Greenwashing: Provenance flags factors causing consumer distrust in beauty industry

20 Oct 2022 --- Provenance’s latest report, Skin Deep Beauty, finds that while 90% of consumers consider environmental sustainability when buying beauty and wellness products, 79% have difficulty trusting brands’ sustainability claims. The report highlights that sustainability-minded shoppers face a lack of transparency, which contributes to a prevalent mistrust in the industry as vague claims leave shoppers confused.

“This research into the disconnect between consumers’ sustainability aspirations and brand promises cannot be seen in isolation,” the report says.

“There’s just so much greenwashing out there that shoppers don’t know what all the claims being made actually mean and whether a company meets the standards they claim to,” underlines Jessi Baker, founder at Provenance.

“If beauty and wellness businesses want to stay relevant to increasingly values-led shoppers, they need to be much clearer on sustainability claims and use verification to prove them.”

The company commissioned London Research to conduct an international survey of 1,500 consumers in the US, UK and German markets and spoke to beauty brands – including Cult Beauty, Elemis, Douglas, Noble Panacea and B Corp Beauty Coalition.Consumers yearn for greater transparency and clarity around environmental and social claims, according to the research.

Pivotal determinations
Nature and animal welfare are essential considerations for 93% of shoppers when buying a beauty and wellness product.

Nature and animal welfare, waste and treatment of workers, are deemed at least ‘somewhat important’ by more than 90% of consumers. The corresponding percentages for climate change impact and commitment to community are 88% and 82%, respectively, according to the data reported.

Buzzwords overtake authenticity?
The report underscores that due to the mistrust in the industry, shoppers are demanding independent verification.

“Buzzwords now abound in advertising copy, websites, point-of-sale information and on the packaging. Some appear to be deliberately ambiguous, such as ‘clean’ or ‘natural’ beauty, while others are designed to attribute an ethical stance to a product, such as ‘cruelty-free,’ ‘vegan,’ ‘organic,’ or ‘ocean-safe,’” the Provenance report highlights.

“Often packaging will bear ‘recyclable’ or ‘compostable’ labels without explaining how much of the product this claim applies to.”

Moreover, 71% of consumers said they weren’t sure what beauty brands mean by ‘environmentally friendly.’ In comparison, 26% find it easy to understand the criteria behind claims relating to nature and animal welfare, such as ‘reef safe’ and ‘cruelty-free.’

The survey also raises the issue of customers not easily understanding climate change claims – only one in five find it “very easy” to understand. Additionally, promises around renewable energy, carbon footprints and net zero targets are often worded, so shoppers do not easily understand them.It was discovered that 90% of consumers consider sustainability when buying beauty products.

Empty promises or trust issues?
Provenance reports that 79% of shoppers have doubts about the trustworthiness of beauty and wellness brands’ sustainability and social impact claims. However, the question is what causes the distrust?

Jill Jago, co-founder and chief sustainability officer of US-based lipstick brand, Vermouth, explains that brand promises are not always straightforward to make and a badge is not always as reassuring as it appears.

“A lot of people look for the term ‘vegan’ on beauty products because they assume it’s better for the planet, but we can’t say we’re vegan because we use beeswax. We chose not to be vegan because we believe beeswax is a better ingredient than many mineral resource derived alternatives,” she says.

“We need an open, honest and transparent labeling system to help consumers understand what they are buying so they can make informed choices.”

Demand for transparency
For Ben Grace, founder of SBTRCT Skincare, the key to brand credibility is building trust through transparency. “Sustainability has slowly climbed to the top of the agenda, but as an industry, we’ve developed a reputation for greenwashing, and therefore a lack of trust lingers,” he notes.

The research shows that only 24% strongly agree that the beauty industry is transparent about its products’ environmental and social impact. “Shoppers rate independent third-party verification as far and away the most highly trusted source of sustainability information when they are in purchasing mode,” the report suggests.

“With so much (sometimes unintended) greenwashing and purpose-washing, it’s no wonder consumers are confused, and trust is low. Customers need an easily recognizable, standardized stamp of approval to show a product has been impact-checked,” comments Alicia Hickey, head of sustainability and social causes at online beauty retailer Cult Beauty.Provenance discovered a major disconnect between how the industry is operating and the expectations of consumers.

“As sustainability becomes table stakes, brands need to act to future-proof their brands and ensure they don’t lose trust.”

Leaning into clean and green
The survey found sustainability information to be an important factor in purchasing decisions, only preceded by product efficacy, price and description.

When questioned what beauty and wellness brands could do to win consumer confidence on a sustainability claim to be accurate, 61% expressed an interest in the complete list of ingredients, and 52% also think the brands should use an independent verifier such as Fairtrade, Leaping Bunny or Provenance.

Peter Wübben, director of corporate communications and ESG at premium beauty and health retailer Douglas, believes that product rating and regulation for their impact on the environment is a step in the right direction for the beauty industry.

“I think it will probably take a few more years, but I suspect we’ll get to a point where products are rated by the criteria currently being developed by initiatives such as the Eco-BeautyScore Consortium,” he says.

“Aside from the fact that there might be regulations that require it, products will display their environmental footprint because it is vital for consumers who want to make sustainable and responsible purchasing decisions, as well as for companies that want to be fully transparent and fulfill their responsibilities with respect to the environment and society,” concludes Wübben.

By Radhika Sikaria

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