Plant-based beauty grows as regulators scrutinize natural sourcing

Plant-based cosmetic claims are evolving from a niche marketing tactic to a central pillar of product innovation. However, with upcoming legislation targeting how plant-based beauty is allowed to go to market, the category is entering a phase of scrutiny. 

The plant-based movement in personal care is experiencing sustained growth, driven primarily by shifting consumer preferences.

Innova Market Insights data indicates that 60% of global consumers are actively seeking natural ingredients in their skin care products. This demand has translated into 9% CAGR for personal care launches featuring plant-based ingredients between July 2021 and June 2026.

According to the market researcher, while foundational natural ingredients like citric acid (48%) and sunflower (21%) remain dominant, formulators are increasingly turning to niche botanicals for enhanced performance. 

However, with a growing understanding that “natural” does not always equate to “sustainable,” regulators are stepping in to regulate how companies source, trace, and substantiate their botanical supply chains. 

Dr. Daniel Stewart, co-founder and CEO of Viridi, tells Personal Care Insights that a combination of regulatory pressure and changing sourcing expectations “will favor [plant-based] ingredients designed not only to perform well in a formulation, but also to be manufactured at scale from more resilient and lower-impact carbon sources.”

A legal nudge?

According to Innova Market Insights data, Europe is increasingly solidifying its position as the global center of the plant-based beauty trend, accounting for 42% of all new launches.

As the continent’s formulators turn to botanical innovations to meet consumer demands, regulatory changes are also impacting how plant-based beauty goes to market.

The UK has proposed a deforestation crackdown, which is set to arrive alongside the delayed but looming EU Deforestation Regulation (EUDR). The EU and the UK’s laws stipulate that products and materials imported into the regions must be proven free from deforestation, with no links to it in their supply chain. 

Beauty brands are turning to botanical ingredients as demand for natural formulations grows.The legal frameworks point toward a growing consensus among regulators that “natural” sourcing claims must be supported by verifiable traceability, land-use data, and supply chain transparency.

“The EU Deforestation Regulation is making brands and ingredient manufacturers examine the origin, traceability, and land-use exposure of their raw materials more closely. In personal care, this is particularly relevant to formulations that depend on palm-derived surfactant feedstocks,” Stewart tells us.

He states that Viridi is seeing growing interest in cosmetic alternatives that can reduce the dependency on heritage ingredients, without sacrificing cleansing performance, foaming, or skin mildness, “and without requiring manufacturers to redesign entire production systems.”

“Regulation is therefore doing more than encouraging better documentation; it is prompting companies to reconsider the carbon sources used to make some of their most important functional ingredients,” adds Stewart.

Shifting plant-based beauty

Stewart explains that, while upcoming environmental regulations are likely to change how plant-based cosmetic ingredients are developed, the changes will be incremental at first.

“The immediate response will probably be incremental, because replacing even one surfactant or functional ingredient requires formulation testing, safety assessment, performance validation, and regulatory work.”

“Over time, however, the change is likely to be more fundamental. Ingredient developers will increasingly need to consider carbon footprint, land use, traceability, and supply resilience alongside traditional measures such as cleansing performance, foaming, and mildness from the start of development.”

The shift is already visible in the emergence of biotech-based and fermentation-derived alternatives to forest ingredients.

Plant-based ingredients are gaining ground across personal care formulations.Researchers in Frankfurt, Germany, have recently engineered yeast enzymes to produce fatty acids that mimic those found in palm and coconut oil. Moreover, sustainable fat-alternative company Savor has entered personal care with palm-free and animal-free fats derived from captured carbon.

Growing sustainable alternatives

With plant-derived ingredients increasingly positioned as a more sustainable step forward for beauty formulation, brands have a way to reduce environmental strain without sacrificing performance.

One example of the transition is squalane. The ingredient is conventionally sourced from shark liver oil through a practice tied to animal welfare concerns and marine ecosystem disruption. In the past few years, the industry has reimagined the hydration ingredient’s production through plant feedstocks, including sugarcane, olives, and palm fruits.

“Plant-derived squalene provides an opportunity to meet the same ingredient demand without relying on an animal source,” Bryan See, VP of biotechnology and ingredient company PhytoGaia, previously told Personal Care Insights.

“Sustainability is not simply about replacing one source with another. It is about developing ingredients responsibly, making better use of renewable resources, and creating solutions that can support both human health and the health of our environment,” said See.

The same logic is extending into product protection. Ingredient manufacturer Symrise recently launched Mindera Euca, a plant-based compound that applies the company’s patented Mindera technology to rinse-off applications.

When aiming to clean up the cosmetic industry’s environmental footprint, rinse-off formulations have emerged as a strategic place to start, as these products are uniquely positioned to flush chemicals from labs into waterways and ecosystems.

However, replacing animal-derived or synthetic inputs with plant-based ones is only the first step in achieving a more environmentally friendly personal care footprint, as consumers increasingly distinguish “natural sourcing” from “ethical sourcing” while maintaing a demand for plant-based ingredients.