9 tips to go digital in the natural ingredients for cosmetics sector

4. Improve transparency with blockchain technology

Transparency in the supply chain has become a critical requirement for businesses in the natural ingredients for cosmetics sector. European buyers and consumers are increasingly demanding traceability, sustainable practices and accountability from suppliers. Blockchain technology is being used more and more in the beauty supply chain, and it is changing the way businesses deal with customer expectations. By enabling real-time tracking, secure data sharing and proof of ethical practices, blockchain improves trust and efficiency across the supply chain.

Blockchain is a decentralised and secure digital record of transactions. It shows the order of transactions and makes them visible to different parties. It can spot changes and ensure data integrity. This makes it an ideal tool to improve traceability and accountability in the cosmetics industry. Thanks to blockchain, companies can manage supply chain transactions, trace ingredient origins, ensure authenticity and provide buyers with detailed sustainability data.

For example, blockchain can help brands to check that claims about organic or natural ingredients are true, track where raw materials come from and ensure compliance with environmental and social standards. This technology also helps to ensure compliance with regulations like the European Corporate Sustainability Due Diligence Directive.

Several platforms and tools use blockchain to improve transparency and traceability in the natural ingredients sector:

• Bext 360. This platform uses blockchain to document ingredient purchases and movements in real time. It ensures that payments are made directly to harvesters through mobile banking. It attaches digital receipts to each transaction. Buyers can trace exactly where the ingredients come from and verify payments. This improves ethical sourcing practices.
• TraceX. This tool shows suppliers’ sustainability credentials, certifications and fair-trade practices to buyers. It helps companies show they comply with sustainability standards and offers clear visibility about their supply chain operations.
• Producers Trust. This platform and its StoryBird software collect and present sustainability data. In this way it helps companies to de-risk supply chains, meet reporting requirements and build customer trust through data-driven storytelling.
• Provenance. Helps brands to track and communicate product journeys from source to shelf. This helps to check claims like organic certification and lets businesses show their commitment to transparency.

Blockchain has several advantages for SMEs in the natural ingredients sector. Automating data tracking means fewer manual errors, accelerates transactions and so improves efficiency. It also improves transparency and trust by letting multiple parties access correct and verifiable data. This transparency builds credibility with buyers and consumers, particularly in markets where people find ethical sourcing is important. Also, its ability to prove compliance with sustainability standards and ethical practices can strengthen a company’s market position, especially with eco-conscious consumers. For younger generations in particular, environmental and social responsibility is more and more important. Blockchain is a great strategic tool for businesses that want to show they share these values.

But despite its benefits, the use of blockchain is still in its early stages in the cosmetics supply chain. To introduce it successfully, everyone in the chain – including farmers, processors and buyers – must work closely together. The starting costs can be high, too, and proper training is needed to make the most of its potential. As demand for transparency grows, however, blockchain and related tools are expected to be used more widely.

5. Use online resources and big data to learn and grow

The internet has many resources for exporters of natural ingredients for cosmetics, such as information about better production practices, market trends, demand analysis and regulations. These tools can help you comply with European market standards, find new opportunities and be more competitive. Thanks to online data and training materials, you can make more informed decisions and adapt to market demands.

Exporters have access to a number of specialised tools that offer crucial market information and promote international trade. The International Trade Centre (ITC) operates three very useful platforms:

• Market Access Map. This tool delivers detailed information on tariffs, regulatory requirements and market entry conditions for specific products. Exporters can easily search by product type or country to understand the barriers and opportunities in particular markets. This map also offers quick, user-friendly access to essential data that helps businesses make sense of the complexities of international trade.
• Export Potential Map. By analysing trade data, this platform finds export opportunities based on market demand and supply capacities. Exporters can use it to find target markets, to assess potential competition and to develop strategies that optimise their export plans.
• Trade Map. This tool offers a detailed analysis of export performance, international demand and competitive markets. Trade Map covers 220 countries and 5300 products and presents data in graphs, tables and maps. This makes it a very useful resource for exporters looking to expand their market reach and better understand global trade flows.

Besides the ITC tools, other platforms and organisations also give exporters valuable information:

• FAOSTAT. Managed by the Food and Agriculture Organisation (FAO), FAOSTAT offers data on food and agriculture, including production, trade and market statistics. This information is crucial to understanding global demand and supply trends.
• Eurostat. As the statistical office of the European Union, Eurostat offers international trade data categorised by HS code. This helps exporters to analyse European markets in detail.
• Access2Markets. This European Commission portal offers trade statistics and information about regulations to help exporters deal with market requirements and find new opportunities.

Keeping up with market developments and consumer preferences is essential for exporters. Industry-specific digital magazines and newsletters like Cosmetics Business, Cosmetics Design Europe, Cosmetics and Toiletries and SPATE offer updates on trends, regulations and innovations in the cosmetics industry. Exporters can also make use of the websites of industry associations such as the European Federation for Essential Oils (EFEO), the European Federation for Cosmetic Ingredients (EFFCI). FairWild (a standards and knowledge centre), Natrue (the International Natural and Organic Cosmetics Association) and Cosmos (a certification authority). These organisations offer valuable information on regulatory updates, market trends and industry standards. Members of these associations are also often potential customers and partners for exporters.

Figure 2: AgroTutor Academy’s free online digital skills courses

Source: ICTforAg Learning Network

The internet also makes it easier to access to regulatory information. Platforms like EUR-Lex, the European Union’s legal database, offer great access to regulations, directives and standards. Exporters can use EUR-Lex to stay informed about legal requirements affecting their products and to make sure they comply with European market standards. Trade fairs such as In-Cosmetics, Vivaness and Biofach also have websites with useful information, like press releases and profiles of the companies that will be there. Although visiting trade fairs in person is still the best way to build business relationships, their online resources give you a starting point to better understand market dynamics.

Using the resources available on the internet can be incredibly useful for exporters. Accessing market data helps you to spot trends and new opportunities, so that you can make informed decisions and target markets effectively. By keeping track of evolving regulations and standards, you can make sure you comply and position yourself as a reliable partner in the global marketplace. By learning more about sustainable and ethical production practices, you can meet consumer demands and improve your market appeal. Building a strong online presence attracts buyers and partners, and data from reliable online resources can help you develop strategies that are well-informed and impactful. In short, the internet helps exporters to improve their operations and stay competitive in the global market.

6. Use e-commerce platforms to find buyers and boost sales

E-commerce (also known as electronic commerce or internet commerce) means buying and selling goods and services through the internet. This includes sending money and data to complete transactions. For exporters in the natural ingredients sector, e-commerce can be a powerful marketing tool that helps increase visibility and connect with potential buyers. It may not always lead directly to bulk sales, but it still offers useful opportunities to access new markets and improve customer engagement.

The percentage of consumers who buy cosmetics on the internet continues to increase. This trend is particularly strong in Europe, where online sales will probably reach 30% of total cosmetics revenue in 2025. In countries like Poland (70%), Portugal (56%), Spain (53%) and France (49%), online cosmetic purchases are now higher than the worldwide average of 46%. Sales are also strong in other important markets such as Germany and the Netherlands. This growing internet marketplace offers interesting opportunities for both brands and ingredient suppliers.

Online marketplaces give suppliers direct market access. You can make the most of e-commerce by choosing the right platform, maintaining a strong online presence and making sure that you sell products that customers want. As an exporter, e-commerce lets you:

• Promote and advertise your products by building an online presence that improves brand recognition;
• Access new markets by connecting suppliers with new customers and expanding their existing network;
• Simplify your business operations thanks to online transactions;
• Connect and communicate with smaller buyers looking for smaller amounts of natural ingredients; and,
• Better understand your market by tracking trends and buyer demand with the help of platform data.

E-commerce platforms can be classified into two main types. Business-to-consumer (B2C) platforms like Amazon and eBay sell primarily to end users. Although they reach a wide audience, they are not so relevant for natural ingredient suppliers whose main buyers are usually businesses and not consumers. For this sector, business-to-business (B2B) platforms are more interesting because they connect suppliers with other businesses, such as cosmetics manufacturers. In particular, they can give access to smaller buyers who want to place smaller orders. These buyers can be hard to reach through traditional sales channels. Examples of B2B platforms for the natural ingredients for cosmetics sector include:

• Connature. A platform specifically for sustainable industry professionals, buyers and distributors of raw materials and cosmetic ingredients. Connature connects exporters from low and middle-income countries (LMICs) with global cosmetics companies. They focus on environmentally responsible practices. This platform is particularly useful to promote your sustainability credentials and build relationships with buyers interested in ethical sourcing.
• 1-2-Taste. Specialises in serving small and medium-sized producers by offering raw materials and technical services like consulting and market intelligence. The platform helps exporters to enter international markets and gives access to tools that help with informed decision-making.
• Covalo. A platform for sourcing ingredients, packaging and services in the cosmetics industry. It makes it easier to find suppliers and partners, and offers exporters a way to connect with buyers and expand their market reach.
• SpecialChem. A digital marketplace for chemical ingredients, including those used in cosmetics. Its big database lets exporters promote their products and connect with potential buyers. This makes it a useful tool to reach niche markets.
• UL Prospector. An advanced search platform for raw materials used in cosmetics, food and pharmaceuticals. Exporters like it because it has detailed product information and is used around the world. It makes it easier to connect with manufacturers and buyers who are looking for specific ingredients.

Figure 3: Covalo’s online B2B platform for cosmetic ingredients

Source: Covalo Ingredients, 2025

Although it can be useful, e-commerce is not always the right solution for every supplier. For example, suppliers who already have customers may not need to switch to e-commerce. Other possible barriers include problems with the internet connection, poor transport networks and logistics and, sometimes, high risks and costs that outweigh the benefits. To use e-commerce platforms effectively, exporters need:

• A stable internet connection;
• Enough resources to maintain the platform, respond to customer queries, update product information and manage orders;
• A good knowledge of e-commerce and online sales management; and,
• A bank account that is able to receive online payments.

7. Improve efficiency with business and inventory management tools

As an exporter of natural ingredients for cosmetics, acting professionally is essential to build trust with buyers and set up smooth business processes. Using business and inventory management tools will help you to streamline your operations, track inventory and improve your overall efficiency. They help you to manage your resources effectively, keep an eye on stock levels in real time and give buyers accurate information. This is all very important for success in competitive markets like Europe.

Business management software packages like ZOHO, HubSpot and Odoo make it easier to make administrative tasks easier and bring them together in one place. These solutions are ideal as they are easy to use, customisable and flexible. They also offer free basic plans and some work in mobile applications. ZOHO provides features like customer relationship management (CRM), invoicing, financial tracking and task management. HubSpot, widely recognised for its CRM capabilities, offers tools for sales, marketing and customer service so that exporters can build strong relationships with buyers. Odoo combines CRM, inventory, accounting and project management into a single platform. That is why it is a flexible choice for businesses of all sizes. By merging multiple functions into a single tool, these platforms reduce the need for manual processes, save time and minimise errors.

Video 3: Example of ZOHO inventory management for growing businesses

Source: ZOHO software, 2016

Apps that help you manage your stock are very important for exporters of natural ingredients for cosmetics. Tools like ZOHO Inventory and Fishbowl let you track stock levels, monitor product movements and predict demand. In particular, they make sure that sensitive raw materials are managed efficiently. That reduces waste and prevents overstocking. They also let you give accurate information about product availability and delivery times. This is very important to keep your customers happy.

Using business and inventory management software improves your professionalism as an exporter. Buyers really like working with suppliers who can give them correct and up-to-date information about their products. These tools let you communicate clearly, create professional invoices and deliver consistent service. If you can track inventory and manage operations digitally, you will also be seen a reliable partner in the natural cosmetics industry.

8. Unlock digital potential with AI-driven tools

Artificial intelligence (AI) is changing SMEs around the world by offering them powerful solutions for agriculture, supply chain management, quality control and market access. Nowadays, most of the solutions mentioned above use AI to help exporters in the natural ingredients sector improve efficiency, reduce costs and make traceability cheaper, easier and more customised.

You need a gradual approach to digitalisation. Follow the steps below to adopt and maintain digital tools smoothly and efficiently.

1. Lay the foundations. Start by adopting mobile technology to improve your communications and market access. In farming, for instance, use apps to keep an eye on crop health, to process secure cross-border payments and to secure mobile-based microloans.
2. Build a presence. Join B2B marketplaces to connect with European buyers. In this area, AI-powered chatbots like Zenvia and Tars automate customer interactions and so improve buyer engagement.
3. Optimise the production and supply chains. AI and IoT (the internet of things) can help you improve quality control and efficiency thanks to tools that, for example, monitor pesticide levels, ensure regulatory compliance, track certifications and increase trust in the supply chain.
4. Expand using AI and automation. AI-powered forecasting tools like Trendalytics and Spate help you as an exporter to spot market trends and, for example, to adapt your offering to meet formulator, laboratory and storytelling expectations.
5. Keep improving. For long-term growth, apply AI-driven automation to your logistics, inventory and market intelligence activities. Because AI solutions are evolving rapidly, it is important to keep yourself updated and to keep your operations as efficient as possible.
6. Stay informed about AI solutions throughout the supply chain. AI is revolutionising the formulation process, helping SMEs to access solutions that both improve transparency and reduce costs. Companies like The Good Face Project offer valuable insights into how algorithm-driven formulation tools can help brands and suppliers design compliant, sustainable and market-ready cosmetic products. That platform not only speeds up formulation but also ensures alignment with changing regulatory and consumer trends.

Video 4: Cosmetic formulation and regulatory platform: meet the Good Face Project

Source: The Good Face Project, 2023

9. Get support from national and regional organisations to go digital

Digitalisation can make you much more efficient and credible as an exporter of natural ingredients for cosmetics. But adopting digital tools takes time, investment and training. Many suppliers face challenges such as high adoption costs and a lot of learning to be done, which make outside support essential. National and regional organisations, and international projects, often offer useful assistance to help exporters make the digital transformation.

A number of organisations provide resources, training and financial assistance to exporters who want to go digital. Here are some which are relevant to the natural ingredients for cosmetics sector:

• Centre for the Promotion of Imports (CBI). Offers exporters practical studies, market trends and product-specific intelligence tailored to the natural ingredients sector. Its resources also include information on finding buyers and adopting socially responsible practices.
• Food and Agriculture Organisation (FAO). Offers lots of publications and data on agriculture, focusing on sustainable practices and market developments. Exporters can find knowledge about production techniques and global trends.
• Committee Linking Entrepreneurship – Agriculture – Development (COLEAD). Offers lots of courses and resources for exporters, including self-study materials focusing on sustainable agriculture and digitalisation in value chains.
• Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ). Supports digital adoption in low and middle-income countries (LMICs) through different initiatives aimed at improving traceability, transparency and operational efficiency in agriculture.

Regional projects also play a crucial role in promoting digitalisation among smaller producers and exporters. Here are some interesting initiatives in low LMICs:

• Digital Transformation Center Kenya. This project, led by GIZ, encourages digital innovation and adoption across various sectors, including agriculture. It supports SMEs and exporters in applying digital tools to become more competitive.
• National Initiatives for Sustainable and Climate Smart Oil-Palm Smallholders (NI-SCOPS). This programme, led by Solidaridad, wants to promote sustainable and climate-resilient practices by small oil-palm farmers. NI-SCOPS helps companies to follow international sustainability standards, creating better opportunities for global market access. Digitalisation plays a very important role in the programme’s strategy.

Figure 4: Africa Goes Digital (non-profit corporation) map and list of members

Source: Africa goes Digital

ProFound – Advisers in Development carried out this study on behalf of CBI.

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