Sustainability is evolving in the beauty industry from a pure image factor to a strategically crucial core competence. This is the conclusion reached by Swiss sustainability consultancy Quantis in the latest edition of its "Make Up the Future" report. According to the report, climate risks, regulatory pressure, geopolitical uncertainties and increasing transparency requirements worldwide will fundamentally change the rules of the game in the cosmetics industry. Sustainability must be systematically integrated into product development, procurement, governance structures and marketing. Over the past 20 years, it has evolved from a marginal issue to a key performance factor.

From nice-to-have to must-have

According to the study, greenhouse gas emissions along the entire value chain, where 95 per cent of the climate impact of cosmetic products occurs, are increasingly coming into focus – for example, in raw materials, packaging and transport. Platforms for the traceability of raw materials or for the environmental assessment of products could create standards for transparency. Although global sales in the industry have grown by almost 60 per cent since 2020, driven primarily by emerging markets, premium skincare and brand-driven business models, supply chain risks, raw material dependencies and regulatory requirements such as the European Green Deal have become noticeably more stringent. Sustainability is no longer a "nice-to-have," but rather the basis for resilience and competitiveness. Companies that act early can reduce risks, stabilise supply chains and strengthen their brand position.

Support from artificial intelligence

According to Quantis, initial practical examples show that investments in refill systems, resource-saving applications or sustainable packaging solutions not only reduce emissions but also generate growth. Sustainability must therefore be consistently integrated into financial planning, risk management and strategic decisions. In addition to CO₂ emissions, other environmental issues such as biodiversity, water scarcity and soil degradation are also becoming business-critical factors. The example of palm oil shows how problematic ingredients are coming under greater scrutiny. According to Quantis, artificial intelligence is developing into an important tool for transformation. It supports companies in life cycle assessments, scenario analyses, formulation optimisation and the analysis of complex supply chains.

Source: Quantis