Beauty’s Road to a

Circular Economy

Andrew McDougall
Associate Director
Beauty & Personal Care
MINTEL BEAUTY & PERSONAL CARE
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backed by 300 observations a spend for 60 consumer goods
Experts in what consumers want and why month and consumer data across categories across 34 markets.
35 markets.
Agenda

1 2 3 4
1 2 3 4

Circular Economy & Actions speak louder Boosting Summary

Purchasing than words sustainability
Circular Economy
& Purchasing
The environment influences consumers' relationship
with their surroundings

SUSTAINABILITY LOCALISM ETHICS

81% 68% 84%

of Brazilian consumers try to act in of Italian consumers try to buy of Chinese consumers are prepared
a way that is not harmful to the from local companies where to boycott companies who behave
environment possible unethically

Base: Brazil & Italy: 1,000 internet users aged 16+; China: 1,000 internet users aged 18+ Source: Kantar Profiles/Mintel; KuRunData
Circular economy impacted by pandemic

US: Circular Participation (Any item), 2020 & 2021

43%
37% 38%

31% • Pandemic impact

• Value-focused approach
18%
13%
to shopping
11%
6%
• Increasing focus on sustainability

Any pre-owned Purchased second- Received as a Rented

hand hand-me-down

2020 2021

Base: US: 1,745 internet users aged 18+ who have acquired any of the listed items in the past 12 months Source: Kantar Profiles/Mintel
Reducing consumption, reducing impact

MINDFUL SHOPPING

50%
• Conscious consumption

• Responsible shopping decisions

• Deal with contradictions

of Mexicans agree that people
should buy fewer beauty/grooming
products to reduce their impact on
the environment

Base: Mexico: 1,000 internet users aged 18+ Source: Offerwise/Mintel

Further adopt and expand circular shopping options
across categories

US: Attitudes towards shopping alternatively, 2021

33% 33%

25%

I would like to see more alternative options available at traditional retail

stores

All Generation Z Millennials

Base: US: 2,000 internet users aged 18+ Source: Kantar Profiles/Mintel
Focus on sustainability and tangible impact

US: Reasons to use alternatives shopping options, 2021

To save money 60%

To buy quality at a more affordable price 46%
To sell my personal items 41%
It's less wasteful 34%
Provides flexibility 29%
Better for the environment 29%
Allows me to free up space 27%
Allows me to try new styles 21%
Family/friend recommendation 18%

Base: US: 1,602 internet users aged 18+ who have acquired or are interested in acquiring/selling items secondhand or as rental Source: Kantar Profiles/Mintel
Streamline the process to sell personal items

US: Barriers to using alternative shopping options, 2021

I am concerned about the cleanliness of 43%

items
I don't know enough about who I am 36%
buying from/selling to

25%
Reselling my own items is too much work
I am concerned with authenticity of 24%
items
I am worried that items won't look the 23%
same when I receive them
I am reluctant to have to pay fees to a 19%
third party

Base: US: 2,000 internet users aged 18+ Source: Kantar Profiles/Mintel
Actions Speak Louder
Than Words
Eco-conscious mindsets are becoming the norm

IN THE UK IN CHINA IN MEXICO

37% 47% 51%

of beauty buyers aged 25-34 place of consumers would pay more for a of consumers would pay more for a
higher priority on how eco-friendly product that is environmentally product that is environmentally
a beauty product is since the friendly friendly
COVID-19 outbreak

Base: UK: 301 internet users aged 25-34 who have bought beauty/grooming products in the last 12 months; China and Mexico: 1,000 internet users
aged 18+ in each market Source: Kantar Profiles/Mintel; KuRunData/Mintel; Offerwise/Mintel
Understand barriers to sustainable purchase

Germany: reasons for not buying eco-friendly beauty/grooming products, 2021

They are too expensive 47%

Too difficult to know which are eco-friendly 43%

They are not widely available 30%

Eco-friendly claims are not always trustworthy 28%

Regular products offer better results 13%

The packaging is not always practical 11%

They don't make a big difference to the environment anyway 7%

Base: Germany: 2,000 internet users aged 16+ Source: Kantar Profiles/Mintel
Pioneer sustainable innovation to boost creative value

IN THE US

41%
of consumers aged 18-22 are
excited to buy things they haven't
seen anywhere else

Sk*p is a clean brand that uses BeautyCarton for its bottles

Base: US: 600 internet users aged 18-22 Source: Kantar Profiles/Mintel
Reinvent textures, rituals and gestures

A focus on waste reduction

accelerates innovation in
formats and creates new
products that surprise and
delight consumers.

Soap Mother recasts eroded old soaps to form And… Plus Body Wash is a body wash sheet
new soaps enclosed in a dissoluble envelope

Source: Fountain of Hygiene

Pioneer alternative natural material in packaging
The surprising colours, textures and finishes of natural and ethically sourced materials introduce
novelty in beauty packaging.

80% wheat straw Renewable cork Natural concrete

Votary Magic Razor Wands
which feature reduced
plastic in the handles by
blending with 80% wheat
straw.
Estampe which offers
refillable palettes made out
of cork; a material said to be
biodegradable and
renewable.
La Creme Libre has created a
refillable/reusable pot made
of concrete – a 100% natural
material (made of a blend of
clay, limestone, sand and
water).
Connect the dots to encourage green purchases

Customisable Exfoliating packaging Reusable eye patches

Homae Solid Shampoos are Whitfords Triple Algae Glow Seasonly Eye Patches are re-
customisable according to Restoring Oil is enclosed in usable patches made out of
hair conditions and to the FibrePod, a packaging made silicon that can be applied on
customers' fragrance of loofah gourd that can also top of any eye cream to
preference (including a be used as a body exfoliator. boost its efficiency.
fragrance-free option).
Make education available and engaging

IN THE US

•
Simple, approachable
knowledge exchanges

Use social media channels

40%
for eco-messaging of consumers using TikTok for
beauty information use the
platform because it is educational

Base: US: 247 internet users aged 18+ who use TikTok for beauty information Source: Kantar Profiles/Mintel; @eco_tok (TikTok)
 Boosting
Sustainability
A next-step tool to help reach sustainability goals

Upcycled Food Association - first of its kind

upcycled certification

• Legitimises food waste for beauty

ingredients

• Ensures products are manufactured to the

highest standards

The Upcycled Certified logo

Ethical certifications count with consumers

IN THE UK

47%
of consumers agree that beauty
products with an ethical
certification are more trustworthy
than those without one

Base: UK: 2,000 internet users aged 16+ Source: Kantar Profiles/Mintel
Spotlight on upcycled beauty ingredients

From waste to exfoliation The power of pumpkin seeds Coffee shop recycling

Vitacel CS 5 Apple is part of a range of Reforcyl-Aion from Rahn upcycles Givaudan's Koffee'Up is an active skincare
exfoliants made by JRS using a variety of nutrient-rich pumpkin seeds to deliver oil made from coffee grounds provided by
food by-products and waste. anti-ageing properties. start-up Kaffe Bueno.
Convince consumers upcycled ingredients are desirable

IN GERMANY IN CANADA

40% 34%
of consumers would trade up to of consumers would be more likely
more environmentally friendly to buy beauty products from an
beauty products environmentally responsible
brand/retailer

Rescue Leftover Cuisine estimates that 40%

of food in the US is wasted

Base: Germany: 1,000 internet users aged 16+; Canada: 1,234 internet users aged 18+ who buy beauty products Source: Kantar Profiles/Mintel
How upcycled ingredients can enhance brand messaging

Beauty players such as UK-based haircare brand Kind2, US-based skincare provider Loli and UK-based skincare player Wildefruit are all marketing products as
being zero waste and contributing to the circular economy story.

Source: Kind2; LOLI; Wildefruit

Brands tap into the circular ingredients story

A purpose for unwanted bananas Lanolin as an upcycled ingredient Olive oil leaves put to good use

Banana Bath Blend is made from "second-
choice" bananas and is marketed as a
novel and relatable way of being more
sustainable.
Lanolips is an Australian lip care brand.
Its range is based on lanolin, a by-product
from washing sheep that also fits well as
an upcycled ingredient.
Active Restorative Facial Moisturization
puts olive leaves that are usually
discarded in the oil-making process to
good use by tapping into the active
properties for skincare.
Summary
The ‘circular’ beauty consumer
Surroundings Value

Expectations to reduce waste and protect the

Justify circularity value to consumers
environment

Identity Experiences

Provide a sense of community and helping out Meet consumer need, innovate & differentiate
Thank you!

Andrew McDougall
Associate Director
Beauty & Personal Care

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