Responsibility

 Brand responsibility may seem to be a topic well covered, but when 80% of millennials and Gen Zer’s globally believe that governments and businesses need to make greater efforts to protect the environment (Stylus), it shows just how far the beauty industry still has to go in its efforts to tackle its contribution to the climate crisis. And QUICK. Beauty brands are rapidly losing consumer’s trust. Only 51% of young people worldwide see business as a force for good, dramatically down from 76% in 2017.

And it’s with good reasons young consumers feel the way they do, as the beauty industry has some staggering statistics…

THE STATS

• 120 billion units of packaging are produced every year by the global cosmetics industry, most of which isn’t recycled

• Perfumes, hairsprays and deodorants pollute the environment as much as car emissions

• Ingredients like Palm oil, which is used in approximately half of all consumer goods, contribute to an estimated loss of 18 million acres of forest annually

• Water shortages are predicted to impact two-thirds of the world’s population by 2025, with water making up 70-80% of most beauty formulas

As Beauty Brand Coaches, these statistics remind us of the significant role we need to play in helping to encourage change in the industry.

Within our 2021 trends report we explore the consumer, environmental and market insights influencing this crisis, and how beauty brand Corporate Social Responsibility (CSR) strategies can make positive changes to re-connect with customers. Given the scale of this issue, which is ever evolving, our blog is just a snapshot of the 5 key responsibility themes that were front of mind in the first half of 2021. However, if you would light to discuss in more detail please get in touch for further insight analysis.  

The 5 themes we explored are:

1. GREATER TRANSPARENCY

2. PACKAGING

3. NATURAL PERCEPTION

4. USAGE & BEHAVIOURS

5. TOTAL PRODUCTION PROCESS

1. GREATER TRANSPARENCY

Beauty Buzzwords

There is a need for higher levels of transparency from brands as consumers want more meaningful information to help with product purchases and avoid misinformation. Most apparent is the shift in terminology to avoid beauty buzzwords and phrases which can mislead consumers. Sustainability & other environmental phrases are done. Allure announced its prohibited use of 'recyclable', 'earth-friendly’ and 'eco friendly' and Mintel are curbing sustainable phrases, suggesting that the term is overused and impactless. After a review by the EU commission into marketing greenwashing language (making claims about positive environmental impacts which were misleading), 42% of environmental claims were found to be false or exaggerated, and 59% were unsupported by evidence. Legislation will be put in place in 2021 to require brands to substantiate environmental footprint claims as a result, and the UK is likely to follow with it’s own future legislation. And we take note, suitably naming our trend ‘Responsibility.’ 

Contrasting to this, ‘clean’ & ‘natural’ are just some of the unregulated claims that are growing in both popularity, and there is the assumption that these are better for the environment despite real understanding or clarity around the claims.  

Taking ‘clean’ for instance - 58% of women globally feel that clean beauty means a product is natural. However “What does clean skincare mean?" was one of the most Googled searches of 2020! This shows how much consumer confusion there is around widely used claims and terminologies. There remains a huge opportunity to introduce clarity, common understanding and credibly proven CSR policies across the whole of the beauty industry.

Environmental reporting

Brands are also being challenged to increase their environmental reporting as consumers seek more transparency on environmental measures relating to the total product cycle. Noticeably, Carbon Footprint & Handprint, Supply chain traceability and Water Footprint seem to be the main measures brands are reporting.

It’s important to recognise your 'Responsible USP('s)' i.e. what you are doing to be more environmentally friendly, and use specific measures to inform customers of this positive benefit. Packaging can be a great way to engage with consumers. Using a water alternative or carbon neutral? Tell customers about this great work, and educate about both the pros and cons to continue to support informed consumer choice.

2. PACKAGING

Packaging alternatives

Packaging is the most tangible aspect of the product with which consumers interact, so it's understandable that plastic has been the leading focus for most brands to reduce. By 2025, 100% of the plastics used in L'Oréal's products' packaging will be either from recycled or bio-based sources. In order to hit such targets, brands need to explore packing innovations that reduce our reliance on plastic. 

Carbon positive Cork, compostable Mycelium and zero waste Soap are some of the most interesting breakthrough materials being explored in the market currently. Whilst some are more industrialised than others, we think that there is no one perfect solution when it comes to making packaging more responsible. Instead, brands need to take a flexible approach across a range of solutions, and the most important thing is to use resources responsibly, which relies on the industry working sensibly together across packaging innovations.

 Closing the cycle

 Wider than the packaging material itself, brands need to look at further closing the cycle.

Offsetting is an easy way for brands to contribute and whilst it doesn't fix the root cause, it is still a way to make a difference. Similarly, using schemes that help to recycle and clean up plastic waste are relatively simple ways in which brands can better contribute to the environment. Stores can also play a part in the full consumer journey by implementing refill sections and recycling points in store to inspire repeat visits - the John Lewis BeautyCycle scheme is just one example of this.

3. NATURAL PERCEPTION

Science meets Nature

Evolving on from the Clean Beauty movement, 'Cleanical' is the growing clean science trend, which combines 'clean' and 'clinical' - lab-grown 'natural' ingredients for powerful and proven results. Whilst the clean element of this trend is still not well defined, we think that the natural-science combo is very interesting. This is because innovative and sustainable formulations can be made when combining scientific knowledge with natural ingredients. New extraction techniques, stabilising methods and delivery systems can boost the power of natural ingredients, or even replicate them in labs. By utilising natural beauty with science, it will help to reduce the impact on our planet.

However, when 70% of US consumers aged 18–29 would rather use natural, organic cosmetics (Statista), it shows that there is still the belief that natural is best. Even though experts are clear that this isn't the case, brands must take the opportunity to educate on the safety and the benefits of non-natural ingredients.

How else can brands reinvent Natural?

Wild harvesting is a trend on the rise, which considers the seasonality of the plant, unlike normal AYR harvesting. Circumference NYC aims to preserve the biodiversity of plants by avoiding intense agricultural practices and the use of chemicals.

Another fascinating concept is made-to-order beauty, which sees brands growing and manufacturing only what they need based on orders received. Whilst this may result in limited sales, it's certainly a premium offer that takes away the headache of forecasting and can give customers a sense of exclusivity.

Brands should think about how NPD plans could support the natural harvest cycle. There could be opportunities for more localised launches that showcase homegrown ingredients for smaller collections, such as limited editions and bespoke gifts.

4. BEHAVIOURS AND USAGE

Regime rationing

Interestingly, we’re starting to see the backlash of excessive product layering, as consumers start to really understand the benefits of cutting back regimes, not only on environmental consumption & waste, but to also improve their skin and hair. Simplified regimes (highlighted by Pinterests call-out in 2021 for skinimalism) which focus on the essentials can instead rely on the skins natural ability to rejuvenate, resulting in a healthy skin barrier and glowing complexion.

As well as slimming down on regimes, we’re also seeing ingredient lists shrink, as brands realise that cutting out excess and focusing only the key essentials can give amazing results.

How else are consumers regimes being rethought?

Consumers are more willing than ever to adapt their lifestyles to be more environmentally friendly, so it is a great time for brands to challenge the regime norms to make beauty habits more responsible. Reusable formats, at-home activation, waterless technologies are all popular ways in which consumers are adapting lifestyles to be become more responsible.

5. TOTAL PRODUCTION PROCESS

Sourcing and raw materials

Taking a local approach to sourcing allows brands to have an authentic story and helps to reduce environmental impact when production is localised. However, it's not only about harvesting local ingredients but also what brands give back to the environment and community. Haeckels encourages coastline clear-ups, rewarding volunteers with free products. A great example of the respect and consideration they have for their local area & community.

By-product beauty

Whilst a USP for brands such as Upcircle (who are leading the way in creating a positive impact from waste materials), the by-product trend will become something every brand should utilise as more attention is given to close product cycle loops. This can be with manufacturers, as they look to other industries to create circular economies, but also at home with post-consumer use. Brands need to think about how product waste can be used to better impact the environment. 

SUMMARY

We have reviewed just 5 of the dynamics influencing the responsibility movement, but this is wide-reaching and ever-evolving industry issue. Our key learning is to keep moving forward, as taking no action while we wait for “perfect” solutions is no longer an option. Brands have a responsibility to continually educate themselves on the latest positive technologies in the market, and build consumer education to allow them to make informed choices. For more information and ideas on brand and product responsibility please get in touch to chat!

THE BEAUTY BRAND COACH