How the Circular Economy is Transforming Cosmetics for Good

Currently, in order for the world's economy to be sustainable, many industries are being encouraged to transition to a circular way of operating. Advocates of the circular model maintain that making such a switch won't be detrimental, but instead will provide huge advantages. Already, there are working prototypes of realistic ways in which to do business based on a circular model, ways that will help a company navigate the tricky waters of change and start to thrive whilst also protecting and nurturing biodiversity and addressing global, social inequities. It is hoped that this circular economic approach will lead to prosperity for all and more resilient, robust industries which, at their core, will be environmentally friendly.

And if there was ever an industry you'd think could take care of its own transformation then surely it would be cosmetics, right? Well, fingers crossed, because making the change towards becoming truly sustainable in the world of beauty is long overdue.

In this article, we'll define what exactly the cosmetics industry is. Then, we'll take look at the pressing reasons why a move away from the traditional linear model is necessary. Next, we'll touch upon some of the advantages of making a transition. Finally, we'll mention some of the strategies forward thinkers are already employing in order to encourage a widespread shake-up of the norms.

The Cosmetics Industry – key facts

Simply defined, the cosmetics industry is both the manufacturer and distributor of cosmetic products. Often also referred to as the beauty industry, there are subtle differences between the two: cosmetics are all about enhancing appearance whilst beauty encompasses a wider range of products, many specific to personal care. For the purposes of this article, we’ll refer to both as the cosmetics industry.

The cosmetics industry can be divided into five main business segments: skincare, haircare, make-up, fragrance and toiletries and though it’s dominated by a few giants (e.g., L’Oréal, Estée Lauder, Unilever, Procter & Gamble) there are a multitude of small and medium-sized businesses as well.

Cosmetics is a fundamental part of the global economy and today, its value is estimated at USD 131.66 billion. By 2029, this figure is set to reach USD 154.20 billion “growing at a CAGR of 3.21%” (CAGR = compound annual growth rate) with men’s personal care, just one of the areas looking set to boom.

Why a transition to circular is necessary for the cosmetics industry

Sustainability must come above profit

The general consensus defines business as the economic production of goods and services. Non-profit organisations fulfilling charitable functions also falls into this category, but the majority of businesses are in it to make money which is fair enough. Man has traded and bartered since time immemorial.

Unfortunately however, widespread in the cosmetics industry is a pervasive mindset which believes that it is not possible to be both a successful brand and sustainable. Even today, despite all the media coverage and attention given to green issues, many cosmetic brands continue to operate under this old fashioned, outdated mentality. There have always been a few brave pioneers who have bucked the trend, Anita Roddick of The Body Shop springs to mind, but these have been the exception rather than the rule.

This entrenched viewpoint has been further exacerbated by a lack of transparency and honesty between stake holders in the industry so usual it has become customary. Up until recently, there has been a lack of collaboration between the major players in the industry extending to the way in which they treat their customers. There are a few reasons for this but the main one is that the cosmetics marketplace has always been incredibly crowded and though demand is high - and growing higher all the time - intense competition for profit means that companies go to extreme lengths to attract consumers and the enormous purchasing power they hold.

Launching a near constant stream of 'unique', 'original' products onto the market is one way to entice a customer into buying - repeatedly - the latest new, improved, you're worth it, miracle balm, cream or serum from you instead of your competitor. It used to be the case that companies had seasonal collections, but such is the frenzy to be dominant in the marketplace that, now, products are launched weekly instead.

Unfortunately, this marketing strategy has not only intensified the throw-away mindset that has enabled the linear economy as a whole to function so well, but it is also having a severely detrimental effect on the planet. Inherently polluting and wasteful and more often than not, exploitative, the cosmetics industry has prioritised profit above all else.

Wasteful in the extreme

The cosmetics industry creates 120 billion units of packaging waste per year. This shouldn't be surprising in the least when you consider the sheer volume of cosmetic products on the market as well as the over reliance on packaging, especially for luxury items. When it comes to the cosmetic industry's packaging, it is estimated that 95% of it is simply thrown away, a staggering amount which is excessive and unnecessary and arises from the overwhelming reliance on single-use packaging as well as wasteful distribution.

Then there are those products which are discarded in favour of new purchases. Some don't even make it to the customer before being pulled from retail spaces. In order to salve our consciences and convince us that it doesn't matter what we buy, how much or how often, we have been told that we can recycle the tubs, pots or containers our products come in.

Recycling, however, is the myth that the cosmetics industry has been peddling to their consumers for far too long. Alas, such is the complexity of cosmetics and beauty packaging with its colours, pumps, boxes, inserts, packets, lids, squirters, dispensers, etc. that most beauty packaging can't be recycled easily if at all. Still, consumers are continually urged to do so, which amounts to little more than resulting greenwashing, their attention diverted away from the reality which is mountains of waste.

The ugly truth is that more often than not, cosmetics' packaging is diverted into landfill, even if a conscientious consumer, keen to do the right thing, has washed it and stuck it in the right bin. And if they're not keen to do the right thing (apparently, according to The British Beauty Council, 52% of British people find it too much of a faff to recycle their shampoo and conditioner bottles), not only does it end up in landfill, but it can take up to 100 years to decompose (moisturiser, for example). In the past, the industry has found itself under intense scrutiny for its product testing on animals. How ironic that much of the industry continues to harm wildlife, albeit in a different manner and often under the guise of recyclability.

Harmful to the natural world

Naturally - no pun intended - throwing away plastic packaging as well as its contents has devastating repercussions for the environment. This harm takes the form of micro-plastics leeching into our soil and oceans as well as the creation of huge piles of unmanageable and non-biodegradable landfill. But there are other ways our lotions and potions are having adverse effects without us even realising. For example, the sunscreens we wear to protect our skin wash off as we swim in the sea and have negative consequences for the ocean's reefs. Oils necessary for so many beauty products mean deforestation, intense farming relying on fertilisers and pesticides and subsequent contamination.

As increasing numbers of consumers try to become more knowledgeable about the ingredients in beauty products - both out of concern for the environment and also their own health - extraction and disposal on such a scale will no longer be viable. Nor will formulating products out of environmentally hazardous substances, like parabens, formaldehyde, phthalates and sulphates. Although these have been used regularly as preservatives and foaming or flexibility agents, it's now understood that they're not just detrimental to the environment, but can also cause skin irritation and other far more serious and sinister health issues.

Consumer Demand for sustainability and transparency

The percentage of consumers purchasing only those products made with natural materials is rising year on year. Nowadays a significant number prefer those made with organic ingredients as their awareness grows about the harmful effect of certain chemicals and synthetic products. Running parallel to this, is an increased focus on holistic health and hygiene. All round care is becoming important for many and growth areas for the cosmetics industry include products for both inside and out (for example, supplements and wellness products like collagen.

Consumers today are also on the look out for those companies that are ethical and act with integrity, particularly when it comes to animal welfare and protecting the natural world. How companies navigate these issues can have a direct impact on their decision as to whether or not a consumer chooses to buy a particular brand. However, increasingly, consumers are becoming frustrated with those companies who simply jump on the green, woke bandwagon in order to make a sale rather than take long-term sustainability concerns seriously. Studies have shown that they will avoid buying from brands who don't take their corporate social responsibility seriously, instead resorting to 'greenwashing'. Far better that a company is transparent about its efforts, even if it's not quite where it wants to be as regards sustainability.

The advantages of circular cosmetics

The advantages of having a circular industry are many: innovative, forward-thinking design, reduced carbon footprint, minimisation of waste, decent work and economic growth, the reuse of as much as possible (i.e., packaging), far less emphasis on recycling, meaningful collaboration and interaction between stakeholders, social justice and equality and the preservation of the natural world.

These are advantages that will be gained as the result of any business - from whichever sector - going circular, so let's examine some of the advantages to be gained which redress some of the issues facing the cosmetics industry.

Cessation of over-production

In a circular cosmetics industry, wanton, profligate cosmetic overproduction will be a thing of the past. Not only will this drastically reduce the amount of packaging and product waste being created, but hopefully, it will also result in an end to the impulse buying actively encouraged by many companies.

Consumers who are able to make more mindful choices better suited for their specific requirements without the constant bombardment of choice from all directions will be happier humans. Firstly, they'll get the opportunity to see if they products they already have work by using them. Skoosh Skin, a beauty company aiming to help consumers 'shop smart', recently reported that of the 100 products 77% of women in the UK buy each year, only ten are used with any regularity. Over the course of a lifetime, what this all adds up to is more than 5kg of beauty and packaging waste equivalent to £180,000. Secondly, consumers will be able to make more considered, informed purchases going forward.

Protecting the birds, bees and biodiversity

Natural and organic cosmetics are made in harmony with nature, not in opposition to it. This is because there are no synthetic colours or fragrances in their products and on the whole, ingredients come from cultivating plants and flowers, extracting from them what is needed.

Traditionally, the majority of cosmetics have required petroleum-based ingredients which need extensive mining and pose a threat to natural habitats. However, with natural products, such is the diversity of plants and flowers required, that organic farms establish spaces for plant life to thrive and in doing so create extremely biodiverse environments for birds, insects and other species. The popularity of natural ingredients is on the rise.

More transparency for the consumer

All too often, the consumer wants to make the right choices, but they're confused by a product's labelling and the lack of standardised labelling and terminology across the industry. Even though the number of informed consumers is growing - particularly as more people become aware of the personal and environmental risks of using certain products - the industry's scientific terms and buzz words remain as perplexing and as ever-changing as their product lines.

Choosing natural, organic cosmetic products which have been manufactured with circularity in mind should give consumers the peace of mind that every step of their life cycle - from sourcing to use and even potential disposal - is as sustainable and as safe as possible. But how do consumers know that this is definitely the case? More transparency is key.

Thanks then to consumer demand as well as recent cross-company collaboration and regulatory pressure incentivising the transition to circular, customers should soon be able to access trustworthy and accurate data about the products they're using, including information about ingredients, sourcing and manufacturing processes. Technology comes in useful here, as it will enable consumers to be provided with real-time information about just how safe and efficient beauty products are.

The shift towards transparency is in marked contrast to how the cosmetics industry has traditionally functioned, but there is no doubt that those companies who will retain customers and reap rewards will be those who are the most honest and upfront with the customer base.

A move to reusable packaging

In this article we've talked about the reasons why the cosmetics industry must switch to circular and without doubt, one pressing issue which much be tackled sooner rather than later is that of waste.

First, there's the waste less talked about (and also far less recorded): that of unsold or returned beauty products. This is complex to address and there are many components to a successful solution: strict audits, improving inventory management, using sustainable cosmetic suppliers and developing recycling programmes, for example. Then there's companies like Boop and companies like them who are doing for cosmetics what the wonky veg movement has done to reduce food waste in supermarkets.

But, there's still the use of single-use and disposable packaging to combat which is responsible for so much excessive production.

Fortunately, refillable beauty packaging is becoming more and more aspirational. Consequently, brands are switching to durable, primary packaging options, making refilling easier. The customer can either buy more product directly or alternatively, they can return bottles to be sanitised and reused. John Lewis, for example, has introduced a BeautyCycle scheme which rewards customers with a £5 voucher if they return five empty beauty containers to the store. Boots too, now has Scan2Recycle where customers can earn Advantage Card points when they return product containers for recycling. Some brands are also choosing to create products that don't require much if any packaging at all (e.g., shampoo bars, solid lotion or soap flakes).

But what about getting products safely and hygienically to e-commerce consumers in the first place?Reusable outer packaging is now a viable option. Companies such as ours, RepeatPack, are offering tailored solutions for e-commerce businesses and that includes those in the cosmetics industry. Our 'cleanse' range of reusable packaging is the perfect option for companies who want to send products plastic and packaging free and are trying to be more sustainable by reusing that packaging in collaboration with their customers.

Reusable packaging is easy and cost-effective to use. Importantly, it will make a huge difference to the waste issue plaguing cosmetics' businesses.

Meaningful collaboration

The good news is therefore, that change is already in effect. Taking cues from the fashion and textile sector and banking, both of which have set up initiatives to drive collective action in areas which have the greatest potential for impact, cosmetics companies are forming alliances which would previously have been unimaginable.

Rapidly changing consumer habits

Consumers too, are switching to a circular mindset, demonstrated by their eagerness to buy natural products in less packaging. The popularity of deodorant creams, solid shampoos or toothpaste tablets is on the rise. Refillable options for hand wash are no longer an unusual sight on supermarket shelves.

Greater innovation

There are those within the industry who don't need much persuading and are already convinced that circular is the way to go. These are the innovators, forging ahead with alternative operating models such as manufacturing products personalised to a customer's specific needs, only making them they've been ordered and thus delivering sustainability along with superior service. Then, there are are others like Charlotte Tilbury offering virtual try-on services. It's a win win situation: consumers get the right product and the need for multiple tester products and trail and error is negated.

Sustainability over profit

Finally, pioneering companies like Emma Lewisham have been very vocal about making sustainability not profit their end goal and have gone so far as to make their circular blueprint public in spite of concerns over giving up their competitive advantage in order to encourage and inspire others to take the leap.

Conclusion

Going circular means the cosmetics industry challenging its own status quo and advancing four key tenets: transparency, collaboration over competition, carbon neutral (or even positive) and refillable/reusable.

To discuss reusable packaging for your cosmetics, contact RepeatPack today and speak to one of our experts. We can guide you towards a far less wasteful future and along the way, help you reassure your customers that you are as genuinely serious about sustainability as you are about your products.

Find out more about how you can be part of the Reuse Don't Waste revolution that's happening in packaging. Ask yourself how you would like your e-commerce business to look in the future. Let us help you enable the beauty of sustainability to become part of your journey.