Sustainable design and certification standards in the UK cosmetics industry

Sustainable Design and the UK Cosmetics Industry

Sustainable Design and the UK Cosmetic Industry

The topic of sustainability and its affect on industry is a relatively new concept. However, it is becoming important for several reasons. First, governments around the globe are beginning to toughen environmental laws. New regulations require many industries to "go green." However, perhaps an even bigger reason to go green is that what was once a niche market for organic, sustainably produced goods is now mainstream and expected to reach 2 Billion Euros this year (GCI. "European Natural Cosmetic Sales Approaching ?2 Billion" 2009).

Towards a Uniform Set of Standards

Revenues for natural and sustainalby-produced products continue to climb. More companies are beginning to enter in the market, which will have an increasing impact on price the competitive landscape within the industry. Terms such as "sustainability," "organic," "natural" and others now have a high market value. Everyone wants a slice of the eco-marketing pie. However, in order for these labels to continue to have value, consumers must be assured that these labels mean the same to everyone. They want to know what they are getting they see these terms. Otherwise, they will lose faith in the marketplace and refuse pay a premium for those products.

The need to retain consumer confidence in organically produced products has led to talks about the need for standards in the cosmetics industries. Currently, six certification agencies exist in the EU specifically for the cosmetics industry. These agencies are Soil Association (UK), BDiH (Germany), Ecocert (France), Cosmebio (France), ICEA (Italy) and Ecogarantie (Belgium) (GCI, "Global Natural Products Market: The Battle of the Standards Gains Pace" 2009). According to GCI, these agencies certify nearly 1,000 cosmetic companies and 10,000 products. Currently, there is a movement for more uniform standards. Two primary standards are currently the top competitors for adoption. The Cosmos Standard, and NaTrue are the main rival standards competing for acceptance.

The forerunner of these standards is the Natural Products Association (NPA) of the United States. Prior to 2007, no standards existed in the U.S. regarding the certification of natural products. Raising awareness and understanding of the logo is a key hurdle that must be met in order for it to retain its meaning for the consumer. The National Science Foundation is currently in the process of developing standards that will require products to contain a minimum of 70% organic products. The American National Standards Institute (ANSI) is also in the process of developing standards for organic certification (GCI, "Global Natural Products Market: The Battle of the Standards Gains Pace" 2009).

In Asia and Latin America, standards are typically developed and enforced by private organizations (GCI, "Global Natural Products Market: The Battle of the Standards Gains Pace," 2009). The development of a set of uniform standards in the EU will have a dramatic affect on the cosmetics industry in the UK. It will mean tighter regulation and more oversight by outside entities. Keeping up with these requirements will be likely to yield higher prices because of the costs of compliance. However, regulation may be necessary in order to maintain consumer confidence in natural product label claims. Regulation represents a major debate in the natural products cosmetics industry in the UK. Views regarding the need for regulation and what they contain remains a key topic for debate in the industry.

Natural products standards are one of the most controversial topics in the cosmetics industry. The debate is global and draws upon many different theories and viewpoints. Definitions of what it means to be sustainable differ according to source. Every certification agency has its own theory and definition of what it means to be natural. An understanding of these various theories will be necessary in order to understand the standards debate.

It is expected that research into standardization of the organics and natural cosmetics industry in the UK and other areas of the world will continue to concentrate on the development of manufacturing and transportation practices. Few journal articles currently exist regarding the effect of sustainability regulation on the organics and natural products industry at the current time, but it is expected that in the future, its impact on the industry will become a topic of interest in academic circles.

Conclusion

Fair Trade products and certified end products represent the next logical step in the natural and organic products movement. The impact of fair trade has already been examined in other industries and it is believed that the same principles apply to the cosmetics industry as well. Trends in the cosmetic industry are driven traditionally by the fashion industry. However, social responsibility must now be considered a part of the equation as well. The movement towards socially responsible products is being driven by consumer demand. Consumers are demanding socially responsible products and the industry has an obligation to provide them.

Research sustainable practices and the UK cosmetics industry reveals two key trends in research. Study into this topic is in its infancy and it currently lacks in cohesive theory development. Theory is beginning to develop in the area of standards and evaluation criteria for those seeking certification. Cohesiveness in this area is expected to produce greater consumer demand. Standardization will allow the customer to know what to expect when they read key terms on the label. Currently, a lack of theoretical cohesion in this area leaves the customer wondering if they are getting what they pay for in terms of sustainability and ethically sound practices.

Research into the affects of fair trade products indicates that socially responsible products do have at least some positive effects on the country of origin. The trend in fair trade and sustainable market will have an impact on UK cosmetic sales. It is expected that as time continues, sales of organic, natural and fair trade cosmetic products will continue to represent a greater percentage of the market share as the gains momentum. If the literature reviewed is any indication, one could expect consumer demand for sustainable cosmetic products to continue to increase over time.

The consumer market for sustainable cosmetic products is in its early stages. As the market matures, one could expect to see major players in the industry to be begin marketing sustainable products as well. It is the consumers who are in control of this trend and if current growth is any indication, the trend will continue to increase in the future. Attention to global issues and social responsibility are key drivers of the trend.

Due to the early stage in market development, the field is wide open for the introduction of new theories and ideas. Research indicates that the trend is here to stay and that it hold the potential to represent a major sector in the cosmetic industry. Sustainability closes the gap in the value chain between supply and marketing. The development of this intimate relationship means a new way of looking at the value chain in the sustainable cosmetic industry. However, much more research is needed before we will be able to understand its impact on the industry.

This literature review demonstrated that although, not much is available concerning the cosmetic industry in the UK and sustainability, one can extrapolate from other industries that face a similar situation. The first step in understanding the complexities of this developing trend will be the formulation of theory. It will be necessary to look towards other industries that have a similar supply chain and end product distribution for inspiration. As the market matures the direction that research must take will become more apparent.