How have formulation strategies adapted to become more resilient in the face of recent disruptions?

The past few years have highlighted a fundamental vulnerability: supply chains optimised solely for cost-efficiency lack resilience. At Kaffe Bueno, we’ve shifted towards an approach that embeds adaptability and circularity at every stage—from sourcing and processing to delivery. This includes favouring traceable, upcycled raw materials that reduce dependence on volatile virgin supply chains. Today’s formulators must think holistically, treating supply inputs as dynamic systems subject to environmental, geopolitical, and market volatility.

How do trade barriers and regionalisation affect formulation strategies?

Geopolitical uncertainty and protectionist policies have driven a wave of regionalisation. In our context, this has meant developing ingredient solutions from local or regionally aggregated waste streams—spent coffee grounds, for example—rather than relying on global monocultures. Regional sourcing can enhance resilience and lower emissions, but it may also reduce ingredient variety and introduce scale challenges. The key is finding a balance that supports both innovation and supply continuity.

How have rising material costs affected formulation and pricing?

Rising input costs have pushed formulators into a tight corner—balancing brand cost targets with consumers’ expectations for quality, performance, and sustainability. This is where ingredient innovation plays a crucial role. Upcycled and multifunctional ingredients offer cost savings not necessarily in raw cost per kilo, but in formulation efficiency and marketing value. We’ve seen strong interest in ingredients that deliver performance while meeting sustainability goals, especially when they can replace multiple inputs.

What are the challenges and opportunities in sourcing sustainable raw materials?

One of the biggest challenges is achieving true traceability and transparency without undermining the systemic benefits of circularity. Take upcycled ingredients: these are often made from side streams aggregated across multiple regions or facilities. Unlike virgin natural ingredients, which may be traced to a single plantation or crop, by-products such as spent coffee grounds are consolidated before processing—regardless of origin—to optimise efficiency and consistency. Demanding single-origin traceability for such materials would reduce operational efficiency, increase price volatility, and create logistical complications that ultimately undermine their environmental benefit.

To enable the global adoption of upcycled inputs, we must rethink traceability standards. These should be adapted to the nature of the ingredient and supply system, rather than forcing circular ingredients to conform to frameworks designed for linear, single-source models. In short: the definition of traceability must evolve alongside the materials we are working with.

How can stakeholders collaborate for better supply chain outcomes?

Cross-functional collaboration is essential. Resilience in the supply chain is no longer the sole remit of procurement—it’s a shared responsibility across R&D, marketing, sustainability, and leadership. For example, when marketing understands the sourcing constraints behind certain ingredients, they can proactively communicate benefits and trade-offs. Meanwhile, procurement and R&D can co-develop strategies with suppliers to pre-empt shortages and reduce dependency on fragile inputs. The goal is a more integrated and transparent value chain.

Have ingredient shortages driven innovation?

Absolutely. Many of today’s most interesting innovations have emerged from constraint. Shortages in certain emulsifiers, surfactants, or preservatives have prompted exploration of novel multifunctional ingredients—often bio-based or waste-derived—that streamline formulation while improving performance. At Kaffe Bueno, some of our key discoveries have stemmed from exploring underutilised fractions of coffee biomass, unlocking new functionality in personal care applications.

How can technology improve supply chain efficiency and transparency?

Digital tools—AI, predictive analytics, and blockchain—are gaining traction across the supply chain. Predictive modelling can help mitigate risk by simulating supply shocks or identifying equivalent ingredient substitutions before shortages occur. For us, digital life cycle assessments (LCAs) and traceability platforms are becoming essential for both internal decision-making and client communication. Technology is not a silver bullet, but it is a powerful enabler of resilience and accountability.

What are the key supply chain challenges in the next 5–10 years?

Climate volatility, biodiversity loss, and regulatory tightening will continue to reshape the supply chain landscape. Brands will need to shift from extractive to regenerative models—embracing circularity, building redundancy into supplier networks, and digitising their operations. Ingredient innovation will be key, especially as pressure mounts to phase out high-impact materials. Those who invest now in sustainable, traceable, and agile systems will be best positioned to lead in the decade ahead.

What lessons can we learn from other industries?

The food sector has made significant strides in upcycling and local valorisation of waste streams, offering a blueprint for the personal care industry. Pharma’s approach to risk management, traceability, and compliance offers another model—especially as the functional demands on cosmetics begin to mirror those in healthcare. Fashion’s recent advances in digital product passports may also offer a roadmap for ingredient-level transparency.

How do regulatory shifts affect sourcing and formulation strategies?

Global regulatory divergence—particularly across the EU, US, and emerging markets—adds complexity to ingredient sourcing. To stay ahead, formulators must engage early with regulatory experts and design products with a “compliance-by-design” mindset. Forward-looking brands are building internal capabilities to interpret future legislation and avoid reformulation cycles. Sustainability is no longer optional; it is rapidly becoming a compliance issue.