How science, policy, and consumer shifts shaped a transformative year in cosmetics
Welcome to our Year-in-Review podcast episode where we explore the seismic changes that reshaped the global beauty and personal care industry throughout 2025. In a landscape defined by rapid technological advancement, policy reform, and evolving consumer values, our expert guests—Amarjit SahotaFounder of Ecovia Intelligenceand Maggie SpicerFounder of Source Beauty—join host Siobhan Murphy to unpack the critical forces that are setting the stage for 2026.
Key Themes That Defined Beauty in 2025
Sustainability Becomes Non-Negotiable
Environmental concerns such as carbon footprint, plastic pollutionand biodiversity loss remained top of mind for both consumers and regulators. With inflation and the cost-of-living crisis squeezing purchasing power, brands had to deliver affordable sustainability—value-aligned offerings that meet performance expectations without greenwashing.
Scope 3 emissions reporting became the new norm, driven by ingredient suppliers offering life cycle analysis data. Meanwhile, refillables, bioplasticsand waterless formats solidified their place in packaging innovation pipelines.
Biotech and AI Go Mainstream
From precision fermentation to plant cell technologybiotech reached commercial scale—powering novel actives and alternatives to ingredients like palm and coconut oil.
Artificial Intelligence reshaped:
- Formulation development via platforms like Covalo and PotionAI
- Personalized beauty through generative tools like Perfect Corp’s SkinGPT
- Supply chain transparencyenhancing risk management and resilience
Regulation Tightens – and Fragments
This year marked a shift from voluntary sustainability to regulatory obligation.
In the EU:
- Corporate Sustainability Reporting Directive (CSRD)
- Packaging & Packaging Waste Regulation
- EU Deforestation Regulation
While the Green Claims Directive was delayed, its intention signaled a hardening stance on greenwashing and eco-label proliferation.
In the US:
State-led frameworks drove enforcement in the absence of federal policy:
- Extended Producer Responsibility (EPR) took full effect in multiple states, demanding granular packaging data
- Patchwork legislation around clean beauty, ingredient transparencyand marketing claims created compliance headaches but also revealed opportunities for operational efficiency and brand trust-building
Supply Chain Resilience: A Strategic Imperative
Tech-enabled upstream visibility helped brands of all sizes identify risks related to:
- Geopolitical instability
- Climate-vulnerable sourcing regions
- Packaging costs and tariffs
Maggie Spicer emphasized that this visibility is now as much about business survival as it is about compliance.
What’s Next in 2026?
Consolidation Over Acceleration
With a year of disruption behind, 2026 is shaping up as a year of consolidationwhere beauty companies will:
- Refine packaging design with recyclability and compostability front of mind
- Move beyond carbon to embrace nature-based solutions and biodiversity storytelling
- Double down on trust-buildingas consumers demand clearer proof of purpose and performance
A Divided Path Ahead
Europe is doubling down on green regulationwhile the US sees a regulatory pullback under current political leadership. The result? A growing divergence in sustainability standards and reporting norms—placing a premium on agility and localized compliance.
About the Series
In-Conversation With .. is the flagship podcast from Global Cosmetics Newsexploring how innovation, regulation, culture, and sustainability are reshaping beauty and personal care.
