Sustainability has been a growing concern in the beauty industry for years, with emerging brands increasingly trying to capitalize on this shift in consumer needs. Sustainable beauty, a holistic approach to personal care, considers the environmental impact of the beauty industry and the health and well-being of both the individual and the planet, and therefore is becoming more popular amongst shoppers.
 
Related: Read about the Future of Sustainable Packaging
 
Consumers are seeking to live a more sustainable lifestyle, but many find it difficult to maintain it. To meet these shifting needs, beauty brands need to be more transparent, including being clear about how they source their products and avoiding making inaccurate claims. Responsible sourcing is one of the most important sustainability claims to 42% of U.S. consumers, with other important claims including ‘sustainable packaging’ (45%), ‘locally sourced’ (36%) and ‘reduced-’ or ‘zero-waste’ (35%). With this, 46% of U.S. consumers want brands to include easy-to-understand labelling so customers can identify products that meet sustainability standards (NIQ 2023 Sustainability Report – U.S.).
 
With sustainability continuing to take center stage for many consumers, keeping up can be challenging. To make it easier for emerging beauty brands, here are the top five sustainable beauty trends to watch in 2023:

1. Sustainable Beauty Packaging

Sustainable packaging that has a minimalistic design, is made from recycled materials, offers refillable or reusable options, or uses innovative and unconventional ingredients is becoming more and more in-demand. Biodegradable or compostable packaging is also becoming more common. The goal of sustainable beauty packaging is to reduce waste and promote environmental responsibility while still protecting beauty products effectively.

2. “Free-From” Claims

“Free-from” claims are becoming popular in packaging and advertising. These claims highlight the absence of certain ingredients or substances in a product, such as allergens or parabens, to communicate to consumers who may be concerned about these substances. It’s important to use qualified product attributes that make it clear to consumers if a product is appropriate for their individual needs.

3. Retailer Participation

More and more retailers are helping consumers identify and purchase sustainable products more easily. By doing so, they are creating opportunities for more sustainable beauty brands. Brands that don’t meet consumers’ changing needs will have less shelf space, and failing to shift to meet these needs can mean losing out on distribution.

4. Widespread Sustainability Adoption

Sustainability is becoming more important to consumers, and brands that don’t meet these expectations risk losing brand equity and customers to competitors. By aligning their brands and products with sustainability, brands can beat slower competitors and set themselves up for sustainable growth in the future.

5. Government Intervention

Government regulations will be a key driver of sustainability practices in 2023. Brands must understand and meet the increasing ESG needs of consumers, but they should also be prepared for more intensive government oversight. Companies must also implement eco-friendly changes in packaging and supply chains, as recycling is now the baseline and sustainable packaging claims present new opportunities.
 
The beauty industry is experiencing a significant shift towards sustainability, with consumers increasingly seeking products that promote environmental responsibility while also enhancing their health and well-being. To remain competitive in this space, beauty brands should prioritize sustainable practices and meeting consumers’ evolving needs. By embracing these changes, beauty brands can set themselves up for success in the future while also making a positive impact on the planet.

About the Author

Anna Mayo is VP of the Beauty & Personal Care Vertical at NielsenIQ, and is an innovative thought leader within the beauty and personal care retailing space. Throughout her 10 years at NielsenIQ, Mayo has worked with cross-functional teams to deliver proactive, industry-shaping insights and guide some of the world’s largest CPG clients through behavioral shifts and consumption trends. In her current role, she partners with BPC clients to develop cutting edge solutions and much more.