Sustainable products drive 10% growth in cosmetics and personal care sector

Companies are now switching to safer and natural ingredients.

Sales of sustainable products in the beauty and personal care industry grew at a rate of 10% per year between 2020 and 2023.

Businesses need to adopt transparent sustainability practices to help manage risks, ensure regulatory compliance and capitalise on growing consumer demand for eco-friendly products, according to Euromonitor’s AI-powered Passport Sustainability platform.

“Sustainability is no longer just a skincare issue, but a priority for consumers across product categories,” the statement said.

Companies are now moving towards safer, more natural ingredients. For example, sunscreen products now favor zinc oxide, a mineral SPF, over chemical alternatives due to its lower environmental impact.

The fastest growing categories such as perfumes, sun care, deodorants and colour cosmetics also saw double-digit growth between 2020 and 2023.

Brands like Dove are integrating key ingredients into their skincare and emphasizing sustainable features, as seen in their vegan Dove Serum Body Wash collection. However, the perception of sustainability as costly has hindered wider adoption, especially in high-priced sectors like fragrances and color cosmetics.

The report noted that consumers are increasingly demanding products that reflect their ethical values, driving the popularity of claims such as “natural,” “vegan,” and “cruelty-free.” Certifications such as Made Safe and UpCycled are also becoming more common, verifying non-toxic ingredients and the use of surplus resources.

In addition, around 62% of cosmetics companies are investing in sustainable packaging. Compostable and FSC-certified packaging are popular choices.