How the Cosmetic Industry has evolved through time. Part III

The Future of Sustainable Cosmetics

Sustainable Cosmetics or Green Cosmetics, as they are often called, are projected to grow at a 15% annual growth rate, while the personal care and cosmetics industry will be growing at a 5% yearly growth rate. In other words, the former will be growing three times faster than the latter.

This means that the manufacturers most likely will be shifting the production of their cosmetics to sustainable cosmetics for its promising future. This is good news for the consumer and our planet.

Manufacturers shifting to sustainable cosmetics production have a promising future.

The growing interest in sustainable cosmetics has had a significant effect on the cosmetics market. With an increasing number of consumers and retailers demanding cosmetics with natural or sustainable ingredients, the green cosmetics market has been experiencing a tremendous annual growth rate. By 2025, the organic beauty market will reach $25.11 billion.

Within the personal care industry, the oleochemicals market is increasing as cosmetic manufacturers continue to turn away from petrochemicals. Fatty acids, in particular, should experience boosts on the green side of the market, considering that they accounted for 57 percent of the total oleochemical product demand in 2013.

The Asia-Pacific region is an area of particular interest for this market since the region accounted for 41.9 percent of the total oleochemicals market in 2013 because of its abundance of raw materials and large consumer base. Both figures are unsurprising considering the quantities of bulk cosmetic glycerine regularly exported from the region.

As petrochemicals continue to experience volatility in the market, turning to sustainable material sources may be the best long-term decision for cosmetics manufacturers worldwide.

Key trends shaping this industry

Increased Demand for Sustainable Products

• The demand for natural, cruelty-free, and environmentally responsible cosmetics is growing, especially among younger consumers like Gen Z.
• In 2023, a significant portion of U.S. consumers highlighted the importance of using 100% natural ingredients and cruelty-free practices in their beauty products.

Focus on Sustainable Packaging and Ingredients

• There is a rising preference for products with recyclable, biodegradable, or refillable packaging to reduce environmental impact.
• The demand for non-toxic, natural ingredients is increasing as consumers become more aware of the health implications of synthetic additives.

Ethical Sourcing of Ingredients

• Brands are prioritizing the ethical sourcing of ingredients to meet consumer demand for transparency and accountability.
• Ethical sourcing ensures fair labor practices and environmentally friendly ingredient procurement, minimizing deforestation, biodiversity loss, and pollution.

Returnable Packaging Initiatives

• Programs like Sephora and Ulta's "Beauty Repurposed" offer in-store recycling bins for cosmetic packaging, ensuring proper disposal and recycling at the end of the product life cycle.

Regionalization of Production

• Localizing production and sourcing materials regionally can help reduce transportation-related emissions, which account for 30-50% of a company's carbon footprint.

Personalization and Digital Sustainability

• Innovative concepts like LipLab's on-site personalized lipstick creation minimize waste and reduce supply chain costs.
• Digital tools like sustainability assessments from companies like EcoVadis help brands evaluate and improve their suppliers' sustainability efforts.

As the sustainable beauty movement continues to gain momentum, driven by consumer demand and environmental awareness, the cosmetics industry is adapting its practices to meet these evolving expectations. The future of sustainable cosmetics looks bright, with brands, retailers, and consumers working together to reduce the industry's environmental impact and promote ethical, eco-friendly beauty solutions.

New technologies emerging for sustainable cosmetics

The cosmetics industry is witnessing the emergence of several innovative technologies aimed at enhancing sustainability. Here are some of the key developments:

1. Plant-Based Ingredients and Upcycling

• Shift to Plant-Based Ingredients: Many cosmetic companies are moving away from petroleum-based raw materials to plant-based alternatives. This trend is driven by consumer demand for natural ingredients and reduced environmental impact.
• Upcycling: Waste materials from various industries are being repurposed into cosmetic ingredients. For example, companies like Palmless and NoPalm are using fermentation techniques to create alternatives to palm oil, reducing reliance on deforestation-linked products.

2. Bio-Based Packaging

• Innovative Materials: Companies are exploring bio-based feedstocks for packaging, such as wood chips and agricultural fibers. Finnish company Sulapac is a pioneer in creating packaging materials from wood waste and plant-based binders, offering a sustainable alternative to traditional plastics.

3. Carbon-Capture Technologies

• Sustainable Ethanol Production: Coty, in partnership with Lanzatech, is producing sustainable ethanol from industrial carbon emissions, which will be used in fragrances. This approach minimizes the need for agricultural land and reduces the overall environmental footprint of products.

4. Precision Fermentation and Biotechnology

• Alternative Ingredients: Companies like Geltor and Modern Meadow are using precision fermentation to create animal-free collagen and other proteins, marketed as sustainable and vegan. This technology allows for the production of high-quality ingredients without the environmental costs associated with traditional animal farming.

5. Smart and Connected Packaging

• Serialized QR Codes: Connected packaging with QR codes enables brands to provide consumers with detailed information about product sustainability, sourcing, and recycling instructions. This transparency helps consumers make informed choices and encourages responsible disposal practices.

6. Personalization Technologies

• On-Site Customization: Brands like LipLab allow consumers to create personalized lip products on-site, reducing waste and ensuring customer satisfaction. This approach minimizes excess inventory and aligns with consumer preferences for unique products.

7. Digital Tools for Sustainability Assessment

• Sustainability Assessments: Companies like EcoVadis provide tools to help brands assess their suppliers’ sustainability efforts. This allows brands to identify areas for improvement and collaborate with suppliers to enhance sustainability throughout the supply chain.

The future of sustainable cosmetics is being shaped by these innovative technologies that focus on reducing environmental impact, enhancing product transparency, and meeting consumer demand for responsible beauty solutions. As the industry continues to evolve, these advancements are likely to play a crucial role in promoting sustainability and ethical practices in cosmetics.

Sam Larios | Author