The beauty and personal care industry faces a significant waste challenge, with only 9% of cosmetic packaging being recycled and excessive resource consumption contributing to environmental degradation, according to the British Beauty Council.
To address these concerns, The Upcycled Beauty Company, in partnership with CPG ingredients platform Covalo, has released the 2025 Zero Waste Beauty Report, which highlighted key innovations in sustainable beauty and strategies for brands to transition towards a circular economy.
Industry waste and circular economy solutions
“The beauty industry has a major waste problem,” a representative from The Upcycled Beauty Company told CosmeticsDesign. “Wasting products is a waste of resources, [and] this includes materials and energy for production, transportation, and end-of-life disposal, which all contribute to carbon dioxide (CO2) emissions.”
The representative also noted that as a global industry, beauty brands and consumers contribute to the “excessive use of finite resources and disposable culture, [which] also fuels global biodiversity loss.”
The report identified the circular economy as a viable solution to these issues by focusing on reducing waste at every stage of production. For example, the report noted that 10% of all new Covalo ingredient launches in 2024 were upcycled, and The Upcycled Beauty Company’s Upcycled Directory now features over 340 ingredients used across 11 applications.
Trends in upcycled ingredients and packaging
The 2025 Zero Waste Beauty Report emphasized a growing demand for upcycled ingredients, a market share projected to grow at a CAGR of 5.9% from 2022 to 2030. “Interestingly, Covalo’s ‘upcycled’ filter remains one of the top sustainability search criteria for beauty and personal care brands, particularly in EMEA,” the representative noted.
The report highlighted several brands are leading the way in upcycled ingredient adoption. For example, The Upcycled Beauty Company representative shared that Barcelona-based GSKIN and South Africa’s ENOUGH. have built their businesses around rescuing resources that would otherwise be wasted.
Additionally, the representative detailed that Kaffe Bueno’s KLEANSTANT, a bio-based anionic surfactant made from upcycled coffee lipids, is an example of the beauty industry’s successful commitment to repurposing byproducts for functional beauty solutions.
On the packaging front, seaweed-based materials are emerging as a sustainable alternative. For example, the representative noted that the seaweed-based packaging market is expected to reach $952.76 million by 2032, growing at a CAGR of 6.9%.
Other innovations include mycelium-based packaging and upcycling brand waste through partnerships with companies like Upcycled Labs. The representative illustrated that Scottish start-up Huid is exploring the use of onion skin-based packaging.
At the same time, Oquist has introduced biodegradable terracotta clay packaging to address end-of-life disposal concerns.
Operational Changes and Regulatory Drivers
The report also highlighted shifts in business operations, with more brands incorporating waste reduction into their core strategies. AI-driven solutions are expected to help companies track emissions, validate sustainability claims, and optimize supply chains.
Regulatory frameworks also played a crucial role in this shift, the representative continued. With new standards such as the EU Ecodesign for Sustainable Products Regulation (ESPR), brands are under increasing pressure to integrate circular design principles. “With new standards and regulations emerging… there’s no excuse for brands to overlook circular design,” the representative said, emphasizing the role of policy in shaping industry practices.
Consumer Awareness and Future Outlook
Overall, the representative explained that the report highlighted growing consumer awareness of sustainability, with 31% of global beauty consumers indicating that a clear environmental impact rating on packaging would influence purchasing decisions. Digital tools, such as on-pack QR codes, are expected to enhance transparency by providing sustainability data directly to consumers.
For example, Pack Tech’s Ocean Waste Plastic (OWP) solutions already include QR codes that track the amount of plastic waste collected and repurposed.
“With increasing regulatory demands and consumer interest, brands that invest in zero waste initiatives now will be well-positioned for future industry shifts,” the representative concluded.
