Sustainable Procurement & CSR News - Cosmetics Industry

According to Nguyen, small pack sizes become increasingly popular as consumers’ lifestyles evolve. “While smaller formats offer more portability to nomadic consumers, they also allow consumers to discover a wider range of products that become affordable thanks to their lower unit prices,”​ he explains. “As consumers’ purchasing habits and preferences evolve globally, this creates packaging shifts, such as greater adoption of HDPE bottles over single-use flexible plastics, as well as growing demand for premium packaging.​ “Consumers are increasingly aware of the impact that packaging has on the environment. As a result, brand owners and packaging manufacturers are working towards greener packaging solutions, offering bio plastic, post-consumer recycled packaging and lightweight packaging, among others.”​

“Sustainable.” It’s a word that you hear all the time. On social media. On the news. It’s become a buzzword that has transformed how we go about our everyday lives in a multitude of ways. But what does it actually mean? And, how does it relate to you and your skincare business? Studies have shown consumers care now more than ever about the effects their decisions and behaviors have on our planet. Waste, pollution, climate change, water scarcity, deforestation, global warming… just a few to name off an ever-growing list of environmental concerns that plague our world today. And the public, including consumers, is taking notice.

Animal rights have been a major topic of conversation in the beauty industry recently, with cruelty-free and vegan brands gaining traction with consumers. Now, however, an entire United States state has taken a bold stance on the subject. According to Refinery29, California recently passed the”California Cruelty-Free Cosmetics Act, SB 1249,” which will make it illegal for cosmetics tested on animals to be sold in the state as of Jan. 1, 2020. Earlier this year, the home spa brand Bliss became officially certified as cruelty-free by animal rights organization PETA, while cult cosmetics brand Milk Makeup declared itself 100 percent vegan, after eliminating animal-based products such as honey, beeswax and collagen from its formulas.

“Our customers are really demanding more environmentally friendly options,” Sari Sternschein, VP of Marketing at Qosmedix, tells Cosmetics Design in this video interview (filmed at Cosmoprof North America). She describes the recycled and recyclable solutions Qosmedix offers, why the company repeatedly exhibits at CPNA, and how the job of marketing at a beauty industry supply company has changed over recent years. B2B beauty suppliers like Qosmedix are faced with many challenges in this fast-paced industry, not the least of which is the transition to all things digital. “We are heavily focusing on the digital experience,” ​Sternschein tells Cosmetics Design editor Deanna Utroske. “About half of the visitors to our website use mobile devices,” ​she say—a substantial figure considering the scope and scale of the business Qosmedix transacts.

Proliferation in standards, labels and charters for sustainability. Apart from eco-labels, we are seeing more sustainability / green charters and schemes. Apart from labels / standards, these include RSPO and Responsible Mica Initiative.
Traceability of raw materials. Cosmetic and ingredient firms are under pressure to show that their raw materials are ethically sourced. Palm oil is a good example of this, however expect more raw materials to be scrutinised.
Consumer behaviour. The ubiquitous use of mobile devices is making consumers more information savvy; they are asking greater questions about cosmetic products and raw materials. The clean beauty trend is a manifestation of this development.
Mobile apps. More apps like the GoodGuide (USA) and Que Choisir (France) will be used to screen and rate cosmetic products, based on ethical / green criteria.

Weleda has become one of the two brands which has been recognized by the UEBT, or Union for Ethical Biotrade, to receive its certification for sourcing with respect, the company said. “We have received many awards in recent years for our efforts to achieve sustainability in our supply chains,” Annette Piperidis, manager of sustainable sourcing at Weleda, said. “Sustainability is not a goal for us, but rather a process in which we constantly strive for optimization. For this reason, it was important to us to take our efforts to the next level and to face further challenges.”

Chemical and cosmetics company, Kao, now appears on a number of global stock indices, strengthening its international presence. The Japanese name has recently been added to environmental, social and governance (ESG) investing indices including the FTSE4Good Index Series for the 11th consecutive year, the FTSE Blossom Japan Index and MSCI Japan ESG Select Leaders Index for the second consecutive year.  In May 2018, Cosmetics Design Asia reported how Kao was focusing its attention on harnessing an internationally-recognised portfolio to generate further growth in Asia and Europe, in particular.

Revolving its brand identity around the “power of nature, the ultimate in skin care”​, the Australian name’s new facility contains contemporary technological advances to manage water and energy usage as it focuses on sustainability. Moving forward, Jurlique aims to hone its marketing strategy around product development in Australia, instead of expanding to overseas markets in APAC and around the world. The Made in Australia label is of high importance when it comes to building the homegrown beauty brand's presence. This is particularly relevant as it explores optimised manufacturing, development plans and capabilities as it strives to harvest its botanical ingredients.

In an effort to mitigate the impact of the Trump Administration's most recent list of proposed tariffs on Chinese goods, Walmart has asked beauty vendors to look outside China, according to a report from Reuters, which noted reporters viewed an Aug. 7 email from the retailer to beauty suppliers. Walmart didn't immediately return Retail Dive's request for comment.

PETA estimates 100 million animals die in laboratories every year as a result of animal testing. This testing is not limited to one species; dogs, cats, fish, rodents and monkeys are all subjected to daily torturous methods, often leading to premature death. One such method involves a substance being rubbed onto shaved skin and chemicals into the eyes (without pain relief), in order to test for skin irritation and to monitor the side effects of a specific ingredient. Other methods include repeated force-feeding, drinking and inhalation of substances; while another involves deliberate gene mutation during breeding to examine birth defects and more.

Henkel, parent-company of Schwarzkopf, has announced it is taking decisive steps towards sustainable packaging.
Building on its existing efforts and progress in sustainable packaging, Henkel says it is stepping up its commitment to further promote a circular economy. By 2025, 100% of Henkel’s packaging will be recyclable, reusable or compostable (excluding adhesive products where residue may affect recyclability). Within the same timeframe, Henkel aims to use 35% recycled plastic for its consumer goods products in Europe. “It is more important than ever for companies, consumers, governments and other organizations to drive progress toward a circular economy,” ​says Kathrin Menges, Executive Vice President Human Resources at Henkel and Chair of Henkel’s Sustainability Council. “Only by reusing and recycling as much material as possible will we be able to live well within the resource limits of our planet.”​

In the cosmetics industry, a finely-tuned supply chain can be a thing of beauty. But with increasing pressures on the industry on sustainability and transparency, there are more and more things that could go wrong. For example inefficiencies in the manufacturing or supply chain processes can have a knock-on effect on consumer brand perceptions.  The challenges in a cosmetics manufacturing environment can crop up at any time. Spoiling due to inadequate storage can cause serious problems and is just one of many issues that can arise. Here are 5 key challenges for the cosmetics industry, and how they can be overcome them by using batch manufacturing software:

1. Inventory control as trends dictate demand

2. Tracking the diverse destinations

3. MRP to meet the specific requirements for materials

4. Transparency to meet sustainability demands

5. Collating data from multiple sources

The brand has introduced shoppers to its new Organic Pure and Free Stick, which is the company’s first-ever flavor-free lip balm. Containing such ingredients as vitamin E, shea butter, jojoba oil, coconut oil, olive oil, carnauba wax, beeswax and sunflower oil, the lip balm is USDA-certified organic. The product also is free of parabens and petrolatum, gluten-free, GMO-free, hypoallergenic, made with sustainable ingredients, and dermatologist tested, the company said.

The California State legislative has approved The California Cruelty-Free Cosmetics Act with a stunning 80-0 vote that will make the state the first in the US to implement such a law.
California now joins other countries that include India, Australia, Switzerland, as well as the European Union that have either banned or restricted animal testing on cosmetics and cosmetic ingredients. With the cosmetic and personal care industry largely self-regulating in the United States, nationwide legislation and state legislation elsewhere has not made the same impact that has been seen in other parts of the world in recent years.

The proliferation of indie brands has raised consumer expectations in terms of what they expect from their beauty products, including sustainability, natural ingredients, transparency and innovation. Due to this explosion, mass retailers are feeling the pressure to think outside the box and procure brands that deliver true innovation. Enter Cosmoprof North America, the largest beauty trade fair in North America, held late July in Las Vegas. This year, the show featured more than 1,415 exhibitors, up 10% from 2017 levels, according to the event’s sponsors.

Hello Products is continuing to innovate the way consumers care for their pearly whites by introducing a new innovation — featuring none other than activated charcoal. “We’re super-psyched to bring the benefits of activated charcoal to the mouthwash category,” Hello founder Craig Dubitsky, said. “Finally, mouthwash that’s as delicious and refreshing as it is effective, but without alcohol, artificial flavors, artificial sweeteners and synthetic dyes.” “We’re on a mission to elevate every day, starting with mouths everywhere,” Dubitsky said. “We’re purposeful in everything we do, and our packaging and sustainability are core to our ethos and ethics at hello. Hello’s new launch is vegan, gluten-free, cruelty-free and free from alcohol, dyes, artificial sweeteners, flavors and SLS/sulfates.

Bulldog: vegan claims enticing men​
British male grooming player Bulldog Skin Care for Men is another brand keen to tap into vegan claims. Earlier this year, it released various new products, including a Stubble Moisturiser, a Hand Cream, a Body Lotion, a 24h Moisturiser and a Sensitive Face Scrub, which boasted vegan credentials. “With searches for “vegan beauty” doubling on the Boots website in the last two years and with Superdrug expanding their vegan offering by 20%, it’s obvious that vegan beauty is big news and it’s not just a temporary trend,” ​the brand asserts.​ “Veganism is the fastest growing lifestyle movement in the UK and we’re becoming a lot more environmentally conscious.”​

Following its successful launch in the US at the start of this year, Unilever’s brand Love Beauty and Planet has now seen a rollout across the UK. It is the first personal care brand launch made by the multinational consumer goods player in 20 years, and taps into the ever rising demand for beauty that is both ethical and environmentally aware. Its rollout in the UK suggests Unilever is confident that the brand can build on its successful first period in the US. It boasts vegan-friendly claims, and also pledges that all ingredients will come from certified sustainable sources by 2020. The brand uses bottles made from post-consumer recycled plastic, and these themselves are also recyclable.

The Australian and New Zealand arm of Unilever plans to use at least 25% recycled plastic for its brand packaging. A collection of Unilever’s leading brand names, including Dove, TRESemmé, Surf, Sunsilk and OMO will feature recycled plastic for home and personal care goods bottles, a Packaging Gateway report reveals​.
As Unilever plans to use sourced post-consumer recycled plastic in Australia, the sustainability plan is expected to raise 750 tonnes of recycled plastic each year. “We also need to continue our work to reduce the amount of packaging we use whilst balancing this with delivering the quality of products our consumers expect,”​ Unilever reported.

Japanese cosmetics company Kao has teamed up with the Centre for Environmental Education and Communications (CEEC) with China’s Ministry of Environmental Protection to release its ‘Nationwide Cleanliness and Water Saving Initiatives’. Indian brand Azafran Innovacion's use of plant-based, biodegradable and eco-friendly ingredients, for example, helping to promote water as a luxury, rather than a commodity. ​ O’ Right, a Taiwanese natural hair care name, supports the move towards carbon neutral businesses and has committed to lowering its water usage. Furthering its sustainability goals, South Korean beauty leader, Amorepacific, has also prioritised its eco-friendly process​ set up and management by using 32,059 tonnes of rainwater in its productions units to lower its water and carbon footprint.

“BASF is a truly innovative company that continues to deliver new natural alternatives for consumers year in and year out. We are pleased to honor BASF for their contributions to our industry and to NPA, the nation’s largest and oldest association for natural products.” The NPA handed out its award during their annual conference The Big Natural in Las Vegas recently. NPA’s Natural Standard and Certification for Personal Care Products is a set of guidelines that dictate whether a product can be deemed truly “natural”, and comes to protect and educate consumers. The standard encompasses all cosmetic personal care products regulated and defined by the Food and Drug Administration (FDA), and is based on four evaluated criteria: natural ingredients, safety, responsibility and sustainability.