EU Innovation Agenda propels personal care toward digital future free from Russian fossil fuel

07 Jul 2022 --- The European Commission (EC) has set out its new EU Innovation Agenda, which aims to advance digitalization and secure an environmentally sustainable future for industries including beauty and personal care amid climate and political uncertainties.

The agenda embodies the EC’s attempt to “wean itself” away from Russian fossil fuel dependence, encourage circular economy principles and hasten clean energy technology development.

“This program is another step in the right direction for beauty’s digital transformation, strengthening and creating better connections between EU innovation players. This also helps tech companies engage and share their experience with the EU tech community. At the same time, we see new players coming to the space and new tech talents to the EU,” Sampo Parkkinen, CEO and founder at Revieve, tells PersonalCareInsights.

“Prompted by considerations for a more circular, digitalized and resource-efficient economy, the pandemic, or Russia’s aggression against Ukraine, companies will need to build new capabilities and seek trusted partners to build supply chain resilience, develop new trade opportunities and collaboration given the increasingly international nature of innovation,” underscores the agenda.

Parkkinen adds that, with the Innovation Agenda in place, the industry is headed to the “golden age” of EU tech, as it will boost technological development and provide excellent opportunities for the whole EU tech ecosystem.

“This comes in many forms, such as equipping EU-based talent with the right digital skills, boosting the region with competitive jobs, creating digital inclusion, sustainable growth, and agile mission-based policies that drive inclusion and prosperity for European society,” he says. “Both digital and green transitions will play the most critical role in the next evolution of the customer experience,” says Parkkinen. Credit: Revieve.

Deep tech for environmental sustainability
The EC intends to help develop technologies to address social challenges and bring them to the market – posing the EU as a technology and innovation hub. In particular, it stresses developing deep tech, which is argued to lower greenhouse gas emissions, make economies more digital and guarantee the EU’s raw material sources.

“From a consumer point of view, today’s consumers are also not satisfied by the one-size-fits-all concept; they want to see products and experiences evolve to meet their needs,” says Parkkinen.

“The future of beauty is physical, digital and virtual. Therefore, while keeping our feet grounded in web2 acceleration, we are exploring web3 with a novel on-chain beauty approach,” adds Asmita Dubey, chief digital and marketing officer at L’Oréal.

“This is why, at Revieve, we see this as the ideal opportunity to enable the European market to reach new heights and provide consumers with personalized and intimate experiences in sectors where Europe has a competitive advantage, such as beauty and personal care,” continues Parkkinen.

Green innovation
The agenda stresses that innovation is essential to drive EU competitiveness, shape markets, transform economies and enable a higher quality of public services. It is “indispensable” for green and digital transitions.

Parkkinen observes companies increasingly focused on building a holistic, sustainable digital infrastructure and augmenting their CSR (corporate social responsibility) initiatives through personalization and technology.

“Both digital and green transitions will play the most critical role in the next evolution of the customer experience.”

Deep tech is rooted in science, technology and engineering, often combined with physical, biological and digital spheres. Deep tech enables commercial products to be scientifically backed. The agenda stresses that deep tech is also the answer to global challenges like climate change and achieving UN Sustainable Development Goals.

Personalization of personal care
The beauty and personal care sector has witnessed a rise in digitalization trends such as Artificial Intelligence (AI) and Augmented Reality (AR) powered technology and devices, especially from the onset of the COVID-19 pandemic. Parkkinen observes increasing companies focused on building a holistic, sustainable digital infrastructure and augmenting their CSR initiatives through personalization and technology. Credit: Revie.

In June, L’Occitane Group’s startup brand Duolab launched its Online Skin Diagnosis tool in partnership with Revieve. The collaboration is an example of a beauty brand offering innovative solutions for customers using AI and AR.

A prime example of innovation paired with sustainable development is Symrise’s augmented AI, Philyra 2.0. It equips perfumers with a creative and environmentally sustainable tool to formulate perfumes. This technology enables brands to produce renewable and biodegradable alternatives while encouraging experimentation and speeding up production.

Additionally, L’Oréal has been exploring the internet-driven beauty of web3 with the emerging metaverse to reach a new generation of customers across its haircare, active cosmetics and mass consumer portfolio. It has been noted to enable web2 services such as skin diagnosis, teleconsultation and virtual try-on and is taking steps toward the future of the internet.

Five Flagships
The EU Commission has laid out 25 actions under five flagships to spearhead the agenda. Deep tech is rooted in science, technology and engineering, often combined with physical, biological and digital spheres.

Firstly, it points to improving funding access for startups and scaleups by mobilizing private capital and simplifying listing rules. It will also provide experimentation spaces for enabling innovation via improved regulatory sandboxes, test beds, living labs and innovation procurement.

Furthermore, it will support creating innovation valleys by allocating at least €10 billion (US$10.18 billion) to interregional projects and support member states to encourage innovation across regions. The EC aims to attract, develop and retain deep-tech talent and improve policy-making tools to ensure coordination across the EU.

“For more than a year, we have consulted the stakeholders, such as innovation ecosystem leaders, startups, unicorns, women founders, women working in the capital venture, universities and businesses,” comments Mariya Gabriel, commissioner for innovation, research, culture, education and youth.

“Today, tech talent is hard to find, and the competition between companies is fierce. The critical skills gap is widening, and the demand for tech talent, especially in Europe, has become more urgent than ever. This is why we believe this plan will support our efforts in attracting and recruiting European talent,” adds Parkkinen.

By Venya Patel

To contact our editorial team please email us at editorial@cnsmedia.com