Brands across the beauty industry are swiftly integrating sustainable practices into their packaging and value chain. This is in response to beauty product consumers, who now prioritize both environmental and personal well-being, and have heightened interest in packaging materials.  

Packaging is of particular importance for beauty brands, acting as the initial introduction to a product and defining the overall consumer experience. Sustainable packaging has emerged as a compelling purchase driver, with over 63% of consumers showing interest in sustainably packed products with over 81% willing to pay a premium for it. The sustainable packaging market is projected to grow at an annual rate of 7.67% between 2023 and 2028 to reach over US$393 billion.  

Plastic has long posed a challenge for the beauty industry, from delicate cellophane wrappers preserving eyeshadows and blushes to plastic bottles and pumps for lotions and creams. Leading brands like Estee Lauder have committed to increasing post-consumer recycled (PCR) material by 50% in their packaging by 2025, recognizing the significance of packaging. Brands have also turned to more innovative solutions such as origami fold-boxes with zero waste and dissolvable plastics, pushing the boundaries of creative design while minimizing environmental impact.  

Industry professionals are actively supporting the vast potential of sustainable packaging, tapping into an array of materials, including renewable sources, bioplastics, and even mushrooms, for endless possibilities in innovation. However, switching to sustainable packaging can be expensive, especially for smaller brands. They may encounter higher production costs. While there may be cost efficiency in the long run, it is difficult to work out when that would happen. 

How will small and mid-sized brands be able to cope with this sudden shift to eco-friendly packaging?   

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Marie Teo
Manager, Group Marketing Communications
Spire Research and Consulting
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E-mail: marie.teo@spireresearch.com