How have formulation strategies in regards to supply chain adapted to become more resilient in the face of recent disruptions (e.g., COVID-19, natural disasters, geopolitical tensions)?

Besides of the challenging supply disruption after COVID19, personal care is advancing into a minimalism on formulations which is very convenient for formulators and in general manufacturing cosmetics. Nowadays, end users are attracted to a more compact INCI list, that is to understand and focuses on hero-product while conveying the proper claims. We can see how brands like The Ordinary from Estee Lauder are nailing a narrative based on less is more, not only with packaging and look and feel, but into a true efficacy showcasing ingredients and even concentrations on the formula. This minimalism approach shows how a formulator can build a formula with ingredients that are truly multi-functional, like emollients which are transportation for actives, oils with proven efficacy and most of all, bring a story telling which is factual on sustainability and uniqueness of the final product.

How do more recent trade barriers, tariffs, and import/export restrictions impact the global supply chain for personal care products. What strategies can be used to mitigate these risks? Can localizing supply chains—such as sourcing ingredients regionally—help mitigate risks, and what trade-offs does this present in formulation

Trends in general, are cyclical, and after few years of a total globalization on claims and ingredients, we are experiencing a “back to local” which started in food and is also impacting cosmetics. Brands as Natura in Brazil have grown by connecting amazing local ingredients from the Amazonic Forest to beautiful textures and proven efficacy, with amazing stories about local impact on communities involved in the ingredient origin. They even brand the collections with the regional element which acts as a hero ingredient and connects with color, fragrance and even texture of the final applications of each line, as a fun maracuja cream bar soap with true black maracuja seeds which adds an exfoliation to the properties of the bar soap (and a super cool look!).

How have rising material costs affected formulation and pricing? How can formulators balance cost pressures from clients/brands with consumer expectations for quality and affordability?

Very connected with minimalism, we address as a challenge for cost a multi-functionality on the formulation design: more and more we need to take holistically in a formulation how we can pick products with a clear differentiation based on not only the hero products, but with chassis that brings several functions per ingredient. One of the launches of P&G for Head&Shoulders, Bare is an anti-dandruff shampoo with only nine ingredients! This simplicity comes with a lot of work on the backend, making the perfect selection of surfactants to guarantee how the product cleans, and an active that is trusted by the formulation community. Implications on this minimalism/multi-functionality are integral for not only cost per kilo, but also supply, warehouse and even procurement efficiency.

What challenges do you face in sourcing sustainable raw materials for personal care formulations, and how do you ensure ethical and environmentally responsible sourcing? How does sustainability influence supply chain decisions for personal care formulations, and what innovations are emerging to address these challenges (e.g., packaging, ingredient sourcing, waste reduction)? How can brands and formulators ensure supply chain transparency to meet this growing consumer demand for ingredient traceability and ethical sourcing?

Transparency is key for cosmetics, with more and more naturality in formulations, companies need to provide clarity on sourcing, and even social impact on the origin of the ingredient. Besides the naturality content that is for given, certifications as Fair For Life are requested more for brands which want to guarantee quality of life of farmers that are the enablers of the final ingredients we add to a final product. Additionally, formulators need to think beyond the transparency on origin, for example, what is the implication of a natural ingredient: Does it compete with Food value chain? What is the water use of that plan? What about seasonality? Yield of production? And also: what is the risk of adding one country of origin only for a hero ingredient? All of these parameters need to be part of the original conceptual design of a new brief development for a formulator

With consumer demand for personal care products constantly evolving, how do formulators help ensure that supply chains are agile enough to meet new trends? What do you see as the key supply chain challenges in regards to personal care formulation and development will face in the next 5 to 10 years and how should brands start preparing now?

Only a few years ago, our industry was integrated mostly in volume and sales for few companies with a global presence. Nowadays, Indies are created every day, captivating end users with agility on launches, “personal storytelling” and what is perceived as a closer relationship between brand and final costumer, that most of the times is catalysed with social media, such as TikTok and Instagram, and influencers who are promoting new brands every day.

Besides the change of the forces in companies and brands of this new reality on cosmetics, this change also brought a new reality on expectation of end users on agility. Just like Zara’s ability to add new styles in a matter of weeks, now Beauty influencers, some of them with their own cosmetic lines, are expecting formulators and CMOs to create formulas and manufacture in a matter of months. As we know, because of the complexity of stability, regulation and sourcing, our industry, to guarantee safety and efficacy of the products, cannot skip steps on development, but definitely we need to use technology, as big data on upcoming trends and (to anticipate what will come) AI for formula stability prediction (back with true and experimental design). They will be fundamental to make our development times faster and enable brands to deliver faster to a customer who demands innovation in an accelerated way than few years ago.