The $500 Billion Beauty Industry's 'Green' Ambitions Are a Patchwork at Best, Falling Short
The escalating climate crisis is shifting many consumers' purchasing patterns, and the $500 billion global beauty industry is grappling with a range of sustainability challenges across product manufacturing, packaging, and disposal. According to a strategy and consulting firm Simon Kucher's Global Sustainability Study 2021, 60% of consumers worldwide rate sustainability as an important purchase criterion, and 35% are willing to pay more for sustainable products or services.
This shift in consumer preferences has propelled many beauty brands to set environmental goals, such as moving away from single-use and virgin plastics, providing recyclable, reusable, and refillable packaging, and offering more transparency around product ingredients. However, consumers still struggle to understand the sustainability credentials of many products due to inconsistent industry clean-up efforts and a lack of collective goal-setting, global strategy, and standardized regulations.
One major issue is the lack of international standards for beauty brands regarding ingredient information sharing with customers. Brands can set their own rules, leading to confusion and "greenwashing," where sustainability claims are often touted but not substantiated. Companies often use marketing language like "clean beauty" to make it seem like their products are natural, even if they're not actually organic, sustainable, or ethically made.
Industry leaders agree that consumers need better marketing information and certification, as stated by British Beauty Council CEO Millie Kendall. The term "clean beauty" has become a buzzword to sell more products, but Kendall warns that such language is losing traction in the UK market as customers grow smarter about the industry's shortcomings.
The British Beauty Council also highlights the challenges of sourcing raw materials and managing supply chains, which can lead to inconsistencies in product performance. Sasha Plavsic, founder of makeup brand ILIA Beauty, notes that while natural ingredients are often preferred, they can be difficult to source or inconsistent, leading to a reliance on synthetic ingredients.
Another major concern is plastic packaging, which makes up 95% of the industry's waste and is not recyclable in many places. The cosmetics business is the fourth-largest user of plastic packaging globally, with beauty giant L'Oréal using 144,430 metric tons of plastic in its packaging material in 2021.
However, some brands are trying to phase out harmful plastics from their operations and adopt post-consumer recycled (PCR) plastic. For example, hair care brand FEKKAI claims that it used up to 95% PCR content in its packaging. However, founder Frédéric Fekkai notes that sourcing PCR plastic is difficult due to high demand and pricing issues.
Beauty retailers play a pivotal role in the industry, controlling stocking decisions and supply chains. While some brands set standards for sustainability, many vary when it comes to supporting sustainable practices. Jessi Baker, founder of the technology platform Provenance, notes that smaller businesses often move more nimbly towards sustainability than larger brands.
The gaps in standardization can be filled by certifications like B Corp, which is issued by the non-profit B Lab and scores companies on a variety of criteria around ethics and sustainability. However, certification is currently voluntary for brands to apply for. Experts agree that governments and multinationals enforcing regulations and setting a baseline for brands to operate from would make a significant impact.
For example, Susanne Kaufmann, founder of her namesake beauty brand, says that efforts in Austria would yield better results if more countries had stricter, more uniform garbage disposal laws. When it comes to ingredients, the European Chemicals Agency lists 2,495 substances banned from use in cosmetic products marketed for sale or use in the EU, but the US FDA only lists 11.
In the absence of bold regulations or global standards on sustainability practices, market leadership is key. As Mia Davis, vice president of sustainability and impact at beauty retailer Credo Beauty, notes, regulation can raise the floor, but it's not enough to drive meaningful change. The industry will likely rely on continued collective advocacy and initiative to address its climate shortcomings.
The escalating climate crisis is shifting many consumers' purchasing patterns, and the $500 billion global beauty industry is grappling with a range of sustainability challenges across product manufacturing, packaging, and disposal. According to a strategy and consulting firm Simon Kucher's Global Sustainability Study 2021, 60% of consumers worldwide rate sustainability as an important purchase criterion, and 35% are willing to pay more for sustainable products or services.
This shift in consumer preferences has propelled many beauty brands to set environmental goals, such as moving away from single-use and virgin plastics, providing recyclable, reusable, and refillable packaging, and offering more transparency around product ingredients. However, consumers still struggle to understand the sustainability credentials of many products due to inconsistent industry clean-up efforts and a lack of collective goal-setting, global strategy, and standardized regulations.
One major issue is the lack of international standards for beauty brands regarding ingredient information sharing with customers. Brands can set their own rules, leading to confusion and "greenwashing," where sustainability claims are often touted but not substantiated. Companies often use marketing language like "clean beauty" to make it seem like their products are natural, even if they're not actually organic, sustainable, or ethically made.
Industry leaders agree that consumers need better marketing information and certification, as stated by British Beauty Council CEO Millie Kendall. The term "clean beauty" has become a buzzword to sell more products, but Kendall warns that such language is losing traction in the UK market as customers grow smarter about the industry's shortcomings.
The British Beauty Council also highlights the challenges of sourcing raw materials and managing supply chains, which can lead to inconsistencies in product performance. Sasha Plavsic, founder of makeup brand ILIA Beauty, notes that while natural ingredients are often preferred, they can be difficult to source or inconsistent, leading to a reliance on synthetic ingredients.
Another major concern is plastic packaging, which makes up 95% of the industry's waste and is not recyclable in many places. The cosmetics business is the fourth-largest user of plastic packaging globally, with beauty giant L'Oréal using 144,430 metric tons of plastic in its packaging material in 2021.
However, some brands are trying to phase out harmful plastics from their operations and adopt post-consumer recycled (PCR) plastic. For example, hair care brand FEKKAI claims that it used up to 95% PCR content in its packaging. However, founder Frédéric Fekkai notes that sourcing PCR plastic is difficult due to high demand and pricing issues.
Beauty retailers play a pivotal role in the industry, controlling stocking decisions and supply chains. While some brands set standards for sustainability, many vary when it comes to supporting sustainable practices. Jessi Baker, founder of the technology platform Provenance, notes that smaller businesses often move more nimbly towards sustainability than larger brands.
The gaps in standardization can be filled by certifications like B Corp, which is issued by the non-profit B Lab and scores companies on a variety of criteria around ethics and sustainability. However, certification is currently voluntary for brands to apply for. Experts agree that governments and multinationals enforcing regulations and setting a baseline for brands to operate from would make a significant impact.
For example, Susanne Kaufmann, founder of her namesake beauty brand, says that efforts in Austria would yield better results if more countries had stricter, more uniform garbage disposal laws. When it comes to ingredients, the European Chemicals Agency lists 2,495 substances banned from use in cosmetic products marketed for sale or use in the EU, but the US FDA only lists 11.
In the absence of bold regulations or global standards on sustainability practices, market leadership is key. As Mia Davis, vice president of sustainability and impact at beauty retailer Credo Beauty, notes, regulation can raise the floor, but it's not enough to drive meaningful change. The industry will likely rely on continued collective advocacy and initiative to address its climate shortcomings.