Companies are now moving towards safer, more natural ingredients.
Sustainable products in the beauty and personal care industry grew at a compound annual growth rate of 10% from 2020-2023.
According to Euromonitor’s AI-based Passport Sustainability platform, companies need to adopt transparent sustainability practices to manage risk, ensure regulatory compliance and meet growing consumer preferences for environmentally friendly products.
“Sustainability is no longer just a skincare issue but a priority for consumers across multiple product categories,” the company said.
Companies are now moving towards safer, more natural ingredients – for example, sunscreen products are favouring zinc oxide, a mineral SPF, over chemical alternatives due to its lower environmental impact.
The fastest-growing categories, including fragrance, sun care, deodorants and color cosmetics, are also expected to experience double-digit growth from 2020 to 2023.
Brands such as Dove are incorporating key skin care ingredients and highlighting their sustainable features, as seen in the vegan Dove Serum Body Wash collection, but the perception that sustainability comes at a cost prevents wider adoption, especially in higher-priced categories like fragrance and color cosmetics.
The report notes that consumers are increasingly looking for products that reflect ethical values, with claims such as “natural,” “vegan” and “cruelty-free” gaining popularity, while certifications such as Made Safe and UpCycled are also becoming more common, proving the use of non-toxic ingredients and surplus resources.
Additionally, around 62% of beauty companies are investing in sustainable packaging, with compostable and FSC-certified packaging being some of the popular choices.
