As scrutiny intensifies on corporate sustainability communication, this is the first of a new series of articles highlighting key insights from Euromonitor’s Sustainability platform.
The beauty and personal care industry is experiencing sustainability-led growth, with sustainable products seeing a 10% CAGR from 2020 to 2023. Utilising data from the AI-based Passport Sustainability platform, Euromonitor underscores the need for companies to adopt transparent sustainability practices. This key move not only helps manage risks and comply with regulation, but also harnesses the increasing consumer preference for sustainable products.
Here are some insights from Euromonitor’s Unlocking Sustainability Opportunities in Health and Beauty report.
Sustainability spreads across categories driven by clean beauty demand
Sustainability is no longer just a skin care concern, but a priority for consumers across various product categories. Heightened scrutiny of ingredients has prompted industry players to highlight their use of safer, natural alternatives and "free from" chemicals, as seen in new sun care products shifting towards using zinc oxide, a mineral SPF, over chemical SPFs due to its lower environmental impact.
Fragrances, sun care, deodorants and colour cosmetics are the four fastest growing categories that saw double-digit 2020-2023 CAGR sales growth
Source: Euromonitor International Claims Tracker
Also, brands like Dove are capitalising on this trend by integrating “hero” skin care ingredients in their products and emphasising their sustainable features, as seen in the PETA-approved vegan Dove Serum Body Wash collection.
However, the perception of sustainability equating to premium prices hinders wider adoption, especially in sectors like fragrances and colour cosmetics where growth is driven by higher price tags.
Corporates are showing real commitment to curbing virgin plastic use
The rising prominence of sustainability in the beauty and personal care sector is largely propelled by consumer demand for products that echo their ethical values. Notably, discerning customers are increasingly drawn towards natural ingredients and high-quality products that have not been subjected to animal testing, making "Natural", "Vegan", and "Cruelty-Free" claims essential across product lines.
Brands are amplifying their sustainability narratives, gaining credibility through detailed information and certifications. For instance, Made Safe, which verifies a product's non-toxic composition, is fast becoming a favourite among skin care and hair care products in India. Similarly, UpCycled, which validates the use of surplus resources in product or packaging, is gaining momentum in the US skin care and Brazilian fragrance markets, enabling brands to demonstrate their reduced environmental impact.
Finally, the trend towards sustainable packaging is also growing, with a significant 62% of beauty companies investing in this area. The popularity of compostable and FSC-certified packaging demonstrates the industry's pledge to reduce single-use plastics, further strengthening consumer trust.
Beauty and personal care sustainability examples
Striking a balance between broad, impactful statements and more specific, even certified, claims can effectively showcase transparency and accountability.
One example is Lush, which is transitioning from 100% recycled PET to certified Prevented Ocean Plastic™, sourced from at-risk coastal areas. Lush’s global shift, paired with its Bring it Back recycling programme, is creating a sustainable closed-loop system.
Meanwhile, in February 2024, Weleda launched a solid shampoo range in Germany, designed for various scalp types and packaged in paper. These no-GMO, NATRUE-certified products use 100% natural and organic ingredients, along with reducing both water use and transportation emissions due to their lightweight nature.
Finally, Kaffe Bueno's innovative Kleanstant, launched in 2024, provides a sustainable alternative to traditional beauty and personal care surfactants. Made from upcycled coffee waste, it not only reduces the carbon footprint, but also improves product capabilities such as cleansing and antioxidant properties.
Learn more about Sustainability in our report, Unlocking Sustainability Opportunities in Health and Beauty, and visit our Sustainability page for further insights on where to play and how to win with sustainable claims.