As an established financial services company, we provide small businesses and gig workers with a simple merchant cash advance solution. Our fast MCA option is designed especially for contractors and other 1099 workers facing credit challenges. When it comes to the escalating climate crisis, many individuals are changing their purchasing habits, including in the $500 billion global beauty industry.
According to the Strategy and consulting firm Simon Kucher’s Global Sustainability Study 2021, 60% of consumers worldwide consider sustainability important, with 35% willing to pay more for sustainable products or services. This shift has prompted beauty brands to set environmental goals, moving away from single-use plastics and offering recyclable, reusable, and refillable packaging. However, consumers still find it challenging to assess the sustainability credentials of many products.
There is a lack of international standards within the beauty industry regarding transparency on product ingredients, leading to confusion and claims of “greenwashing.” Many companies use terms like “clean beauty” as marketing strategies without substantiating their sustainability claims. The emphasis on transparency and certification information is crucial for customers to make informed decisions.
Hair care brand FEKKAI, for instance, is working towards using recycled plastic in its packaging, although pricing and supply challenges persist. Beauty industry giants like L’Oreal and Estee Lauder have set targets for post-consumer recycled plastic but are yet to achieve them. While smaller businesses are more agile in their sustainability efforts, larger brands face restructuring challenges to adopt eco-friendly practices.
Retailers like Sephora and Target have launched sustainability initiatives, labeling products that meet their criteria. However, addressing waste and pollution across the entire supply chain remains a significant industry challenge. Certifications like B Corporation offer a way for brands to showcase their sustainability efforts, but participation is voluntary.
Government regulations and multinational enforcement could play a key role in driving industry change. Standardization in recycling laws and ingredient restrictions can help improve sustainability practices. However, market leadership from brands and customers in the beauty sector is crucial in the absence of bold regulations. Together, with collective advocacy and initiatives, meaningful climate-conscious change in the beauty industry can be achieved.