A new article by our researchers has been published, titled Green Repainting in the Cosmetics Industry.
The beauty products market has experienced explosive growth in recent years. This is largely due to the fact that consumers want to know more about the production, composition, and impact of products on the environment or human health. This is also clearly accompanied by an increased demand for cosmetics that are safe for the environment and health. These products appear on the market in different European countries with different designations and names, such as bio, natural, vegan, organic, eco products. The qualification of such products is carried out by voluntary organizations and certification organizations under various conditions. These organizations usually allow the use of their trademarks or certification on the packaging of cosmetic products according to their own developed rules. Fragmented regulation, the increasing demand for “green” cosmetics, and fierce competition for customers often lead to some manufacturers resorting to greenwashing. To overcome this and to create guarantees of fair commercial practices for consumers in the cosmetics industry, a strong legislative reform process has recently begun in the European Union. Our researchers' study reviews the characteristics of the most important cosmetics industry regulators in terms of the display of information that can be displayed on products.
Some products in the beauty industry have been used by humanity for thousands of years. Although these products are not essential for the human body, the desire for beauty and people's increasing awareness of appearance have made the beauty industry one of the most dynamically developing industries. It is estimated that in 2020, the global cosmetics market was worth $341.1 billion, which is expected to reach $560.50 billion by 2030, with a compound annual growth rate of 5.1% between 2021 and 2030.
The cosmetics industry is also showing increased interest in sustainable solutions due to the environmental impacts of the chemical ingredients used, the packaging that contributes to the generation of significant amounts of waste, and the social impacts of deforestation, the products used to extract raw materials, animal testing, and unfair trade.
This partly resulted in the transformation of the cosmetics market: more and more products appeared on the market that, unlike the others, claimed to be green, organic, natural, vegan, etc. Green cosmetic products became not only fashionable, but also a means of gaining market advantage for manufacturers that were able to develop new products and product lines that were aligned with accelerated consumer needs.
Some research on consumer theory has highlighted that there is a close connection between consumer values and green trust, for example eco-labels or various certificates are depicted as a sign of excellent quality and higher value in consumer perception. The fight for customers and the accompanying change in consumer attitudes have also led to some manufacturers presenting themselves or their products in a “green” color, which has raised new legal questions that also need to be answered at the EU level.
Greenwashing, also known as painting it green or greenwashing, is based on the fact that the person who uses it highlights a good practice or only a small part of their activity while covering up all the others that have a negative impact on the environment, in order to appear more sustainable than they actually are.
Our researchers also highlight that product packaging plays a crucial role in consumer acquisition, as it serves as a means of brand communication. Recent research shows that approximately 73% of purchasing decisions are made at the point of sale. Accordingly, in the competition for customers, it is crucial to know which tools each manufacturer can best use to capture the attention of customers.
Consumers prefer to buy a product that comes in portable packaging, performs its function as expected, and provides all the information they need to know about the product. For example, the color of the packaging helps to quickly categorize the product as green.
In addition to changing consumer demands, another very important factor is that the industry has used many raw materials in various stages of development that scientific research has proven to be harmful to the human body. Therefore, rules are gradually becoming stricter at the EU level.
The growing awareness of environmental impacts and health trends towards green consumption patterns have led to an increase in the number of eco-friendly products, including cosmetics containing natural ingredients that refrain from using chemical additives. In 2021, the European Commission and consumer protection authorities investigated nearly three hundred and fifty dubious green claims from different trade sectors and found that in more than half of the cases, the trader did not provide consumers with sufficient information to assess the accuracy of the claim. In 371% of the cases, the claim contained vague and general statements such as “conscious”, “eco-friendly”, “sustainable”, which were intended to convey to consumers the unfounded impression that a product has no negative impact on the environment.
According to our researchers' study of the cosmetics industry, despite the high level of EU regulation, numerous gaps can still be discovered in the regulation of green cosmetics: the lack of homogeneous regulations for certain types of green cosmetics could be resolved by a harmonized European law.
Our additional beauty industry recommendations related to sustainability can be found in the Sustainability menu: https://awcosmetics.hu/fenntarthatosag/
Source:
Boros-Gordos-Varga: Greenwashing in the cosmetics industry. EU regulation of sustainable product labeling. Journal of Legal Studies, 77:499-509., (2023) https://m2.mtmt.hu/gui2/?mode=search&query=publication;labelOrMtid;eq;%20Greenwashing%20a%20kozmetikai%20iparban
