In-cosmetics Asia: “Biggest factors” influencing sustainable APAC beauty sector revealed

25 Jul 2023 --- Asia-Pacific’s upcoming industry event for personal care and beauty innovation, In-cosmetics Asia, takes place in Bangkok, Thailand, this November. Prior to the trade show, its organizers have published a report sharing key themes, analyses and factors propelling the industry shift toward circularity and sustainability in the region – gaining pace alongside positive shifts in other global markets like Europe.

“While progress has been made, the cosmetics and personal care industry needs to do more to reduce its impact on the environment, and by measuring and highlighting the opportunities through this report, we hope to inspire brands and suppliers to prioritize sustainability,” Sarah Gibson, exhibition director, In-cosmetics Asia, tells Personal Care Insights.

“The report focuses on four major themes that are leading industry conversations: consciousness, protection, biotechnology and inclusivity. It analyses the many factors driving change, as well as the actions brands and suppliers are taking in response to a new generation of consumers who are both ethically and environmentally aware.”

Additionally, the report reveals opportunities for brands on how they can deliver on their sustainability strategies, with contributors from Hallstar Beauty, Vytrus Biotech, Hermosa Naturals and Manuka Bioscience.

“We are seeing an increase in customer preference for ingredients, formulations and production practices to be environmentally friendly in APAC, although it is not yet the consumer mandate and regulatory imperative that already exists in EMEA and North American regions,” observes Eileen Zhang, general manager, Asia-Pacific, Hallstar Beauty.

Gibson explains that practicing and understanding sustainability can differ between Asia and the Western world due to various cultural and economic factors. “There is an emphasis on finding harmony with nature in many Asian cultures, and the idea of living in balance with the environment can perhaps lead to a greater acceptance of sustainable practices as they align with cultural values.”

“The availability of resources is another factor, with some Asian countries facing more significant challenges related to resource scarcity, leading to a greater focus on resource conservation,” she flags.Sarah Gibson, event director at in-cosmetics Asia.

Spurring sustainability in APAC
Although sustainability developments in APAC are not on par with EU countries, Queenie Ho, global sales at Hermosa Naturals, observes that more brands are paying attention to the concept. 

The slower shift to sustainability might be because brands pay more attention to sensorial properties, evidence of effective performance, robust supply chain and regional compliance, outlines Zhang of Hallstar Beauty.

“The concept of sustainability in the APAC personal care industry is growing as well. We have found more and more ingredients and formulas were developed with sustainability in mind,” shares Ho.

“For raw materials, we can see many of them are made from botanical extracts and some from upcycling; there are also water-free formulas or even recyclable packages to show our contribution to sustainable developments.”

In addition, she shares that Hermosa Naturals uses local materials for upcycling production, where bran of Taiwan native rice and foxtail millet are used. “In formulation design, we are expanding the application of our oil specialty to reduce the use of water and to achieve sustainability.”

Ethical sourcing meets conscious consumer demand
In-cosmetics Asia suggests that as consumers are more environmentally conscious about their purchasing impacts, brands should focus on ethical sourcing. 

Gibson tells us: “One of the biggest challenges we’re seeing in the industry is ethical sourcing. As consumers become more aware of their own environmental impact, they are choosing brands that are visibly working to reduce their carbon footprint and promote sustainable practices.”

“We have seen an increase in using local ingredients and upcycling, whether that’s in Europe, Australia, Japan or Korea,” shares Ho of Hallstar Beauty.

“Many personal care brands are developing in this direction and we are seeing more and more outcomes in the market. At Hermosa Naturals, we are including local Asian materials and upcycled products from the beginning of development, hoping to contribute to sustainability and carbon reduction.”

As Asia is abundant with natural resources, its biodiversity must be protected when sourcing ethically, underscores In-cosmetics Asia. Examples of this being put to action include moves among various players this year who have released alternatives to palm oil and brand communications boycotting deforestation.

“Sustainability is now much more than a trend. It is imperative to protect the future of the industry and the planet. Some of the most innovative approaches include an increased use in plant-based formulations, using only natural ingredients in products, reducing the reliance on environmentally harmful chemicals,” adds Gibson. 

“Waterless beauty products, such as solid shampoos and powdered cleansers, have been gaining popularity in the region, and many brands are exploring innovative reusable packaging solutions, such as biodegradable materials and refillable containers.”Asia is abundant with natural resources and its biodiversity must be protected when sourcing ethically.

Certifications and community contributions
In the field of ethical sourcing, the event organizers spotlight Hong-Kong-based Coconut Matter. To create its “handcrafted” deodorants, lip balms and other personal care items, the company implements a non-waste distillation process that allows it to upcycle leftover mulch and distilled water as herbicides in their fields. 

“This approach not only minimizes waste but also supports the environment,” says Diane van Zwanenberg, founder at Coconut Matter.

“We follow COSMOS-standard, which is a collaborative effort from five key EU organic certification bodies: the Soil Association, BDIH, Cosmebio, Ecocert and ICEA. For all certified products, ingredients must meet strict criteria and respect the principles of green chemistry, while product packaging and cleaning materials used in production facilities must also meet the standards.”

“The entire supply chain is verified providing a guarantee of the quality and integrity of products. For us, we refer to the COSMOS-certified raw material list and we aspire to achieve this certification.”

Zwanenberg flags that many independent brands might not be able to obtain sustainability certifications due to the costs that also require extensive resources to maintain.

The brand is also focused on another tenet of ethical sourcing, which is returning something back to the land or community.

“Manuka Bioscience produces Manuka Oil and is acutely aware of its responsibility to give back to the land and community,” underscores Merve Samur, a cosmetic formulator and R&D Manager for Manuka Bioscience, whose brand ManukaRx is seeking to pursue B Corp certification.

Since the brand launched in 1998, it claims to have planted five million native manuka trees in New Zealand.

“Ensuring fair trade practices, protecting biodiversity, and avoiding exploitation of local communities can be complex but critical aspects of ethical sourcing,” advises Gibson.

Cultivating ecosystems and economies
Shiseido is spotlighted by In-cosmetics Asia for its camellia planting and conservation in abandoned farmlands in the Goto Islands in Nagasaki Prefecture. The plant is native to the country and is often used in its oil form.Zwanenberg flags that many independent brands might not be able to obtain sustainability certifications due to the costs.

This effort has resulted in Shiseido employees helping to plant more than 700 seedlings of camellia japonica across 0.194 hectares of land.

In other moves, Hallstar – a supplier of ester chemistry solutions for the beauty and personal care sectors – sources shea butter from community co-ops in West Africa, directly benefiting local women and the local economy instead of industrial factories, shares Zhang.

Biotechnology paves clean manufacturing pathways
Alongside natural ingredients, new technologies such as biotechnologies are spotlighted as a favorable method of sourcing, as it “marries” nature and science. This year, developments in the space have included Shiseido’s ¥1 billion (US$7.1 million) into Chitose’s microalgae cosmetic project.

Biotechnology is often used to recreate and scale endangered or over consumed natural ingredients, which are impacted by weather and seasons. “These lab-grown actives are 100% naturally derived but offer brands greater quality control,” notes In-cosmetics Asia’s organizers.

“Biotechnology does not only reduce the consumption of natural resources but can also improve product efficiency. Furthermore, it can reduce transportation requirements to help with carbon reduction,” comments Ho. It also paves a way, transitioning away from animal testing. 

In-cosmetics Asia exhibitor Givaudan is featured among key exhibiting biotech-based ingredient suppliers. Earlier this year, the company unveiled RetiLife, a fully natural-origin retinol crafted through fermentation.

Another exhibitor, Vytrus Biotech, cultivates plant stem cells to “stimulate their production of specific molecular cocktails” for various skin and hair care applications. 

“Biotechnology not only avoids disrupting natural ecosystems but also enables us to reduce more than 99% of water consumption and 99% of arable soil,” says Monika Buchholz, scientific marketing specialist, Vytrus Biotech. 

“It also contributes to biodiversity preservation and fosters a more sustainable and environmentally respectful model.”

Regulatory crackdown on synthetics
In-cosmetics Asia highlights that the increasing awareness of the negative side effects of synthetic chemicals. Restrictive regulation is preventing the use of such chemicals and driving up demand for alternatives.

“For example, Thailand’s FDA recently responded to growing concerns about the use of harmful chemicals in cosmetics by drafting a proposal to ban 13 types of PFAS,” shares the event organizer. 

“This follows recent regulatory updates in other APAC countries. In April 2022, South Korea’s Ministry of Food and Drug Safety updated its ‘Regulations on the Safety Standards, etc. of Cosmetics’ to include seven perfluorinated compounds as prohibited cosmetics ingredients.” 

Fossil fuels are used because they are cheap and easy to work with, says Fiona Chan, founder at Youthforia, a bio-based company ditching plastic and polluting ingredients.

“Economic development, government policies and consumer awareness also impact Asia’s stance on sustainability compared to the West. However, we’re facing a global challenge and regional collaboration is the route to fostering a collective approach to create a more sustainable future for the entire planet,” adds Gibson.Biotechnology is often used to recreate and scale endangered or over consumed natural ingredients.

Inclusivity, moving away from colorism and gender
The APAC beauty sector has historically deemed fair skin to be the ideal as an influence from Western beauty standards. Color has long been associated with status, however, this is “rapidly changing” where the industry is adapting to different skin tones and types, hair textures and lifestyle choices.

Evidencing this shift, a recent report by China strategy specialist Hot Pot China states that while a fairer skin tone is proving “resistant to change” among younger generations in China, other elements – like nourishment and hydration – are now ranked higher among locals.

However, there remain challenges of creating locally relevant diversity and inclusion strategies in the region, which consists of 48 countries, with different cultures and practices.

On the other hand, male grooming products are “hugely important.” For instance, Kosé Corporation’s marketing strategies are based on themes related to global, gender and generation.

“We are not confining our products to only certain genders,” shares Kazutoshi Kobayashi president and CEO at Kosé.

“For some time now, the question of whether or not to create a men’s version of ‘Sekkisei’ or ‘Liposome’ has been on the company’s internal agenda, but I have always refused to make anything ‘for men’ because I want to keep our products genderless. The relaunch of our brand this time has genderless packages and fragrances.”

In-cosmetics Asia returns
Personal Care Insights previously interviewed exhibitors at the In-cosmetics Global exhibition last April, exploring similar themes discussed in this article, reflected on the international stage.

“We have chosen the second of this year’s Spotlight On topics at In-cosmetics Asia 2023 to delve into the broader sustainability movement that has gained traction in the APAC region. To educate visitors on increased traceability and transparency of the supply chain, embracing green chemistry principles and sourcing ingredients from upcycled sources and reducing waste,” shares Gibson.

“We’re excited to return to Bangkok and resume our role as a hub of innovation for people to connect, discuss inspiring new trends, and shape the future of the industry.”

By Venya Patel