From Sustainability to Purpose in Beauty

Delivery

This report comes in PPT.

Key findings

Sustainability strategies are no longer just the preserve of niche companies

As consumer awareness of social and environmental issues increases, steps to improve the beauty industry’s environmental footprint are progressing at a faster pace. COVID-19 has also bought a new consciousness that has spotlighted “purpose over profit” – a more holistic approach to sustainability that aims to encompass social, environmental and economic value.

Younger consumers and beauty enthusiasts are key drivers

Millennial and Generation Z consumers are driving the industry push for sustainable beauty, as they are extensive product users, premium buyers, digitally-influenced, and are increasingly influencing the skin care category, in particular.

Innovations are gaining pace across food and ocean waste, recycled materials and refillables

While the development of sustainable initiatives may have been postponed due to COVID-19, the forecast period offers significant opportunities for technological advances in sustainable innovations. The use of bio-based and biodegradable materials is expected to increase, in addition to more recyclable packaging materials, more recycled content usage and new returnable systems.

Multinationals are beginning to ramp up sustainable actions and innovations

With the top 15 global beauty players accounting for over 50% of value sales in the industry, responsibility rests on these companies to make major differences and set higher standards. 2020 saw many leading players, like L'Oréal, Shiseido and Unilever, unveil new sustainability goals and product developments.

Sustainability challenges are more pronounced among retailers

Economic incentives and knowledge are key to address retailers’ lag in adopting more sustainable practices. Beauty specialist retailers are particularly well placed to push forward sustainability, given their customer base, brand assortment, and leverage with brands and suppliers.