Which trends offer opportunities or pose threats on the European market for natural ingredients for cosmetics?

Exporters of cosmetic ingredients to Europe must adapt to a market shaped by sustainability, traceability and innovation. These are no longer optional values. They are now basic expectations from both buyers and consumers. This shift is driven by new EU regulations such as the Green Deal, deforestation-free and due diligence requirements. It is also the growing link between beauty, health and ethics. As a result, companies must show clear and verifiable environmental and social performance. Suppliers that can prove transparent and responsible sourcing will be more competitive in a market which is more and more regulated and demanding.

1. An increasing number of cosmetic companies are committing to UN Sustainable Development Goals

More and more companies are now following the United Nations' 17 Sustainable Development Goals (SDGs). The SDGs give a useful framework. There are plenty of resources and guidance available for companies to manage and report their steps to becoming sustainable. As a supplier in a developing country, it is recommended that you line your activities up with the SDGs. This will help you back up your sustainability claims.

Companies want to show their efforts and initiatives in the areas of sustainability and social responsibility. All companies who want to be sustainable need a framework that gives structure, measurability and accountability to their activities.

The SDG framework does not give certification. But the United Nations offers support on actions companies can take to help carry out SDGs in their operations. The SDGs also add to other sustainability initiatives, such as the UN Global Compact and SEDEX. A downside of the SDGs is that companies can use them and refer to them without data approved by a third-party. Yet, buyers committed to responsible and sustainable sourcing will confirm this on their own.

Figure 1: The 17 UN Sustainable Development Goals

Source: United Nations, 2023

In 2025, the SDGs have become more strongly integrated into corporate sustainability reporting. This is mainly due to alignment with the EU’s Corporate Sustainability Reporting Directive (CSRD). European companies must now explain how their business strategies support the SDGs. They must also show measurable progress in areas such as climate action (SDG 13), responsible production and consumption (SDG 12), and gender equality (SDG 5). This creates new indirect expectations for cosmetics suppliers worldwide to provide verifiable data supporting these claims.

According to Euromonitor (2025), more than 70% of large European cosmetics companies now publish sustainability reports that clearly show SDG alignment. This trend is also spreading to SME networks and to supplier assessment platforms. Exporters of natural ingredients should therefore include SDG-related indicators into their sustainability communication and data collection. This is especially relevant for topics such as biodiversity, decent work and circular production models.

An example of a cosmetic ingredient supplier using the SDGs as part of its sustainability framework is Fairoils (Kenya). This company aims to lift farmers out of poverty by creating a sustainable source of income without damaging the planet. As such, Fairoils guides its business according to the sustainable development goals. It uses them to make decisions about where to focus efforts and how to measure impact. On its website, Fairoils clearly describes which specific SDGs they are actively working towards, providing a mission and progress statement for each one. Currently, Fairoils' work is actively contributing to 16 of the 17 SDGs.

2. Ethical sourcing and traceability shift from voluntary to mandatory

An ever-growing group of consumers now expects that the products they buy line up with their values, such as sustainability, climate consciousness, social impact, and more. More brands are considering the ethical implications of their products to meet these expectations. By 2026, this expectation will have turned into a legal obligation under new European legislation on sustainable and responsible corporate conduct.

With the EU Deforestation Regulation (EUDR) and Corporate Sustainability Due Diligence Directive (CSDDD) going into force, ethical sourcing has changed from being voluntary to being required by law. European buyers are now legally responsible for identifying and easing environmental and human-rights risks throughout their supply chains, including the upstream producers in developing countries. This means that exporters must provide more than ethical commitments. They need documented proof of origin, geolocation data, and verifiable social and environmental performance.

For instance, several major cosmetics companies like L’Occitane, L’Oréal, Nuxe, and Groupe Clarins, among others, formed the Traceability alliance for sustainable cosmetics (TRASCE). This initiative aims to improve traceability in ingredient and packaging supply chains. They also assess social and environmental risks and determine what needs to be done to help suppliers become more sustainable. In 2025, TRASCE announced a new phase that adds blockchain-based traceability modules. These tools allow member brands to track ingredient sourcing down to farm level. Suppliers that already provide traceable, verifiable information gain faster access to long-term contracts. 

Suppliers that offer transparency in sourcing and documentation gain a competitive advantage. Those that fail to meet these standards risk losing market share. Ethical sourcing is now a major element of both legal and brand compliance. There are several low-cost tools and frameworks available to systemise your ethical commitments and activities. These include the UN Global Compact, SEDEX and Environment, Social, Governance (ESG). All are easy to carry out, and European customers may expect you to use at least one of them.

These ethical frameworks focus on a narrower set of commitments than the SDGs. They come from growing consumer expectations of fair labour practices, elimination of bribery and corruption, and concern for the environment. These expectations will continue to grow, putting pressure on companies in the cosmetics sector. These ethical frameworks are also becoming law in the European Union.

SEDEX

SEDEX continues to be a widely used ethical auditing tool in the cosmetics industry. It aims to help companies develop business practices to address social and environmental risks in their supply chains. SEDEX is based on: 

• UN Guiding Principles for Business and Human Rights (UNGPs)
• UN SDGs
• Ethical Trading Initiative Base Code 
• International Labour Organization Conventions

The members of SEDEX are both buyers and suppliers. Suppliers complete a self-assessment questionnaire and the platform helps them prioritise areas that need action. Suppliers can share information about their business and make their ethical profile data available to buyers. They can also choose to have a third-party SMETA audit, based on the same questionnaire. In 2025, SEDEX introduced enhanced modules aligned with the EU CSDDD. These allow buyers to automatically assess suppliers’ compliance with due diligence indicators, such as grievance mechanisms and risk mitigation plans.

PT Mignon Sista International, based in Indonesia, supplies a wide range of essential oils and spices. This company has grown into a successful exporter that meets many international standards. However, they lacked a framework to prove their commitment to ethical and responsible business practices. To address this, they joined SEDEX in 2022. They have already been assessed and certified by the SEDEX membership organisation.

Figure 2: Certifications held by Mignon-Sista International

Source: PT Mignon Sista International, 2025

UN Global Compact

The UN Global Compact framework is a self-assessment process based on 10 principles and built around four pillars: human rights, labour, environment and anti-corruption. According to the UN Global Compact website, 'by incorporating the Ten Principles of the UN Global Compact into strategies, policies and procedures, […] companies are not only upholding their basic responsibilities to people and planet, but also setting the stage for long-term success'. To date, more than 26,000 businesses have joined the UN Global Compact. More SMEs are now joining through regional and local partnerships or sector-based clusters to improve collective reporting.

To join the Global Compact you must:

1. Prepare a letter of commitment (LOC). This should be addressed to the UN Secretary-General and signed by your company's highest-level executive. The LOC commits your company to the UN Global Compact's Ten Principles;
2. Take action to support the Sustainable Development Goals;
3. Submit an annual communication on progress (COP).

Environment, Social, Governance (ESG)

ESG is a general framework used to inform investors about the social and environmental impact of companies and their management beyond revenue or profit generation. It is still an important reporting tool. Investors and large companies more and more link supplier ESG scores to procurement decisions. This is especially true under the Sustainable Finance Disclosure Regulation (SFDR).

Looking to the future, European companies are likely to face stricter ethical sourcing requirements. These requirements come not only from lawmakers but from consumers too. Consumers are demanding more and more that companies show they are really commited to ethical sourcing and biodiversity. European importers are adding supplier traceability dashboards. They require verified data on ingredient origin, community impact and biodiversity protection. Exporters that can provide this information in advance are better positioned to build trust and reduce administrative burden for European partners. You can do this through supplier profiles, QR codes, or traceability maps.

A relevant framework in this context is the Union for Ethical BioTrade (UEBT). UEBT certifies that natural ingredients and botanicals are grown, harvested or collected in ways that respect people and biodiversity. This is based on the principles of the Convention on Biological Diversity. The UEBT standard covers fair benefit-sharing, decent working conditions, sustainable land use and the conservation of ecosystems. This makes it particularly relevant for suppliers of plant-based cosmetic ingredients.

3. The European Green Deal will impact exporters of cosmetic ingredients to Europe

European buyers face increasing pressure under EU legislation to ensure their supply chains are sustainable and transparent. The European Green Deal (EGD) is the most important emerging development to be aware of. The Green Deal covers several policies that directly affect the cosmetics industry. Main policies are the Farm to Fork Strategy, the EU Chemicals Strategy for Sustainability and the Biodiversity Strategy. These measures reshape how companies source, process and market ingredients.

By 2025, the EGD has entered a decisive implementation phase. Most measures are now moving from voluntary to mandatory compliance. Cosmetic companies must demonstrate that their products contribute to lower carbon footprints, cleaner production and fairer sourcing. Suppliers outside Europe are expected to align with these principles to remain competitive.

The EU Deforestation Regulation (EUDR) adopted in June 2023, is one of the most influential components of the Green Deal. It requires companies importing or exporting certain commodities to prove that their products are legal and deforestation-free. These are commodities such as palm oil, cocoa, coffee, soy, cattle, timber, and rubber

The obligations were scheduled to apply from December 2024. But they will now apply from 30 December 2025 for medium and large companies, and from 30 June 2026 for micro and small enterprises. This change shows a growing realisation of how difficult it is to trace supply chains to the point of origin. This is especially challenging for smallholders and exporters in Low and Middle Income (LMIC) countries.

The regulation’s impact now goes beyond the seven listed commodities. European brands  ask for deforestation-free proof for other natural ingredients more and more. These ingredients include shea, argan and tropical oils used in cosmetics. Buyers expect future EGD reviews to widen the scope, as these sectors contribute to biodiversity protection and carbon storage.

In 2025, companies such as Symrise (Germany) introduced zero-deforestation sourcing policies across all raw materials, not only those covered by the regulation. This voluntary step is becoming common among leading cosmetic groups that want to stand out through sustainability leadership. European importers increasingly favour SMEs that can prove deforestation-free supply chains. This can be done by, for example, geolocating sourcing areas or using community-based verification.

Another pillar of the Green Deal relevant for exporters is the ongoing revision of the EU REACH and CLP regulations under the Chemicals Strategy for Sustainability. This reform seeks to phase out the most harmful substances and promote the use of ‘safe and sustainable by design’ materials. Although it is mainly focused on synthetic ingredients, it also affects natural ingredient exporters. They must provide updated safety and toxicology information to prove that their materials are non-hazardous and biodegradable.

At the same time, the EU’s Circular Economy Action Plan encourages the re-use of agricultural by-products and valorisation of waste streams in cosmetic ingredients. This drives demand for upcycled ingredients and for exporters who can demonstrate circular processing practices.

Together, deforestation-free supply and circular chemistry shape what European buyers now call regenerative sourcing. One example is L’Oreal, which applies this approach across its sourcing strategy. Regenerative sourcing goes beyond compliance and focuses on actively restoring ecosystems and supporting community livelihoods.

For exporters in LMC countries, the Green Deal offers both opportunities and challenges. Compliance requires more documentation and investment in traceability. But it also opens doors to premium markets that reward verified sustainability.

Companies such as Givaudan (France) require their suppliers to provide traceability information back to primary production. Suppliers must also follow the company’s Responsible Sourcing Policy, which includes biodiversity protection and fair labour conditions.

European importers more often ask for deforestation-free declarations and traceability data, such as GPS coordinates or regional maps. Exporters that collect this data in advance and share it transparently gain a competitive advantage. The Moroccan cooperative Targanine has been cited as a best practice in aligning with the Green Deal’s objectives. It works with local women’s groups to ensure full traceability of argan oil. It also uses digital monitoring of its sourcing zones to show they follow with zero-deforestation and fair-trade criteria. Other cooperatives exporting natural oils to Europe now use this model.

4. Due diligence requirements may change business relationships between buyers and suppliers of cosmetic ingredients

The  Directive on Corporate Sustainability Due Diligence (CSDDD) is another important development in EU legislation. It entered into force in mid-July 2024. The CSDDD aims to contribute to the EU’s goals of creating a climate-neutral and sustainable economy. It supports the United Nations Sustainable Development Goals (SDGs) as well. 

The CSDDD seeks to promote sustainable and responsible business behaviour. This behaviour helps get a positive impact on human rights and the environment. It sets out rules for companies on harmful impacts on human rights and the environment in their own operations and those of their subsidiaries, and in their value chains. It also regulates the responsibility of companies ifthey do not follow these rules. Requirements for companies include:

• Integration of due diligence into their policies;
• Identifying, preventing, mitigating and remedying actual or potential adverse impacts;
• Establishing a complaints procedure;
• Tracking the effectiveness of their due diligence policy;
• Communicating publicly on due diligence.

The legislation applies to large EU companies with a total turnover of >€450 million and 1000+ employees. Third-country companies will also be affected by this measure. It is estimated that the Directive will apply to about 900 non-EU companies active in the EU with turnover thresholds comparable to those of EU companies.

Under the CSDDD, corporate due diligence must cover the entire supply chain. This means that European companies now need their suppliers to state that they are following these due diligence policies. For this, European companies will need contractual statements from their business partners to say that they also follow the company's due diligence policy. In some cases, they will need a preventive action plan from their business partners as well. European companies can rely on suitable industry initiatives or independent third-party verification to ensure policy compliance. 

One upside for SMEs is that European companies must bear the cost of verification. Also, when a contract is concluded with an SME, the terms used must be fair, reasonable and non-discriminatory. For exporters, this means implementing policies and practices to identify, prevent, and address human rights violations and environmental risks in their operations. The same will apply to your suppliers. 

Cultivator Natural Products is an Indian exporter of several herbs, botanicals, and vegetable oils. It adds due diligence into its business by prioritising sustainability in all its operations. The company uses organic farming practices to prevent and reduce negative environmental and social impacts, protecting biodiversity and supporting local farming communities. Besides this, the company is commtted to transparency and responsibility. It shows this by publishing annual sustainability and impact reports, which are available on their website. These reports highlight their initiatives and achievements in sustainability. Doing this lines up with international due diligence standards and shows their dedication to ethical and sustainable trade. 

The Directive requires European companies to not start new relationships or extend existing relationships with partners whose operations fail to prevent or minimise potential or existing harmful impacts. Looking to the future, it is advisable to start developing due diligence measures. This will prepare you to improve your relationships with business partners, your value proposition and your long-term business success.

5. Intensified focus on safety and ingredient scrutiny in the EU could have implications for exporters

The EU is already the most strict cosmetics market in terms of requirements and regulations. These are becoming even tougher with a new focus on safety and essentiality. These strict rules mean regulators now check ingredients not only for safety, but also for ‘essentiality’. They ask whether an ingredient is really needed in a formulation or can be replaced by safer or more sustainable alternatives. By 2025, this essentiality concept has become a defining principle of a new EU chemicals policy. It is also influencing upcoming revisions of the REACH and CLP regulations.

Regulation 2023/1545 focuses on the labelling of fragrance allergens in cosmetic products. It was introduced by the European Commission in July 2023 with the aim of improving consumer safety. This regulation adds 56 new allergens to the existing list of substances that must be labelled in cosmetic products. Popular ingredients like menthol, Ylang Ylang flower oil, lemongrass oil, rosa canina flower oil, and lavandula oil are now included. The regulation states that if these ingredients are present in high enough amounts, their names must be shown on product labels. Cosmetics manufacturers have three years to follow these new rules either by updating their labelling or changing their product formulas.

This new regulation gives consumers better information about what is in their cosmetics. However, it is important to note that just because an ingredient is labelled as an allergen does not mean it is dangerous or toxic. Many ingredients labelled as ‘allergens’ are perfectly safe for many people and are important to make cosmetics smell and feel good.

Another major challenge is the European Chemicals Agency (ECHA) classification of tea tree oil as a Category 1B reproductive toxin under the Globally Harmonised System (GHS) of hazard identification. This decision followed a standard European safety review of a plant fungicide that uses tea tree oil as its active component. The classification raises concerns because it is based on a hazard-based approach, which focuses only on the potential for harm. This is different to a risk-based approach, which looks at how likely it is for the hazard to cause harm. Many industry stakeholders are actively defending tea tree oil as a safe cosmetic ingredient,. They stress its long history of use in personal care products. The stakeholders point out that hazard assessments alone do not reflect the true safety of natural substances. This is especially when they are used in controlled concentrations.

Exporters of essential oils, vegetable oils and plant extracts must adapt to these evolving regulations. This may involve reformulating product portfolios, improving analytical testing capacity, or working with certified laboratories to ensure compliance. European buyers now expect complete safety documentation. This includes Safety Data Sheets (SDS), allergen declarations, contaminants analyses and compliance with IFRA Standards.

6. Sustainability, clean beauty and circular sourcing drive consumer demand

Consumer buying trends are shifting towards more sustainable cosmetic products. These products are generally not harmful to the environment and often have a higher content of natural ingredients. As a supplier of natural ingredients for cosmetics, you should highlight your environmental efforts at both the company level and the ingredient supply chain level.

Due to consumer interest in environmental and social issues, natural ingredients are becoming a desirable component of cosmetics. People are becoming more conscious about the impact of the products they use. This has led to a shift towards plant-based, organic, and sustainably-sourced ingredients. Consumers seek out products that align with their values of health, safety, and environmental responsibility. Natural ingredients are seen as safer and healthier than synthetic substitutes. They are also seen as having a low environmental impact and potentially a high social impact. Affordability is the main barrier to consumers buying a green alternative. Yet, the number of online products with sustainability claims rose by one million between 2022 and 2024. This shows a broader shift in consumer preferences. Retail sales of products with sustainability claims also grew significantly between 2020 and 2023. In the beauty and personal care sector, these products generated over USD 120 billion in revenue in 2023. This makes it the leading industry by sales.

This growing interest in natural ingredients is closely linked to the clean beauty trend, which has gained significant momentum over the past few years. Clean beauty focuses on using products that are free from harmful chemicals, environmentally friendly, and sustainable. At the same time, it promotes transparency in buying and manufacturing processes, prioritises eco-friendly packaging, and minimises unnecessary waste. Clean beauty products are based on natural or organic ingredients, such as plant-derived extracts, oils, and actives, which are valued for their nourishing and skin-friendly properties. Millennials and Gen Z are the main consumer demographics driving the trend. They show more interest in organic and natural beauty products than the average consumer.

The demand for natural and organic cosmetics is rising sharply, driven by the perception that natural ingredients are safer and healthier than synthetic alternatives. In fact, searches for "natural ingredients makeup" surged by 180% in 2021. According to the Revieve Global Beauty Landscape 2024, there is a 93% engagement rate in eco-friendly product categories, reflecting strong European consumer alignment with environmental values. Popular ingredients like aloe vera, rosehip oil, green tea, and shea butter are in high demand. This is due to their gentle properties and ability to address common skin concerns such as sensitivity and dryness. Besides this, ingredients like moringa seed oil and baobab from Africa are gaining popularity. This is not only for their cosmetic benefits but also for their cultural significance, especially in body care products.

Another major aspect of this trend is the rise of upcycled ingredients. These are ingredients that are repurposed from waste materials, adding another layer of sustainability to the cosmetics industry. For example, pomegranate peels, seaweed, and spent coffee grounds are being used to create high-performance cosmetic products. These upcycled ingredients help reduce waste and support a circular economy. This appeals to environmentally-conscious consumers who are looking for innovative and sustainable solutions.

Growing demand for natural ingredients presents major opportunities for suppliers across the whole value chain, from raw material producers to cosmetics manufacturers. Companies throughout the European supply chain are investing in developing environmental and social credentials. It helps them meet changing consumer demands and increase their visibility. As a supplier of natural ingredients, you should take similar steps in your own operations. Failure to act is a threat to your business. Looking to the future, you can expect consumer preference for sustainable products to continue growing. This will boost the need to prove positive social and environmental impacts in raw material supply chains. 

Adopting voluntary standards and certifications might be useful to demonstrate your commitment to ethical sourcing and sustainability. There is a wide range of certifications and standards to choose from, covering ethical sourcing, fair trade, natural and organic. All these standards fit under the broad umbrella of sustainability. Natural, organic and fair trade are more relevant for niche markets, according to industry experts. However, social and environmental responsibility in supply chains can no longer be considered optional.

Private certification bodies for suppliers of natural, organic, fair and ethical ingredients for use in cosmetics include:

• Union for Ethical BioTrade (UEBT) certification label – awarded to companies that meet the criteria of the UEBT standard for respectful sourcing. These companies are committed to ethical sourcing of ingredients from biodiversity and to treating people and biodiversity with respect. The UEBT standard is based on the Convention on Biological Diversity to conserve and sustainably use biodiversity plus ensure fair benefit-sharing.
• Fair for Life certification – guarantees that human rights are safeguarded at all stages of production. Workers are assured good and fair working conditions and smallholder farmers receive a fair share. Fair for Life is improving the livelihoods of thousands of smallholder farmers and workers.
• NATRUE – a certification scheme for natural and organic cosmetics and ingredients. Besides final product certification, there are two categories for raw materials: Approved Raw Materials and Certified Raw Materials. The difference is that 'approved' raw materials are not organically certified but only have their documentation checked by NATRUE. 'Certified' raw materials are in fact organically certified, and this certification must be verified. Both categories also meet other NATRUE criteria. Their product database is a useful source for finding companies that may be potential customers or competitors.
• COSMOS – a certification scheme for natural and organic cosmetics. Their product database provides information about companies that offer COSMOS-certified and COSMOS-approved raw materials. These companies may be potential customers or your competitors.
• ISO16128 – a self-assessment scheme for natural and organic cosmetic ingredients and cosmetic products, developed by ISO. The aim of ISO16128 is to aid ingredient selection for formulations. The standard is not a certification but a set of guidelines on definitions for natural and organic cosmetic ingredients. It provides a framework to determine the natural content of ingredients and formulations, increasing transparency for both manufacturers and consumers.

7. Rise of biotech cosmetics in Europe could threaten demand for traditionally-sourced ingredients

The European cosmetics industry is experiencing major changes with the rise of biotechnology in ingredient production. Biotech ingredients, grown in laboratories, are often promoted as safer, more sustainable, and more efficient alternatives to traditionally-sourced natural ingredients. This trend is reshaping the market, offering new opportunities for innovation. But it also poses challenges for suppliers of traditional natural ingredients.

Biotechnology allows scientists to create or improve natural compounds in controlled environments. This helps them make sure that ingredients are pure, consistent, and renewable. It means they don't have to take these ingredients from nature, reducing environmental impact while keeping high performance. The ability to produce high-quality, lab-grown ingredients is more and more attractive for manufacturers. This is because it helps keep a reliable, sustainable supply chain that is not subject to environmental fluctuations or seasonal limitations. There is more and more pressure on diminishing amounts of available land and water, while the number of people growing products is declining due to migration to the cities and other countries. Large cosmetics companies, such as L’Oréal, Provital, and dsm-firmenich, are already working with biotech companies to develop bio-based ingredients for skincare, haircare, and even fragrances.

Another major reason for the shift toward biotech ingredients is their potential to support sustainability goals, particularly by reducing carbon emissions. Biotechnology is seen as an important tool for companies and governments who strive to meet the net-zero target. This aims to balance the greenhouse gases added to and removed from the atmosphere. In Europe, net zero is a priority not only for political reasons but also due to increasing consumer demand for environmentally-friendly products. Biotech ingredients, produced in local labs, can reduce the distances that ingredients travel by a lot, helping to minimise CO2 emissions. This aligns with the "0km" movement, where companies are developing more local sources and producing more using biotechnology. The 0km movement works for ingredients that can be grown locally. But it will not work for those that can only be grown further away.

The rise of biotech cosmetics poses a great threat to exporters of traditionally-sourced natural ingredients. As more cosmetics brands turn to lab-grown alternatives, there is a risk that demand for natural ingredients will decline. This could have a negative impact on the livelihoods of farmers and producers in developing countries who rely on exporting these natural products.

However, natural ingredients still hold unique advantages that biotech cannot replicate. To compete with the growing popularity of biotech ingredients, you must stress the broader benefits of your products. One major advantage of natural ingredients is that harvesting them supports local communities and helps preserve traditional knowledge and biodiversity. Showing your positive social impact by supporting rural economies and ensuring fair wages and worker protection will strengthen your market position.

Besides this, you should be looking at ways to improve environmental and social performance. Job creation, fair wages and protection of workers' rights are major requirements of European buyers. In the longer term, pressures to improve environmental performance will strengthen the business case for alternative technologies and local sourcing. Social benefits will not be enough of an argument for using long-distance supply chains.

Exporting companies are advised to have another look at their strategy and have a more carbon-neutral plan. Companies that embrace net zero can improve their reputation. They can also reduce waste costs, protect their business from over-dependence on fossil fuel-based energy supplies and increase their resilience.

A good example of a company adding sustainable practices and applying technological developments to their business is PT Mitra Ayu Adipratama. This Indonesian company believes that environmental sustainability is crucial to doing responsible and successful business. They are making several efforts to reduce, recycle and reuse natural resources. PT Mitra Ayu Adipratama recycles most of the solvents used in its processing and turns its waste into a briquette to be used as fuel. As it takes a lot of energy to produce briquettes, the company is trying to use palm shells for fuel to save on electricity.

8. Wellness and holistic beauty continue to drive innovation

The link between beauty, health and well-being is now firmly established in the European cosmetics market. Consumers more often look for products that help them feel well, not only look good. This movement is known as holistic beauty. It combines personal care, nutrition, emotional balance and environmental awareness.

In 2025, the wellness and beauty sectors are even more closely combined. Many European brands now promote ‘inside-out’ beauty concepts. These link topical skincare with supplements, adaptogens and aromatherapy. This trend drives demand for natural ingredients that can support skin health, stress reduction and body–mind balance.

Since the pandemic, consumers have spent more and more on self-care and emotional wellness. According to Euromonitor’s 2025 Beauty Survey, 68% of European consumers choose beauty products that contribute to both physical and mental well-being. Skincare and haircare products with calming, balancing and restorative claims perform especially well. Figure 3 shows how brands such as Oriflame from Sweden have developed full ‘inside-out’ beauty concepts. These brands invest in research to meet changing customer expectations around beauty and wellness.

Figure 3: Beauty and health intervention research

Source: Beauty and Wellbeing Report, Oriflame Cosmetics, 2025

Wellness-driven beauty increases demand for multifunctional natural ingredients. Buyers look for ingredients that support the skin-barrier, soothe the skin and provide sensory comfort. Ingredients like aloe vera, chamomile, lavender and oat extract remain highly popular because they combine safety, naturalness and emotional appeal. New trends also include mood-boosting fragrances. These use essential oils such as bergamot, ylang-ylang and neroli. Another growing area is microbiome-friendly formulations. These use fermented actives to help maintain healthy skin flora.

Today, ingredient storytelling focuses on emotional and sensorial benefits. Brands use texture, aroma and comfort to communicate ‘feel-good’ performance. This gives natural exporters new opportunities to position their ingredients as part of the wellness experience not only as raw materials. Some opportunities for exporters include: 

• Aromatherapy ingredients (essential oils, hydrosols) are valued for relaxation and mood balance.
• Botanical actives  that improve hydration, barrier repair, or scalp health fit wellness-beauty claims.
• Nutritional cross-over ingredients  such as superfruit extracts, plant proteins or oils rich in omega fatty acids. These appeal to brands promoting the “beauty-from-within” concept.
• Exporters can also explore spa, home-fragrance and personal-wellness channels beyond traditional cosmetics buyers.

The French brand Officine Universelle Buly and the Finnish start-up Luonkos both highlight natural sensorial rituals. They combine fragrance, touch and emotion. Both source botanical oils and butters with traceable origins to create products that connect self-care with sustainability.

9. Consumers are embracing healthy aging as a key wellness trend

The beauty industry is experiencing a revival of mature skin concerns. The trend of healthy aging in the European cosmetics market is now a key factor shaping product development and consumer preferences. Rather than trying to reverse aging, consumers are focusing on aging gracefully by taking preventive measures that promote long-term skin health. This shift reflects a broader, wellness-centric approach to beauty, where the goal is to maintain healthy, hydrated, and firm skin throughout the aging process.

Consumers are becoming more informed and proactive about their skincare choices. With better access to a wealth of scientific information, many now choose products that take a preventive approach to aging. Interest is growing in products that not only reduce visible signs of aging, but also support skin health from the inside out. Ingredients that nourish and strengthen the skin’s natural barrier are high in demand. According to Spate’s 2024 Beauty Trends report, online searches for skin barrier and mature skin increased by 23% and 18% respectively between 2023 and 2024. In the coming years, the emphasis on healthy aging is expected to remain strong and continue to shape consumer approach and brand strategies.

The healthy-aging trend in Europe creates clear opportunities for exporters of natural ingredients from developing countries. As consumers look for preventive skincare solutions, ingredients that support hydration, firmness and skin protection are in high demand. Exporters can respond by offering natural ingredients that support long-term skin health and wellness. Shea butter is a good example. It contains vitamins and fatty acids that help nourish and restore the skin's elasticity, making it suitable for firming and moisturising products. Baobab oil is another example. Its antioxidant properties help protect the skin from environmental stress and early signs of ageing. Exporters that position themselves as suppliers of such natural, health-supporting ingredients can benefit from growing demand for high-quality, natural solutions.

East African Shea Butter (Vitellaria nilotica) from Nilotica Shea Butter illustrates this opportunity well. The company is ISO-9001 certified and produces Ugandan Nilotica shea butter with a strong focus on quality and social responsibility.

Another example is Afrinatural, which actively promotes the benefits of baobab oil for mature skin. This South African company supplies botanical extracts, essential oils, pressed oils and butters to customers in the EU and other parts of the world. Its website provides a dedicated section on baobab seed oil, including detailed property description supported by industry references and studies. 

10. Digitalisation, AI and transparency tools redefine ingredient marketing and buyer expectations

Digital technologies are rapidly transforming how companies source, assess and market cosmetic ingredients. Since 2023, European buyers increasingly rely on digital traceability systems, data platforms and artificial intelligence (AI) tools to verify sustainability claims and identify compliant raw materials.

The digital transition affects the entire supply chain. Online databases such as CosIng, TRASCE, SEDEX Radar and EcoVadis are increasingly integrated with blockchain or cloud-based systems. These systems track ingredient journeys from origin to finished product. By 2025, more than half of European beauty companies use at least one digital tool to monitor supplier performance or environmental metrics.

AI-supported platforms now help formulators and buyers to compare ingredient performance, safety and sustainability scores instantly. Tools like ‘AI Formulator Assist’, presented at In-Cosmetics Global 2025, can simulate ingredient behaviour in formulations, estimate carbon impact and suggest cleaner substitutes. For exporters, this means buyers can benchmark products quickly. As a result, accurate data and clear documentation have become more important than ever.

The EU’s Corporate Sustainability Reporting Directive (CSRD) and Digital Product Passport (DPP) initiatives are further driving traceability at product level. In the coming years, ingredients may carry scannable digital identifiers, such as QR or RFID codes. These codes will provide verified data on origin, certifications and sustainability indicators.

Video 1: The Key to Circularity - Digital Product Passports Explained

Source: Circularise,

This shift will make transparency measurable and public. Suppliers who provide complete and verified data, certificates, lab tests, traceability maps and social-impact facts build stronger buyer trust. Conversely, suppliers with incomplete or inconsistent documentation may struggle to pass digital screening. Some key opportunities for exporters include the following:

• Develop digital ingredient profiles. Combine technical sheets, certifications and traceability visuals in one downloadable file or cloud folder.
• Offer verified sustainability data. Link sustainability claims to traceable indicators, such as carbon footprint, water use, or community projects.
• Join online sourcing platforms like In-Cosmetics Connect, Covalo or Beauty Tech Market to increase visibility with European Research & Development teams.

For example, The French company Groupe Berkem uses blockchain-based traceability for its botanical extracts and shares verified origin data directly with clients through QR codes. 

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

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