Helping natural cosmetics brands uncover the full story behind every ingredient

Consumers demand transparency. Research shows 85% will pay more for products with proven benefits, 39% value transparency, and 25% avoid brands that lack it.

Natural cosmetics brands face challenges like vague claims, ingredient impact on ecosystems, and supply chain inefficiencies. Key steps to address these include:

• Life Cycle Assessment (LCA): Measure environmental impact across raw material extraction, production, and disposal.

• Better Sourcing Practices: Use local, sustainable ingredients with traceable origins.

• Transparency Tools: AI and certifications ensure trust and compliance with stricter regulations.

Quick Fact: The EU found 53.3% of environmental claims unclear or misleading. Clear, data-backed communication is essential to gain consumer trust and meet regulatory demands.

This guide explores how brands can improve ingredient sourcing, sustainability, and transparency to align with consumer values and regulations.

EP#20 🌍 Navigating Cosmetic Industry Challenges in ...

How Cosmetic Ingredients Affect the Planet

Cosmetic ingredients impact the planet at every stage of their lifecycle. Knowing these effects helps brands make smarter choices about the ingredients they use and how they source them.

From Raw Materials to End-of-Life

The lifecycle of cosmetic ingredients starts with raw material extraction and ends with disposal. Along the way, the beauty industry generates a staggering amount of waste - 120 billion units of packaging trash annually. In the United States alone, over 7.9 billion units of cosmetic waste were created in 2018.

Here’s a breakdown of the key stages and their environmental effects:

Each stage contributes to environmental issues, which are explored in more detail below.

Main Impact Areas

The challenges posed by the lifecycle of cosmetics can be grouped into several major environmental concerns:

• Water Ecosystems: Residues from cosmetic ingredients can harm aquatic life. For example, triclosan, zinc oxide, and silver nanoparticles can disrupt marine ecosystems by affecting algae and other organisms. Sunscreen chemicals like oxybenzone and octinoxate are especially harmful, as they are toxic to coral reefs.

• Agriculture: Plant-based ingredients raise questions about sustainable farming and biodiversity. For example, the seaweed industry generated $10 billion in sales from 29 million tons of algae in 2016. However, poor harvesting practices could harm ecosystems, making careful management essential.

• Waste Generation: Processing raw materials often leads to significant waste. For instance, the European wine industry produces 14.5 million tons of effluents annually. Recently, brands like Pelegrims and Le Domaine Skincare have started using vineyard by-products in their products.

• Chemical Persistence: Regulatory differences highlight safety concerns. The European Union has banned 1,300 cosmetic ingredients for safety reasons, while the United States has banned only 11.

Recognizing these environmental challenges is the first step toward measuring and addressing their full impact.

Life Cycle Assessment (LCA) Basics

Life Cycle Assessment (LCA) evaluates the environmental impact of every ingredient throughout its lifecycle. This approach helps identify ways to reduce environmental harm while meeting the growing demand for eco-conscious products.

Understanding LCA Methods

LCA examines environmental impacts at every stage - from raw material extraction to disposal - by tracking key metrics like carbon emissions, water usage, and energy consumption. Here’s a breakdown of impact categories LCA focuses on:

These metrics make LCA a crucial tool for evaluating natural cosmetics.

LCA Value for Natural Cosmetics

Supply chains for raw materials account for over 53% of a product's environmental footprint. This highlights the need for thoughtful ingredient selection.

"LCA is a very specific analysis. It provides the groundwork for any sustainability or CSR strategy within a company. That's because you can only make decisions on things you've actually measured before." – Ecochain

Consider this example: A cosmetics company compared two face cream formulations, one using olive oil by-products instead of synthetic ingredients. The LCA revealed that ingredient-related impacts were more significant than water and energy use during production. This kind of analysis not only promotes transparency but also supports smarter ingredient choices.

Getting Started with LCA

Here’s how to begin your LCA journey:

• Set Clear Goals
  

  Define what you want to measure and why. For instance, you might compare ingredient options or identify key areas of environmental impact.

• Collect Detailed Data
  

  Gather information on raw materials, manufacturing, transportation, and packaging, including disposal methods.

• Focus on Relevant Impacts
  

  Prioritize the most significant impact categories for your products. Studies show that energy production and use account for 65-85% of overall environmental impacts.

• Use Results to Improve
  

  With over 81% of consumers expecting companies to lead on environmental issues, leverage LCA findings to choose better ingredients and refine processes.

Better Ingredient Sourcing Methods

Natural cosmetics brands face the challenge of balancing environmental impact with product quality. Choosing the right ingredients plays a major role in reducing environmental harm while ensuring market success.

Responsible Sourcing Guidelines

Responsible sourcing involves assessing the availability of ingredients locally and their suitability to specific regions. Sourcing locally helps cut down on transportation emissions, making it an eco-friendlier choice.

Here are some key factors to consider when sourcing ingredients:

A great example is Roelmi HPC, which earned a Platinum EcoVadis ranking in both 2021 and 2022 for its strong commitment to corporate social responsibility. This shows how strict sourcing standards can benefit the environment and boost business success.

With these guidelines in place, brands can explore advanced sourcing methods to push sustainability even further.

New Sourcing Solutions

Once responsible sourcing practices are in place, brands can explore cutting-edge technologies and circular approaches to improve sustainability. One promising method is upcycling, which turns food and beverage waste into usable ingredients.

Some innovative approaches include:

• Biotechnology: Specialized methods to produce specific ingredients

• Green Chemistry: Extraction techniques that use fewer resources

• Circular Sourcing: Transforming by-products into valuable ingredients

"We are committed to the development of compounds that respect the microbiome and the environment to achieve the well-being of the entire ecosystem, from the skin to the planet's harmony."

• Lamberto Anzalone, US, Canada, LATAM Area Manager, Roelmi HPC

To further improve sustainability efforts, brands can:

• Incorporate blockchain technology for ingredient traceability

• Collaborate with suppliers to ensure sustainable practices

These methods work hand in hand with Life Cycle Assessment (LCA) strategies to improve transparency across the supply chain. For guidance, the UN Global Compact's Supply Chain Sustainability guide offers a useful framework for evaluating sustainability and ethical standards.

Creating Trust Through Openness

Why Transparency Matters

In the world of natural cosmetics, transparency is a game-changer. According to research, 94% of consumers are more likely to stay loyal to brands that are transparent, and 39% would switch to brands offering greater openness. This shows how being upfront about ingredients is now a key factor in building strong, long-term customer relationships.

But it’s not just about listing ingredients. Consumers want deeper insights, such as:

This level of openness ties directly to responsible sourcing and life cycle assessment (LCA) methods discussed earlier. Together, they emphasize the importance of clear, data-driven communication about a brand's environmental and ethical practices.

Clear Impact Communication

Transparency doesn’t just stop at ingredients - it extends to how brands communicate their environmental impact. Providing clear, verified information builds trust and strengthens a brand’s credibility. However, a European Commission study found that 53.3% of environmental claims were unclear or misleading. To avoid falling into this trap, brands must focus on delivering specific, verified details about their practices and ingredients.

"Brands that incorporate real traceability procedures and use suppliers that manage strict supply chains will win - and keep - customers' trust." - Chase Shryoc, Vice President of Sales and Business Development, Gencor

Successful brands are taking steps to enhance trust by:

• Publishing detailed ingredient lists that include origin and safety information.

• Using QR codes to share sustainability data directly with consumers.

• Leveraging blockchain technology to track supply chains and ensure transparency.

• Obtaining third-party certifications to validate claims.

The numbers speak for themselves: 98% of consumers consider ingredients a key factor in their buying decisions. This is driving brands to adopt advanced tools and technologies that make it easy to share ingredient and impact information clearly and effectively.

What's Next for Natural Cosmetics

New Tools for Supply Chain Tracking

Blockchain and AI systems are transforming supply chains by offering real-time tracking of ingredient origins. These tools provide tamper-proof data and detailed insights, ensuring transparency. With the EU directive taking effect in March 2024 and compliance required by September 27, 2026, brands are increasingly adopting these advanced systems.

These technologies are reshaping how companies meet growing market demands and respond to shifting consumer preferences.

Changing Customer Needs

As new tracking tools reshape the industry, consumer priorities are also shifting. Over 30% of shoppers now choose brands that reflect their personal values, while 25% actively avoid those that don't.

Some key trends driving this change include:

• Simplified Formulations
  

  Many natural cosmetics brands are cutting down on lengthy ingredient lists. This trend focuses on clarity, biodiversity-friendly practices, and responsibly sourced ingredients.

• Sustainable Packaging Solutions
  Environmentally friendly packaging is becoming more common. The forthcoming Packaging and Packaging Waste Regulation (PPWR), slated for publication by Q3 2024, is expected to push brands toward more eco-conscious designs and materials.

With consumers demanding higher standards, brands are under pressure to adopt environmentally responsible practices and maintain transparency across their operations.

Conclusion

The natural cosmetics industry is experiencing a major shift, driven by increasing consumer awareness and stricter regulations. Life Cycle Assessment (LCA) plays a key role in evaluating environmental impacts, allowing brands to make informed decisions in response to the demand for greater transparency.

Research shows that consumers are willing to pay more for eco-conscious products, while tougher EU regulations against greenwashing emphasize the importance of thorough environmental assessments. Blockchain technology is also making waves by providing secure, tamper-proof records that improve ingredient traceability. This helps brands align with the expectations of environmentally aware consumers. Together, these changes are paving the way for more transparent and responsible ingredient sourcing.

The focus on protecting biodiversity highlights the importance of adopting eco-friendly practices across all ingredient sourcing. This transformation reflects a growing commitment to environmental responsibility and the critical role of detailed impact assessments.

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