5 Cosmetic Startups Researching Industry Trends

The original article is published here.

Rapidly evolving consumer preferences and technological advancements are causing a dynamic transformation in the cosmetic industry. A significant shift towards clean beauty, personalized skincare, and sustainable packaging can be seen as new trends in the beauty industry. Consumers are demanding products free from harmful chemicals like parabens, sulfates, and phthalates, opting instead for formulations that use natural and organic ingredients.

Personalized skincare is also rising, with consumers seeking products tailored to their skin types and conditions. Additionally, there is a growing emphasis on sustainability, with brands focusing on eco-friendly packaging and ethically sourced ingredients.

However, challenges like the high cost of natural ingredients can limit product accessibility and cause inconsistency in the efficacy of clean beauty products. Personalized skincare requires sophisticated technology and data analysis, which can be expensive and complex. Moreover, sustainable packaging solutions often struggle to balance environmental benefits with practicality and cost-effectiveness.

Considering the industry’s immediate problems and challenges, we looked for emerging cosmetic startups that were trying to solve them and came up with this list.

1. Beauty Tech

Beauty Tech is addressing the need for personalized beauty and wellness solutions tailored to individual genetic profiles. The startup has developed an app integrating genetic testing with personalized cosmetics and nutrition sets.

The app employs a unique algorithm for genetics-based product selection, positioning itself as a marketplace for biohacking.

Natalia Feldberg is the co-founder and CEO of this startup. She is an Entrepreneur in the production, development, and sales areas of cosmetology and parapharmaceuticals. Beauty Tech raised RUB5M in its latest seed round on Jun 21, 2021.

2. Parallel Health

The skincare industry faces a major challenge — the lack of truly personalized products tailored to each individual’s unique skin microbiome and biology. People often struggle to find solutions that properly address their skin type and concerns.

To solve this, Parallel utilizes advanced genomics, skin microbiome science, and machine learning to offer comprehensive, precision skincare.

A key ingredient Parallel Health leverages is phages, also known as bacteriophages. Phages are tiny viruses that can selectively target and disable specific bacteria strains.

The startup technology identifies bacteria based on matching genetic sequences. This allows phages to seek out and neutralize harmful bacteria while leaving beneficial bacteria intact.

Phages are natural antimicrobials and promising ingredients for targeted skincare applications. By selectively deactivating problematic bacteria, phages may help rebalance the skin microbiome. Their specificity makes them a potentially powerful component of precision skincare regimens tailored to each individual’s unique skin microbiology.

The startup claims Phages to be 99.9% effective In treating skin issues.

Its CEO and Co-Founder, Natalise Kalea Robinson , attended Stanford University Graduate School of Business.

Parallel Health has raised $2M in funding over two rounds. Their latest funding came from a Pre-Seed round on July 31, 2022.

3. Exponent Beauty

Active ingredients in skincare products degrade, compromising their effectiveness over time. On the average usable lifetime of the product, these ingredients degrade by 40% within eight weeks.

Exponent Beauty has developed a solution with its patented technology that preserves ingredients in powdered form. The user activates the powder during application using a multi-weight Hyaluronic Hydrator (Quadruple Hydration Hyaluronic Serum).

This process ensures that the active ingredients, such as Retinol, Vitamin C, and CoQ10, are at peak potency when applied to the skin.

Compared to traditional skincare products, Exponent Beauty’s technology maintains ingredient efficacy and freshness, providing users with more effective and longer-lasting benefits. The materials used to create exponent skincare systems are sustainable, recyclable, and eco-friendly.

Liz Whitman is the founder and CEO of this startup. She holds an MBA from the Harvard Business School. Whitman was co-founder of startups like Lewis Albert Design LLC and Manicube.

Exponent Beauty’s latest seed funding round was on Jan 1, 2021.

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4. Cay Skin

The market lacks strong sun protection options that do not compromise skin health, inclusivity, or environmental sustainability. Many sunscreens can clog pores, leave a white cast, or contain ingredients harmful to marine ecosystems.

To solve these problems, Cay Skin developed a line of sun care products that are inclusive and suitable for all skin types and tones. Its key product, the Isle Glow Face Moisturizer SPF 45, contains a blend of ingredients like sea moss, nectar, niacinamide, ferulic acid, and watermelon fruit extract, providing hydration, antioxidant benefits, and effective UV protection.

The products are vegan, cruelty-free, silicone-free, non-comedogenic, and dermatologist-tested. Furthermore, the company emphasizes sustainability, with 75% of its primary product packaging comprising at least 30% post-consumer recycled content.

Unlike many sun care products, Cay Skin’s offerings are designed to be gentle, effective, and suitable for diverse skin types while prioritizing ecological responsibility.

CEO Karen Barner leads this startup with her experience in similar roles with companies like Aspirational Beauty Marketing, LLC, and WBCD Hair and Body, LLC. She also handled the responsibilities of the President (Barner Consulting) and Senior Vice President (Guthy-Renker).

Barner holds a Bachelor of Science in Business Administration from California State University, Los Angeles.

Cay Skin raised its latest funding of $4.1 Million through a seed round on Mar 8, 2022.

5. Shea Yeah

Shea Yeah is on a mission to revolutionize how we combat dry skin. It is shifting away from water-based moisturizers that can evaporate quickly, leaving skin dry again. This startup leverages the natural, intensive moisturizing properties of shea butter, enhanced with other potent botanicals, to deliver long-lasting hydration without a drop of water.

They further ensure that the shea butter and Swiss herbs are sourced from the regions where the plants naturally thrive.

By celebrating the stories behind these ingredients and their intrinsic value for skin care, Shea Yeah offers customers a connection to nature’s bounty while promoting sustainability and ethical sourcing practices.

It was founded by Sandra Fischer , whose passion for sustainable and effective skincare solutions drives the startup’s vision.

In May 2022, Shea Yeah received an Angel investment of €110K.