In today's highly competitive cosmetics industry, innovation is the key driver that allows a brand to stand out. Some choose to offer products that create new needs, while others focus on differentiating innovation from a social or environmental perspective.

Disruptive innovation in cosmetic

Innovation is defined as a process that results in the introduction of new or improved products, services, or processes, likely to meet implicit or explicit market expectations and create economic, environmental, or societal value. It's not just about novelty since innovation needs to be introduced into a market to respond to consumers' needs in a way adapted to them.

In the cosmetic industry, companies combine several categories of innovation to strengthen their competitive edge: new products or products with a new method of use, modification of a product or ingredient manufacturing process, new active ingredients or new applications for a compound, new packaging, new formulas or textures, new methods of distribution to the consumer...

Disruptive innovation is different, and riskier, because it aims for changes in customer habits or references, and can completely transform the existing industry, most often creating a new market.

While the cosmetics sector is constantly developing new products, disrupting innovations are more unusual. In the history of modern cosmetics, we can cite a few, such as the revolution in hair colouring, and the invention of the tube and applicator for mascara in the early 20^th century. More recently, the arrival of multi-functional products such as BB creams and the emergence of personalized and "do-it-yourself" products has profoundly changed the market, altering purchasing and consumption habits.

Protecting consumers in the context of innovation

When talking about innovation, and especially disruptive innovation, cosmetics regulations can be seen as slowing down, imposing additional constraints and costs.

Today, regulation will mostly deal with the evaluation of substances, for their potential toxicity towards the consumer, but also from an environmental point of view. European cosmetics regulations appear to be increasingly limiting the ingredients that can be used in formulas: the list of substances banned in cosmetics has been extended, while the lists of authorized preservatives, colorants and UV filters have not.

Moreover, in parallel to regulations, companies may have "blacklists" of raw materials they do not want in their products, addressing consumer fears or controversy over some ingredients driven by NGOS and apps.

Introducing a new ingredient into cosmetics, especially an active ingredient, can be an obstacle course. While necessary to protect consumers and the environment from new and not well-known molecules, proving both safety and efficacy requires extensive testing.

Besides, communication and marketing of something new are inextricably linked to this innovation. Again, regulations on the subject may seem strict, but they are necessary to protect consumers from misleading claims about efficacy or other properties of cosmetics.

While it is necessary to substantiate claims through testing, this is not the only safeguard.

EU Regulation No. 655/2013 on common criteria applicable to cosmetic claims states that the information provided to consumers must be useful, understandable, and trustworthy, and must enable them to make informed decisions about which products best meet their needs and expectations. Therefore, cosmetics professionals must apply six common criteria: legal compliance, truthfulness, evidential support, honesty, fairness, and informed decision-making.

A few weeks ago, the launch of a new product by a major cosmetic brand and presented as relying on a disruptive technology drew criticism from scientific and cosmetic circles, demonstrating also how important it is for a brand's image to remain within the regulatory framework.

This brand used a vocabulary related to quantum physics, and although based on the results of scientific studies, too many shortcuts punctuated the marketing communication, making it incomprehensible to consumers, and even scientifically flawed. As a result of various criticisms on social networks and in the press, and following scepticism regarding compliance with claim regulation, product communication was eventually modified.

Regulation driving innovation

However, regulatory restrictions can also be a source of new opportunities through the substitution of controversial ingredients and the search for safe, environmentally friendly alternatives.

The ban on plastic microbeads a few years ago has led to the development of more environmentally friendly ingredients for scrubs, such as those derived from food industry byproducts.

The European regulation's positive list of preservatives restricts the number of preservatives that can be incorporated into a formula, but this restriction has enabled packaging manufacturers to develop more effective packaging in terms of formula protection, for example airless packaging.

At the same time, regulations and consumer pressure on environmental issues are putting more and more constraints on plastic packaging. In recent months, we've seen a succession of innovations: packaging made from recycled materials, cardboard tubes, solid cosmetics…

The cosmetics sector is characterised by its desire and ability to innovate, which is a great strength for this industry. The continuous improvement mindset of the cosmetic industry allows manufacturers to develop creative products and new approaches to continue offering safe products even more effective, more sustainable, and better adapted to consumer needs and expectations.

Disruptive innovation and regulatory challenges

The very definition of a disruptive innovation is one that we don't expect, and most of the time there are no regulations fitting the framework of this innovation.

As demonstrated at CES in Las Vegas, cosmetic innovation is increasingly driven by generative AI for personalization, virtual product try-ons, but also by digital devices using avant-garde technologies and claiming benefits for skin or hair.

The main regulatory problem is that these innovations fall outside the scope of Cosmetic Regulation, while the need for regulation remains paramount for consumer health and protection.

Regulations are therefore generally adapted or developed a posteriori or in parallel, as this is currently the case for refillable cosmetic products sold in bulk format.

Industry associations like Cosmed plays a major role here, ensuring relevant regulations and guidelines that guarantee both consumer safety and business development are drawn in close partnership with the authorities.