As sustainable practices become a driving force in consumer behaviour, the beauty, personal care, and cosmetic industries are finding themselves at a crossroads. No longer just a handy buzzword, circular and sustainable beauty focus on developing and designing products and processes that could minimise waste, reuse resources, and critically, extend the lifecycle of materials.
At its core, the philosophy moves beyond traditional linear consumption models – where resources are extracted, used, and discarded to creating regenerative systems that can exercise if not a positive effect on the planet, at least lessen its impact.
Here the ability to derive ingredients from waste and byproducts from the food and beverage industry, the formulation of waterless products, and new sustainable packaging solutions are key to driving positive change. Additionally, the focus on novel production methods including esterification are hallmarks of this transformative journey, impacting brands, manufacturers, and consumers alike.
However, to be truly sustainable requires an in-depth knowledge of the implications of fostering a circular beauty industry. It means exploring the consumer landscape and
understanding who your potential customers are. It also requires a sound understanding of the production challenges, and cutting-edge solutions reshaping the industry across key markets, including the EU, UK, Asia, and the US.
The circular beauty consumer
Conscious consumerism is on the rise, driven largely by Millennials and Gen Z consumers. These shoppers actively seek transparency and sustainability in the products they buy. According to a 2023 report by NielsenIQ, 78% of global consumers say a sustainable lifestyle is important to them, with 54% willing to pay a premium for environmentally responsible brands.1
Even older generations, who might have been less engaged with sustainability in the past are now drawn to products featuring circular beauty.2 To connect with these consumers, a brand must be transparent about the journey of a product – from ingredient sourcing to the final item on the shelf.
It is also critical to target greenwashing. While many brands claim to champion sustainability, many make exaggerated or misleading environmental claims.
This could undermine consumer trust, and risks alienating a highly informed audience. Regulatory oversight and consumer education are therefore becoming critical to distinguishing genuinely sustainable brands from those engaging in superficial eco-friendly marketing.
One example is the European Union’s Green Claims Directive. This aims to enforce stricter regulations on environmental marketing claims, ensuring transparency and accountability. Proposed in March 2023, it focuses on greenwashing, establishing clear rules for environmental marketing claims, with a proviso for businesses to substantiate any environmental claims with science-backed evidence. These measures are important, as they will empower consumers to make informed choices and to level the playing field for genuinely sustainable businesses.3
Innovations drive circular beauty
It is certainly true that circular beauty is reshaping product development, sourcing, and manufacturing processes, and brands adopting circular practices are experiencing shifts in consumer perception, often gaining loyalty and market share.
However, the shift is not without challenges. Transitioning to sustainable methods can be resource-intensive and complex, requiring collaboration across supply chains. According to the Ellen MacArthur Foundation, transitioning to a circular economy could generate up to $4.5 trillion in economic benefits globally by 2030, underscoring the potential rewards for the beauty sector. 4
In recent years, the industry has seen a surge in groundbreaking innovations that promote circularity and sustainability in the sector. These include:
Enzymatic esterification
This process allows for the creation of high-performance ingredients from renewable sources, reducing reliance on petrochemicals. For example, Croda’s use of enzymatic technology in creating eco-designed emollients has set a benchmark in the industry.5
Another example is chemical giant Oleon’s new enzymatic esterification plant in Oelegem, Belgium which is leading the way to a low-carbon chemical manufacturing industry at an industrial scale. In the UK, specialist beauty and personal care supplier Stephenson is a front-runner in esterification with its production of multifunctional polyglyceryl esters produced from renewable sunflower and RSPO-certified palm oil crops.6
Upcycling waste products
The true value of used coffee grounds, fruit peels, and other byproducts in the food and beverage industry is underscored by its transformation into active ingredients for use in the beauty and cosmetics industry.
There is significant growth and collaboration between food producers and cosmetics companies focused on upcycling food waste into active ingredients for skincare and personal care products. Here examples include Kaffe Bueno’s coffee-based and upcycled natural exfoliating ingredient, which can replace plastic microbeads. This product is a costeffective alternative to other natural exfoliants, like defatted rosehip fibres, quartz, fruit kernels, and almonds.7 Retailing giant Marks & Spencer in the UK is also innovating by using grape pomace in its skincare line in conjunction with the University of Leeds spin-out company Keracol Limited.
The research team at Keracol found a new way to extract resveratrol, a natural molecule found in the outer skins of red grapes, which is an antioxidant and known to have protective anti-ageing properties. Using the skin from English Pinot Noir grapes left over from the production of M&S’ own English sparkling and rose wine, the new extraction process has now helped the retailer to become one of the first high street retailers to recycle their grape waste into a new beauty product range.8
Waterless beauty products
Brands committed to sustainable practices are rethinking their approach to water-intensive formulation, and waterless products are emerging as a key solution to reduce waterdependency and improve product stability.Concentrated formats such as solid shampoos and powders can reduce or eliminate water use, reducing both packaging and transportation emissions. In 2020, almost 12% of global personal care launches in the soap, bath, and shower category claimed to be waterless. They now account for 23% of the personal care market in the US and interest isgrowing in the UK and Europe. According to business analyst Future Market Insights, waterless cosmetics sales are predicted to grow by 13.3% by 2031.9 Water is often the first ingredient on the label ofrinse-off products like shampoos, shower gels, and cleansers, and these products can contain up to 95% water.Products like soap bases, synthetic detergents, and other next-gen ingredients could impact significantly, allowing manufacturers to reduce, reuse, and rethink water at every stage of the product life cycle. 10 Brands such as the New Zealand-based Ethique, and British start-up Plus Body Wash are just some of the brands leading the way. 11
Ethical sourcing and regulatory frameworks
Linking transparency and ethical sourcing in the supply chain is getting a boost with new regulatory frameworks as a cornerstone of sustainability. Particularly important in thebeauty industry are initiatives like the soon-to-be-implemented European Union Deforestation Regulation (EUDR)12 and the Roundtable on Sustainable Palm Oil (RSPO) which both aim to drive accountability in commodities like palm oil. According to the RSPO, certified sustainable palm oil now accounts for 19% of global palm oil production. These frameworks compel companies to adhere to stricter environmental and social standards, reducing deforestation and promoting fair labour practices.13
AI in waste reduction
AI is emerging as a powerful tool for its ability to advise companies on how to optimise resource use and minimise waste. Through predictive analytics and machine learning, AI can enhance inventory management, reduce overproduction and spoilage, and analyse consumer trends to design efficient product formulations and packaging. In addition, it is a powerful tool for improving supply chain transparency and ensuring sustainable sourcing and ethical practices.
Packaging circularity
Packaging is a critical focus area for circular beauty. The beauty and personal care industry generates over 120 billion units of packaging annually, much of it single-use plastic. Brands are tackling this issue through:
Biodegradable packaging
Materials like mushroom-based or algae-derived plastics are gaining traction. Companies like Ecovative Design14 are pioneering the use of mycelium, the root structure of fungi, for creating packaging materials.This biodegradable option uses agricultural byproducts, such as hemp or straw, as substrates for mycelium growth. The result is a fully compostable material suitable for various applications, including cosmetics packaging. In addition, brands like L’Oréal are experimenting with algae-based plastics, which are biodegradable and created fromrenewable resources, making them a promising alternative to traditional petroleum-based plastics. 15 These materials are tailored to reduce the environmental impact of beauty packaging. These advancements reflect an industry-wide shift toward integrating circular economy principles into packaging designs, addressing both consumer demand and regulatory pressures.
Lightweight packaging
Reducing the material weight of packaging can have a significant impact on resource management and a reduction in transportation emissions. It is also a vital strategy in thebeauty industry to enhance sustainability. Lightweight packaging minimises the use of raw materials, which decreases energy consumption during manufacturing. It also reduces emissions associated with transportation since lighter packages require less fuel for distribution, significantly cutting transportation emissions by reducing the overall load.For example, switching to lighter plastics or materials like cardboard for secondary packaging can lead to a 20-30% reduction in shipping weight, depending on the product and logistics setup.Moving towards thinner or more streamlined packaging materials aligns with global goals for material efficiency, lowering costs and environmental impacts simultaneously. Several brands are leading the way. Unilever has adopted lighter bottles for its personal care products, reducing plastic usage by 20% while maintaining durability. Similarly, Procter & Gamble16 has introduced concentrated formulas in lightweight containers for brands like Pantene, addressing both resource efficiency and transportation emissions.
What’s next
Meeting future sustainability targets requires continued innovation, collaboration, and consumer engagement. Key trends to watch will include the increased adoption of biobased and synthetic alternatives to traditional raw materials, the expansion of circular systems to include broader community and ecosystem benefits, and enhanced transparency and third-party certifications to combat greenwashing.The journey toward circular beauty is not without its hurdles, but it offers a compelling roadmap for a more sustainable future!
References:
1 The growing consumer demand for sustainable products | McKinsey https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/consumers-are-in-fact-buying-sustainable-goods-highlights-from-new-research
2 Do consumers care about sustainability & ESG claims? | McKinsey https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/consumers-care-about-sustainability-and-back-it-up-with-their-wallets
3 ENVIRONMENT – Green Claims: Proposal for a Directive on substantiating environmental claims
https://ec.europa.eu/newsroom/env/items/784086/en
4 Supply chains and the circular economy
https://www.ellenmacarthurfoundation.org/supply-chains/overview
5 Super Sterol Ester | Croda Beauty
https://www.crodabeauty.com/en-gb/products/product/1628-super_1_sterol_1_ester
6 Stephenson drives the future with cutting-edge green chemistry solutions | Stephenson
https://www.stephensonpersonalcare.com/blog/stephenson-drives-the-future-with-cutting-edge-green-chemistry-solutions#:~:text=At%20Stephenson%2C%20our%20Durosoft%20polyglyceryl,responsible%20use%20of%20our%20resources.
7 Kaffe Bueno – Unlocking coffee’s health potential
https://www.kaffebueno.com/
8 Sustainable skincare range created from waste products of grapes | University of Leeds
https://www.leeds.ac.uk/news-health/news/article/3556/sustainable-skincare-range-created-from-waste-products-of-grapes
9 Waterless skincare: the beauty firms tapping into ethical cleansing | Skincare | The Guardian
https://www.theguardian.com/fashion/2022/apr/17/waterless-skincare-the-beauty-firms-tapping-into-ethical-cleansing
10 Rethinking water: How the personal care industry is leading the charge in waterless innovation |Stephenson
https://www.stephensonpersonalcare.com/blog/rethinking-water-how-the-personal-care-industry-is-leading-the-charge-in-waterless-innovation
11 Waterless skincare: the beauty firms tapping into ethical cleansing | Skincare | The Guardian
https://www.theguardian.com/fashion/2022/apr/17/waterless-skincare-the-beauty-firms-tapping-into-ethical-cleansing
12 Amid EUDR delay, FSC calls for swift action for deforestation-free future
https://fsc.org/en/newscentre/eudr/amid-eudr-delay-fsc-calls-for-swift-action-for-deforestation-free-future
13 A global partnership to make palm oil sustainable – Roundtable on Sustainable Palm Oil (RSPO)
https://rspo.org/
14 We grow better materials
https://ecovative.com/
15 L’Oréal and the French biotech, Microphyt, announce a strategic partnership
https://www.loreal.com/en/press-release/group/l-oreal-and-the-french-biotech-microphyt-announce-a-strategic-partnership/
16 Tackling Plastic Packaging: Sustainable Solutions | Procter & Gamble Investor Relations
https://www.pginvestor.com/esg/environmental/plastic-packaging/default.aspx
Jo Stephenson
Strategic Advisor and Managing Director, Think B2B Marketing, Wakefield, United Kingdom, www.thinkb2bmarketing.com