How next-gen fibers are becoming a strategic imperative for sustainable beauty packaging: Over the last several years, we have all read the headlines – paper packaging is being positioned as the easy alternative to plastic use for beauty companies. The scaling back of plastic use is necessary, and paper is viewed as a simple swap.
Aside from the fact that a wholesale switch to paper could be trading one environmental disaster –plastic waste, with another – deforestation, there are other good reasons why companies may want to limit reliance on virgin forest fiber. Escalating global demand, climate-driven supply shocks, and tightening regulations are converging to create a riskier and more volatile outlook for companies using conventional wood-based inputs in paper and paper packaging. These pressures are expected to drive cost increases, supply issues, and higher spending on compliance for companies that rely heavily on virgin wood. There is no better time for brands to reduce their reliance on wood-based paper by supporting use of alternatives sources.Trees, many from the world’s most climate-critical and biodiversity-rich forests, are used in everything from wood pellets for generating electricity, building frames, pizza and cereal boxes, to viscose textiles in t-shirts. The room to grow that supply without driving further deforestation and degradation is limited, putting global biodiversity, air quality, and climate targets at risk. At the same time, current volumes of wood credibly certified as sustainable are already limited and heavily competed for, meaning that most “sustainable” wood supply is effectively spoken for and will not be sufficient to supply the projected scale of future demand. Across all packaging materials, the global beauty/cosmetics industry produces an estimated 120 billion units of packaging annually. Beauty and personal care brands use high volumes of paperboard for products like inserts, cartons, and specialty packaging, which means cosmetics companies are going to be facing insecurity and increased expense for a variety of reasons:
Rising demand: The increase in demand for wood fiber across industries like energy and construction is growing. Add a projected increase in forest fiber in paper packaging and textiles, and the demand for forest fiber is outpacing what forests can sustainably supply. Demand for bioenergy alone is expected to require over 700 million cubic metres of wood to be diverted from existing uses by 2050, and demand for engineered wood products in the EU is predicted to increase by 4.5 times between 2023 and 2030.
Supply constraints: Wood availability and quality is being limited by land competition from other sectors, climate impacts like floods and wildfires, and ecosystem degradation from over-logging. This means possible supply shortages or the cost of wood inputs rising. For example, wildfires caused an estimated loss of 393–667 million cubic metres of wood between 2001 and 2021, and extreme forest fires are expected to increase by up to 14%.
Escalating compliance costs: Regulations such as the EU Deforestation Regulation (EUDR), EPR legislation in California, and human-rights due diligence rules will tighten market access to low-risk products and increase competition for a limited pool. Add to these issues increased scrutiny from consumers and a company’s own internal goals around climate and sustainability, and beauty businesses are facing a new, unforeseen, and costly supply issue as sustainability moves from a ‘nice to have’ to a core business imperative.
Three Steps to Reduce Risk and Exposure
There are steps companies can take to reduce risk and exposure. They are:
1. Reduce reliance on virgin wood by increasing recycled content and scaling circular and Next Gen alternatives made from inputs like agricultural residues and waste textiles. This shifts sourcing away from primary and other high conservation value forests and lowers exposure to price and compliance shocks.
2. De-risk remaining wood supply by ensuring any
continued use of virgin wood is credibly certified for sustainability (e.g. FSC), fully traceable, and screened for ecological and social risks, including impacts on Ancient and Endangered Forests or Indigenous peoples and local communities.
3. Plan for future shocks by integrating wood-related risks into scenario analysis and stress testing, and steering capital toward more resilient sourcing and investment strategies.
The Next Gen Shift
Next Generation fibers, like wheat straw left over after the grain harvest, or used clothing destined for landfill, can be used to make pristine new pulp for a variety of products, from boxes for food and cosmetics to wood fiber-based textiles like viscose, lyocell and acetate. These inputs are waste, which would normally be burned or landfilled. These Next Gen Solutions solve several problems at once – they increase supply chain resilience, reduce waste and water use, allow companies to meet Scope 3 goals, and reduce the pressure on forests.
What Does This Mean For Cosmetics Packaging?
For cosmetics companies, the core takeaway is simple: Paper packaging is becoming a higher-risk, higher-competition sourcing category. Beauty brands use substantial volumes of paperboard for cartons, inserts, and specialty packaging, and much of that demand sits in the same tightening fiber market as other major sectors. As verified, low-risk supply becomes more constrained – and as due diligence and deforestation-free expectations expand – brands that rely heavily on virgin forest fiber are likely to face greater cost volatility, supply insecurity, and compliance burden. The good news is that there’s a clear opportunity to get ahead of the coming wave. Cosmetics brands can lower exposure by broadening their supply options, shifting morepackaging demand toward recycled content and Next Gen alternatives. It’s a win-win for business and the planet, and the transition can’t come soon enough.
Valerie Langer
Strategic Lead for Next Generation Solutions, Canopy, Vancouver, Canada,
www.canopyplanet.org