This report highlights the urgency for companies in the Health and Beauty sector to adopt transparent, effective sustainability communication to manage risks, meet legislative demands and leverage opportunities. It emphasises the necessity for firms to substantiate their sustainability claims, nurturing stakeholder trust, enhancing brand loyalty and propelling business growth in a fast-paced, competitive landscape.
This report comes in PPT.
Amid growing climate regulations, corporations need to better articulate and validate their sustainability efforts. With only 10% of firms communicating sustainability effectively to consumers, clear proof of environmental contributions through precise claims and in-depth reporting is crucial for trust and differentiation.
Sustainability is fuelling expansion in the beauty and health industry, with sustainable products retail value sales growing at 9% CAGR (2020-2023), surpassing their non-sustainable counterparts. With consumers increasingly choosing sustainable options, opportunities rely on sustainable products that address key challenges such as sustainable sourcing and packaging.
Consumers’ increasing interest in product ingredients is expanding sustainability's influence beyond skin care to fragrances, sun care, deodorants and colour cosmetics, which saw double-digit growth in retail value sales from 2020 to 2023. This is primarily fuelled by popular claims such as “natural”, “vegan” and “cruelty-free”, with sustainable packaging claims gaining momentum.
Growing consumer focus on holistic wellness, preventative health and ingredient transparency is boosting the industry performance, especially VDS and sports nutrition, which lead globally with 51% and 46% digital shelf shares, respectively. This increase is largely driven by “natural”, “vegetarian” and “No-GMO” claims, with sustainable sourcing claims also on the rise.
Consumers today prioritisesustainability, but not at the expense of quality and affordability. They seek efficient, sustainable solutions that also align with their budgets. Consequently, emphasising the value proposition of products is key, particularly in fragrances and colour cosmetics, where sustainable alternatives carry a 23% and 17% higher price tags, respectively.
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