The world's $500 billion beauty industry is shifting towards sustainability, but its efforts are more of a patchwork than a cohesive strategy.
According to Simon Kucher's Global Sustainability Study 2021, 60% of consumers worldwide consider sustainability an important factor when making purchasing decisions, and 35% are willing to pay more for sustainable products. This shift in consumer preferences has prompted many beauty brands to set environmental goals, such as reducing single-use plastics, offering recyclable packaging, and increasing transparency about ingredients.
However, despite these efforts, consumers continue to struggle to understand the sustainability credentials of many products. The industry's clean-up efforts have been inconsistent, and fall short of making a recognizable impact in the absence of collective goal-setting and global strategy.
One major challenge facing the beauty industry is plastic packaging. 95% of it is thrown away, and the vast majority is not recycled. Beauty giant L'Oréal used 144,430 metric tons of plastic in its packaging material in 2021, while Estee Lauder Companies reported producing 71,600 metric tons of plastic. The global plastic waste recycling rate stands at just 9%, with only 4% of US plastic waste being recycled.
To address this issue, many brands are trying to phase out harmful plastics and adopt post-consumer recycled (PCR) plastic. L'Oréal aims for 50% PCR plastic usage by 2025, while Estee Lauder is targeting 25%. However, the cost and sourcing of PCR plastic pose significant challenges.
Beauty retailers also play a pivotal role in sustainability, but many have inconsistent standards when it comes to stocking sustainable brands. Some smaller businesses move more nimbly towards sustainability, while larger brands struggle to change their supply chains.
Governments and multinationals enforcing regulations and setting minimum requirements could help drive meaningful change. However, market leadership is seen as key, with consumers and brands taking initiative in the absence of bold regulations or global standards.
As Susanne Kaufmann, founder of her namesake beauty brand, notes, "Regulation can raise the floor a bit... But that's never going to be what the market can do." Instead, it will likely take continued collective advocacy and initiative from brands and customers to see meaningful climate-conscious change in the beauty industry.
According to Simon Kucher's Global Sustainability Study 2021, 60% of consumers worldwide consider sustainability an important factor when making purchasing decisions, and 35% are willing to pay more for sustainable products. This shift in consumer preferences has prompted many beauty brands to set environmental goals, such as reducing single-use plastics, offering recyclable packaging, and increasing transparency about ingredients.
However, despite these efforts, consumers continue to struggle to understand the sustainability credentials of many products. The industry's clean-up efforts have been inconsistent, and fall short of making a recognizable impact in the absence of collective goal-setting and global strategy.
One major challenge facing the beauty industry is plastic packaging. 95% of it is thrown away, and the vast majority is not recycled. Beauty giant L'Oréal used 144,430 metric tons of plastic in its packaging material in 2021, while Estee Lauder Companies reported producing 71,600 metric tons of plastic. The global plastic waste recycling rate stands at just 9%, with only 4% of US plastic waste being recycled.
To address this issue, many brands are trying to phase out harmful plastics and adopt post-consumer recycled (PCR) plastic. L'Oréal aims for 50% PCR plastic usage by 2025, while Estee Lauder is targeting 25%. However, the cost and sourcing of PCR plastic pose significant challenges.
Beauty retailers also play a pivotal role in sustainability, but many have inconsistent standards when it comes to stocking sustainable brands. Some smaller businesses move more nimbly towards sustainability, while larger brands struggle to change their supply chains.
Governments and multinationals enforcing regulations and setting minimum requirements could help drive meaningful change. However, market leadership is seen as key, with consumers and brands taking initiative in the absence of bold regulations or global standards.
As Susanne Kaufmann, founder of her namesake beauty brand, notes, "Regulation can raise the floor a bit... But that's never going to be what the market can do." Instead, it will likely take continued collective advocacy and initiative from brands and customers to see meaningful climate-conscious change in the beauty industry.