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Health, Beauty and Wellness Coronavirus Coverage ARTICLE PACK
Contents US HEALTH, WELLNESS Pandemic Response In US Consumer Health Market: OTC Pain Relief And Cough/Cold Purchases 3 Pandemic-Driven Trends Show Strong Immunity Supplement Future, Elderberry A Current ‘Darling’ 7 EU HEALTH, WELLNESS The Race Is On To Launch COVID-19 Antibody Home-Test In The UK 12 COVID-19 Prompts OTC Sales Restrictions Across Europe 15 GLOBAL BEAUTY COVID-19 Pandemic: ‘Clean Beauty’ Disruptor Or Reinforcer? 20 For Estee Lauder Companies, COVID-19 Has Changed Everything And Nothing 23 2 / June 2020 © Informa UK Ltd 2020 (Unauthorized photocopying prohibited.)
US HEALTH, WELLNESS
Pandemic Response In US Consumer Health Market: OTC Pain
Relief And Cough/Cold Purchases
Executive Summary products’ retail sales grew 27% compared to the
Pain relief product sales grew 27% and upper same period in 2019, while upper respiratory
respiratory sales 35% for the week ended 7 March sales increased 35%, gastrointestinal discomfort
as consumers respond to COVID-19, according products 11% and feminine care items 16%, the
to Nielsen data noted in a Jefferies report on analysts said in the report published on 26 March.
consumer health purchasing trends. Private label
market share is up slightly, while OTC purchases Feminine care fits into the “essentials” category
continue primarily in conventional stores. and “offers some signal of expectations for the
prolonged nature of potential and increasingly
widespread ‘stay in place’ orders,” according to
the report by analysts Stephanie Wissink, David
The COVID-19 outbreak drove a 20% jump in year- Steinberg and Brian Tanquilut.
over-year sales of OTC drugs and other consumer
health products in early March, with pain relief Total consumer health care product sales in
product retail sales up 27%, according to a report the US are anticipated to reach $34bn for 2020,
by Jefferies analysts. driven by vitamins and minerals, $11.2bn;, cough/
cold/flu, $6.3bn; skin care, $4bn; and analgesics,
For the week ending on 7 March, pain relief $3.7bn.
COVID-19 Influence On OTC Shopping Lists
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US HEALTH, WELLNESS
In Preparation For/Response To COVID-19
Pandemic In Previous 2 Weeks, Did Consumers Purchase Cough/Cold-Flu-Related Medicines?
Other OTC Drug Categories Consumers Are Buying In Pandemic Response
Jefferies analysts reported data on pandemic-related consumer health market trends, above and below, from an
online survey conducted 19 March with 1,270 subjects demographically aligned with the general US population
and year-to-date dollar share figures from Nielsen-tracked food, drug and mass retailers.
Jefferies 26 March, 2020, research report
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US HEALTH, WELLNESS
Among households experiencing COVID-19 US population as well as from year-to-date
or separate cold or flu symptoms, 72% had dollar share figures from Nielsen Co. Retail
purchased OTC cough, cold or flu products. Measurement Services-tracked food, drug and
Additionally, 45% of US consumers made their mass retailers.
OTC drug and other health care purchases by the
middle of the month in response to the pandemic 72% Symptomatic Households Purchased OTCs
brought on by the spread of a novel coronavirus. The survey asked consumers whether in the
previous two weeks, “in preparation for/response
The report gleaned data from an online survey to the coronavirus,” they had purchased cough/
conducted 19 March on 1,270 consumers cold/flu related medicine as well as other OTC
demographically aligned with the general health care products.
OTC Market Sales Mix
Of all respondents, 25% indicated they or “This 25% figure helps put into context the general
someone in their household are experiencing confusion that exists in trying to navigate the
cough, cold or flu symptoms. “This is the first COVID-19 symptom list as many of the symptoms
measure we’ve seen that gives some context noted are common in other seasonal viruses/
for the potential extent of the virus and/or influenza-related periods,” the report added.
symptomatic individuals (even if not carriers of
the virus),” the Jefferies analysts said. The Jefferies report acknowledges an overall
lack of understanding in the general population
Consumers appear to be trying to address illness about COVID-19 and its symptoms even as it has
symptoms on their own, to avoid doctor’s offices: infected 239,279 people in the US and caused
33% said they had delayed going to their doctor in 5,443 deaths as of 3 April, according to the Center
the two weeks, the report noted. for Disease Control and Prevention. The Jefferies
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US HEALTH, WELLNESS
report notes the CDC has reported the seasonal household income looked “almost identical” in
flu is surging late in the season, adding to that private label preference as those making below
confusion. $50,000.
Private Label Up Slightly Additionally, asked for key considerations
In the two weeks, 62% of consumers surveyed when buying OTC products, 55% of consumer
said they bought brand-name OTCs, 60% private said quality and 45% cost. “The gap was more
label and 22% are buying both. Still, private label/ narrow than expected and aligns with a growing
store brand sales are up in the OTC market dollar trend towards private label as substitutes for
share from both a month and a year ago: dollar national brands. We also think this may reflect
share was 22.6% on 22 February and 23.3% on 7 improvements in ‘private label’ branding, which
March, while it was 22% in 2019. has improved substantially across drug, grocery
and mass retailers,” Jefferies analysts said.
Private label market share is strongest in
gastrointestinal, 37%; pain relief, 29%; and upper “Mass and drug retailers in particular have publicly
respiratory, 27%, according to Jefferies. spoken to their intentions to enhance their own
brand offering – migrating from traditional ‘private
Of consumers who buy both brand and private label’ toward more sophisticated store and
label products, more are moving heavily toward owned brands,” according to a separate 31 March
private label. The percentage of respondents who Jefferies report.
said at least 80% of their purchases are private
label increased to 57% from 41% three years ago, Overall, the findings of private label versus
Jefferies found. store brands suggest “while cost is an important
attribute, affordability is second to perceived
Age is a factor in purchasing: younger consumers value,” according to Jefferies.
cited shopping both brand and private label at
twice the rate of older cohorts, the report said. Nielsen recently reported survey results
demonstrating a sharp rise in dietary supplement
However, income wasn’t as much determinant. purchases as well, showing sales – tracking all US
The analysts suggest they were surprised the channels combined – up 7.8% and unit growth
skew toward private label based on household 9.7% for the week of 16-22 February from the
income “was almost non-existent,” which could be same period in 2019. (Also see “Coronavirus
linked to an improving perception of private label Disruption Likely In Supply Chain, Stockpiling
quality. Spikes Consumer Health Sales” - HBW Insight, 6
Mar, 2020.)
Consumers with more than $100,000 a year in
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Pandemic-Driven Trends Show Strong Immunity Supplement
Future, Elderberry A Current ‘Darling’
Executive Summary for immunity boosting, according to market
VMS, homeopathic and other natural producs researchers.
firms couldn’t plan for spike in demand from
coronavirus 2019, but the pandemic provides Vitamin, mineral and supplement manufacturers,
information to continue riding heightened as well as homeopathic and other natural
consumer interest to higher ongoing sales, products firms couldn’t plan for the spike
researchers said in recent Council for Responsible in demand the novel coronavirus 2019 has
Nutrition webinar. generated largely across their product categories,
but the COVID-19 pandemic should provide
ample information to continue riding heightened
consumer interest to higher ongoing sales,
The overall dietary supplement industry is researchers said on 17 April during a sales trends
proving to be “pandemic proof” while elderberry webinar conducted by the Council for Responsible
has become consumers’ “darling” ingredient Nutrition.
Favored Ingredients For Immunity
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SPINS data from Natural supermarkets, more mainstream regional and independent supermarkets and
nutritional supplement and other health and wellness retailers for the week ending 22 march reflect elderberry’s
surging popularity.
SPINS LLC Presentation, 17 April, 2020
“We hope and believe this a huge silver lining Consumer spending since COVID-19 began
of opportunity,” said Kathryn Peters, business spreading is mirroring a trend of growing interest
development executive vice president at SPINS in self care that IRI research found in May and
LLC, which tracks sales in natural health product December 2019, said the firm’s health care
and specialty retailers. executive, Kristin Hornberger.
Natural Marketing Institute, meanwhile, found an “Consumers already were reporting taking greater
average 25% increase in VMS product sales during control of their health,” she said.
March across the US and the 13 other countries
it tracks. NMI managing partner Steve French With higher self-care spending before a pandemic
said similar sales growth occurred during the late was declared, 45% of consumers were buying
2000s. more immunity supplements than they previously
purchased. “While an immense trend as part of
“This is definitely soothing we saw a decade- COVID-19, it actually was starting pre-COVIDE
plus ago in 2008, 2009. Not only is the dietary that we were seeing a lot of consumers stocking
supplement industry recession proof, it’s also up and beginning that purchase of immunity
showing to be pandemic proof,” French pointed products,” Hornberger said.
out.
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Expect More ‘Superbugs’ flu season,” Peters said.
SPINS data show a pandemic-driven spike in
elderberry supplement popularity immediately But the 100% growth from the previous cold/
followed growth during the typical cold and flu flu season in the number of elderberry product
season that on its own generated strong results buyers soon was dwarfed. “That spiked to well
for marketers. over 400% during the March time period, many
new buyers coming into the category,” Peters
“Elderberry already had been a darling of the cold/ added.
Consumers Searching For Supplements Not Only
To Boost Immunity, But Reduce Severity of Symptoms, Even Manage Stress and Anxiety
IRI datafrom sales at US grocery, drug and convenience store chains and mass market, military, club and
discount retailers show pandemic-driven sales growth across supplement categories.
Information Resources Inc. presentation, 17 April, 2020
While sales were strong across numerous “Shelves were just wiped out particularly as
VMS, homeopathic and other natural product people sought immunity type products within
categories, for some the results could have been their natural supermarkets or supplement stores,”
better if manufacturers could have replenished Peters said, adding, “The question really is how
marketplace inventories faster. high could have high have been? How quickly can
we qet products back on shelves?”
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Short-Term Prevention Or Permanent Change?
On Average, 25% Of Global Consumers Surveyed Are Taking More Vitamins And Other Supplements As A
Result Of Covid-19
Top 5 Supplements Used In Previous 30 Days
Natural marketing institute global data show rate of consumers stating since the COVID-19 outbreak they have
changed their behavior by doing a lot more/a little more of taking vitamins and other supplements, and the
supplements they’re using.
Natural Marketing Institute presentation, 17 April, 20202
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Still, higher consumer demand for nutritional “We know that there will not only be a period of
supplements, particularly immunity-boosting time before we have a vaccine for this particular
products, likely will continue after the COVID-19 novel coronavirus, there will be other superbugs
pandemic ends. and things of that nature. Without effective
vaccines, your body really is the front line of
“A crystal ball might tell us what the future might defense. So how we do strengthen the body in
hold, although we can make some good strategic order to just be better prepared for these types of
planning now as to what those things might be,” superbugs is really going to be interesting to see
Peters said. as we carry forward.”
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The Race Is On To Launch COVID-19 Antibody Home-Test In
The UK
Executive Summary Once they have been evaluated, these tests would
Feature: Public Health England has revealed it be distributed to the British public as soon as next
is only a week away from approving a COVID-19 week, PHE revealed in a recent UK Parliament
antibody test for distribution via Amazon. Science and Technology Committee meeting.
HBW Insight looks at the race to place the first,
government-approved coronavirus home-test on COVID-19 Tests On Amazon?
the UK market. Interestingly, the tests would be made available
via Amazon or through high-street retailers such
as Boots, the authority suggested.
The race is on to produce an effective and Visibly surprised by the news, Members of
validated COVID-19 antibody test that can be used Parliament at the meeting – including Committee
at home by consumers to find out if they have had chair and Conservative MP for Tunbridge Wells,
the virus, are immune and can therefore safely go Greg Clark – then quizzed PHE’s director of the
back to work. National Infection Service, Professor Sharon
Peacock, on its implications.
According to government officials, COVID-19
self-tests could soon be available to buy in the Firstly, Peacock clarified that there would be a
UK and elsewhere based on a variety of sampling minimal charge for the tests, implying that these
methods, for example using serum, plasma or products would be in some sense “over the
blood from a finger prick to test for the presence counter,” much in the same way that pregnancy
of virus-beating antibodies. tests can be bought without a prescription and
used at home.
However, there is little information on the
accuracy of the tests, or on how a patient’s While the tests would be simple to use – using
antibody response develops or changes during the finger-prick method described above, and like
COVID-19 infection. home pregnancy tests, present the results on the
testing device within a certain length of time –
“It is not known whether either a positive or Peacock assured MPs that, once they were rolled
negative result is reliable. Currently there is no out, a program would run in which PHE goes
published evidence about the suitability of these into people’s homes and performed a blood test
tests for diagnosing COVID-19 infection in a alongside the home tests to check they worked.
community setting,” warns Public Health England.
And finally, Peacock said PHE would prioritize
Which is why PHE is currently rapidly evaluating certain groups crucial to fighting the virus and
a sample of these tests in Oxford – taken from getting the country back to work, such as National
a batch of 3.5m antibody home-tests the UK Health Service workers.
government has purchased from an unnamed
company – to find out if they really do work as Unanswered Questions
they are claimed to do. However, many unanswered questions remain,
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not just which company made the 3.5m tests she could provide any more information on which
purchase by the UK government, but also how company might be have provided PHE’s with the
these tests will be classified and distributed once tests. (Also see “UK Govt Buys 3.5M 15-Minute
the first ones hit the market. COVID-19 Antibody Home Tests From Mystery
Manufacturer” - Medtech Insight, 26 Mar, 2020.)
“PHE’s statements provided considerable stimulus
for discussion and speculation, but left a great “PHE’s Peacock mentioned it was a brand-new
deal unclear,” the British In Vitro Diagnostic test,” Longworth commented. “My research
Association’s chief operations officer, John showed that there are companies developing self-
Bagshaw, told HBW Insight. tests such as the UK’s Alpha BioLabs which has
an antibody test fitting the description on their
“Blood samples require the provision of a lancet website and told me it would be available from 31
in the kit, and often a small pipette or capillary March.”
to apply the drop of blood to the device,” he
explained. “However, not everyone would be Warrington-based company Alpha BioLabs claims
happy or competent to do this for themselves.” to have a rapid finger-prick antibody test for
SARS-CoV-2. The CE-marked single-use qualitative
“There is also a question of interpretation, as tests test detects both early and late marker IgG/IgM
with no positive control line would be invalid, antibodies in human finger-prick blood samples.
and most tests of this kind require reasonably
accurate timing and the recording of even a faint To run the test, a sample of blood is collected
line as positive, therefore good light conditions and added to the sample well of the test cassette
and eyesight,” he added. along with two or three drops of a sample buffer,
according to Alpha BioLabs, which said the test
Self-testing in general also remained a can yield results within 15 minutes.
controversial practice, Bagshaw pointed out. (Also
see “ Direct-To-Consumer Tests Opening The Door Results Even Quicker
To Personalized Medicine” - HBW Insight, 16 Jan, HBW Insight identified another UK company
2020.) claiming to have developed a test that can
detect coronavirus infection within 10 minutes
“At some point in the future it may be that people and render both self-isolation and incubation
can reliably self-test, as they do for HIV,” he unnecessary.
reflected. “For now, with this disease being so
new, we recommend people rely on the National Derby-based Sunscreen Diagnostics’ new
Health Service to provide testing for those that coronavirus lateral flow test – which also uses
need it.” a finger-prick procedure like that described
by PHE – had an accuracy of 98.7%, had been
Who Is The Supplier? validated in China and was already being used
As for the identity of the PHE test manufacturer, in the UK, Ireland, Germany, Spain, Switzerland,
BIVDA said it couldn’t comment at this time. Netherlands, Turkey, UAE, Kuwait and Oman, the
company claimed.
HBW Insight asked industry expert Catherine
Longworth – who recently wrote a piece on “We’ve been working hard to produce a
COVID-19 antibody tests for MedTech Insight – if coronavirus test that can be used at the patient
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side, with capillary blood, easily taken from virus without knowing, or having the issue of self-
someone’s fingertip and diagnose them within 10 isolation.”
minutes,” commented Sunscreen director David
Campbell. Sunscreen’s self-tests – which Campbell said were
“ready to go with clinical data behind it” – had
“There is a big problem with the diagnosis of the already been ordered by “one multinational oil
disease currently because the standard method and gas firm and a cruise liner firm,” with the
of screening is to send samples to the laboratory, manufacturer claiming to be able to produce
which takes a lot of time,” he continued. 500,000 tests a week.
“Meanwhile, someone could be spreading the
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COVID-19 Prompts OTC Sales Restrictions Across Europe
Executive Summary from imposing official restrictions.
Countries across Europe are restricting sales of
OTC drugs in response to COVID-19 to maintain Austria
supply and counteract stockpiling. The approach Austria’s Federal Office for Safety in Health Care
varies widely across the region: countries such as has urged consumers not to stockpile OTC drugs
Germany and France have introduced strict limits, in response to the coronavirus outbreak.
while others, such as the UK and Ireland, have not
ordered official restrictions. HBW Insight presents The regulator said that based upon the latest
an analysis of the actions taken by 14 European information it had from pharmaceutical
countries to the upsurge in demand for OTCs. manufacturers and wholesalers, the supply of
drugs was currently secure.
While it was closely monitoring the situation, the
COVID-19 is spreading rapidly across Europe Federal Office said at this time there was no need
leading to an unprecedented upsurge in demand for Austrian consumer to “hamster away drugs”. It
for popular OTC drugs which can be used to treat has reminded pharmacies to only dispense drugs
some of the virus’ symptoms. in the “necessary quantities.”
While some countries in the region have been hit Belgium
harder than others by the pandemic, stockpiling Belgium’s Federal Agency for Medicines and
of non-prescription products appears to be an Health Products (FAMHP) has introduced limits on
almost universal problem, according to reports OTC sales of paracetamol and warned consumers
from regulators, retailers and the pharmaceutical not to panic buy drugs.
industry.
The agency said it had asked pharmacies – both
Seeking to prevent shortages of OTCs, a number bricks-and-mortar stores and online outlets – not
of national drug regulators have introduced strict to supply more than one pack of paracetamol
limits to the number of non-prescription products per customer. Anyone looking to purchase
which consumers can purchase at any one time, paracetamol in a larger quantity will now require a
while others have urged retailers to be mindful of doctor’s prescription.
depleting stocks too low.
Alongside the paracetamol restriction, FAMHP has
HBW Insight has investigated the response of 14 asked consumers “not to pointlessly stock up on
European countries to OTC drug stockpiling and medicinal products” with stocks of certain OTC
outlined the measures regulators are taking to drugs “selling out rapidly” in Belgian pharmacies.
ensure continued supply.
Consumers should only buy the quantities of
The actions taken vary widely across the medicinal products that they need right now,
region, with countries like France and Germany according to the agency, as depleting stocks could
introducing strict limits on OTC purchases, while put other patients in danger.
others, such as the UK and Ireland have refrained
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Despite the new restrictions, FAMHP reassured Limits Sale Of OTC Analgesics In Response To
consumers that there were still sufficient Covid-19” - HBW Insight, 19 Mar, 2020.)
wholesale stocks of medicinal products in
Belgium, with no shortages currently anticipated. Germany
Due to a significant increase in demand for
Denmark paracetamol in Germany, minister of health
Denmark has introduced restrictions on the sale Jens Spahn has told pharmacies – both bricks-
of all OTC drugs to prevent hoarding. and-mortar and mail-order – to only supply
the drug without prescription if there are no
National drug agency Laegemiddelstyrelsen has suitable therapeutic alternatives. If paracetamol is
ruled that Danish consumers can purchase only required, pharmacies must only supply a limited
one pack of OTCs per active ingredient each day. amount for a short duration of treatment.
The rule applies to both pharmacy and grocery.
Pointing to “bottlenecks” in drug supply chains,
Due to supply problems for OTC pediatric Spahn also told manufacturers and wholesalers
paracetamol, the agency has banned all sales of not to rush to over-supply pharmacies with
such presentations outside pharmacy, specifically paracetamol, a move which would only deplete
for the liquid suspension and suppositories. It stocks further.
said it was acting to ensure children in need could
access the drug. The minister said he wanted to “continue to
ensure a needs-based supply of medicines
“There is a great deal of pressure on demand containing paracetamol.”
from the companies that manufacture
[paediatric paracetamol], and the COVID19 Spahn’s move comes after Germany’s Federal
pandemic is a contributing factor to that,” Institute for Drugs and Medical Devices, BfArM,
noted Laegemiddelstyrelsen director Thomas asked manufacturers and wholesalers not to
Senderovitz. supply drugs “beyond normal needs.” Supplies to
pharmacies should be based on average monthly
France sales volumes for 2019.
France’s drug agency, ANSM, has taken measures
to limit sales of non-prescription analgesics. “According to the information available to BfArM,
there is currently an excessive stockpiling of
“In order to guarantee their availability, from individual market participants with medicinal
March 18 pharmacists will be able to dispense products, which leads directly to an unequal
without prescription only one single pack of distribution,” the agency noted.
paracetamol (500mg or 1g) per patient with no
symptoms, or two packs (500mg or 1g) in the Ireland
event of symptoms of pain and/or fever,” ANSM Ireland’s Healthcare Products Regulatory
stated on its website. Authority has not implemented sales restrictions
on OTC drugs, but has asked consumers “not to
Additionally, online sales of medicines containing seek supplies of medicines over and above their
paracetamol, ibuprofen and/or aspirin were also normal requirements.”
suspended, the agency declared. (Also see “France
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“Doing so,” HPRA noted, “will disrupt existing stock shortages, it is yet to introduce any official limits
levels and hamper the supply of medicines for on purchasing for consumers.
others.”
Netherlands
The regulator said it additional stocks of drugs The Netherlands is yet to place any formal
were built into the Irish supply chain therefore it restriction on the supply of OTC drugs, however,
was unlikely to face supply issues “now or in the local drugstore association Centraal Bureau
near future as a result of any COVID-19 related Drogisterijbedrijven (CBD) has introduced its own
issues.” measures to combat shortages.
“There is no need for hospitals or healthcare Following consultation with Netherlands’ Ministry
professionals to order extra quantities of of Health, Welfare and Sport, the CBD has urged
medicines,” the regulator added, “or for doctors to all drugstores to move paracetamol behind the
issue additional prescriptions.” counter and to limit supply to two packs per
customer.
Italy
Italy’s drug agency AIFA has teamed up with While there were “sufficient” stocks of
industry trade groups to monitor and counteract paracetamol in Dutch drugstores, CBD it was
shortages in the countries pharmaceutical supply taking action after seeing a notable rise in
chain. demand from consumers. “If we take each other
into account, there is enough for everyone,” the
Enrique Häusermann, president of Italy’s generic group stated.
drug manufacturers association Assogenerici,
noted that while production and distribution of Meanwhile, the health ministry said it continued
pharmaceuticals had gone into overdrive in the to monitor drug availability in the Netherlands,
country, the sector was “reacting well.” and internationally. “There are currently no
drug shortages due to the outbreak of the virus.
In particular, the demand for all drugs belonging However, it cannot be ruled out that supply
to the classes of muscle relaxants, anesthetics, problems may arise if trade with China and India
opioids and sedatives had notably increased, is hindered for a longer period of time.”
Häusermann reported.
Norway
“Companies in this our hour of need are showing Norway’s drug agency Statens Legemiddelverk has
a sense of responsibility and unprecedented ordered pharmacies to limit supply of all non-
collaboration,” he noted. “Production has prescription products “to ensure everyone gets
been increased, production lines have been the medicines they need.”
transformed, imports made in record time from
other countries, a frenetic activity that has seen a Pharmacies can now only supply one adult
great collaboration between companies, with the formulation and one child formulation of an OTC
immediate support of AIFA.” product per customer. The agency said the limit
applied to all drugs classified in Norway as OTC.
While AIFA is working closely with the
pharmaceutical industry to prevent drug Informing consumers of the new purchase
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limitations, Statens Legemiddelverk called on the Separately, Spain’s ministry of health has
public to “show solidarity,” adding “don’t buy more published a list of “essential” drugs that
than you need!” manufacturers must continue to supply during the
COVID-19 epidemic. Many OTC drugs are on the
Portugal list, including paracetamol. (More to follow on this
Portugal’s drug agency Infarmed has urged story.)
pharmacies and other retail outlets to limit sales
of all non-prescription products to one pack per Media reports in Spain note that Spain’s military
active ingredient per customer. have begun producing paracetamol – along with
disinfectants – to meet demand. The Centro
“Particular attention should be paid to Militar de Farmacia de Defensa, located in
observing this guidance for all presentations of Colmenar Viejo, is acting on the orders of the
paracetamol,” Infarmed noted. Ministry of Health.
The regulator said it was taking action to Sweden
prevent hoarding of OTC drugs and to ensure all Sweden’s medical products agency,
consumers had access to the treatments they Lakemedelsverket, has called on pharmacies and
needed. other retail outlets to limit the amount of OTC
drugs they sell to individual consumers to prevent
Currently, there were no issues in OTC drug stockpiling.
supply in Portugal, Infarmed noted.
While it had not received reports of disruptions in
Spain drug deliveries due to the outbreak of COVID-19,
Spain’s General Council of Pharmacists has urged the agency said it had seen signs of increased
consumers not to stock up on popular OTCs, such demand for certain drugs at individual pharmacies
as paracetamol, to avoid future shortages. and retail outlets. This has led to the temporary
suspension of certain drugs in product ranges.
The Council noted that the move by France to
limit sales of paracetamol had led to an upsurge “We want to encourage all concerned to do what
in demand for the drug in Spain as consumers they can to counteract excessive purchases of
feared its own country would follow suit. medicines,” said Catarina Andersson Forsman,
Lakemedelsverket’s director general.
While OTC stocks remained high, Spanish
pharmacists would now assess the Switzerland
appropriateness of all paracetamol purchases, Switzerland’s Federal Council has introduced sales
the association noted, while the Council would restrictions for a number of non-prescription
centrally monitor availability of all in-demand products to ensure continued supply for the
OTCs on a daily basis to help control supply. duration of the coronavirus outbreak.
“We must insist that citizens do not stock up on Analgesics such as paracetamol, acetylsalicylic
certain drugs if we want to make them available to acid and ibuprofen are limited to one pack
those who need them most,” commented Council per customer in pharmacies and drugstores.
president Jesús Aguilar. Carbasalate calcium, diclofenac, codeine and
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mefenamic acid are among the other drugs John Smith, chief executive of the Proprietary
limited to one pack per sale. Association of Great Britain, said there had been
in recent weeks an “unprecedented increase in
Valid for an initial period of six months, the demand for paracetamol.”
restrictions are based on Switzerland’s state
supply act, which enables the Federal Council to “PAGB member companies are working incredibly
take measures to ensure supply of essential goods hard to increase supplies and will do all they can
in the event of existing or imminent shortages. to ensure paracetamol products are available in
pharmacies and supermarkets across the UK,”
UK Smith noted.
In the UK there have been reports of shortages of
paracetamol as a result of consumers stockpiling While the Medicines and Healthcare products
the drug. Regulatory Agency is yet to introduce official
restrictions on paracetamol sales, PAGB said it
HBW Insight’s sister publication Chemist + understood some stores were limiting purchases
Druggist says that while pharmacists are having of the drug.
difficulty getting hold of the drug, the UK’s
Department of Health and Social Care insists there “We welcome the measures that retailers are
is no shortage. putting in place to manage demand,” Smith said.
“We urge people to only buy what they currently
Responding to reports of depleted stocks, need.”
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COVID-19 Pandemic: ‘Clean Beauty’ Disruptor Or Reinforcer?
Executive Summary rate of around 5% from 2019, would top $48bn by
Marketing intelligence firms have different ideas 2025.
about how the COVID-19 pandemic will impact the
“clean beauty” phenomenon. That was before the novel coronavirus began
sweeping across the globe, infecting millions,
disabling markets and altering housebound
consumers’ outlook on the world, their health
London-based Mintel Group, Ltd. and New York and the products they rely on, among many other
state-based The NPD Group, Inc. agree the things.
coronavirus pandemic will have transformative
effects on the beauty market. So how will those changed perspectives come to
bear on the clean beauty movement? (Also see
One area to watch, they say, is “clean beauty.” “Cosmetics Market In 2019: ‘Clean’ Beauty Picks Up
Speed As Legislative Reform Efforts Chug Along” -
Clean beauty branched from the “natural” trend HBW Insight, 8 Jan, 2020.)
as an even less defined concept with potentially
greater popular appeal. Analysts from NPD and Mintel have different
views on the subject.
For some brands, clean beauty means mixing
natural and synthetic ingredients to achieve NPD’s Larissa Jensen, vice president and industry
what they deem an optimal balance between advisor for beauty, suggests in a 7 April post that
performance and hazard avoidance. They often “clean beauty, which is already an important trend
publish blacklists of ingredients they refuse to to watch, will be amplified as consumers re-
use due to safety concerns. The lists tend to differ interpret what safety means to them.”
from one brand to the next.
It seems reasonable that after months of rigorous
For others, clean beauty encompasses a range of handwashing, sanitizer use and social distancing
practices, including transparency, environmental in the interest of cleanliness and risk avoidance,
stewardship and/or socially responsible sourcing consumers may emerge from their homes, post-
activities, in addition to safe, natural-leaning pandemic, ready to embrace healthy living in all of
formulation standards. its forms, or anything with “clean” in its name.
The variability and alleged rise in “cleanwashing” On the other hand, the explosion in demand for
makes it difficult to quantify the clean beauty antibacterial soaps and hand sanitizers during
opportunity. the COVID-19 pandemic could serve to remind
the world of the importance of antimicrobial
Forecasts from market watchers tend to equate ingredients and preservatives to kill germs and
clean beauty with natural. Grand View Research, keep products from spoiling.
Inc. predicted last year that the global natural
cosmetics market, growing at a compound annual Cosmetic preservatives, which typically are
20 / June 2020 © Informa UK Ltd 2020 (Unauthorized photocopying prohibited.)GLOBAL BEAUTY
prominently listed among ingredients that clean to accept these ingredients as long as brands
beauty brands eschew, have been coming under provide evidence of efficacy and safety, both
steady fire for years on the basis of purported from a health and environmental perspective,”
safety concerns. Hennigan says.
Many in the sector say industry’s shrinking Further, she says “the arrival of the novel
preservative palette is a greater concern, coronavirus will further push the notion that
potentially making products more susceptible to natural isn’t always better, especially when it
contamination. comes to ingredient safety and shelf life. … More
than ever, consumers will scrutinize ingredient
The trend has regulatory authorities’ attention safety and evaluate the risk of possible product
as well. (Also see “EC Trims Permitted Cosmetic contamination and expiration.”
Preservatives List, Warns About ‘Stigmatizing’ Safe
Options” - HBW Insight, 24 Jul, 2017.) Hennigan suggests that while “clean beauty isn’t
going anywhere,” shifting perceptions could drive
Still, NGOs continue to target industry’s remaining an evolution of the clean beauty concept.
preservative options. (Also see “CIR Panel Not
Changing Its Mind About Parabens Safety, It could be interesting to see what that looks like.
Renewing NGO Accusations Of Bias “ - HBW Despite clean beauty’s superior airs, the case has
Insight, 4 Oct, 2018.) always been that most beauty and personal-care
companies strictly use ingredients they believe
Conversation Changer? to be safe based on scientific consensus and
The COVID-19 pandemic could be a prime regulatory guidelines. So there is no compelling
opportunity for renewed discussion regarding the reason why they all could not claim “clean
virtues of antimicrobial ingredients and the vital beauty” status and stand their ground against any
role that preservatives play in cosmetic products, “cleanwashing” allegations.
building on positive consumer sentiment for hand
sanitizers and wipes and the companies that have Tellingly, “clean beauty” claims have not been
supplied them during the crisis, in many instances targeted by false advertising class actions the
through charitable donations. way “natural” claims on cosmetic products have,
presumably because the former is an even
Mintel’s Clare Hennigan, senior beauty analyst, more ambiguous term than the latter, owing its
states in a 25 March post, “Prior to COVID-19, existence purely to the subjective applications of
natural consumers avoided ingredients such as the brands that pioneered it.
preservatives and artificial ingredients in their
beauty products due to perceived health risks.” If traditional preservatives suddenly become
worthy of use in clean beauty products, could
These days, consumers are relying on not cases be made for the importance of certain
preservatives to extend the shelf lives of products phthalates, surfactants and other ingredients
they are rationing at home, she points out. that clean beauty brands are wont to disparage
despite repeated expert findings supporting their
“With more concern surrounding shelf-stability safe use?
and sanitation across consumer packaged goods
(CPG) categories, consumers will be more willing And if more and more disowned ingredients are
21 / June 2020 © Informa UK Ltd 2020 (Unauthorized photocopying prohibited.)GLOBAL BEAUTY
welcomed back as clean beauty-compatible, will for mainstream companies eyeing clean beauty
clean beauty brands just be … beauty brands? acquisitions. (Also see “Shiseido Bets Big On
‘Clean’ Movement With $845M Drunk Elephant
For now, clean beauty clearly is having Buy” - HBW Insight, 8 Oct, 2019.)
tremendous influence on the market. (Also see
“Ulta Teases Developing Program For ‘Clean A good many in the industry likely are hoping that
Beauty’ Shoppers” - HBW Insight, 18 Mar, 2020.) any renewed faith in preservatives that results
from the COVID-19 global crisis will outlive the
Its lasting power is likely to be a key consideration clean beauty phenomenon.
22 / June 2020 © Informa UK Ltd 2020 (Unauthorized photocopying prohibited.)GLOBAL BEAUTY
For Estee Lauder Companies, COVID-19 Has Changed
Everything And Nothing
Executive Summary Engines In FY 2020 Back Half “ - HBW Insight, 7
Lauder’s business has been thrashed by Feb, 2020.)
COVID-19, but the firm is encouraged that its
biggest growth drivers before the crisis are the However, China began picking up again quickly
same ones carrying it through. in March as new COVID-19 cases fell, consumers
reemerged and retail doors started reopening.
The revival carried Lauder’s Asia-Pacific business
to net sales of $928m, a decline of just 1%, like-
If normalcy is what the world craves right now, for-like, making the region its best performer for
Estee Lauder Companies Inc.’s fiscal 2020 third- the quarter.
quarter performance offers the promise of a
vaguely familiar global beauty market post- In comparison, the Americas declined 23% to
pandemic. $892m, and Europe, the Middle East and Africa
slumped 5% to $1.52bn.
Albeit a much leaner one.
What were Chinese consumers buying from online
On 1 May, the New York-based multinational channels while sheltering at home, and what do
posted a 9% decline in its third-quarter sales, or they seem to be prioritizing as they venture out
11% reported, to $3.74bn. again to shop? Skin care.
Lauder’s third-quarter results contrasted sharply Lauder’s skin-care growth was roughly flat in the
with its financials reported three months earlier, third quarter in constant currency terms, with
when Q2 sales broke organic growth records at sales totaling approximately $1.72bn. The next-
the company, driven by avid prestige skin-care best performance came from fragrance, which
consumption and continued explosion in Asian was down 10%, while makeup sales fell 20%.
markets, particularly China. (Also see “What A
Difference A Quarter Can Make: Estee Lauder Across categories, Lauder’s online business has
Companies’ Q3 Results” - HBW Insight, 6 May, taken off during the shutdown, growing at a
2020.) double-digit rate.
Obviously, a lot has happened since. “We have long believed in the excellent growth
prospects of online and have been investing in
At the start of Lauder’s third quarter, end of this dynamic channel for years. Our presence is
calendar 2019, stores in China were rapidly global with online sales in over 50 countries. We
closing and consumers retreating indoors to are highly diversified with over 300 brand.com
escape the outbreak. Lauder’s sales in the sites, over 60 brand boutiques on platforms such
country plummeted accordingly, as anticipated by as Tmall and over 1,700 retail.com doors,” Freda
company leadership in the firm’s second-quarter said.
earnings call in February. (Also see “Estee Lauder
Companies: Coronavirus Will Drag On Growth The COVID-19 crisis, out of necessity, has only
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deepened Lauder’s focus on this dimension of its Worse Before It Gets Better
business. Of course few foresaw a pandemic of such scope.
Freda provided the example of Lauder’s Freda noted, “The magnitude of the impact on our
namesake. “The Estée Lauder brand expanded business was far greater than initially anticipated.”
its online sales strategy to include a broader
array of social selling activities, from live shows Lauder provided no formal guidance for the full
on Instagram focused on self-care with global fiscal year.
spokesmodels to live streaming from its brand
sites with global and local mega-parties, to “History has not provided any truly comparable
live chats with consumer on its brand site, to recent events we can use as guidance concerning
personalized 1:1 outreach through various the effects of the global pandemic,” Freda said.
communication tools.”
Chief financial officer Tracey Travis noted, “At
The CEO noted, “I’m especially encouraged by this point in the fourth quarter the majority of
the online growth we have seen from the ageless our distribution, with the exception of China and
consumers. Globally, our brands are seeing a few other markets, remains closed. And while
increases in new consumers of 3 to 4x. Some we are encouraged by the weekly acceleration
rates are even higher. For La Mer in the United of our global online business, we do not have
Kingdom, new consumer acquisition is higher by enough visibility into the progression of the rest
5x, while in Thailand, across all brands, it is higher of the business until more retail doors open in the
by 8x.” coming months.”
Lauder believes new generations of e-commerce Travis further cautioned that store traffic could
shoppers will stay on the digital channel once the resume at a crawl initially, as some consumers
COVID-19 dust clears. choose not to take their chances until a COVID-19
treatment or vaccine is developed.
Skin care, digital and Asia/Pacific – China
specifically – were leading growth engines for “Unlike the third quarter where many of our
Lauder before the COVID-19 crisis, so their global doors were opened until the last month
endurance suggests that the post-pandemic world of the quarter, we expect that most of our retail
may be tuned to many of the same rhythms as distribution will remain closed for much of the
that which preceded it. fourth quarter, and consumer traffic will likely
recover slowly in brick-and-mortar,” the exec said.
In Freda’s words, “the best drivers for our growth
before the crisis are the one which seem to be The result is likely to be greater sales and margin
coming stronger out of the crisis.” declines in the fourth quarter, according to Travis.
He estimated that the global prestige beauty
This validates Lauder’s strategic plan and confirms market will sink by double digits in the second half
consumers’ “passion” for its prestige beauty of Lauder’s fiscal year.
portfolio, the CEO said.
24 / June 2020 © Informa UK Ltd 2020 (Unauthorized photocopying prohibited.)GLOBAL BEAUTY Fewer, Bigger Innovations our innovation on hero franchises, meaning Another remark from Travis evokes the specter of [those] that have high consumer loyalty and high lasting COVID-19 effects. “We are also mindful of consumer awareness. Because in this moment of the risk of a global recession and a slow recovery transition, in the middle of the crisis and out of in employment impacting consumer sentiment the COVID crisis, we clearly see the consumers are and discretionary spending,” he said. interested in the brands they trust.” With consumers potentially clinging tight to their Lauder already has been implementing cost- wallets, smart, well-selected innovation will be cutting measures, amounting to $250m in savings imperative. in the third quarter. According to Freda, “We are focusing our ratio on It plans to cut further in May, including advertising fewer and bigger innovation. We are focusing our and promotion reductions and employee actions, innovation on what works better online in this to bring down operating expenses by $500m to transition or trying to pivot online where possible $600m in the fourth quarter. because of the closures. And we have focused 25 / June 2020 © Informa UK Ltd 2020 (Unauthorized photocopying prohibited.)
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