What ingredients are actually in our cosmetic products – and where do they come from? The beauty industry is supply chains and information on the exact product formulations are still extremely opaque. While consumers are increasingly looking for ethical and sustainable products, the industry is lagging behind in meeting these demands. A recent study by sustainability platform Good on You is now bringing this issue into focus and showing that the industry still has a long way to go. From the complete disclosure of ingredients to humane working conditions, the beauty industry still has a lot to do to solve the transparency problem.
Good on You makes the beauty industry's transparency problem visible
The beautiful veil behind which the practices of the beauty industry are hidden has now been lifted for the first time by Good on You. The platform's study included 239 make-up, skin and hair care brands from North America, Europe and the Asia-Pacific region. A mix of established and emerging brands were taken into account. This broad range makes it possible to paint a representative picture of the industry. The study's methodology was based on the analysis of 42 different areas that covered the entire supply chain. From the extraction of raw materials to production and Packaging and disposal, all relevant aspects of the product life cycle considered.
Based on this extensive data, Good on You developed a rating system from one ("We avoid") to five ("Great"). This system is intended to enable consumers to see at a glance how transparent and sustainable a brand is as a whole. This holistic approach sets the study apart from previous studies that focused on individual aspects such as animal experiments or packaging. The new survey, however, takes into account the entire spectrum of sustainability and ethical issues in the cosmetics industry.
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What’s in our beauty products?
The lack of disclosure of ingredients is a central aspect of the transparency problem in the beauty industry. EU Cosmetics Regulation stipulates that all ingredients must be listed with their INCI name (International Nomenclature of Cosmetic Ingredients) and that the list must be in descending order according to the weight percentage, but there are exceptions. The rule only applies to ingredients that make up more than 1 percent of the product. There are also exceptions for components made of nanomaterials, which must be labeled separately. In addition, with a few exceptions, fragrances and flavors can simply be grouped together under the collective terms "perfume" or "fragrance". This means that a large number of other substances can be hidden under a generic term about which consumers are not given any information. The Good on You study makes the following key findings:
- 75% of brands publish ingredient lists but do not provide clear information about the amounts used.
- Of the 90% of brands that use fragrances, 72% do not disclose what the specific ingredients are.
Consumers are also often in the dark about the origin of the ingredients. Although the packaging must indicate where the product was manufactured, the places of origin of the individual ingredients remain unclear. Food industry serve as a good example where, based on the EU-wide uniform food labelling, the exact indication of the origin of the main ingredient is mandatory.
What is the true state of animal welfare?
The question of animal experiments has long been a controversial topic in the cosmetics industry. Many consumers attach great importance to buying products that have not been tested on animals. Animal testing is now banned in the EU, but that does not mean that all companies that sell their products here completely avoid animal testing. This is almost impossible, especially for international players, because in some markets, especially in China, animal testing for imported cosmetics is even required by law. Due to the complex supply chains, many brands cannot guarantee that all suppliers also avoid animal testing. In addition, there are no uniform standards. After all, there is no globally recognized definition or Certification for "cruelty-free" products. The study by Good on You shows:
- Despite the frequent use of the label "cruelty-free", 78% of cosmetic brands do not have official certification proving that they do not conduct animal testing.
- Around 22% of the brands examined are certified as cruelty-free, for example through the strict guidelines of Leaping Bunny, PETA or the Vegan Society.
- 18% of the brands that describe themselves as cruelty-free belong to parent companies that do not fundamentally exclude animal testing.
- 30% of brands are either completely silent about animal testing or are known to conduct animal testing.
- 40% of brands clearly state that they use animal ingredients (e.g. collagen, marine collagen, lanolin, keratin, elastin, squalene), while many other brands do not make a clear statement on this topic.
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Are refill products really sustainable?
The beauty industry also has to deal with transparency problems when it comes to packaging. Of course, disposable packaging made of acrylic are the worst option, but also Refills are not always a solution. Refill products sound promising in theory - you buy the packaging once and can then refill it again and again. But in practice, refill options are often harder to find and are not used by consumers to the extent they would like, which is confirmed by Good on You's research:
- 15% of brands offer refillable products for more than a third of their range.
- However, only 2% track and report repeat purchases, raising questions about the actual use of this option.
The well-intentioned refill approach often fizzles out because the offer is not widely distributed and is therefore not widely accepted. Without companies tracking the actual use of their refill options, this can quickly lead to Greenwashing kommen.
How ethical is the production of cosmetic products?
Many beauty brands confidently promote their environmental initiatives. But when it comes to questions about labor rights in the beauty industry's supply chains, the situation is different - there is often a great deal of silence here. What is clear is that there is little evidence that brands are taking serious measures to pay their workers a living wage along the supply chain. Good on You's sobering conclusion:
- 84% of brands do not take any publicly disclosed steps to ensure living wages are paid in their supply chains, indicating a significant human rights problem in the industry.
One of the challenges is certainly that the supply chains in the beauty industry are extremely complex. But that cannot be an excuse for not paying employees along the value chain according to ethical standards.
Who are the frontrunners and who are the laggards?
The sad result of the Good on You study: Only 1% of the cosmetic brands examined received the maximum rating of five points ("Great"). At 53%, over half of the selected brands received a rating of just two points ("Not good enough"). At least 28% were able to get three out of five possible points ("At least a start"). Small companies and niche brands in particular were able to stand out with their sustainable practices and high level of transparency:
- The five highest rated brands overall were Disruptor London, Odylique, Upcircle Beauty, Tropic and Pai Skincare.
- Among the larger brands (defined by annual sales of over 50 million euros), Youth to the People, Garnier and Lush topped the list.
- The brands Druni, Loris Parfum, Bleu Libellule, Nature Republic, Morphe, Mad Parfums and Ben Sherman received the worst rating with 0 points each.
How to choose beauty products wisely?
As the study shows, the beauty industry must step up its efforts to increase transparency in the future. As consumers, we can also do something ourselves to drive change and make more conscious decisions:
- Check ingredients: Even if the information on product labels is often incomplete, it is worth taking the time to look closely at the ingredients listed and research what exactly is behind the individual names. Online tools such as the search engine from Haut.de or the page incidecoder.com help.
- Prefer transparent brands: Those who support brands that communicate openly and honestly about their ingredients, origins and production methods are sending an important signal and providing an incentive for other companies to follow suit in terms of transparency.
- Pay attention to certifications: It is best to choose products that guarantee strict transparency and quality standards with independent certifications or seals.
Through these conscious choices, we can not only act according to our own values, but also put pressure on the beauty industry to become more transparent.
Conclusion: The transparency problem in the beauty industry needs more attention
While in fashion sector While transparency has been a big issue for years, the beauty industry has so far been flying under the radar. However, as the current study by Good on You shows, the transparency problem in the cosmetics industry is serious. By withholding important information about ingredients, origin and production methods, manufacturers make it more difficult for consumers to make informed decisions that correspond to their personal values and preferences. In addition, better legal regulations are needed to avoid greenwashing and concealing questionable additives in products. This is the only way to ensure that the beauty industry offers products in the future that are actually healthy for the skin and good for the environment at the same time.
