The market for personal care items that claim to be environmentally or socially responsible has exploded in the past decade, with many consumers claiming to be concerned about sustainability. However, a study by Yewon Kim and Kristina Brecko found that consumers’ in-store behavior tells a different story.

• Only one-third of the products made at least one environmental or social claim.
• Nearly 29% were labeled “cruelty-free,” but only 14% mentioned eco-friendly packaging.
• About 14% mentioned environmental sustainability, while less than 3% mentioned social responsibility.

The researchers analyzed six terabytes of sales data for 30,000 products sold at U.S. retailers between 2012 and 2019. They found that consumers’ purchasing decisions are driven by factors such as package size, ingredients, and brand name, rather than sustainability claims. “Package size, ingredients, and brand name are much bigger drivers of purchases than sustainability,” Brecko says.

The Role of Small Brands

Small brands have stepped up to offer sustainable options, but large brands have not. In fact, the researchers found that large brands offered fewer sustainable options than smaller “fringe” brands.

This is because adjusting an existing product line to conform to sustainability claims can be expensive, especially for large manufacturers. Additionally, consumers tend to be more suspicious of large companies making false or misleading claims about their products’ sustainability.

Why Large Brands Don’t Invest in Sustainability

Kim and Brecko suggest that large brands have two main reasons for not investing in sustainability:

1. Adjusting an existing product line to conform to sustainability claims can be expensive.
2. Consumers tend to be more suspicious of large companies making false or misleading claims about their products’ sustainability.

As a result, big companies tend to introduce sustainable products by launching or acquiring smaller brands, which are seen as more authentic.

The Rise of Sustainable Brands

Despite the lack of investment from large brands, sustainable brands – including eco-friendly spinoffs owned by large companies – are on the rise. In fact, the number of sustainable products sold by small brands has increased from less than 5% of the market share in 2012 to 20% in 2019. “There’s a higher preference for those brands that have fully sustainable product lines, and fringe brands offer these at a higher rate, which suggests that it’s easier for them to do so because they have short product lines,” Brecko says.

The Impact of Regulation

The study suggests that consumer demand alone is not enough to motivate large brands to invest in sustainable practices. However, increased oversight could change this. The European Union has more rigid rules governing personal care products than the United States. Companies making sustainability claims in the EU must provide proof of reduced environmental impact.

“Although a mandate is local, national brands may have to adjust their entire product lines to comply, especially when the regulation originates in a large state like California,” Kim says.

In the United States, there have been increasing calls for stronger regulation of the personal care product sector after toxic chemicals were found in items ranging from nail polish to lotion to soap. It wasn’t until 2022 that Congress gave the Food and Drug Administration increased oversight authority by passing the Modernization of Cosmetics Regulation Act.

Consumer Demand and the Law

The study suggests that consumer demand alone is not enough to motivate large brands to invest in sustainable practices. However, increased oversight could change this. The Modernization of Cosmetics Regulation Act gives the Food and Drug Administration increased oversight authority over personal care products.

The study found that consumers preferred buying sustainable products from fringe brands over established brands, and were even willing to pay more for the same item if it came from a mission-driven company.

The Future of Sustainable Personal Care

The study suggests that the future of sustainable personal care lies in increased regulation and oversight. As the personal care industry continues to evolve, it is likely that we will see more sustainable brands and products emerge. In the United States, states such as California have enacted their own sustainability mandates, including a ban on the sales of cosmetics tested on animals.

In 2020, California became the first state to ban the sales of cosmetics tested on animals. By March 2024, 11 other states had passed similar bans. The study also suggests that consumers are becoming more aware of the importance of sustainability and are demanding more from the personal care industry.

The Importance of Sustainability

The study emphasizes the importance of sustainability in the personal care industry. As consumers become more aware of the environmental and social impact of their purchasing decisions, the industry must adapt to meet their demands. The study found that consumers are willing to pay more for sustainable products and are willing to choose products from mission-driven companies over established brands.

The Role of Small Brands in the Sustainable Personal Care Market

Small brands have played a crucial role in the sustainable personal care market, offering sustainable options that are not available from large brands. The study found that consumers prefer buying sustainable products from fringe brands over established brands, and are even willing to pay more for the same item if it comes from a mission-driven company.

The Challenges Facing the Sustainable Personal Care Market

The study highlights the challenges facing the sustainable personal care market, including the lack of investment from large brands and the need for increased regulation. However, the study also suggests that the market is poised for growth, with sustainable brands and products emerging as a result of increased consumer demand and regulatory oversight.

The Future of Sustainable Personal Care

The study suggests that the future of sustainable personal care lies in increased regulation and oversight, as well as the continued growth of sustainable brands and products. As the personal care industry continues to evolve, it is likely that we will see more sustainable brands and products emerge, meeting the demands of consumers who are becoming more aware of the importance of sustainability. The study emphasizes the importance of sustainability in the personal care industry, and highlights the role that small brands have played in the sustainable personal care market. It also suggests that the market is poised for growth, with sustainable brands and products emerging as a result of increased consumer demand and regulatory oversight.