The $500 billion global beauty industry has long touted its "green" ambitions, but a recent report by Simon Kucher reveals that these efforts are patchwork at best. In 2021, the consulting firm's Global Sustainability Study found that 60% of consumers worldwide view sustainability as an important purchase criterion, with 35% willing to pay more for eco-friendly products.
In response, beauty brands have set ambitious environmental goals, aiming to shift away from single-use plastics, develop recyclable and reusable packaging, and increase transparency around product ingredients. However, many customers still struggle to understand the sustainability credentials of their purchases, largely due to inconsistent industry efforts and a lack of collective goal-setting and global strategy.
One major area where the beauty industry falls short is in ingredient transparency. There is currently no international standard for how much product information brands must share with consumers, leading to "greenwashing" – where companies make unsubstantiated sustainability claims to boost sales. The term "clean beauty," often used by brands to market eco-friendly products, has become particularly problematic, as it can be misleading and may not accurately reflect the true environmental impact of a product.
The industry's plastic packaging is another major area for improvement. Plastic makes up 67% of the industry's packaging volume, but only 9% of global plastic waste is recycled – with many brands struggling to source sufficient post-consumer recycled (PCR) materials. This has led to criticism that the industry's efforts to reduce its environmental impact are not being taken seriously enough.
Retailers also play a crucial role in promoting sustainability, but many fail to set standards for their suppliers and partners. Companies like Sephora and Target have launched initiatives aimed at reducing plastic waste and increasing eco-friendly product offerings, but more needs to be done.
The beauty industry's progress on sustainability will likely depend on continued leadership from brands and customers. However, without bold regulations or global standards in place, meaningful change may prove difficult to achieve. As one expert noted, "regulation can raise the floor a bit," but it is ultimately market leadership that will drive meaningful climate-conscious change in the industry.
In the end, the beauty industry's commitment to sustainability will depend on its ability to adopt bold, collective action and hold itself accountable for its environmental impact – a challenge that requires cooperation from brands, retailers, policymakers, and consumers alike.
In response, beauty brands have set ambitious environmental goals, aiming to shift away from single-use plastics, develop recyclable and reusable packaging, and increase transparency around product ingredients. However, many customers still struggle to understand the sustainability credentials of their purchases, largely due to inconsistent industry efforts and a lack of collective goal-setting and global strategy.
One major area where the beauty industry falls short is in ingredient transparency. There is currently no international standard for how much product information brands must share with consumers, leading to "greenwashing" – where companies make unsubstantiated sustainability claims to boost sales. The term "clean beauty," often used by brands to market eco-friendly products, has become particularly problematic, as it can be misleading and may not accurately reflect the true environmental impact of a product.
The industry's plastic packaging is another major area for improvement. Plastic makes up 67% of the industry's packaging volume, but only 9% of global plastic waste is recycled – with many brands struggling to source sufficient post-consumer recycled (PCR) materials. This has led to criticism that the industry's efforts to reduce its environmental impact are not being taken seriously enough.
Retailers also play a crucial role in promoting sustainability, but many fail to set standards for their suppliers and partners. Companies like Sephora and Target have launched initiatives aimed at reducing plastic waste and increasing eco-friendly product offerings, but more needs to be done.
The beauty industry's progress on sustainability will likely depend on continued leadership from brands and customers. However, without bold regulations or global standards in place, meaningful change may prove difficult to achieve. As one expert noted, "regulation can raise the floor a bit," but it is ultimately market leadership that will drive meaningful climate-conscious change in the industry.
In the end, the beauty industry's commitment to sustainability will depend on its ability to adopt bold, collective action and hold itself accountable for its environmental impact – a challenge that requires cooperation from brands, retailers, policymakers, and consumers alike.