The industry’s status quo has always been to prioritize profits in the middle of intense competition for years. Beauty brands are consistently introducing novel products to keep pace with changing demands and trends.
One such emerging trend is circular beauty, which refers to a green business model that keeps materials in use through reuse and repair, purposely minimizes waste, and expands the life-cycle of products through quality. At present, the beauty sector relies on the linear economic model, in which, companies take raw materials from the earth, make a product, and then consumers throw it away after use.
The current take-make-waste cycle is responsible for creating an unprecedented amount of waste across the globe. Even though it is generating high profits, it is not supporting the environment in a good way. Thus, key brands are focusing on innovating the packaging of their in-house products.
One of the most crucial contributors of carbon emissions in the cosmetics and personal care industry is single-use packaging. To eliminate such packaging, brands are making circularly designed refills to reduce carbon emissions in the atmosphere.
As per Fact.MR, a reputed market research firm, the global circular beauty products market is anticipated to reach a valuation of about US$ 4.2 Billion by the end of 2032 and exhibit growth at a CAGR of 5.8% from 2022 to 2032. Increasing focus of key players on the adoption of upcycle beauty trends to support sustainability is a major factor that would push the market.
Chanel Introduces Refillable Beauty Products Under its No. 1 de Chanel Range
In January 2022, Chanel, a luxury fashion house based in France, launched its latest range of skincare and cosmetic products named No. 1 de Chanel with no inner paper leaflets and no outer plastic wrapping.
The company has eliminated all plastic components in its jars and bottles. It has mainly opted for glass, thereby encouraging customers to recycle the packaging once the product gets used up.
As per Chanel, glass has about 76% of recycling rate in the UK alone, while plastic has approximately 43% of recycling rate. Its non-glass packaging components are made of by-products generated by the processing of camellias for the company’s product formulas . No. 1 de Chanel consists of cheek & lip colorings, foundations, and serums. It also includes a unique Revitalizing Cream, which is Chanel’s first ever refillable beauty product.
Fenty Beauty Launches Sustainable Fenty Icon Refillable Lipsticks
Fenty Beauty, a renowned cosmetics brand launched by Rihanna, introduced Fenty Icon Refillable Lipstick in February 2022. The company also unveiled a chic refillable case in matte black two weeks after the launch. The sustainable, eco-friendly refillable lipstick packages were launched in a rose gold color. The lipsticks are available in a wide range of classic nude hues and bold reds. Their soft matte formula is infused with vitamins C and E, as well as hyaluronic acid for long-lasting and comfortable wear.
Authentic Beauty Concept to Unveil New Generation of its Refill Bar
In May 2022, Authentic Beauty Concept, a holistic premium brand owned by Henkel, announced its plan to launch a new generation of its Refill Bar. It is an innovative system that would help in creating a more circular economy.
The new generation of Refill Bar will be developed by the company on the back of surging demand from hairdressers. More compact, smaller, and easier to use Refill Bars would enable salon customers to bring their bottles back and refill them with their desired products.
According to company officials, its salon clients are expected to receive their prescribed products after an expert consultation in a 250ml retail bottle. The bottles will be made from 90% Post-Consumer Recycled (PCR) plastic. In addition to that, they would come with Forest Film labels, which is the first-ever wood-based film label material available in the market.
Ulta Beauty Collaborates with Loop to Create a Circular Beauty Retail Platform
In August 2021, Ulta Beauty, an American chain of beauty stores joined hands with Loop, a leading reuse platform, to lower beauty waste. The partnership resulted in the development of a unique circular beauty platform in the US where customers can engage in online shopping for cosmetics and personal care products in sustainable, durable packaging that will be reused and refilled.
While placing an order, shoppers of Loop will have to pay a deposit on each packaging which is fully refundable upon return. Customers will have to place their empty packages after use back into an exclusively designed tote by scheduling a free pickup online.
Bandwagon Effect: Start-up Companies to Adopt Circular Beauty Practices
Various beauty start-ups across the globe are likely to follow the footsteps of international and domestic players operating in the beauty industry in the next decade. They are set to strive persistently to get financial support from government agencies or leading investors for the creation of a circular economy and save the environment.
In August 2021, for instance, Honestly, a Dutch circular beauty start-up, announced the development of an upcycled and waterless coffee scrub. The company is currently working on the development of an orange peel waste variant that is to be launched in 2022. Honestly has spent nearly two years creating its first-ever upcycled product, which is a three-in-one biodegradable moisturizing scrub, exfoliator, and body wash. It is made of collected coffee grinds and was launched in June 2021.
Similarly, in May 2021, Nourish Mantra, an Ayurveda-inspired natural skincare start-up based in India, introduced its new plastic elimination mission called Conscious Collection. The company will use eco-friendly packaging with post-consumer recycled plastic, glass, or aluminum, thereby enabling customers to recycle their product packaging. The company was founded in January 2020 and aims to recreate ancient skincare formulations suitable for modern lifestyles.
The Road Ahead: Will Circular Beauty Turn into a Mainstream Reality in the Future?
Beauty companies have been radically scaling up sustainable pledges and actions over the last couple of years, from linear to circular methods of working. Though the push for circularity is stronger than ever, there still exist some challenges to turn circular beauty into a mainstream reality.
The increasing rate of online shopping is sparking more concerns about waste. It has compelled beauty brands to take ownership of the products they manufacture and send out to customers across the globe.
As per the US Environmental Protection Agency (EPA), in 2018, the containers and packaging segment had the most plastic tonnage of more than 14.5 million tons. This category includes wraps, sacks, and bags, as well as other packaging, including high- density polyethylene (HDPE) natural bottles, polyethylene terephthalate (PET) jars and bottles, and similar other containers.
To reduce pollution, key beauty brands are set to gradually take up the new circular beauty challenge, thereby transforming the way their manufacturing line works and making ingredients last longer than they usually do. Some other brands are expected to encourage their customers to reuse their bottles that they can refill with sustainable products.
Shambhu Nath Jha, associate vice president, Fact.MR, a market research and consulting agency.