The Cosmetic Industry Year in Review 2022, and Looking to 2023

Novi Connect, a platform for brands, formulators, and manufacturers to develop clean and transparent beauty products, looks at the positive trends and benchmarks that have emerged in the past year and will continue in the coming year

The Cosmetic Industry Year in Review 2022, and Looking to 2023

According to a Gallup Poll , nearly two-thirds of U.S. adults are concerned about global warming. As the end of 2022 approaches, there has been a definite shift in the world’s priorities as the effects of climate change are being taken far more seriously.

Novi has compiled six positive trends and benchmarks achieved this year: more sustainable products, an increase in climate-positive conversations and products, a focus on circular economy and zero waste, accelerated digital transformation, and a greater emphasis on supply chain stability as well as the customer experience.

Novi is pleased to be part of the solution in creating a cleaner world, providing a platform for beauty brands to source the ingredients and packaging needed to cut the waste and carbon emissions that contribute to the world’s environmental pollution problems.

“2022 has seen positive momentum in the beauty industry with the adoption of cleaner practices and the streamlining of sustainable product and packaging development,” says Kimberly Shenk, Novi Co-founder & CEO.

“It’s been exciting for Novi to be an important tool to create change – making it easier to develop beauty products that will leave a lighter footprint on the planet. 2023 will be a year for this positive shift to flourish.”

Positive 2022-2023 Trends in the Cosmetic Industry:

1. More Sustainability and Transparency

Companies desire to be transparent and connect with their consumers on the common goal of doing better for the planet on multiple fronts, not just environmentally but through philanthropic endeavors, DEI, and more.

Many companies incorporate their sustainability reports and practices on their websites to share their progress, gaining consumer confidence and inspiring other companies to follow suit.

2. Increase in Climate Positive Conversations and Products

The cosmetics industry has been dramatically impacted as the environment comes to the forefront of nationwide discussion. The consumer-driven move to sustainable packaging and product is critical: NielsenIQ and FMI report that 72% of consumers consider transparency from brands and manufacturers.

Biodiversity, the intricate web of various plants, animals, and other living creatures working together in ecosystems to maintain balance and support life, is a top priority for consumers. It means to live mindfully on the earth, with sustainable design principles embedded throughout all facets of lifestyle to maintain this healthy biodiversity.

For beauty, this means the push toward sourcing ingredients that respect the ecosystem’s environmental impact when sourcing ingredients. Novi is committed to helping brands navigate this shift by providing a marketplace of sustainable ingredients and certifications to back them up.

3. A Circular Economy and Zero Waste

The recent emphasis on brands creating a circular system in product development is crucial to cut down on the vast amounts of waste that the beauty industry has traditionally contributed to the planet. It’s a system based on using recycled products repeatedly, so recycled material is the input or start of a product – avoiding waste.

This is a divergence from the traditional linear economy where a beauty product would start from raw material, then packaging and leftover products would be thrown away after use. The development of upcycled products, refill opportunities, and more are readily coming to market to work toward zero waste and end-of-life management. 2023 will bring even more.

4. Accelerated Digital Transformation

Digital technologies transform traditional business procedures into digital services, reshaping how entire markets do business and how businesses deliver value to customers.

Novi is the first in the beauty industry to create a one-stop digital platform for companies to develop a clean formulation, transparent manufacturing, and sustainable packaging, allowing brands to build better, cleaner products faster.

5. Focus on Supply Chain Security and Stability

The impact of supply chain disruption in the last two years was felt worldwide, leading to shortages, inflation, factory closures, and other adverse outcomes. Current worldwide economic and geopolitical events mean that these issues are still ongoing.

As a result, for companies to survive, they must focus on the security and resilience of their supply chain by creating multiple sourcing strategies for critical materials, sourcing ingredients regionally, and other creative options.

Cosmetic brands can rely on the Novi platform for multiple sourcing options for ingredients and packaging now and next year, as the supply chain is a continued priority.

6. Premium on the Customer Experience

Investing in the customer experience in the coming year is vital for market share and growth. According to McKinsey & Company’s “State of Customer Care 2022” Report , improving customer experience is the fastest-growing priority. The key is to deliver a personalized experience across the entire customer interaction.

Novi gives brands, manufacturers, and formulators access and tools needed to translate their brand ethos into product reality. Novi offers the first technology and data-driven network solution, connecting brands to formulators, manufacturers, and suppliers best equipped to help them bring their sustainable product visions to life.

Learn more about building every part of your product and sourcing sustainable packaging. Create an account to see how Novi can simplify product development.

About Novi:

Novi Connect is revolutionizing consumer product development by empowering brands with the data, tools, and education they need to build the clean and transparent products that their customers demand.

Novi offers the first technology and data-driven network solution, connecting brands to formulators, manufacturers, and suppliers best equipped to help them bring their sustainable product visions to life — for the betterment of people and the planet.

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