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Natural Aromatics for Personal Care and Household Products

California SCC October 2014

Agenda

• Global Market Landscape • Regulatory Glance • Myths about Naturals Revealed • Natural Aromatic Options:

• Essential Oils – Organic and Natural • Natural Aromatic Extracts/Blends • Natural Fragrances

• Olfactive Aesthetics • Product Examples

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GCI July/August 2014

“Increased consumer familiarity with certain harsh chemicals has given rise to many products with “free from” claims, which

have more tangible perceived benefits for consumers.”

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• Natural Personal Care Market growing faster than the general market

• Reflection on the socio culture evolution and consumer attitudes

• Double digit growth since 2008

• CAGR of 10% through 2016 compared to the global conventional personal care market growth of less than 4%(Kline report 2013)

Global Market Landscape

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• Part of a Green Global Mega Trend

• Stores offering more naturally positioned products

• Multi level distribution

• Manufacturers launch new products with natural positioning

• Educated consumer

• Greater transparency in labeling

• Product designed for specific demographic groups

Growth Drivers for Naturals

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• Seeking brands that are friendly: • Environmentally • Socially • Ethically

• Label Conscious

• Driving Green Chemistry

• Whole Foods Premium Body Care Standard

• Natural Products Association Personal Care

Standard

• ECOCERT – Natural and Bio standards • Concern about Synthetics

Educated Consumer

Why?

• Naturals have greater consumer appeal – A matter of perception!

• Safer – Non toxic, No carcinogens

• More Healthful and Therapeutic • Calming, Invigorating, Balancing

• Closer to Nature

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Natural Aromatics

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Natural Aromatics

What ?

• Natural aromatics are made by physically extracting the volatile fractions from plants without chemically altering them.

• International Fragrance Association (IFRA Info Letter 737 - December 2005) • As defined by ISO norm 9235 • Substances isolated by purely physical means

• More stringent definition than Natural Flavor (FDA) • NPA & Whole Foods disallow petrochemical solvents • Natural fragrances can also contain ingredients from biotech –

ferments and enzymatically produced.

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Natural and Organic Product Requirements for Aromatics:

• USDA NOP and NSF ANSI 305 Standard • 100% and 95% - Organic required • Made with (70%) – Natural OK

• ECOCERT – Natural OK

• Whole Foods Premium Body Care –

Natural OK

• Natural Products Association – Natural OK

Myths about naturals revealed…

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myth #1- naturals are always non irritating

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myth #1- naturals are always non irritating

Aromatic compounds can be an irritant whether they are natural or synthetic

• IFRA guidelines apply equally to naturals and

synthetics

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Cinnamic Aldehyde Cinnamon

myth #2 - naturals are free of EU allergens

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myth #2 - naturals are free of EU allergens

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Eugenol

Most Naturals contain EU allergens Two examples:

Clove

Linalool Lavender

EU “Allergen Free” Natural Aromatics

Apple

Apple Pear

Blueberry

Carrot

Roman Chamomile

Coffee Cocoa Cucumber Raspberry Vanilla Coconut

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When used @ 1% use level or less in a product

myth #3 - there is a natural equivalent for every synthetic fragrance

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myth #3 - there is a natural equivalent for every synthetic fragrance

Many synthetic aroma chemicals do not exist in nature

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Fresh Ozone

Natural Aromatic Options

Certified Organic Essential Oil Blends

Natural Essential Oil Blends Natural Aromatic Extracts/

Blends Natural Fragrances

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Essential Oils

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A volatile aromatic oil that is normally produced by steam distillation of vegetable plant matter and maintains the characteristic odor or flavor of the plant. Some botanicals such as citrus peel oils, must be mechanically cold-pressed or expressed from the rinds of citrus fruits due to heat sensitivity. Essential oils have a long tradition of providing a variety of therapeutic benefits.

Certified Organic Essential Oil Blends

◦ All Natural & Organic

◦ Most authentic

◦ Aromatherapeutic

◦ “Fragrance Free”

◦ Most expensive

◦ Problematic supply

◦ Relatively simple & Unsophisticated

◦ Limited Range

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Natural Aromatic Extracts

• “Fragrance Free”

• INCI name same as botanical extract

• Available for botanicals with no essential oil form

• Versatile to compliment variety of product formulations

• Natural as per ISO 9235

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Advantages

Natural Aromatic Extracts

• All components are physically

extracted from plants

• Imparts a natural aroma

• Aromatherapeutic

• Botanical benefits and aroma in a single ingredient

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Advantages

Natural Aromatic Extract Blends

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Orange Vanilla

Honey Fig

Citrus Ginger

Lavender Mint

Grapefruit Pomegranate

Green Tea

Lemon Ginger

Cucumber Lemon

Apricot Mango

Citrus Mint

Floral Blend

Natural Aromatic Extracts for Personal Care - Body

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Burt’s Bees Ultimate Care Body Lotion : Aromatic Extracts: green tea, bergamot, coriander, jasmine, lavender, cypress, vanilla, rose, rosemary, peach

Gold Bond Ultimate Deep Moisture Body Wash Aromatic Extracts: chamomile, lavender

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Natural Aromatic Extracts for Personal Care - Hair

Everyday Coconut Shampoo Aromatic Extract: Coconut Lime Blend

Beautiful Curls Curl Enhancing Shampoo Aromatic Extract: Apricot Blend

Honest Company Shampoo & Body Wash Aromatic Extract: Orange Vanilla Blend

Select Aromatic Extract List

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Natural Fragrances

No synthetics/petrochemicals ◦ INCI: Fragrance, Parfum ◦ Complex fragrance compounds made exclusively from natural

aromatics as defined by IFRA. ◦ More complex ◦ Greater flexibility ◦ More mass appeal ◦ Ingredients of a natural fragrance can come from a variety of

plants ◦ Ingredients include essential oils, oleoresins, distillates, fractions,

concretes, absolutes extracts, etc. ◦ Not “nature identical”

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Natural Fragrance Raw Materials

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Essential Oils Fractions Oleoresins Volatile Concentrate Distillates Biotech Ingredients – ◦ Ferments

Terpenes Tinctures Concretes* Resinoid Extracts Absolutes* CO2 Extracts

*NPA & Whole Foods do not allow petrochemical solvents

Natural Fragrances for Personal Care

Tom’s of Maine - Long Lasting Deodorant Stick – Fragrance:

• Apricot, • Wild Lavender, • Lemongrass

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Kirkland Signature Body Wash – Fragrance: Sparkling Grapefruit

Burt’s Bees Wipes - Fragrance: Cucumber & Sage

Select Natural Fragrance List

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Synthetic Fragrance Advantages

1. Wider range of ingredients = more sophistication and

creativity

2. Generally lower cost and more stable pricing

3. More consistent quality – natural PEA from rose can smell different than from geranium. Lot to lot variations.

4. Cleaner single notes

5. Easier with which to formulate

6. Easier to manufacture

7. Easier to apply in products

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Contrasts & Comparisons of scent options

Natural Aromatic Extract Blend

Natural Fragrance Synthetic Fragrance

Fragrance free Fragrance Fragrance

Botanical Benefits & Aroma Aroma Aroma

Less Complex Olfactive Impression Complex Olfactive Impression Very Complex Olfactive Impression

INCI= Botanical Extract name INCI = Fragrance/Parfum INCI = fragrance/Parfum

All ingredients physically extracted from named plants

All ingredients physically extracted from any type of plant

Ingredients are chemically derived

Mid – High Cost Mid Cost Low Cost

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Thank You!!