The $500 Billion Beauty Industry's 'Green' Ambitions Are a Patchwork at Best, and They're Falling Short
The escalating climate crisis is shifting many people's purchasing patterns, with the $500 billion global beauty industry also grappling with sustainability challenges across product manufacturing, packaging, and disposal. Strategy and consulting firm Simon Kucher's Global Sustainability Study 2021 found that 60% of consumers worldwide rate sustainability as an important purchase criterion, while 35% are willing to pay more for sustainable products or services.
This shift in consumer preferences has propelled many beauty brands to set environmental goals, such as moving away from single-use and virgin plastics, providing recyclable, reusable, and refillable packaging, and offering more transparency around product ingredients. However, consumers still struggle to understand the sustainability credentials of many products due to the industry's inconsistent clean-up efforts and lack of standardized regulations.
One major challenge is ingredient transparency, with no international standard for how much product information brands must share with customers. This leads to "greenwashing," where companies tout sustainability claims but fail to substantiate them. Companies often use marketing language like "clean beauty" to make their products seem natural, despite not always being organic, sustainable, or ethically made.
Industry leaders are calling for more transparency and certification standards, such as the B Corporation accreditation, which evaluates a company's ethics and sustainability practices. However, this standard is currently voluntary, and governments and multinationals have yet to enforce regulations on sustainability claims.
Beauty retailers also play a crucial role in setting industry standards, but many vary in their commitment to sustainability. While some brands are making significant strides in reducing plastic waste and promoting eco-friendly packaging, others are still struggling with inconsistency and lack of transparency.
The missing player in addressing the beauty industry's climate shortcomings is government regulation. Without bold regulations or global standards on sustainability practices, this "leadership" โ undertaken by both brands and customers โ will be the most impactful vector for addressing the industry's climate shortcomings. It will take continued collective advocacy and initiative to see meaningful climate-conscious change.
In the end, the beauty industry's sustainability efforts are falling short of expectations, with consumers struggling to understand the true impact of their purchasing decisions. As leaders in the industry continue to call for more transparency and standardization, it remains to be seen whether the industry will come together to address its significant environmental challenges.
The escalating climate crisis is shifting many people's purchasing patterns, with the $500 billion global beauty industry also grappling with sustainability challenges across product manufacturing, packaging, and disposal. Strategy and consulting firm Simon Kucher's Global Sustainability Study 2021 found that 60% of consumers worldwide rate sustainability as an important purchase criterion, while 35% are willing to pay more for sustainable products or services.
This shift in consumer preferences has propelled many beauty brands to set environmental goals, such as moving away from single-use and virgin plastics, providing recyclable, reusable, and refillable packaging, and offering more transparency around product ingredients. However, consumers still struggle to understand the sustainability credentials of many products due to the industry's inconsistent clean-up efforts and lack of standardized regulations.
One major challenge is ingredient transparency, with no international standard for how much product information brands must share with customers. This leads to "greenwashing," where companies tout sustainability claims but fail to substantiate them. Companies often use marketing language like "clean beauty" to make their products seem natural, despite not always being organic, sustainable, or ethically made.
Industry leaders are calling for more transparency and certification standards, such as the B Corporation accreditation, which evaluates a company's ethics and sustainability practices. However, this standard is currently voluntary, and governments and multinationals have yet to enforce regulations on sustainability claims.
Beauty retailers also play a crucial role in setting industry standards, but many vary in their commitment to sustainability. While some brands are making significant strides in reducing plastic waste and promoting eco-friendly packaging, others are still struggling with inconsistency and lack of transparency.
The missing player in addressing the beauty industry's climate shortcomings is government regulation. Without bold regulations or global standards on sustainability practices, this "leadership" โ undertaken by both brands and customers โ will be the most impactful vector for addressing the industry's climate shortcomings. It will take continued collective advocacy and initiative to see meaningful climate-conscious change.
In the end, the beauty industry's sustainability efforts are falling short of expectations, with consumers struggling to understand the true impact of their purchasing decisions. As leaders in the industry continue to call for more transparency and standardization, it remains to be seen whether the industry will come together to address its significant environmental challenges.