As demand for natural cosmetic ingredients grows, so too does the scrutiny of their environmental impact. Several natural raw materials rely on unsustainable supply chains, contributing to deforestation, biodiversity loss, and land overuse. In response, the beauty industry is increasingly turning to upcycling—a process of transforming by-products, waste materials, or surplus ingredients into high-value actives for skincare, haircare, and personal care formulations.

While upcycling has been a rising trend across industries, its recent adoption by major fashion houses, such as Gucci's Continuum initiative (which repurposes deadstock fabrics into new designs), signals its growing importance in the consumer space—even if the term “upcycled” isn’t explicitly used. In the cosmetics sector, upcycling is no longer a niche approach; it is one of the most visible sustainability claims at B2B ingredients shows.

Market Outlook: From Waste to Revenue

According to a recent report by Fortune Business Insights (1), the global market for upcycled cosmetic ingredients was valued at USD 243.3 million in 2023, and is projected to reach USD 400.1 million by 2032, growing at a CAGR of 5.81%. The Asia-Pacific region leads with a 39.5% market share, indicating strong innovation and adoption across the region.

Key application segments include:

• Skincare: Dominates due to significant R&D in repurposing waste streams for high-efficacy actives.
• Haircare: Gaining traction as consumers become more aware of the environmental footprint of daily-use products.

This forecast highlights not only the market’s financial potential but also its alignment with long-term sustainability goals—something increasingly vital to both formulators and brand strategists.

Why Formulators Should Care

The growing appeal of upcycled ingredients lies in their formulation versatility, sustainability credentials, and consumer appeal. Here’s why they matter:

• Clear, Feel-Good Marketing Message: “Upcycled” is a consumer-friendly term. It conveys resourcefulness and environmental responsibility in a way that resonates across demographics.
• Novel Bioactivity: Agricultural and food processing waste often contains bioactive compounds overlooked by conventional supply chains. These can offer anti-aging, soothing, antioxidant, or antimicrobial benefits. With waste streams comprising up to 90% of agricultural production, the untapped potential is enormous.
• High Quality and Performance: Upcycled ingredients typically undergo extensive characterization and safety testing. To overcome initial skepticism, many suppliers invest in clinical efficacy trials and reproducibility studies, raising the bar on ingredient quality.
• GHGs and Waste Reduction: By repurposing material that would otherwise go to landfill or incineration, upcycled ingredients reduce greenhouse gas emissions and landfill dependency, contributing directly to brands' Scope 3 emission reduction targets.

Ingredient Spotlight: What’s Already Available​​​​​​​

Formulators now have access to an expanding range of upcycled ingredients:

• Bioactives: Antioxidants, peptides, anti-inflammatory compounds, and prebiotics
• Functional Ingredients: Surfactants, SPF boosters, exfoliants, and oil absorbers
• Oils and Emollients: From fruit pits and seeds
• Preservative Boosters: Some multifunctional upcycled ingredients exhibit antimicrobial activity that can contribute to preservative systems
• Fragrances and Pigments: Natural aromatic and colour compounds

In fact, Green Chem Finder is actively developing a search function dedicated to upcycled ingredients, including those with preservative potential, to support R&D and procurement teams in locating suitable candidates (2).

Brand Leaders in Upcycled Beauty

Several forward-thinking brands have integrated upcycled ingredients as core components of their identity:

• UpCircle Beauty: Pioneers of the trend, known for repurposing coffee grounds and fruit waste. To date, they have diverted over 450 tonnes of waste from landfill.
• BYBI Beauty: Uses emollients derived from fruit by-products, featured in over half of their range.
• Kadalys: A COSMOS-certified brand sourcing banana waste from Martinique and Guadeloupe.
• No Planet B Upcycling: Focuses on valorising food industry by-products as raw materials for cosmetics.

These brands demonstrate that upcycled formulations are not only possible—they can be highly successful commercially and resonate with environmentally conscious consumers.

Remaining Challenges: Supply Chain and Validation

Despite its promise, the upcycled trend faces several operational hurdles:

• Supply Chain Reliability: Formulators need consistency in biomass sourcing and processing. Suppliers are responding by investing in long-term contracts and scaling up production facilities to meet growing demand.
• Third-Party Certification Gaps: As upcycled claims proliferate, ingredient buyers and regulators expect transparent validation. Currently, the Upcycled Food Association (UFA) offers ingredient certification—but only for food-grade materials. Non-food waste streams commonly used in personal care are not yet covered by a universal standard, leaving a gap in third-party validation.

Conclusion

Upcycled ingredients represent a major opportunity for cosmetic formulators seeking innovation that aligns with sustainability and consumer values. Beyond the marketing appeal, these ingredients can deliver innovative, functional, measurable benefits—while contributing to the circular economy and reducing the industry’s environmental footprint.

As tools like the Green Chem Finder evolve to support more efficient sourcing and ingredient transparency, and as validation schemes expand, upcycling could soon become a mainstream sourcing strategy for the cosmetic formulator of the future.