The $500 billion global beauty industry has set ambitious environmental goals, but its efforts to become more sustainable are proving to be a patchwork at best.
According to a recent study by strategy and consulting firm Simon Kucher, 60% of consumers worldwide consider sustainability an important purchase criterion, with 35% willing to pay more for eco-friendly products. This shift in consumer preferences has prompted many beauty brands to set environmental goals, such as phasing out single-use plastics and using recyclable, reusable, or refillable packaging.
However, consumers continue to struggle to understand the sustainability credentials of many products due to inconsistent industry efforts and a lack of transparency. The British Beauty Council notes that "greenwashing" - where companies make unsubstantiated sustainability claims - is common in the beauty industry.
The use of marketing terms like "clean beauty" has become increasingly problematic, with some critics arguing that these buzzwords are used to sell more products rather than drive meaningful change. Industry leaders and experts stress the need for better transparency and certification standards, particularly when it comes to ingredient sourcing and packaging materials.
One major challenge facing the industry is plastic packaging, which accounts for 67% of its packaging volume. The cosmetics business is one of the biggest users of plastic packaging globally, with beauty giants like L'Oréal and Estee Lauder Companies using massive amounts of plastic in their packaging material each year. However, recycling rates are low, and demand for post-consumer recycled (PCR) plastic is high due to supply chain limitations.
Beauty retailers also play a pivotal role in promoting sustainability, but many vary when it comes to setting standards for the brands they sell. While some companies have launched initiatives like Sephora's "Clean + Planet Positive" program or Target's "Target Zero" icon, others lack transparency and accountability.
The missing piece of the puzzle is regulation and standardization. Certifications like B Corp are beneficial, but their voluntary nature limits their impact. Governments and multinationals enforcing regulations and setting a baseline for sustainability claims would help drive meaningful change in the industry. Industry leaders emphasize that market leadership is key to driving climate-conscious change.
In the absence of bold regulations or global standards on sustainability practices, this "leadership" - undertaken by brands and customers alike in the beauty marketplace - will likely be the most impactful vector for addressing the industry's climate shortcomings. It will take continued collective advocacy and initiative to drive meaningful climate-conscious change in the $500 billion global beauty industry.
According to a recent study by strategy and consulting firm Simon Kucher, 60% of consumers worldwide consider sustainability an important purchase criterion, with 35% willing to pay more for eco-friendly products. This shift in consumer preferences has prompted many beauty brands to set environmental goals, such as phasing out single-use plastics and using recyclable, reusable, or refillable packaging.
However, consumers continue to struggle to understand the sustainability credentials of many products due to inconsistent industry efforts and a lack of transparency. The British Beauty Council notes that "greenwashing" - where companies make unsubstantiated sustainability claims - is common in the beauty industry.
The use of marketing terms like "clean beauty" has become increasingly problematic, with some critics arguing that these buzzwords are used to sell more products rather than drive meaningful change. Industry leaders and experts stress the need for better transparency and certification standards, particularly when it comes to ingredient sourcing and packaging materials.
One major challenge facing the industry is plastic packaging, which accounts for 67% of its packaging volume. The cosmetics business is one of the biggest users of plastic packaging globally, with beauty giants like L'Oréal and Estee Lauder Companies using massive amounts of plastic in their packaging material each year. However, recycling rates are low, and demand for post-consumer recycled (PCR) plastic is high due to supply chain limitations.
Beauty retailers also play a pivotal role in promoting sustainability, but many vary when it comes to setting standards for the brands they sell. While some companies have launched initiatives like Sephora's "Clean + Planet Positive" program or Target's "Target Zero" icon, others lack transparency and accountability.
The missing piece of the puzzle is regulation and standardization. Certifications like B Corp are beneficial, but their voluntary nature limits their impact. Governments and multinationals enforcing regulations and setting a baseline for sustainability claims would help drive meaningful change in the industry. Industry leaders emphasize that market leadership is key to driving climate-conscious change.
In the absence of bold regulations or global standards on sustainability practices, this "leadership" - undertaken by brands and customers alike in the beauty marketplace - will likely be the most impactful vector for addressing the industry's climate shortcomings. It will take continued collective advocacy and initiative to drive meaningful climate-conscious change in the $500 billion global beauty industry.