How Are Sustainable Ingredients Transforming the Cosmetics Industry?

By Ankit SinghReviewed by Laura ThomsonMar 3 2026

The Problem with Petrochemicals
Plant-Based Emollients and Carrier Ingredients
Biosurfactants: Replacing Synthetic Cleansing Agents
Upcycled Bioactives and the Circular Economy
Biotechnology and Novel Formulation Solvents
Ethical Sourcing and Transparency
Packaging Sustainability
The Future of Beauty Is Grown, Not Drilled
References and Further Reading

The cosmetics industry is experiencing a major change. This change is not about new pigments or fragrances, but about how products are made and where their ingredients come from. Companies are moving away from oil-derived chemicals and instead choosing renewable, biodegradable, and ethically sourced materials. This shift is affecting everything from moisturizers and foundations to shampoos and sunscreens.

Image Credit: Prone69/Shutterstock.com

The Problem with Petrochemicals

For decades, petrochemical derivatives formed the backbone of cosmetic formulations. Ingredients such as petrolatum (a petroleum jelly), dimethicone (a silicone polymer), and phenoxyethanol (a synthetic preservative) were popular for their reliable performance, long shelf life, and low production costs. However, these materials have serious environmental issues that are hard to overlook. They are derived from limited fossil fuel reserves, are slow to biodegrade, and can persist in aquatic ecosystems after being washed down the drain.

As regulations in the European Union and North America have increased, manufacturers feel pressure to find safer alternatives that perform just as well as traditional ingredients but with less environmental impact.^1,2

Plant-Based Emollients and Carrier Ingredients

One of the most direct shifts happening across the industry is the replacement of petrochemical emollients with plant-derived alternatives. Shea butter, sourced from the African Karite tree, is a renewable substitute for petrolatum in moisturizers and lip products, delivering comparable skin benefits.^2,3

Similarly, candelilla wax, extracted from the plant Euphorbia cerifera, is increasingly used in place of ozokerite, a mineral wax commonly found in lip balms and color cosmetics. Squalane, once derived primarily from shark liver oil, is now produced from olives, sugarcane, and other plant sources. Phytosqualene is also gaining traction among brands that prioritize both performance and ethical sourcing.

Read More: Manufacturing Makeup with Eco-Friendly Materials

Together, these plant-based emollients offer more than basic hydration. They are biodegradable and naturally rich in fatty acids and antioxidants, providing added skin benefits while aligning with growing sustainability expectations.^2,3

Biosurfactants: Replacing Synthetic Cleansing Agents

Surfactants are among the most widely used functional ingredients in cosmetics, found in cleansers, shampoos, and body washes. Traditional synthetic surfactants, such as sodium lauryl sulfate, work well but can irritate the skin, take a long time to break down, and harm the environment.

Microbial biosurfactants, particularly sophorolipids and rhamnolipids produced with bacteria and fungi, provide a strong alternative. Sophorolipids have demonstrated the ability to stabilize emulsions in cosmetic formulations while showing skin compatibility and moisturizing benefits. Moreover, plant-derived biosurfactants, such as saponins from soapwort and quinoa, are safe, biodegradable, and create foam, helping mix ingredients in personal care products. These microbial and plant-based biosurfactants represent a functional class of ingredients where sustainability and performance align.^4,5

Upcycled Bioactives and the Circular Economy

A growing area of innovation involves extracting cosmetic-grade bioactive ingredients from food and agricultural waste streams, a practice known as upcycling. Rather than discarding the skins, seeds, and pulp left over from food processing, companies transform these byproducts into high-performing cosmetic actives. Grape pomace, a residue from wine production, yields antioxidant-rich extracts, while barley spent grain from breweries has been developed into cosmetic actives with hydrating and skin-conditioning properties.⁶

NoPalm Ingredients, a Dutch biotechnology company, has invested significantly in producing sustainable palm oil alternatives from repurposed industrial food waste. It provides the cosmetic industry with a supply chain that does not contribute to tropical deforestation. This circular approach reduces the volume of virgin raw materials that need to be cultivated, extracted, and transported, cutting both waste and carbon emissions across the value chain.^6,7

Biotechnology and Novel Formulation Solvents

New developments in biotechnology are leading to the production of cosmetic ingredients through fermentation, biocatalysis, and cell culture systems that do not require large-scale agricultural land or the harvesting of wild plant populations.

The InnCoCells project, funded by the EU, is the first Horizon research initiative focused entirely on natural cosmetic ingredients. It has created plant-cell suspension cultures and aeroponic growing systems to produce active compounds at scale while protecting biodiversity.^1,8

Alongside these production innovations, Natural Deep Eutectic Solvents (NaDES) are emerging as green alternatives to conventional organic solvents used in extraction processes.

NaDES are safe for the environment, compatible with living organisms, and help stabilize sensitive bioactive compounds, extending their shelf life and potentially reducing the need for synthetic preservatives.

Nature-identical preservatives, such as sodium benzoate and sorbic acid, as well as antimicrobial plant extracts from tea, cinnamon, and thyme, are replacing synthetic preservatives, such as phenoxyethanol, in more products.^1,8

Ethical Sourcing and Transparency

Sustainable ingredients do not simply mean natural or renewable ingredients. The conditions under which raw materials are cultivated and traded matter significantly.

Consumer preferences are changing. In Europe, around 50 % of consumers now choose eco-friendly brands, and knowing where ingredients come from is key to their buying decisions.

The Traceability Alliance for Sustainable Cosmetics (TRASCE)

Major cosmetics companies such as L'Oréal, Clarins, and L'Occitane have formed the Traceability Alliance for Sustainable Cosmetics (TRASCE) to build traceable, auditable supply chains that assess social and environmental risk at the sourcing level. This means verifying that plant ingredients are not sourced from over-harvested wild populations, that farming communities receive fair compensation, and that biodiversity-rich countries benefit equitably from access to their genetic resources.^8,9

Packaging Sustainability

Ingredient sustainability and packaging sustainability are deeply connected goals. As formulators clean up what goes into products, brands are also transitioning to biodegradable and compostable external packaging, including bamboo compacts, mycelium-based containers, and plant-derived bioplastics.

Refillable packaging models are also being implemented more across premium skincare, reducing the volume of new material required per unit sold. Together, these changes reflect a cosmetics industry in which sustainability runs from raw materials to the shelf.¹⁰

Video Credit: TEDx Talks/YouTube.com

The Future of Beauty Is Grown, Not Drilled

The cosmetics industry's pivot toward sustainable ingredients signals a genuine structural change, not a passing trend.

As biotechnology matures, fermentation-derived actives and precision biosynthesis will allow brands to produce highly functional ingredients with minimal land use and near-zero ecological disruption.

Upcycled bioactives will become standard practice as supply chains grow more circular and waste streams are routinely valorized. New regulations in the EU, particularly the Green Deal and updated cosmetics laws, will speed up this change by enforcing stricter rules on harmful synthetic chemicals.

Consumers, who now have better transparency tools and ingredient literacy, will support brands that are genuinely responsible from production to product. Sustainable ingredients are becoming the industry's new baseline.

References and Further Reading

1. Evolving beauty: The rise of sustainable and natural ingredients for cosmetics. (2024). CAS – A Division of the American Chemical Society. https://www.cas.org/resources/cas-insights/the-rise-of-natural-ingredients-for-cosmetics
2. Spaulding, A., & Baki, G. (2025). Sustainable cosmetic ingredient alternatives to replace conventional ingredients: Case studies in moisturizers and lipsticks. International Journal of Cosmetic Science, 48(1), 83. DOI:10.1111/ics.70020. https://onlinelibrary.wiley.com/doi/10.1111/ics.70020
3. Maxim, C. et al. (2024). Squalene - Background and perspectives in cosmeceuticals formulas. Bul. Inst. Polit. Iasi, 70, 47-57. DOI:10.5281/zenodo.11145431. https://www.bipcic.icpm.tuiasi.ro/pdf/2024/1/bipi_cic_2024_1_04.pdf
4. Nasser, M., Sharma, M., & Kaur, G. (2024). Advances in the production of biosurfactants as green ingredients in home and personal care products. Frontiers in Chemistry, 12, 1382547. DOI:10.3389/fchem.2024.1382547. https://www.frontiersin.org/journals/chemistry/articles/10.3389/fchem.2024.1382547/full
5. Karnwal, A. et al. (2022). Microbial Biosurfactant as an Alternate to Chemical Surfactants for Application in Cosmetics Industries in Personal and Skin Care Products: A Critical Review. BioMed Research International, 2023(1), 2375223. DOI:10.1155/2023/2375223. https://onlinelibrary.wiley.com/doi/full/10.1155/2023/2375223
6. Doolan, K. (2024). The rise and rise of upcycled ingredients for cosmetics. Cosmetics Design Europe. https://www.cosmeticsdesign-europe.com/Article/2024/04/24/The-rise-and-rise-of-upcycled-ingredients-for-cosmetics/
7. Upcycled Cosmetic Ingredients Market Size, Share & Industry Analysis. (2026). Fortune Business Insights. https://www.fortunebusinessinsights.com/upcycled-cosmetic-ingredients-market-110448
8. Bourgaud, F. et al. (2025). From plant genetic resources to cosmetic active ingredients: When science meets regulation and market rules. Open Research Europe, 5, 165. DOI:10.12688/openreseurope.20113.2. https://open-research-europe.ec.europa.eu/articles/5-165/v2
9. Which trends offer opportunities or pose threats on the European market for natural ingredients for cosmetics? (2025). CBI EU. https://www.cbi.eu/market-information/natural-ingredients-cosmetics/trends
10. Cosmetic Packaging Trends for 2024: Embracing Beauty and Sustainability. (2024). Cosmetic Packaging Now. https://www.cosmeticpackagingnow.com/blogs/learn/cosmetic-industry-trends-and-packaging-2024

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