Cosmetics Industry Trends 2025
The growing demand for sustainable, personalized, and scientifically backed solutions is driving brands to invest in advanced research and technology. Estée Lauder’s partnership with Microsoft to create an AI Innovation Lab is one example. The lab aims to accelerate product development while enhancing customer experiences through data-driven personalization. Such initiative highlights how technology and eco-friendly practices are shaping the future of beauty.
Despite these advancements, the industry still faces challenges, including stricter regulations on ingredient transparency, environmental impact management, and the integration of AI and biotechnology.?
This growing demand for multifunctional and sustainable products makes it harder to balance innovation with practicality. For example, developing biodegradable beauty products requires advanced materials science, which can be costly and time-consuming.
While this article explores three key trends, the original discusses five.
Trend 1: Revitalizing Skin with Algal Extracts for Hydration and Youthful Glow
While synthetic compounds are often effective, they frequently raise health and environmental concerns, compounded by the growing pressure to reduce ecological footprints and comply with increasingly strict regulations. Algae extracts have emerged as a promising solution, offering a unique blend of performance and sustainability that aligns with these trends. With its use in cosmetics projected to grow at a CAGR of 9.6% from 2024 to 2031, algae extracts are addressing regulatory demands and capitalizing on the shift towards eco-friendly, high-performance ingredients.?
Key Innovations in Algae Extracts for Skin
Replacing Hyaluronic Fillers and Corticosteroids: Naturally Boost Hyaluronic Acid and Reduce Inflammation
Innovation - Fermented algae and Codium fragile extract
Market Potential - Addresses the growing demand for gentler alternatives to salicylic acid and AHAs
Application - Lotions, creams, and wash masks
The side effects of salicylic acid and AHAs, such as irritation and redness, limit their use in skincare products. As a result, there's a growing demand for safer and more effective natural alternatives.
Ami Cosmetic and Durae Corporation have created a natural blend using fermented algae and Codium fragile extract. This blend, with concentrations ranging from 0.001 to 10%, boosts hyaluronic acid production and reduces nitric oxide levels, providing moisturizing and anti-inflammatory benefits. This innovative formula can be used in lotions, creams, and wash masks, offering a gentle yet effective solution for skin care.
A Safer, Long-Overdue Alternative to Retinol for Skin Whitening and Anti-Aging
Innovation - Chlorella protothecoides peptides
Market Potential - Capitalizes on the need for retinoid alternatives in the EU market
Application - Creams, foams, cleansers, sprays, and powders
The strict EU retinoid regulations have led to a higher demand for alternative ingredients to combat wrinkles and fine lines.
Once again, Korean companies, like ?Daebong Life Science and Daesang Corporation, take the lead in developing an innovative solution using Chlorella protothecoides peptides. This natural extract helps lighten skin by blocking the enzyme that produces melanin. It also reduces wrinkles while boosting collagen production.
This versatile microalgae-based extract can be used in creams, foams, cleansers, sprays, and powders. Daebong LS has introduced a product called GoldRella peptide, which features this patented chlorella extract with over 60% plant protein, offering a powerful and natural approach to skincare.
Trend 2: Promoting Hair Growth and Scalp Health with Plant Root Extracts
While traditional chemical-based ingredients in hair care have been widely used, they often carry risks of irritation and potential long-term side effects. In contrast, plant root extracts like licorice root, ginseng, and turmeric are gaining attention as a safer, more biocompatible alternative. Their natural origins make them gentle on the scalp and hair and align with growing consumer demand for cleaner, more sustainable products.
As the cosmetic industry shifts toward herbal formulations, this approach represents a strategic move to meet market demand for effective, natural hair care solutions. With the global plant-based cosmetics market projected to grow at a CAGR of 6.7% from 2024 to 2031, this trend underscores the ongoing transformation toward clean beauty and improved product performance.
Key Innovations in Plant Root Extracts for Healthy Hair
Herbal Powder Blends: A Gentle Alternative to Zinc Pyrithione for Acne and Dandruff Without Irritation or Dryness
Innovation - Herbal Powder Blend with Organic Acids and Active Ingredients
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Market Potential - Meets the demand for natural alternatives to conventional antimicrobial ingredients like zinc pyrithione and selenium sulfide
Application - Shampoos, serums, and scalp treatments
Conventional antimicrobial ingredients used in hair care to control dandruff (M. furfur) and acne (P. acne) bacteria can be harsh on the scalp and often don't offer sustained benefits. In response, Tranlab, in collaboration with PEP Technologies (Indian brand "Mcaffeine"), has developed a novel solution using a blend of ground herbal powders such as coffee, tea, and cocoa combined with organic acids and active ingredients like salicylic acid, ginger root extracts, sophorolipids, and phospholipids.
An Alternative to Synthetic Dyes: Preserve Hair Color and Boost Melanin with Fermented Plant Extracts
Innovation - Fermented Monoginasan Leaf, Kava Root, and Red Bean Extract for Hair Color Preservation
Market Potential - Addresses the need for natural solutions to prevent hair color loss and graying
Application - Shampoos, hair serums, and scalp treatments
As we age, hydrogen peroxide builds up in hair follicles, diminishing melanin production and leading to hair graying. Yegreena?and?HnB Well?have introduced a fermented extract composed of Monoginasan leaf, kava root, and red bean to combat this.
The Monoginasan leaf helps suppress hydrogen peroxide activity, while kava root and red bean increase melanin production. Additionally, kava root’s kavalactone compound soothes and stabilizes the scalp, and red beans, rich in vitamins B1, B2, A, and minerals, provide nourishment.
This unique blend offers a synergistic effect, increasing tyrosinase activity and protecting hair from external stressors. It is ideal for shampoos, serums, and scalp treatments to prevent hair color loss and promote natural hair health.
Trend 3: Fermented Ingredients for Reducing Hyperpigmentation and Calming Inflammation
While commonly used, Ingredients like zinc oxide often fall short in efficacy and skin health benefits. In response, fermented plant extracts derived from roots, leaves, fruits, and bark are gaining traction as a safer and more effective solution. These extracts offer enhanced biological activity without the risks associated with chemical-based compounds.
However, conventional extraction methods, including natural fermentation, often struggle to yield high levels of active ingredients, limiting their functionality. To overcome this, the industry is innovating with new techniques to maximize the potency of these extracts. Additionally, underutilized plant parts like peels, which are usually discarded, are being explored for their potential in cosmetic formulations.
As consumer demand for natural and effective products continues to rise, the cosmetics industry embraces this trend, paving the way for innovative and eco-friendly formulations.
Key Innovations in Fermented Ingredients for Improving Skin Health
An Effective Alternative to Retinol and Hydroquinone: Fermented Pine Needle Extract for Anti-Wrinkle, Whitening, and Moisturizing Serums and Creams
Innovation - Fermented Pine Needle Extract
Market Potential - Addresses the demand for multifunctional ingredients with anti-wrinkle, whitening, and moisturizing effects
Application - Serums, creams, and moisturizers
Pine needles have long been known for their medicinal properties, containing terpenes with antibiotic, anticancer, and blood pressure-lowering effects. Building on these natural benefits, Daebong Life Science and Universal Corporation Limited have developed a fermented extract of pine needles that enhances its skincare potential.
This innovative ingredient offers multiple skin benefits by fermenting pine needle extract with lactic acid bacteria at 20-60°C for 2-10 days. It boosts hyaluronic acid production for improved moisture retention, inhibits tyrosinase for skin brightening, and reduces wrinkles by inhibiting elastase. Additionally, it provides anti-inflammatory effects by reducing nitric oxide levels and helps control sebum production, making it ideal for use in serums, creams, and moisturizers for comprehensive skin care.
A Gentler Alternative to AHA and Adenosine: Strengthening Skin Barrier and Moisturization with Hascarf, Sagebrush, and Calamus Perilla
Innovation - Synergistic Blend of Hascarf, Sagebrush, and Calamus Perilla
Market Potential - Offers a stable and gentler alternative to AHA and adenosine in skincare formulations
Application - Lotions, serums, and barrier creams
Alpha hydroxy acids (AHA) and adenosine are commonly used in cosmetic products to stimulate collagen synthesis and support epidermal keratinization. However, these ingredients often become unstable when exposed to light and heat, leading to potential skin irritation.
To solve this, Dermalab and Biocostech created a blend of hascarf, sagebrush, and calamus perilla. This combination strengthens the skin barrier, helps regenerate skin cells, and moisturizes, offering a gentler, more stable option for skincare products like lotions and serums aimed at improving skin health.