NEWS > 09 July 2025

FUNCTIONAL INGREDIENTS IN COSMETICS: HOW INNOVATION, SUSTAINABILITY AND NEW TECHNOLOGIES ARE IMPACTING THE SEGMENT

The growing attention of beauty consumers on sustainability has put a spotlight on the ingredients and raw materials segment. Dealing with scientific innovation and attention to nature, suppliers all around the world are constantly investing in new solutions, influencing the market and driving to a different approach to the beauty.

During the last edition of Cosmoprof Worldwide Bologna, companies specialized in ingredients and raw materials were the protagonists of a special area of Cosmopack, the salon showcasing the best in the cosmetics supply chain. The Fragrances and Ingredients Zone hosted raw materials and ingredients suppliers, as well as fragrance houses, fragrance creators and manufacturers. Exhibiting companies focused on natural ingredients, biotech innovations and plant extracts, as well as fragrance inputs, essential oils, perfumery, candles and ambience fragrances. Furthermore, the changes in ingredients supply was a big topic of CosmoTalks, the educational format of Cosmoprof Worldwide Bologna, with dedicated sessions and insights.

 

SUSTAINABILITY AND INGREDIENTS: CHALLENGES AND OPPORTUNITIES

The session entitled “Sustainability schemes & labels for cosmetic ingredients”, with ECOVIA INTELLGIENCE as main partner, dealt with implications of sustainability in cosmetics ingredients, with the moderation of Iveta Kovacova, Research Director at ECOVIA Intelligence. “The attention to biodiversity and the investments in new solutions replacing existing ingredients are key elements for sustainability in the cosmetics industry”, highlighted Didier Thevenin, Brand Development Director at Melvita, who took part as speaker in the panel discussion. “Anyway, to increase attention on planet health, certifications and regulations pay a strategic role in matching business and preservation of nature. A more synergic approach, with one unique global certification instead of the multiple actual entities, as well as global standards and regulations for all markets would mark a significant change”.

The same issues and concerns were raised by Domenico Scordari, CEO and Founder of N&B Natural is Better: “We need to unify communication and values to gain more credibility and preserve consumers’ needs. Sustainability is driven by consumers: they are asking brands to adopt common values and base their strategy on respect and responsibility, caring for local territories and social impact. To achieve such a big result, there should be a better synergy among companies, as well as between companies and institutions. Working together could lead to better solutions in logistics, ingredients and packaging”.
 
Educating consumers is another pillar for the development of a more sustainable cosmetics industry according to Rosalinda Nardi, Head of Research and Development and External Relations for the Cosmetics Division at ICEA, the institute for ethical and environmental certification operating in Italy and involving institutions, associations, companies and civil society organizations. “It is important to be more visible and add more value to certifications and good practices. Consumers are getting more and more sensible to labels and certifications, but it is not enough: they must be better informed to avoid the risk and misinformation of green washing”.
Dipti Vaidyanathan is the Market Transformation Manager in Europe at the Roundtable on Sustainable Palm Oil (RSPO), a voluntary global partnership to make palm oil sustainable. During the panel discussion, she highlighted the importance of ingredient traceability in helping the cosmetics industry align with global regulations.
“Through regulatory measures and strengthened collaboration between brands and industrial associations, we can enhance transparency across the supply chain, thus avoiding misinformation. However, educating consumers on how to understand and identify credible labels, such as the RSPO Label is crucial to achieve sustainable progress”.
image FUNCTIONAL INGREDIENTS IN COSMETICS: HOW INNOVATION, SUSTAINABILITY AND NEW TECHNOLOGIES ARE IMPACTING THE SEGMENT

INGREDIENTS AND AI: WHAT’S NEXT?

New technologies and AI tools are deeply impacting the supply processes and the development of new ingredients in the cosmetics industry. Challenges and opportunities were analyzed during the last edition of Cosmoprof Worldwide Bologna, on the occasion of the CosmoTalks session entitled "Ingredients & AI: beauty's automated future”, with Stylus as main partner.

Generally speaking, the global AI beauty market is forecasted to be worth 13,3 billion USD by 2030 with a CAGR rate of almost 20% between 2021 and 2030, as reported by Lisa Payne, Head of Beauty Trends at Stylus – the trends intelligence partner for forward-looking brands and agencies, who moderated the panel discussion. 72% of GenZ consumers expect AI to empower their beauty experiences, making high-tech a non-negotiable aspect for brands when looking to capture this demographic. 
AI’s impact is extremely important in the development of ingredients and in offering new tools and data for R&D departments. As highlighted by Payne, “in the US, 28% of consumers say that they are interested in trying products developed through biometric data, and they would pay even more for them. This is a proof of how consumers are understanding the positive impact of AI, but ingredients cannot be driven uniquely by consumers’ trends: brands must develop new solutions from data analyses and AI tools”. 
“Innovation in beauty comes for sure from consumers, but in the beauty sector we are observing a very important technological assessment, too, that provides a deep change in the efficacy of ingredients”, echoed Karen Ho, Co-Founder and CEO of Gravel AI - Personal Care Ingredient & Industry Intelligence Platform. “Chemical companies and R&D departments are launching new ingredients which are changing the landscape. Thanks to AI they can develop new fermented solutions, for example, identifying the right strain of bacteria that can lead to a very beneficial outcome. Thanks to bio-tech, it is today possible to create new bio-similar active ingredients, reducing costs in the supply process”.
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A more conscious, traceable, personalised future

 “For product development and R&D teams it is essential to work well with digital and marketing offices in order to explain new ingredients and their benefits to consumers”, highlighted Nima Salehi, Global Head of Technology & Online Channels at The INKEY List, a UK skincare brand. “Making your customers understand properly and in a easy way the ingredients you are launching, their origin, their beneficial properties is a key factor for making a new launch be successful. This is the best way for a brand to win trust from consumers”.

Educating consumers is a strategic priority for Nahla Bekkara, Business Development Specialist at Haut.AI, a leading AI-powered beauty intelligence platform that empowers beauty and personal care brands to accelerate product innovation, streamline R&D, and deliver personalized consumer experiences. “To truly educate consumers, brands should go beyond trends — using tests and surveys to help consumers understand not just what they want, but what their skin, hair, and body actually need. While there’s still constant pressure to chase market tendencies, it’s essential to focus on real skin concerns and authentic needs. The goal is to develop more targeted products that are inclusive of diverse skin types and tones through robust data analysis. It’s no longer a guessing game because data-driven and precise beauty became a reality with AI.”
 
The latest technological innovations can offer different tools to consumers to get the right details at the right time and with the right timing, as highlighted by Monica Coffano, Account Manager of Temera, a company providing product traceability and serialization solutions  dedicated to Fashion/Luxury & Retail industry. “Customers should learn to always check the QR codes and all the applications that brands are including in their packaging today, like NFC tags, because these innovative tools are the best and most precise way to detect details about the whole supply chain of a beauty product”, stated Coffano. “Nowadays traceability is playing a central role both for brands, which can better choose the ingredients to use in the products according to specific country regulations, as well as for customers. Thanks to traceability technologies, everyone can detect a counterfeited sample, for example, or check for ethical sourcing and sustainability credentials and efforts”.
What’s next for the ingredients segment? For sure, AI and new regulations rising all around the world will lead to future developments in the beauty industry. 

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