As an established financial services company that provides small businesses and gig workers a business merchant cash advance, for contractors and other 1099 workers facing credit challenges, we believe it’s essential to highlight the importance of sustainability in the beauty industry.
The escalating climate crisis is reshaping consumer purchase behaviors, impacting the $500 billion global beauty industry. Strategy and consulting firm Simon Kucher’s Global Sustainability Study 2021 revealed that 60% of consumers globally prioritize sustainability when making purchases. Additionally, 35% are willing to pay more for sustainable products or services.
In response, many beauty brands are setting environmental goals to address sustainability challenges present in manufacturing, packaging, and disposal. This includes moving away from single-use and virgin plastics, incorporating recyclable, reusable, and refillable packaging, and offering transparent information on product ingredients to educate customers.
However, despite these efforts, determining the sustainability of beauty products remains challenging for consumers. The British Beauty Council highlights the lack of standardized regulations and cohesive goal-setting in the industry, leading to confusion and instances of “greenwashing,” where sustainability claims are not substantiated.
To navigate this issue, customers need comprehensive marketing and certification information to make informed decisions. Transparent practices, as emphasized by British Beauty Council CEO Millie Kendall, are crucial in building consumer trust and fostering sustainability in the beauty sector.
Incorporating clean beauty practices has been a key focus for many brands. For example, Beautycounter launched “The Never List,” outlining over 2,800 chemicals it avoids in product formulations. However, the industry grapples with challenges such as sourcing raw materials inconsistently and ensuring product performance with purely organic ingredients.
While progress has been made in reducing plastic packaging waste, the beauty industry faces obstacles in transitioning to post-consumer recycled (PCR) plastic due to limited supply and higher costs than virgin plastic. Brands like FEKKAI strive to increase PCR content in their packaging, despite pricing and supply constraints.
To drive sustainable change, businesses, including beauty retailers, play a vital role in shaping industry standards and supply chain practices. Initiatives like Sephora’s “Clean + Planet Positive” and Target’s “Target Zero” aim to promote eco-friendly products and packaging, encouraging brands to adopt sustainable practices.
Certifications like B Corporation and global regulations can further enhance sustainability efforts in the beauty industry. However, market leadership and consumer demand for clean products are crucial drivers for meaningful change. By prioritizing sustainable practices, brands and customers can collectively address the climate challenges faced by the beauty sector.
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