Transforming the beauty industry: 6 sustainability trends to expect in 2025

Quantis experts highlight 6 key themes to guide the cosmetics and personal care sector’s sustainable transformation in the coming year:

1. Anticipate and comply with increasing sustainability regulations

With global sustainability regulations on the rise, now more than ever, cosmetic companies must strengthen their strategies by taking a proactive approach. In Europe, new regulations like the Regulation of Deforestation-free products (EUDR) and the first Corporate Sustainability Reporting Directive (CSRD) are scheduled for 2025. This regulatory push is also happening in the US, with several states adopting Extended Producer Responsibility (EPR) policies, which hold companies accountable for the packaging and waste they put on the market. Cosmetic companies should expect these regulatory changes to continue. By looking ahead, companies can seize opportunities to not only anticipate and adapt to stay compliant — but also to innovate.

2. Prioritize ecodesign

In November 2024, the Ecodesign for Sustainable Products Regulation (ESPR) identified cosmetic products as a priority, pushing companies to reduce their environmental impact from development to disposal — and to transition to a circular economy. By empowering R&D teams to leverage environmental impact data, cosmetic companies can better understand the impacts of raw materials and packaging, as well as identify impact risks. Ecodesign is becoming a cornerstone of sustainable innovation in the cosmetics industry, with initiatives like the EcoBeautyScore (EBS), which aims to provide tools to help consumers make informed choices.

3. Consider ecotoxicity during the design phase

Freshwater ecotoxicity impacts has become a major concern for the cosmetics industry, since residues from rinsed and leave-on products contribute to chemical pollution and alter aquatic ecosystems. In regions where water treatment infrastructures are limited, these effects are amplified. The industry-led EBS initiative has tailored a life cycle-based methodology and database to the needs of cosmetic products, through a multi-year process. In 2025, more brands are likely to assess and account for the ecotoxicity impacts of cosmetic ingredients throughout the product life cycle, while aligning with the industry’s methodology. Adopting a holistic approach to assessing ecotoxicity, as an important decision-making criterion in ecodesign strategies, is crucial to meeting growing regulatory and reputational challenges.

4. Rethink packaging for more sustainable and innovative solutions

Packaging still represents a significant environmental challenge for the cosmetics industry. While it’s a critical element for ensuring product protection and desirability, brands must minimize packaging’s environmental impact while maintaining functionality. Each material — plastic, glass, metal, paper — has its pros and cons. Choosing the most sustainable option requires considering LCA, material circularity and the end-of-life impact. The cosmetics industry has a unique opportunity to lead by adopting a systemic approach to packaging. By integrating the 3 Rs (reduce, reuse, recycle) and prioritizing reuse, brands can unlock the true potential of circularity and drive innovation.

5. Implement nature strategies

Cosmetics companies must go beyond reducing their carbon footprint and integrate nature into their sustainability strategies to ensure protection of biodiversity and ecosystems. It’s fundamental to assess impacts and dependence on nature, set science-based targets for nature, and adapt value chains to meet regulatory and consumer expectations. Making nature a strategic pillar enables brands to strengthen the resilience of their business model while aligning their practices with their environmental commitments.

6. Manage nature dependency and the costs of inaction

The cosmetics and personal care sector must also manage its dependence on nature and the costs associated with inaction. Biodiversity, the source of ecosystem services, is crucial to the sector’s economic activities. Yet resource extraction and intensive farming are among the main causes of its degradation. Failure to act against biodiversity loss exposes cosmetics companies to major disruptions in their operations and supply chains. By integrating targeted actions on climate and biodiversity, companies not only mitigate financial, regulatory and reputational risks, but also strengthen their business resilience and competitiveness.