L’Oréal backs Raiku Packaging’s luxury wood-based filler material

L’Oréal has selected Raiku Packaging to join its Sustainable Innovation Accelerator, investing €100 million (US$119 million) over five years to find, develop, pilot, and scale technologies for the company’s and the cosmetics industry’s sustainability challenges. 

The Estonian start-up produces compostable packaging filler from wooden springs and woven wood fabrics to offer a premium aesthetic for the global cosmetics luxury market. 

According to Raiku, its wood-based packing solution reduces resource usage by 90% compared to traditional filling alternatives. 

“Being selected by L’Oréal is a strong validation of our novel material and that the world’s largest companies are investing resources to innovate their supply chains in the upcoming years,” says Karl Pärtel, co-founder at Raiku Packaging. He adds: “Start-ups, go for it.”

Raiku has already secured clients such as Louis Vuitton Moët Hennessy and financial support of €5.6 million (US$6.6 million) from the European Innovation Council. It was recognized as a “strategic technology to reduce EU and global packaging pollution.”

The packaging innovator says L’Oréal’s selection validates the potential of the natural material to be used at an industrial level, and reveals the demand from global industries to find new materials to meet consumer expectations and reduce their environmental footprint.

L’Oréal’s L’Accelerator

The L’Oréal Sustainable Innovation Accelerator addresses key industry challenges, including sustainable ingredients, alternative packaging materials, low-impact manufacturing, and the elimination of fossil-based plastics.

The initiative is carried out in partnership with the Cambridge Institute for Sustainability Leadership. It includes a two-month program to support pilot framing, readiness, and real-world deployment. Participating companies receive mentoring and coaching support from global sustainability, innovation, and industry leaders.

Pärtel says: “Joining L’Accelerator is a pivotal opportunity for Raiku because beauty is one of the fastest-growing segments where sustainability and design excellence go hand in hand. The program enables us to advance our 100% wood material and demonstrate how to reconcile sustainability, aesthetics, and performance.” 

Last year, on World Refill Day 2025, L’Oréal Group launched the #JoinTheRefillMovement campaign to encourage consumers to purchase refillable packaging options. The company also adopted Albéa’s recyclable hair care packaging tubes.

Recently, L’Oréal Group brands Lancôme, YSL Beauty, Armani Beauty, and Prada Beauty joined Cosmogen to develop mini beauty products for travel retail and discovery sets.

The beauty giant also increased its stake in Galderma by 10%, and invested €60 million (US$69.13 million) in its factory in Gauchy, France, to double its production capacity.