Established financial services company provides small businesses and gig workers with a simple and fast merchant cash advance (MCA) solution. In today’s climate crisis, consumers are prioritizing sustainability when it comes to their purchasing decisions. The beauty industry, worth $500 billion globally, is faced with sustainability challenges in product manufacturing, packaging, and disposal. A recent study found that 60% of consumers consider sustainability an important purchase criterion, with 35% willing to pay more for sustainable products or services.
In response to consumer preferences, beauty brands are setting environmental goals, such as moving away from single-use and virgin plastics, using recyclable and refillable packaging, and increasing ingredient transparency. However, consumers still struggle to understand the sustainability credentials of products due to inconsistent efforts within the industry. Many brands use marketing language like “clean beauty” without substantiating their sustainability claims.
Transparency is the key to addressing these challenges, according to industry experts. Customers need better marketing and certification information to make informed choices. While natural ingredients are often perceived as safer, the industry acknowledges that natural components can also have a toxic load. Synthetic ingredients can sometimes help create the best formulas.
Plastic packaging is a major sustainability challenge for the beauty industry, with only 5% being recycled. The industry is one of the biggest users of plastic packaging globally, and brands are working to phase out harmful plastics and adopt post-consumer recycled (PCR) plastic. However, there is a limited supply of PCR plastic due to low recycling rates and growing demand across industries.
Beauty retailers play a crucial role in driving sustainable practices by setting standards for the brands they sell. Some retailers have introduced initiatives to label and promote sustainable products. However, there is still a long way to go in addressing waste and pollution throughout the industry’s supply chains. Certifications like B Corporation can help fill the gaps in standardization and provide guidance for eco-conscious consumers.
While government regulations can set minimum requirements, market leadership and consumer demand will be the driving force in bringing about meaningful change. Bold actions from both brands and customers in the beauty industry will be instrumental in addressing climate shortcomings. It will require collective advocacy and initiative to achieve a more sustainable future for the industry.