COSMOFACTORY

[00:00:00] This episode is about sustainable development in the cosmetic sector. It's about the practical realities and the impacts of regulations. It's about the sustainability claims. Or maybe the sustainability adjacent claims that resonate with beauty consumers. It's about the pros and cons of certifications, and it's about the environmental sustainability trends we can expect to see in the years ahead With me now in the CosmoFactory Podcast recording booth at [00:01:00] Cosmoprof Worldwide.
Bologna is Iveta Kovacova, research Director at Ecovia Intelligence. Iveta, welcome to CosmoFactory.
Hi Deana. Hi. Thank you very much. Thank you for your warm welcome and it's exciting to be here. It's, uh, the first time for me on a podcast actually.
That's fantastic. No, I'm so pleased for the chance to speak with you.
Now when I say the phrase sustainable development in the cosmetic sector, what are the key practices or issues that come to mind for you? What does sustainable development in the cosmetic sector mean at Ecovia intelligence?
Mm-hmm. So for us at Ecovia , um, what it means it's actually incorporating, uh, sustainability in all.
Aspects of, um, uh, the cosmetics products production process. So these can be, uh, this can be anything ranging from ethical sourcing, traceability and transparency of ingredients, um, green production processes, um, formulation of products, sustainable [00:02:00] packaging solutions, and, um, also end of life of, uh, cosmetics product.
So, of course there are no, uh, sort of easy, easy answers or solutions to any of these. And, um, it's always exciting to kind of observe how individual comp companies tackle these, these areas. Um, but from what we've observed at Ecovia, um, sustainability of sustainable development in cosmetics is. More or less mainstream at this point.
And, uh, whereas in the past it was mainly the, the dark green players pushing these, these issues. Now we see, um, large multinationals, multinational cosmetics companies actually setting both, uh, targets. Um, and, uh, incorporating, um, sustainability at the, at the forefront of the forefront of the agenda.
No.
It's interesting to hear you say that because I, I would guess, and, and correct me if I'm wrong, but even when Ecovia got started mm-hmm. Organic [00:03:00] monitor.
Organic monitor. Yeah. We were very niche then. Yeah, that's what
I was going to say. Yes. Like you were catering to a very niche market. Mm-hmm. Mm-hmm. There was, um.
I don't wanna say it was wishful thinking, was it? But, but it was, go ahead. Well,
yes, no, um, our founder am Sahota. He, he sometimes tells me the story how, how he started and he, he went to the first trade show and when he was trying to get some, some clients and, uh, people were basically laughing at him, you know, so.
And yeah, it's, it's really, uh, impressive to see how far the industry has gone. Um, and, um, you know, it's not, um, not just about organic or, or even fair trade anymore. Sustainability is such a nuanced, uh, topic now. It's such a multifaceted topic. And, and yeah, it's, it's very exciting to, to observe. For the development in the industry.
Yeah. No, I love it. So listeners already know that I personally really enjoy ingredient science mm-hmm. And ingredient innovation. Um, and there are are many considerations that [00:04:00] impact, um, new ingredient adoption. Um, and I'm sure I'm not alone though, um, in my assessment that regulations are one of the biggest drivers mm-hmm.
Of new ingredient adoption that we see. You shared with me in a previous conversation that regulations are similarly, uh, perhaps the primary driver of environmental sustainability initiatives in the cosmetics and personal care industry. Can you share more about what you have observed there?
Mm-hmm. Uh, sure.
So, um, yes. So whereas traditionally in the past, um, as I said, so these topics, um, tend to be, or used to be pushed by by the small, um, um, sort of grassroots mo grassroots movements. Um, whereas now what we see, we see more kind of. Initiative, um, from the, like, top down approach, mainly at the, at the EU level.
And it's, it's quite unique actually. We don't see this, um, um, Meli anywhere in the world, in anywhere else in the world. Uh, for example, in the US, the, the biggest, um, as the biggest, um, consumer [00:05:00] market in the world, um. We don't see this or expect this to happen, uh, in the near future at all. Uh, but really the EU and, uh, some of the EU directives and regulations, uh, they're really pushing the needle when it comes to, um, let's say, um, tackling greenwashing or.
Uh, standardizing sustainability, uh, reporting or, um, improving, uh, packaging based practices.
Mm-hmm. Mm-hmm. No, and, and as you've suggested, there are several regulatory changes affecting the European Union in particular. Mm-hmm. And I would, I would say by extension then any beauty maker that's aiming for, aiming for global compliance across their product portfolio.
Can you talk us through, um, in a bit more specifics, some of the recent and forthcoming sustainability regulations? Mm-hmm.
Sure. So, um, as you said, there are several, um, that, uh, are being prepared or came into force in, in the last couple of months or years. So one of them is, um, the green claims directive, which, [00:06:00] uh, will significantly affect the area of green and environmental claims, um, that companies can make, um, cosmetics companies as well.
Um, so this directive actually aims to. Um, uh, tackle greenwashing and um, uh. Provide transparency in this space, uh, because all green or environmental claims, um, they have, they would have to be substantiated properly. Mm-hmm. Mm-hmm. And can
you share a little bit about what substantiation might look like?
Or do we not know yet?
Uh, so yes. So, um, companies would either have to use sort of third party verified, uh, logos. Okay. Um, which, uh, have developed standards, uh, as to. Um, uh, what allowed how to use claims and, and why to use specific claims, um, or they would have to back up, uh, their claims by specific data.
Uh, so solid, solid, uh, solid data. Um, um, there's an example of, uh, offsetting where a [00:07:00] companies can no longer, uh, make sort of climate friendly claims. Unless they truly, uh, um, uh, trying to, uh, trying to reduce the environment, uh, carbon footprint. Mm-hmm. Mm-hmm. Yeah. Um, another example is, um, the. Um, a corporate sustainability, um, reporting directive, which, um, actually aims to kind of, um, set, um, sort of robust rules as to, uh, pertaining to the information and the social environmental information that, uh, companies must report on.
And, um, we'll also introduce like, um, um, standardized methodology on sustainability reporting, which will eventually, uh, help investors to, to kind of, uh, decide, um, uh, whether they, what kind of industry or company they want to invest in. So, and another example is, um, uh, the EU packaging and packaging waste.
Uh, regulation. Um, this will, [00:08:00] this, this regulation aims to, um, reduce the amount of waste produced in the eu and, um, also kind of foster or shift more towards, uh, circularity approach in packaging as well.
Interesting. Yeah. And the first, um, regulation that you spoke of really focused on claims. Mm-hmm. Can you share an example of a, like a literal claim maybe that is being made and might continue being made, but then now needs.
You know, like you're suggesting concrete substantiation. What, what are sustainability claims? I mean, there's a lot of language that floats around, but when is it a claim? What is a claim? Help me think about that a little bit. Mm-hmm.
So just a claim, simple claim of, um, uh, for example, a claiming that, uh, your product's natural.
Um, um, or climate friendly or good for the planet. Okay, so what does, what does actually mean in terms of, um, um, um, any kind of data that you can provide that you're doing it? So, the easiest ways how to substantiate your claims is to go for. [00:09:00] Third party, um, voluntary schemes. Um, um, but not, you cannot always do that.
Um, so if you cannot properly substantiate that your, your product is good for the planet, then you cannot simply use, use this, uh, use this claim.
Oh, this will be a, a fun challenge for the marketing team. Yes. Yes. So let's move beyond the supply chain into the beauty retail space a bit. Some brands will say quite plainly that sustainability does not sell.
Mm-hmm. Um, what has your research turned up? Are there, are there product claims that do resonate with consumers? Mm-hmm.
Well. From our research, what we found is that, uh, yes, educated consumers, um, look for, uh, labels and standards and, um, um, they, they, um, they want to. Uh, byproducts that, uh, are verified. Um, however, there's a, there's a [00:10:00] huge problem with proliferation of labels.
Um, obviously the green claims director will, will address a majority of this, but it's still happening in other parts of the world. Um, and which leads to consumer, consumer confusion. Mm-hmm. Um, but yeah, some brands actually don't, uh, choose this route and, uh, they. Um, kind of build a whole ethos of the brand around sustainability.
So, uh, instead of using logos and, and, uh, labels, they, they, uh, invest in communities. They, they establish sourcing projects, and, and that's, that's the way they want to, they decided to go and it works for them. Uh, I mean, there's. Several success stories. Definitely. Um, but interesting, uh, what you said, um, even some of the dark green companies, dark green companies, um, they still say that, uh, at the end of the day, consumers won't.
Products that work. So the efficacy is really, really important. So yeah. Yeah. That should be at the forefront, even [00:11:00] if you have a dark green brand. So yes, the efficacy of your product is very important for consumers.
Yeah. No, that makes sense. You've mentioned sustainability schemes, um, or in the states we often say certifications, um, but let's talk about that a bit.
It sounds like these might be quite useful, uh, more so maybe even going forward for industry suppliers, for brands and for consumers. But can you say more about that? How, how are they practical, um, for each of those groups maybe?
Um, so yes, um, as I said, um, consumers, educated, consumers especially, uh, they look for, uh, labels.
Um, I think, uh. According to our research, one of the main reasons why consumers opt for, uh, sustainable options is our health impacts actually. So they want to, they want to avoid, um, let's say contentious or, uh, contentious ingredients or, um, petroleum based ingredients. Um, [00:12:00] so, um, in this sense, um, they can.
Uh, brands can actually cater to, to this kind of, uh, this kind of consum, uh, consumers as well, and they can use it, um, leverage it to, for their, for their advantage. So, um, at the end of the day, um, brands and third party, um, third party verification schemes. Actually add credibility and they create trust among consumers.
Mm-hmm. Mm-hmm. No, that's helpful to hear. And it, it certainly makes sense. Um, you know, if suppliers and brands are trying to decide what sustainability certifications, if any, uh, to invest in, which is always, I. A big decision. Mm-hmm. And I do hear a lot about often the financial, um, piece of the investment as well as of course, the actual on the ground sustainability work.
But, um, when I'm talking, especially with suppliers, the, a lot of times the concern is that financial investment. Mm-hmm. Are there, uh, you know, schemes or certifications that you particularly recommend? And if you, if you can't do that, I'm, I'm curious, maybe there are guidelines you could suggest [00:13:00] that a company might want to follow mm-hmm.
If they're trying to get to the right decision for, for their. Business, I guess. Mm-hmm. I should say. Mm-hmm. Yeah.
Um, so. As I already mentioned, so one of the primary drivers of, uh, consumers choosing sustainable or natural organic, um, um, personal care products, uh, are health impact. So, um, because consumers primarily want to avoid, um, petroleum based, uh, ingredients.
The labels that pertain to formulation of the products are, uh, tend to work very well. Okay. So the true cosmos, uh, let's say, uh, USDA in, in the us. Um, so I would say these are, um, um, quite, quite, uh, important. And then, um. What we've seen is also, uh, growing vegan trend in, in cosmetics, um, uh, cosmetics companies actually, um, account for majority of licensees at the vegan society.
So, [00:14:00] um, it's definitely a growing trend and, um, because the plant based vegan lifestyle, um, is becoming popular, so consumers want that in, in the, in the cosmetics as well. Mm-hmm. Um. Yeah. Other examples include, um, um, any kind of labels and schemes that pertain to the social aspect of sustainability. I think that's been, um, growing in importance as well.
So any kind of fair trade, um, fair for life labels or fair wild, uh, labels, um, they can also also work. Um. And also there are other examples. So for example, when cosmetics companies, they want to focus more at, um, um, at transitioning towards more circular, circular approach. So the cradle to cradle, um, label is also also an option.
So yeah, there are many options. I wouldn't say there are some kind of specific guidelines. It really depends on how companies want to actually. Position their brand, um, [00:15:00] and, um, they need to decide sort of what works for them, what kind of consumers they want to target, et cetera. So, yeah.
Yeah. And, and maybe the follow up question I have for you kind of gets at that, thinking about your brand's, consumers in particular, but you mentioned vegan, which is.
You know, certainly been, I, I would say off and on emerging in our industry for a while. And, and one of the things I certainly saw suppliers and brands latch onto in terms of vegan is the latitude it gives for synthetic inputs. Mm-hmm. Um, uh, you know, instead of simply making natural claims, right? Mm-hmm.
Mm-hmm. Vegan really opens it up, but is a, as you have suggested, um. You know, with, with applications with the vegan society, right? It's well-defined. Mm-hmm. And there's a consumer group who has that as their identity. Mm-hmm. Um, but there are also, and I, I am reluctant to use this expression, um, but I am hearing people use the expression anti vegan.
And, you know, I've even, you know, written some pieces about ingredients that are, [00:16:00] could be described as non-vegan. Right. But are for the brands or the suppliers. Um, offering those ingredients, they feel like more natural inputs. Mm-hmm. Right. They might be animal byproducts. Yeah. Um, which are, are being upcycled or, um, insect, uh, ingredients.
Mm-hmm. You know, derived, uh, insect oils or other insect derived ingredients, proteins in that sort of thing. Can you say anything about sort of the back and forth there in the vegan, not so vegan.
Yes. So, it is a very complex issue. Yes, I would say, just because a product is vegan doesn't, it doesn't necessarily mean that it's natural. So it's where the confusion may happen, you know, for, for consumers that they think they're maybe buying something, but it's not really, it's not really, what they're buying.
But it, it really depends on, , on the kind of. How deep and how far. Co brands can actually, , go in this. So there's no, no really one size, , fits all approach to this. , the vegan [00:17:00] example is just one of them where Sure. Um, lots of, , lots of ingredients that are allowed in the, in vegan certified products, , can be seen as. Relatively harmful or petroleum based, and lots of the natural or organic brands, they, , would never even consider using, such ingredients. And they tend to use, let's say, animal based ingredients, or there are
plenty of animal ingredients. I just want to interject things like lanolin, right?
Yes. That are, yes. You know, wouldn't even be considered waste. Mm-hmm. But, but that you can source from Yeah. From animal. Yeah.
Yes, definitely. I mean, I've come across, some amazing, landline projects, regenerative agriculture. Right. They do amazing things, but yes, the, the vegan, you cannot make the vegan claims.
And, some consumers may reject it. so yeah, it's really, um, it's really a bit of a, , controversial and intricate topic, so, yeah.
Thank you. Um, before we wrap up, um, you know, we, we've, we've made it quite clear. There are regulator reporting deadlines and, and looming deadlines, you know, even for un sustainable development goals. [00:18:00] Um. And, and the regulations in the uk as you've pointed to with these in mind and along with everything else you're seeing, you know, from your research and your clients, can you tell me what environmental sustainability trends we might expect, uh, in the cosmetics industry?
Mm-hmm. You know, for the next few years or so. Mm-hmm.
Yes. So I personally think, , sustainability will become even more mainstream, so it will become like an integral part of how companies actually operate. , and it will be ingrained in their, , whole ethos. , in terms of trends, one of the examples, let's say from the.
Food industry, it's a shift towards a shift from, , let's say, , no longer focusing on just reducing impact, but, , focusing on creating positive impact. So how can we create a product while. Uh, let's say creating positive value. One of the examples is the, is the regenerative, organic, um, standard and, we where products and [00:19:00] raw materials actually certified.
when they're grown, , organically, uh, using regenerative practices and they originate originating soil. And, uh, one of the trailbla trailblazers is actually the, , American company, Dr. Brona. Mm-hmm. Um, they're one of the founding members of the, , originative Organic Alliance, and they actually developed the ROC standard themselves.
They make regenerative claims on, on some of their products as well. So I, I think this will be definitely a shift. We will see.
how sizable is that movement right now?
it's not, , very sizable, but what we've seen, what we observed, it's a lot of the, or some of the established, , standards in the cosmetics industry or are kind of, Collaborating or reaching out to ROC and and establishing, um, establishing collaboration. Yeah. So for example, ikea, and Cosmos as well, so, okay. Yeah. Yeah. It's
so interesting 'cause when I first started to hear about regenerative [00:20:00] beauty mm-hmm. It had very much two. Lanes. Mm-hmm. One was, as you're describing right, regenerative agriculture, um, regenerative practices that, um, support the soil, support the planet, give back, right.
Reparative. Mm-hmm. Right. For some of the environmental damage that industry may have created mm-hmm. Humanity may have created. And then there's regenerative skincare, right? There's all this fantastic ingredient science that's helping us regenerate. Mm-hmm. Um, and I feel like regenerative skincare. Owns the word regenerative.
Mm-hmm. Mm-hmm. Um, are you hearing any other language about regenerative ag or regenerative in terms of sustainability?
Mm-hmm. So I think, , again, as, , this regenerative claims, they can also get, A bit messy because, , yes, we have the ROC standard, which is regenerative organic. Okay. Um, but we also have, , several other standards that are regenerative.
Okay. Uhhuh, but they don't, they're not necessarily organic. There's huge issue around, uh, greenwashing. Uh, there's a huge issue around the practices they [00:21:00] use. , so yeah. But, , I personally think. If, uh, the cosmetics industry, , is able to, to, , set like a proper definition and, um, continue collaborating with the, uh, regenerative Organic Alliance in this, I think we are in, there're in the right direction,
so, yeah.
Yeah. And other trends? I cut you off. Were there other
trends you wanted to share? Sure. other trends, I think, , what we will see, , also increased investment in r and d, , new actives, um, as well as using sustainable feedstock, um, such as seaweed to produce, , cosmetics ingredients, , application of, biotechnology stem cell technology, um, precision fermentation.
. As well as a more shift towards circular circularity and circular economy. I think one of the examples is use of upcycled ingredients in, in cosmetics products. Um, this trend has been gaining traction in the space and, and several sort of. Flavor and fragrances. Houses already [00:22:00] have, upcycled ingredients ranges that they supply.
So it's quite exciting to see. , and also I think, personal care companies will have to address, , the issue of conscious consumption, in my opinion, because, , from some of the studies that I've seen. More than two thirds of, of carbon footprint, of a cosmetic product is actually on the side of a consumer.
Mm-hmm. And, um, um, this is an issue in my opinion, that will have to be addressed in the, in the, in the future, the way consumers actually use cosmetics product. Uh, how much of cosmetics products they use and the way they dispose of them. I think this will have to be addressed eventually.
Yeah. Yeah. Thank you for all of that, Iveta. [00:23:00]