Our established financial services company provides small businesses and gig workers with a simple and easy merchant cash advance (MCA), especially for contractors and other 1099 workers who may have credit challenges. In today’s changing world, consumer preferences are shifting towards sustainability, even in the $500 billion global beauty industry. According to Simon Kucher’s Global Sustainability Study 2021, 60% of consumers consider sustainability an important factor in their purchasing decisions and are willing to pay more for sustainable products or services.
To meet these demands, many beauty brands are setting environmental goals. They are moving away from single-use and virgin plastics, offering recyclable, reusable, and refillable packaging, and providing more transparency regarding product ingredients. However, consumers still struggle to understand the sustainability credentials of many beauty products due to inconsistency and lack of standardized regulations in the industry.
To address this issue, the beauty industry needs transparency, better marketing information, and certification information. Many brands misuse marketing language like “clean beauty” to make their products seem natural and sustainable, leading to confusion and “greenwashing.” Consumers need accurate and reliable information to make informed choices.
In addition to ingredient transparency, the beauty industry must tackle the challenge of plastic packaging sustainability. Currently, 95% of plastic packaging is thrown away, and the majority is not recycled. Plastic accounts for about 67% of the industry’s packaging volume. Brands like L’Oreal and Estee Lauder are attempting to adopt post-consumer recycled (PCR) plastic, but low recycling rates and growing demand make it difficult to find a sufficient supply of PCR plastic. Furthermore, PCR plastic is more expensive than virgin plastic, adding to the challenges.
Beauty retailers play an important role in promoting sustainability. Smaller businesses tend to be more proactive in implementing sustainable practices, while larger brands have to work harder to change. Retailers like Sephora and Target have launched initiatives to label and promote sustainable products, but more steps need to be taken to address waste and pollution throughout the supply chain.
Certifications like B Corporation (B Corp) can bridge the gap in standardization. These accreditations, such as the well-known B Corp, assess a company’s sustainability and ethics. However, participation in these certifications is currently voluntary.
While government regulations can set minimum requirements, market leadership is essential to drive sustainable change in the beauty industry. Brands and customers must take the lead in advocating for and implementing climate-conscious practices. Meaningful change requires collective effort and continued initiative.