How Health & Beauty Companies Can Meet Sustainable Standards

According to the British Beauty Council, 95% of cosmetic packaging is thrown away, with single-use plastics being one of the biggest challenges facing the health and beauty sector.

Euromonitor's Voice of the Consumer report says that 60% of all new products launched globally in 2025 featured at least one sustainability claim.

The report outlines the growth in sustainable product labelling as consumers seek affordable yet sustainable purchasing options.

Obstacles to sustainable purchasing

Euromonitor's report reveals that the top three barriers to sustainable purchasing are higher prices (40%), unclear labelling (27%) and uncertainty about which claims to trust (25%).

Cost remains the most significant obstacle, with many consumers expressing willingness to make sustainable choices but finding premium pricing prohibitive.

This price sensitivity is particularly pronounced amongst younger consumers who are environmentally conscious but face budget constraints.

Retailers are progressively integrating sustainability into their core value proposition, positioning it as a key complementary feature to important purchase drivers – such as quality and performance – rather than an add-on.

This could help to build trust with consumers by making credible claims and enabling effortless sustainable shopping.

The Voice of the Consumer survey shows that the most trusted product claims in 2025 were recyclable (57%), locally sourced (55%) and natural (54%).

The report also outlines specific sustainable consumer profiles, with distinct purchasing behaviours and how brands in the health & beauty sector can connect with each type of consumer.

Building trust through transparency

One of the consumer types identified by Euromonitor is the Green Spender, which accounts for around 25% of consumers.

These consumers are willing to pay more for products that deliver on quality, performance and purpose, as long as they can see evidence of a product's impact and fair labour practices.

Euromonitor explains how health and beauty companies can take advantage of this shopping behaviour.

Estée Lauder exemplifies this approach through its responsible supply chain.

Its focus on responsible sourcing involves using high-quality ingredients and materials, paying attention to potential impacts on people and the environment.

The company collaborates with a diverse network of suppliers, ensuring it strengthens its sourcing practices while being sensitive to local communities.

Nancy Mahon, Chief Sustainability Officer at The Estée Lauder Companies, says: "Guided by the values of our customers, we are committed to creating meaningful, long-term value as we work toward becoming the world's most consumer-centric prestige beauty company.

“Despite industry-wide challenges, we continued to progress toward our packaging goals, including our ‘5Rs’, while improving our FSC-certified material usage year-over-year and working to restore and exceed past levels.

"Looking ahead, I am inspired by the opportunities to deepen our impact, contribute meaningfully to the communities we serve and drive long-term, sustainable growth."

Designing reusable packaging

The Zero Wasters, making up 25% of consumers, share a drive to reduce waste.

Euromonitor says that many consumers, especially younger generations, expect brands to help them repair, reuse or recycle.

Businesses should make packaging easy to recycle, offer refill packs and support repair or resale while demonstrating how circular solutions can save money as well as resources, according to the report.

In the health sector, L'Oréal is championing circularity in its product design, developing refillable products that can transform the beauty industry.

It offers at-home refills, including pouches, pods and bottles, as well as in-store refill stations and fragrance fountains in select locations.

Ezgi Barcenas, Global Chief Corporate Responsibility Officer at L'Oréal, says: "L'Oréal is taking action to make refills the new norm with our multi-brand campaign to encourage consumers to embrace refills.

"As the global beauty leader, we have an opportunity, as well as a responsibility to create more circular solutions, raise awareness and set a new industry standard – with clear intention and action.”

Clear communication for consumers

The most prominent consumer type, according to Euromonitor, is the Naturalist.

These consumers – which make up 30% of the global consumer base – look for simplicity and transparency when it comes to product labelling.

Many health and beauty brands are responding by simplifying ingredient lists and using clearer terminology on packaging.

This shift towards transparency extends beyond ingredients to include information about sourcing, manufacturing processes and environmental impact, helping consumers make informed decisions aligned with their values.

Unilever has been working on redesigning its packaging for easy recycling, including its Vaseline bottles in North America.

It has deployed a recyclable pump on its Intensive Care lotions to meet its goal of making 100% of its rigid plastic packaging reusable, recyclable or compostable by 2030.

Kristina Friedman, Head of Sustainability at Unilever North America, says: "Unilever's long-term ambition is an end to plastic pollution through reduction, circulation and collaboration.

“We continue to implement bold innovations across our brands and markets that help to advance the delivery of our sustainability goals.

"Vaseline designing its pumps for recycling is another step in the right direction."