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Sustainable products drive 10% growth in beauty and personal care sector

Companies are now shifting to safer and natural ingredients.

Sustainable products in the beauty and personal care industry grew at a 10% compound annual growth rate from 2020 to 2023.

According to Euromonitor’s AI-based Passport Sustainability platform, companies must adopt transparent sustainability practices to help manage risks, ensure regulatory compliance, and tap into the growing consumer preference for eco-friendly products.

“Sustainability is no longer just a skin care concern, but a priority for consumers across various product categories,” it stated.

Companies are now shifting to safer and natural ingredients. For example, sun care products now favor zinc oxide, a mineral SPF, over chemical alternatives due to its lower environmental impact.

The fastest-growing categories such as fragrances, sun care, deodorants, and color cosmetics have also seen double-digit growth from 2020 to 2023.

Brands like Dove are integrating key skincare ingredients and emphasising sustainable features, as seen in their vegan Dove Serum Body Wash collection. However, the perception of sustainability as costly hinders wider adoption, especially in high-priced sectors like fragrances and color cosmetics.

The report noted that consumers are increasingly demand products that reflect their ethical values, driving the popularity of "natural," "vegan," and "cruelty-Free" claims. Certifications like Made Safe and UpCycled are also becoming more common, verifying non-toxic compositions and the use of surplus resources.

Additionally, about 62% of beauty companies are investing in sustainable packaging. Compostable and FSC-certified packaging are amongst the popular choices.

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