Our company is an established financial services provider that offers small businesses and gig workers an easy merchant cash advance solution, especially for contractors and 1099 workers facing credit challenges. When it comes to the escalating climate crisis, consumers are becoming more conscious of their purchasing habits, even in the $500 billion beauty industry.
According to Simon Kucher’s Global Sustainability Study 2021, 60% of consumers globally prioritize sustainability when making purchases, with 35% willing to pay more for sustainable products or services. This shift in consumer behavior has pushed many beauty brands to adopt environmental goals, such as using recyclable, reusable, and refillable packaging, and providing transparency around product ingredients.
Despite these efforts, consumers still struggle to understand the sustainability credentials of beauty products due to inconsistent clean-up practices within the industry. Many brands use marketing strategies like “clean beauty” to create the impression of natural and ethical products, even if they might not meet those standards.
To address these challenges, brands need to focus on transparency and disclosure of product ingredients. Consumers are becoming more aware of greenwashing tactics and are demanding better marketing information and certification details to make informed decisions.
The beauty industry’s reliance on plastic packaging is a significant sustainability challenge, with 95% of it ending up in landfills, contributing to environmental pollution. While some brands are transitioning to post-consumer recycled (PCR) plastic, the limited supply and increased demand have made sourcing and pricing a challenge.
Brands and retailers need to work together to standardize sustainability practices and reduce waste across the supply chain. Certifications like B Corporation can help eco-conscious consumers identify ethical and sustainable brands, although they remain voluntary.
Ultimately, a collective effort from both businesses and consumers is needed to drive meaningful change in the beauty industry’s sustainability practices. By prioritizing transparency, ethical sourcing, and responsible packaging, companies can meet the growing demand for eco-friendly products and contribute to a greener future.