting their dollars behind their interest in the cause. But the market can be confusing, and shoppers can easily get confused by As a manufacturer or retailer, how can you make the shopping process
Slide 18: Sustainability means different things to people
Sustainability Better for the planet 61% means different Protecting natural resources 57% things to people Reduced pollution/ clean environment 54% Cutting emissions 45% Protecting wildlife 43% Better conditions for workers 33% Giving back to society 26% Better for minorities 15% U.S. Source: NIQ 20
Slide 19: Consumers trying to live sustainably
Consumers trying to live sustainably Lifestyle Shopping Eat leftovers, rather than throwing away Only buy what I need - avoid waste Minimise electricity usage where possible Consciously separate garbage for recycling Take own/ reusable bags when shopping Use refillable containers/ buy refill product
Slide 20: Sustainability is one of many things considered when shopping
Sustainability is one of many things considered when shopping But becoming increasingly for many – however US is behind global benchmark Most important things when choosing a brand Change in importance v. two years ago Most important Affordable/ lower prices 18.1 19.5 42% 27% 21% Global Safety & Hyg
Slide 21: Integrating clean ingredients: Growth Drivers U.S. Sales vs. 3YA
Integrating clean ingredients Hitting the sweet spot of high growth & rapid product expansion 120% Watching: 100% Kale “Growth Drivers” – U.S. Sales vs. 3YA Aluminum Free Rose Oil 80% Biotin Antioxidants Sulfate free Algae Phthalates Free Ginger Amino Acids 60% Sunflower Oil Rose Extract* Jojoba Oil
Slide 22: Stay Connected
Stay Connected Anna Mayo VP, NIQ Beauty Vertical anna.mayo@nielseniq.com LinkedIn: https://www.linkedin.com/in/anna-mayo/ Have a question for Anna? Ask Now © 2023 Nielsen Consumer LLC. All Rights Reserved. 24
Slide 23: Explore NIQ's Full View of the Beauty Industry
Explore NIQ’s Full View of the Beauty Industry Beauty Inner Circle Explore reports, thought leadership and more! Learn More Newsletter Sign-up Get the latest Beauty and Personal Care reports and industry updates emailed monthly. Sign-Up NIQ Beauty Trailblazer Creating equity in access to data for mi