Retail Radar: Sustainable beauty brands changing the marketRetail Radar: Sustainable beauty brands changing the market

How have the brands you fill your bathroom shelves with changed in the last few years? If you’ve reached for more sustainable beauty brands on the drugstore shelf, you’re likely part of a big consumer movement.

It’s one where millions of customers demand certain environmental commitments from the companies they are willing to support financially. And it’s worth an estimated $22 billion.

Here’s what you need to know about the sustainable beauty brands changing expectations customers have about the products they want to invest in and use on their skin.

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According to ESW, sustainable beauty brands** **are worth $22 billion, with skincare holding the largest part of the market, followed by haircare and cosmetics. They also report that 68% of consumers seek out so-called ‘clean’ ingredients.

To meet this, beauty giant Sephora has even created a category on their online store labeled ‘Planet Aware’.

This section exclusively lists brands that have met certain expectations regarding sustainable ingredients and packaging, along with corporate commitments and consumer transparency.

However, a report by ethical brand ratings site Good On You warned that many brands are still failing with issues like ingredients transparency, living wages, animal testing, insufficient climate reporting and refillable packaging shortfall.

So, what is most important for consumers when it comes to sustainable beauty brands, and how best can businesses meet those expectations?

According to Nielsen IQ, 62% of consumers are prioritising sustainable beauty brands more now than they did two years ago. But the concept of sustainability can mean different things to different customers.

For the majority of consumers (61%), sustainability simply means that it’s better for the planet. For just over half (57%) it means that business protects natural resources or reduces pollution or works towards a cleaner environment (54%).

The report details how the category of sustainable beauty brands has evolved from being focused on ingredients (such as parabens, sulfates and phthalates) to vegan, biodegradable, refillable and plastic-free.

It predicts that consumers will make a move towards more ethics-focused issues, such as fair trade and fair wages for those in their supply chains.

In 2023, Nielsen IQ identified five important trends when it comes to consumer expectations around sustainable beauty brands.

These were sustainable packaging, “free-from” claims, retailer participation (i.e. making these brands more accessible by stocking them), widespread adoption of sustainability practices and government intervention.

It’s clear that this is an essential and continually growing category for businesses in the industry.

So, who are the sustainable beauty brands doing things a bit differently both in their production cycles and in how the product encourages customers to live more sustainably?

Source: Act+Acre

What’s the TL:DR? Act+Acre is the world’s first cold processed hair wellness brand, founded by celebrity hairstylist Helen Reavey and her husband Colm Mackin and based in New York.

They focus on scalp health, using plant-based ingredients and clinical studies that confirmed a 95% removal of buildup. Last year, they became the first ever Irish brand to be stocked in Sephora.

What’s their star product? Definitely their Stem Cell Scalp Serum with aloe vera and bamboo, which has been rated an average of nearly five stars by over 1,300 people.

**What makes them sustainable? **Their manufacturing process uses cold processing, which consumes 90% less energy than conventional manufacturing.

They have a refill program that uses 60% less plastic. All of their 100% recyclable packaging is made from post-consumer material. They are pursuing a climate neutral certification and also fund wind farms in Mumbai.

Source: Clean Skin Club

**What’s the TL:DR? **For those suffering from acne or other skin issues, reusable face pads are not always possible as they can be a major source of bacteria.

Clean Skin Club provides a compostable alternative that leaves skin clearer and less irritated, made using sustainable eucalyptus plantations and bamboo. They can also be reused for non-skincare needs, such as cleaning makeup brushes.

**What’s their star product? **Though their Clean Towels XL are most popular, their Clean Towels XL Bamboo are made from ethically-sourced bamboo which is an even more sustainable option.

**What makes them sustainable? **Their towels are made from viscose either from sustainable eucalyptus or bamboo. This fabric has also been certified as compostable in marine, water and soil.

While they are designed for single use to limit bacteria transfer, they are strong enough to be reused. They are also planning a Skin to Soil program to turn used towels into nutrient-rich soil.

Source: Evanhealy

**What’s the TL:DR? **Evanhealy is a certified organic skincare brand founded an astounding 26 years ago and based in Carlsbad, California.

Their ingredients are sourced from sustainable producers in Morocco, Ghana, Chile, Somaliland and the US. They’re stocked in Whole Foods and center around ingredients like rosehip, argan, olive, frankincense and shea butter.

**What’s their star product? **Celebrities such as Hilary Duff and Molly Bernard have recommended their Wild Carrot Immortelle Eye Balm, with sunflower seed and coconut oil.

**What makes them sustainable? **The company is USDA-certified organic and all of their production is done by hand. They work directly with family farms, tribal villages and women’s cooperatives to ensure fair wages and protect local flora.

The founders often travel to these farms to experience sustainable farming practices on the ground.

Source: Harrogate Organics

What’s the TL:DR? Harrogate Organics was started in the UK as a natural solution to co-founder Dan Simpson’s chronic anxiety and depression.

Their products aim to improve sleep, anxiety, stress, pain and menopause symptoms using skincare, sprays and supplements with ingredients like magnesium, ashwagandha, lion’s mane mushroom and arnica.

**What’s their star product? **Their multiple award-winning Magnesium Spray, designed to improve sleep, has over 2,400 reviews with a nearly five star average rating.

**What makes them sustainable? **They only use packaging if completely necessary and it’s 100% recyclable, while their plastics are made from zero-carbon sugarcane.

They also avoid all non-recyclable and single-use plastics. The company also currently uses a third party to ensure carbon offsetting but hopes to one day transition to becoming a net zero carbon company.

Source: Noshinku

**What’s the TL:DR? **While it helps stop the spread of bacteria and viruses, most hand sanitisers come in small, single-use plastic bottles. Andrew Zahornacky and Arie Hefter, the co-founders of Noshinku, sought to change that.

Their formulas aim to add skincare to hand sanitizer with moisturising ingredients such as jojoba, rosehip and argan, along with natural essential oils.

**What’s their star product? **As preferred scent can be so personal, their discovery Pocket Sprayer Discovery 3 Pack lets you choose from Bergamot, Lavendula and Eucalyptus.

**What makes them sustainable? **Their recyclable and refillable hand sanitizer is made from 70% alcohol distilled from organic sugar cane, containing no synthetically-derived ingredients.

They operate both a refill program that should enable you to use each container five times. Their packaging is 100% recyclable and they do not test any of their products on animals.

Source: Viori

**What’s the TL:DR? **Viori sells fair trade, plant-based shampoo and condition bars using ancient rice bought from the Red Yao community, an ethnic group in China.

The women in the community are known for their long, beautiful hair, with many claiming not to experience gray hairs until their eighties, thanks to the fermented rice water Viori also bases its products on.

**What’s their star product? **Their sweet musk-scented Hidden Waterfall Shampoo Bar for Growth has clocked up an incredible 18,700 reviews with an average rating of 4.7.

**What makes them sustainable? **All their products are sulfate- and plastic-free. In fact, Viori also uses plastic alternatives in their warehouse and during the shipping process.

They use cetyl alcohol and stearic acid from certified sustainable palm oil. They also use 5% of profits to fund projects that directly benefit the Red Yao community, such as street lights and schools.

Sustainable beauty brands are witnessing a significant surge in consumer demand for more eco-conscious products, driven by concerns for the planet and workers’ rights in the production chain.

Brands like these prioritize sustainable practices such as refill programs, ethical sourcing, recyclable packaging, and support for local communities. They reflect a growing consumer expectation for beauty products that are both effective and environmentally responsible.

Interested in joining this impressive community of sustainable beauty brands? Wayflyer has funded over 5,000 businesses worldwide with $5 billion worth of working capital, backed by world-leading financial institutions.