The cosmetic industry has experienced remarkable growth in recent years, with projections estimating it to reach nearly $129 billion USD by 2028. This surge is driven by various factors, including increasing global disposable incomes, a growing digital-savvy consumer base, and the ongoing diversification of product offerings to meet specific market demands. However, the industry also faces challenges like formulation stability, environmental impact, and regulatory compliance, necessitating the adoption of emerging technologies.
In this article, we will explore the key trends propelling innovation in the cosmetic industry, from the utilization of food by-products as novel ingredients to the integration of cutting-edge technologies like artificial intelligence, augmented reality, and the metaverse. By delving into these transformative developments, we will uncover how the cosmetic landscape is being reshaped to deliver personalized, sustainable, and immersive experiences for consumers.
Replacing Cosmetic Ingredients with Food By-products
The industry is witnessing a remarkable shift towards the utilization of food ingredients in cosmetic formulations, driven by consumer demand for non-toxic, chemical-free, and biodegradable products across skincare, body care, and hair care categories. Manufacturers are keen to introduce novel ingredients like plant extracts, fruit enzymes, probiotics, adaptogens, and superfoods to maintain a competitive edge, further pushing the adoption of food-based ingredients in cosmetics.
Mushroom Extract: The Fungal Frontier
The cosmetic industry is exploring the untapped potential of mushrooms in response to consumer demand for natural and sustainable products. These fungi are valued for their unique bioactive compounds, including polysaccharides, polysaccharides, and vitamins, which offer a wide range of benefits for skin health and appearance.
Recent research suggests that various mushroom extracts, such as shiitake and matsutake, are being investigated for their cosmetic applications. In January 2023, the Korean brand Charmzone was granted a patent for its skincare formulation incorporating these mushroom extracts, renowned for enhancing skin elasticity, reducing wrinkles, providing antioxidant benefits, and moisturizing the skin.
Upcycled Ingredients: Transforming Waste into Wonders
Upcycled cosmetics are a novel trend featuring cosmetic components derived from plant-based waste deemed too valuable to discard. While food ingredients have long been part of skincare and hair care formulations, using food waste like coffee grounds, fruit peels, vegetable scraps, and seed oils in cosmetics is a newer, eco-friendly development.
Givaudan, a prominent global player in fragrances and beauty, has solidified its role in the upcycled cosmetic ingredients arena. In September 2022, the company filed a patent for a sun protection composition featuring coffee bean extract extracted from recycled coffee grounds, showcasing the versatility and sustainability of these alternative ingredients.
Guarana Extract: The Caffeinated Cosmetic Boost
Guarana berries, renowned in nutrition supplements, are now making waves in the cosmetic market. The climbing plant Paullinia cupana, native to the Amazon, yields guarana, valued for its antioxidant-rich and highly caffeinated properties.
With the highest natural dose of caffeine globally (2%-8%), guarana is a genuine alternative to coffee, especially in the cosmetic industry. In March 2023, Givaudan introduced a patent showcasing Guarana extract as a novel whitening ingredient in skincare, aiding in dry dandruff removal from the scalp. Additionally, in February 2021, Givaudan launched a collection featuring six natural and traceable extracts, prominently featuring the versatile Guarana.
Eco-friendly Product Packaging
As consumers increasingly prioritize sustainable and zero-waste personal care products, companies are integrating eco-friendly packaging solutions into their offerings. This trend is manifesting in various sub-trends, each aimed at reducing waste and carbon footprint in the industry.
Post-Consumer Recycled (PCR) Packaging
PCR, or Post-Consumer Recycled Packaging, utilizes materials from previously used products to create new packaging, reducing waste and carbon footprint in the industry. Market trends show a growing adoption of PCR packaging, especially in beauty, with L'Oreal aiming for 50% PCR plastic usage by 2025 and Estee Lauder targeting 25% or more.
Albea Services, a leading packaging solutions provider, is innovating in this space, recently patenting a multi-layer tube container with a PCR resin layer, catering specifically to the cosmetic industry. Their range includes various eco-friendly packaging solutions for makeup, personal care, and skincare products.
Upcycled Packaging: Reviving Waste
Recycled and upcycled materials are increasingly incorporated into cosmetic packaging, rejuvenating waste and reducing reliance on new resources. In January 2023, Japanese cosmetic company Fancl Corporation partnered with the Japanese beer and beverage holding company Kirin Group to develop cosmetics packaging made from the by-product of beer production. Traditional PET material was replaced with hemicellulose, derived from beer lees, a by-product of Kirin's Ichiban Shibori Draft beer production process.
This collaboration marks the first instance of utilizing beer by-products to create plastic packaging, with both companies applying for patents to protect their innovation and demonstrate their commitment to sustainable packaging solutions.
Refillable Packaging: Reducing Waste
The beauty industry is experiencing a notable increase in the adoption of refillable packaging, with brands such as Sugar Cosmetics, Wow Skin Science, Kiehl's, and Bare Necessities actively incorporating them into their product lines. In September 2021, the French-based perfumes and toiletries startup Innovescence filed a patent application for a refillable packaging device designed for cosmetic compositions.
More recently, in April 2023, Ralph Lauren Fragrances, a L'Oréal Group's Luxury division segment, launched three new fragrances in refillable bottles. These bottles are made from 20% post-consumer recycled glass and are 30% lighter than Ralph Lauren's standard. They are both recyclable and engineered for refilling, featuring an auto-stop, anti-spill system to prevent fragrance wastage by halting the refilling process when the bottle reaches capacity.
Dissolvable & Naked Packaging: Minimalist Approach
Minimizing packaging is a key strategy in promoting sustainability within the cosmetics industry. An innovative Dutch startup, SOAPBOTTLE, is developing packaging composed entirely of soap. Their groundbreaking product is a bottle made from soap intended to contain liquid body care products like shampoo, body wash, or hand soap. Serving as both a container and functional soap, it maximizes product utility. Once the liquid content is used up, the container transitions into regular hand soap, exemplifying a dedication to zero waste.
Carbon-Negative Packaging: Going Beyond Sustainability
Certain beauty brands are surpassing mere sustainability or carbon neutrality goals in the fight against climate change and the urgent need to reduce carbon emissions. They strive for carbon negativity, intensifying efforts to offset emissions beyond net zero.
In July 2022, Revlon partnered with Origin Materials, a prominent global company specializing in carbon-negative materials. This collaboration aims to explore advanced carbon-negative materials for cosmetics packaging. Origin Materials has invested over ten years in developing a platform that converts carbon from abundant, non-food biomass sources like sustainable wood residues into valuable materials while simultaneously capturing carbon in the process.
Hyper-Personalization: The Future of Cosmetics
Global cosmetic brands like Prose, L'Oreal SkinCeuticals, Optune, and others have already adopted hyper-personalization in their regimes, leveraging cutting-edge technologies like the metaverse, artificial intelligence (AI), and augmented reality (AR) to deliver tailored experiences and products.
Metaverse: Virtual Beauty Playground
As virtual and augmented realities become more immersive and lifelike, the metaverse provides opportunities for cosmetics companies to research, develop, and test new products in virtual environments. Brands are beginning to establish an early presence, visibility, and reputation in metaverse spaces like gaming worlds and virtual malls.
Notable collaborations in the beauty industry include Nyx's partnership with the Sandbox metaverse and the startup People of Crypto (POC) to introduce an avatar collection celebrating diversity, Shiseido's collaboration with Cult to launch the #AliveWithBeauty campaign featuring a limited edition NFT collection, and Mugler's partnership with digital 3D artist Marc Tudisco to unveil the "We Are All Angel" collection commemorating the 30th anniversary of the brand's Angel fragrance.
Artificial Intelligence: Powering Personalized Cosmetics
AI algorithms can analyze vast quantities of past data on ingredients, formulations, and consumer preferences to predict optimal combinations and identify untapped market opportunities with high success potential. By processing cumbersome experimental data faster, AI assists scientists in determining effective formulations quicker.
Leading cosmetic companies like Shiseido, L'Oréal, Beiersdorf, and P&G are actively leveraging AI to create personalized cosmetic products. Recent collaborations include Ulta Beauty's partnership with Haut.AI to develop a personalized AI engine for skin health and beauty, AmorePacific's collaboration with Asleep to validate the performance of sleep-enhancing skincare products, and Perfect Corp's integration with luxury brand Valmont to offer detailed skin analysis and personalized beauty routines.
Augmented Reality: Immersive Virtual Try-Ons
Augmented Reality elevates personalization by immersing users in virtual try-ons. AR technology overlays these products onto your digital image, providing a lifelike preview of their real-world appearance. Brands such as Sephora and L'Oréal are capitalizing on AR for virtual makeovers, eliminating guesswork and minimizing the risk of purchasing unsuitable products.
Perfect Corp, the world's leading beauty and fashion tech provider, has collaborated with many leading brands to offer AR-based solutions. These include a live online makeup consultation service with Parfums Christian Dior and a virtual makeup try-on experience via the Walmart iOS app, enabling customers to experiment with various cosmetic products.
Future Outlook: Driving the Next Wave of Beauty Innovation
These innovations in ingredients, packaging, and personalization are ready to reshape the cosmetics landscape, delivering individually tailored, environmentally conscious products and purchasing experiences. Recent advancements in digital tools like artificial intelligence and biotechnology will further boost consumer satisfaction and brand loyalty.
Companies can expand by investing strategically in areas that align with anticipated trends or consumer preferences. Such proactive investments will drive the next wave of beauty innovation through the transformative combination of customization and sustainability. As the industry continues to evolve, we can expect to see even more groundbreaking developments that cater to the ever-changing needs and desires of discerning cosmetic consumers.