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photo: Maylim/Shutterstock.com
photo: Maylim/Shutterstock.com

Sustainability has become an integral part of the cosmetics industry. One of the manifestations of this development is the rising number of sustainability schemes and ethical labels. Amarjit Sahota gives an overview of the ethical labelling trend in the cosmetics industry.

The ethical label trend has its origins in the food industry. Chart 1 gives a historical timeline. Demeter is the first such label, introduced almost 100 years ago for agricultural products grown according to biodynamic farming methods. 

Organic is now the dominant ethical label in the food industry, with global sales growing from almost nothing in the 1990s to roughly $ 130 billion in 2020. 

Most developments have happened in the last two decades, with the launch of many new ethical labels. One major difference between the food industry and cosmetics industry is that the organic term is protected by national (and EU) regulations in the former. Any food product making an organic claim must therefore meet national standards. There are also uniform standards for organic food and farming products. 

Chart 1. Ethical labels historical timeline. Chart 1. Ethical labels historical timeline. Source: Ecovia Intelligence / Sustainable Foods Summit
Chart 1. Ethical labels historical timeline. Source: Ecovia Intelligence / Sustainable Foods Summit

Growth Drivers

Health and environmental concerns are deemed to be the main drivers of ethical labels on cosmetic products. Various studies show that major reasons why consumers buy natural and organic personal care products is because of health concerns about synthetic chemicals like parabens, mineral oils, etc. Environmental concerns are the major driver of products that are certified according to the ‘Nordic Swan’ and ‘EU Eco-Flower’.

Ethical and religious beliefs are reasons for consumers to buy products certified according to schemes like Vegan Society, Cruelty-Free, and Halal. 

Many companies are adopting certification schemes and ethical labels because of CSR and sustainability; they want to show they are developing sustainable and environmentally friendly products. Adopting ethical labels for a selection of products is one way to demonstrate this.

The growing importance of traceability and transparency in supply chains is a reason for companies to adopt ethical labels like Roundtable on Sustainable Palm Oil (RSPO). 

The most popular ethical labels for cosmetics are those that represent natural and organic products, and lower environmental impacts. Although there are many others that represent some sustainability attributes, the adoption rates are comparatively low. 

Natural and organic

Natural and organic are the leading ethical labels in the cosmetics industry. There are over 30 such standards; the leading ones at the international level are Natrue and Cosmos.

The Cosmos standard was developed by some of the leading certification agencies for natural and organic personal care products in Europe: Ecocert, Soil Association, ICEA, BDiH, Ecogarantie and Cosmebio. The standard was first introduced in 2010; the second version of the standard was published in 2013. From January 2017, the natural and organic personal care standards of the founding members were replaced by the Cosmos standard.

As of April 2022, over 29,600 personal care products were certified Cosmos. About 22,390 products were certified organic and the rest were natural certified. Most Cosmos licensees are in Europe, reaching almost 25,000 in 2022. More than 12,600 ingredients are certified, and around 7,970 raw materials approved.

In December 2007, Weleda, Wala Heilmittel, Logocos, Laverana, Santaverde and Primavera founded Natrue. It was initially set up as the European interest group for natural and organic cosmetics. Its aim is to safeguard the highest possible standards for natural cosmetics and their ingredients. The Natrue standards and labelling scheme for natural cosmetics was introduced in November 2008.

In spring 2022, the Natrue labelling scheme was adopted by roughly 322 brands are more than 7,000 products. The label is most popular in Germany, Switzerland, and Austria, however it has over 70 members worldwide. The Natrue standard covers personal care products and ingredients. There are about 218 raw materials certified and 1154 raw materials are approved.

Outside of Europe, the adoption rate of natural and organic standards is relatively low. In North America, the most popular standards are USDA National Organic Program (NOP), Natural Products Association (NPA) and NSF Ansi 305 standard. Although the NOP has been designed for organic agricultural food products, the labelling scheme is being used for non-food products that meet its standard. Thus, organic cosmetics and personal care products are becoming certified and have the label. 

Lower Environmental Impact 

The Nordic Swan and EU Eco-Flower are the leading ethical labels for lower environmental impact products in Europe. 

The Nordic Swan is the official sustainability eco-label of the Nordic region. The criteria are based on taking a life cycle analysis of products in which impacts on the environment and human health are assessed. It has certification for about 59 product categories, including personal care products. Introduced in 1988, more than 25,000 different products in Nordic countries have adopted this label.

Established in 1992 by the European Commission, the EU Eco Flower is a voluntary labelling scheme. The ecolabel is based on EC regulation No 66/2010. Over 78,000 products and services carry the EU Eco Flower label. The standard has criteria for rinse-off personal care products, such as:

  • reduced impact on aquatic ecosystems
  • fulfilment of strict biodegradability requirements
  • limited packaging waste

Whereas the eco-labels cover the product lifecycle of products from cradle to grave, the Cradle-2-Cradle (C2C) design approach takes a regenerative or biomimetic view; it takes into account end of life considerations. The standards are developed by McDonough Braungart Design Chemistry (MBDC), and certification undertaken by the Cradle to Cradle Products Innovation Institute.

The standard involves assessment of various aspects of the production process, such as material health, material reutilisation, renewable energy, carbon management, water stewardship and social responsibility. The product is given a rating in each category. Rating levels are Basic, Bronze, Silver, Gold, or Platinum. Certifications are reassessed on a regular basis. Every two years, brand owners are expected to improve their score. 

A growing number of cosmetic companies are adopting the Cradle to Cradle standard. In June 2018, Garnier’s Skinactive line became the first mass market skin care range to get this certification. Coty obtained certification for its Calvin Klein (CK) Everyone Eau de toilette in 2020. Maybelline launched the first certified colour cosmetics under the ‘Green Edition’ collection in January 2022

Amarjit Sahota,
President and Founder,
Ecovia Intelligence,
London, UK,
www.ecoviaint.com 

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