Continuous monitoring required to respond to the ever-changing global regulations

Reach 24 Consulting Group Holds '2024 Global Chemical Regulation Conference' for the first time in Korea

"Global regulations are constantly changing, so we need to monitor them constantly. In the U.S., there are a lot of class-action lawsuits from consumers even when the government fines companies for greenwashing. You must understand the regulatory diversity and culture of each country. The goal may be the same, but the direction may be different. I don't think any industry knows much about sustainability right now. Chemical regulations are becoming more stringent and it is connected to the cosmetics industry." With the main theme of 'cosmetics regulation', cosmetics regulatory experts from Korea, China, Japan, ASEAN, and the United States gathered at the conference held at the Yangjae aT Center Grand Hall on September 10. Now in its 16th year, the CRAC series has been held in China and the EU, but from 2024, it will expand its themes to regions and themes in Korea and Japan. This is the fifth year that Reach 24 Korea has entered the Korean market. The first presentation was made by Lee Jung-pyo, head of the Safety Evaluation and Research Department at the Korea Cosmetic Industry Research Institute. The Ministry of Food and Drug Safety plans to introduce mandatory cosmetics safety evaluation for companies in 2028 in order to transition to a safety evaluation system that emphasizes the voluntary responsibility of companies.

However, many of the domestically developed cosmetic ingredients are natural plant extracts with diverse components and no toxicity data, so the development of next-generation safety evaluation methods is required," he said, suggesting a Threshold of Toxicological Concern (TTC) approach. The basic principle of TTC is based on the assumption that all chemicals are highly unlikely to exhibit meaningful systemic toxicity under the TTC. In other words, it is a method of proving that the substance is safe by classifying it according to the Cramer classification system. This evaluates chemical structure of a substance and estimates the TTC accordingly and suggests that the human exposure of the substance. The Cramer classification system classifies the substances evaluated into three groups (low, medium, and high safety concerns) based on the chemical structure of the substances being evaluated and comparing them with the toxicity information in the database. He then introduced the case of safety evaluation of Paeonia Lactiflora Root Extract using the TTC approach. Director Lee concluded the day's presentation with a suggestion on the safety evaluation of natural extracts. He said, "Since the human exposure to the constituents of natural extracts is very low, it is judged that the limitation due to the lack of toxicity data can be overcome by using the safety prediction method using TTC. For components exceeding TTC, the toxicity value is predicted and evaluated using the READ-ACROSS method etc., and in the case of genotoxicity, the in vitro test method has been developed, so it is possible to use it to evaluate the mixture.

In the case of ingredients whose safety is not ensured even after the final evaluation, safety can be secured without additional toxicity information by adjusting the concentration used in the product so that the amount of human exposure is less than the TTC."

"Although the scale, product diversity, and product quality of China's cosmetics industry are continuously improving, China's cosmetics industry still has the potential to stagnate due to the shortage of mid- and high-end products, declining consumer demand, and slowing industry development prospects," he said. As of September 2024, there are 6,481 Chinese cosmetics manufacturers (excluding Hong Kong, Macao and Taiwan), concentrated in the southeast region. In particular, there are 3,272 companies located in Guangdong Province, accounting for 50% of China's total. In China, 16 regional cosmetics industrial parks have been established, including beauty towns. Sales in China in 2023 were 414.17 billion yuan (about $59 billion), up 5.1% year-on-year. 71.3% of the Chinese consumers cited product safety as a major consideration when purchasing cosmetics, followed by 64.6% citing quality. Peng Zhang, Deputy Director of the Department of Cosmetics, said, "China is supplementing the regulations on the safety evaluation of cosmetics by continuously improving scientific and standardized cosmetic product safety evaluations, strengthening the capacity to ensure product quality and safety, supporting the professional manpower training system, and promoting the continuous improvement of the safety evaluation system.

"Meanwhile, CAFFCI, which celebrates its 40th anniversary this year, collects usage data of 11,662 types of raw materials and is building a raw material data sharing platform.

Ronie M. Schmelz, a member of the Independent Beauty Association (IBA) K&L Gates, said consumer class actions are on the rise, against Contaminants and False Advertising-(Natural, Clean, Plant-Based, Efficacy Claims, Free Of, Cruelty Free,? Other Environmental Claims, such as the phrase "Reef Friendly”); these are lawsuits that claim greenwashing. For example, because the product does not contain collagen or collagen amino acids, but contains plant-based amino acids, one company paid $9.2 million in settlement funds and $3.9 million (5.2 billion won) in attorneys' fees and discontinued the product in 2022.

Greenwashing was also discussed. Greenwashing is the act of providing misleading or demonstrably false information to the public or investors about the environmental impact of a company's products and operations, or the practice of deceiving a product as eco-friendly through branding, packaging, or mislabeling. He said the FTC Green Guides are coming soon to help companies avoid environmental claims that could lead to misleading comments about their products, services or packaging.

The Federal Trade Commission Act was also introduced. The law prohibits unfair or deceptive acts or practices. A false or deceptive advertisement is defined as when the statements or omissions contained in the advertisement are likely to mislead consumers in reasoning to act reasonably in the situation, and the information has a significant impact on the consumer's decision to purchase or use the product.

The evaluation is based on reasonable consumer perceptions. Prior substantiation is required for the claim.?Bhashkar Mukerji, Vice President of ASEAN Cosmetics Association (Givaudan, APAC RA & Head of Quality and Safety), introduced the ASEAN Cosmetics Regulatory Framework. ASEAN consists of 11 countries: Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, Vietnam, and Timor-Leste. ASEAN's beauty and personal care market revenue in 2023 is expected to reach $33.1 billion (about 44 trillion KRW), with a CAGR of 3.31% from 2023~2028.

The ASEAN Cosmetic Directive (ACD) is modeled after the 6th edition of the EU Cosmetics Directive and was agreed on 2 September 2003. "The ACD is a guideline, not a mandate," he said, adding that the purpose of the ASEAN Cosmetic Safety Guidelines is to require a 'human health safety assessment of the finished product, its ingredients, chemical structure and exposure levels' and that the safety assessment should be carried out by a qualified professional defined as a 'Safety Assessor'.

"ASEAN is currently discussing risk-based safety assessments for CMR (carcinogenic, mutagenic and reproductive toxicity) substances, which is different from Article 15 of the EU Cosmetics Regulation," he said. The ASEAN Harmonized Cosmetic Regulatory Scheme (AHCRS) was also explained.

Kenkichi Fujii, RA and Head of R&D Strategy at KAO, Japan, said: "Sustainability is the only path to the future society, and we need to be globally aware of environmental change. It's important to respect different cultural backgrounds and understand global regulatory differences." He then introduced the Strategic Approach to International Chemicals Management (SAICM), which is commissioned by the United Nations Environment Programme (UNEP). SAICM is a global platform for improving risk management systems in the chemical and cosmetics industries. More than 190 countries are members. SAICM is being implemented from 2006 to 2030. "SAICM's approach promotes the harmonious development of international chemical management and helps countries develop safer and more sustainable chemical management systems," he said.

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He also shared Kao's experience of entering sustainability operations in earnest in 1995. For the third year in a row, CAO received the highest ratings from the Carbon Disclosure Project (CDP) in the categories of climate change, water and forest resources. CAO conducts a 'Life Cycle Assessment' (LCA) on all of its product portfolios, calculating and visually displaying carbon emissions in every step.? Kao Corporation is a chemical company founded in 1890 that manufactures and sells detergents, cosmetics, and food products for household and business use. As a subsidiary, it owns Kanebo COSMETICS (カネボウ, Kanebo COSMETICS). ? Sohn Sung-min, CEO of Reach 24 Hour Korea, presented 'Green Chemistry and Sustainability Approaches in the Cosmetics Industry'. CEO Sohn Sung-min said, "Since many raw materials in cosmetics are made up of chemicals, the impact of sustainability regulations on the cosmetics industry is bound to increase. The cosmetics industry is also applying chemical hazard assessment tools," he said, adding, "The evaluation method in the green chemistry industry is becoming more and more difficult."

He introduced the Global Chemicals Management Framework adopted by the United Nations in Germany in September 2022, the European Union's Green Deal and Circular Economy Strategy, and the U.S. EPA's Safe Choice Program. Chemical hazard assessment tools include Green Screen and ChemFORWARD. In the case of labeling, L'Oréal formed the 'EcoBeautyScore Consortium' with 71 cosmetics companies, including Amorepacific.? L'Oréal Canada plans to make 100% of its products eco-designed by 2030.

Sohn said, "The cosmetics industry is actively accepting regulations related to sustainability and environmental protection, and related regulations are expanding around the world. Enterprises need to adopt and prepare relevant policies and assessment tools." Mona Zhang, a toxicologist at Liichi24 Consulting Group, introduced the "NCI Registration Process and Market Entry Status in China". The Inventory of Existing Cosmetic Ingredients in China (IECIC) was 8,972 as of 2012. If you search for cosmetic ingredients on CHEMLINKED, there are 30,661 items, including 16,900 from China, 3,268 from Japan, 2,414 from ASEAN, 1,542 from South Korea, 2,723 from the EU, and 1,973 from India. As of May 31, 69 NCIs were used in 2,789 cosmetics in China. In the first half of 2021~2024, Chinese local companies will increase plant extracts by 24.2%,? Peptides and oligopeptides accounted for 13.1%, ferment products accounted for 9.3%, and others accounted for 53.27%. Overseas companies accounted for 44.6% of polymers, 7.1% of plant extracts + fermented products, and 48.3% of others.

Chinese consumers preferred functional ingredients with antioxidant effects. In particular, ingredients such as NMN (Nicotinamide Mononucleotide), which is used as a health supplement in Japan and the United States, are also in the spotlight as cosmetic materials.

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New Cosmetic Ingredient (NCI) is defined as "the first natural or artificial ingredient to be used in cosmetics in China, and the method of use, the purpose of use, and the part of use must all fall under the category of cosmetics." In other words, it is a raw material that is registered as NCI but not listed in IECIC or is listed in IECIC but is intended to change the purpose of use or the concentration of use to a higher level. However, ?△Ingredients that are already listed in IECIC 2021, △Prohibited ingredients or similar ingredients, and △Ingredients that deviate from the definition of cosmetics are not NCI.

"Biotech skincare is growing as consumers look for ingredients that promise deeper penetration for increased efficacy and long-lasting results," said Hwa-Joon Lee, senior analyst. As a result, genetic recombinant technology is playing an important role in biotech beauty by producing high-purity, sustainable ingredients through genetic engineering. To maintain a competitive edge, brands need to emphasize the technological superiority of biotech-derived ingredients, such as fibronectin for rapid hydration and recombinant collagen for improved absorption.

Trends in recombinant technology include △chronic, low-level inflammation According to Infammaging, which is theorized to cause cellular dysfunction and accelerate tissue aging, 0.45% Naringenin reduces IL-6, a key marker that regulates inflammatory response, more effectively than 2.5% niacinamide ?△It contains pHCA (p-hydroxycinnamic acid), which targets senescent cells and delays wrinkle formation, which inhibits cell aging in 15 minutes and reduces senescent cells by 44.7% in 24 hours ?△Mitophagy, which removes and supports repair of defective mitochondria, becomes less efficient over time, but it promotes mitophagy and helps protect cells from age-related cell deterioration. Urolithin A molecule-containing claims have been introduced.

Makeup Consumers are also looking for ingredients that are beneficial to their skin. In other words, makeup consumers' demand for skincare effects is increasing, so it is necessary to consider additional skincare effects such as wrinkle improvement, whitening, and elasticity in anti-aging make-ups. In fact, in recent years, antioxidants, including vitamins, have been increasingly used in makeup that claims to be anti-aging. New antioxidant botanicals such as Malpighia puncicifolia (acerola) have also emerged.Effective scalp care ingredients have also become important for hair care. The skinification trend in haircare is likely to reinforce this trend.

The scalp care market is dominated by the APAC region. Recently, the scalp care ingredients that have been attracting attention ?are △Piroctone olamine, a mild anti-dandruff ingredient, and △Niacinamide, which moisturizes and nourishes the scalp, and Biotin, which soothes inflammation and promotes overall scalp health. Consumers are also interested in microbiome care for scalp health. Given this growing interest, the potential of probiotics, prebiotics, postbiotics, peptides, marine active ingredients and botanicals needs to be identified.?

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