It has been a busy year for us all whatever our field within the cosmetic industry. As 2024 draws to a close, our industry stands at yet another crossroad packed with dilemmas and intrigue, driven by rapidly evolving consumer demands, regulatory scrutiny, and technological advancements. The past year has been defined by a few critical themes that have reshaped how brands market their products and communicate their claims, particularly around “sustainability”, “transparency”, and “ingredient efficacy”. These shifts have created both opportunities and challenges as the industry looks ahead to 2025, where new trends and regulations are expected to take hold.

Key Themes of 2024: Transparency, Sustainability, and Innovation
In 2024, Sustainability in cosmetics was no longer just a trendy marketing hook—it became a fundamental consumer expectation. Brands that once relied on vague or loosely defined terms such as “natural,” “eco-friendly,” or “sustainable” were met with skepticism. Consumers became more informed, asking tougher questions about sourcing, supply chains, and environmental impact.

At the same time, greenwashing — where brands exaggerated or misrepresented their eco-credentials — was met with harsher regulatory responses. Governments across the globe, particularly in the EU, UK, US, and Australia, cracked down on misleading environmental claims. New legislation required brands to substantiate any environmental claims with hard data, backed by life cycle assessments or third-party certifications. These changes reflected a broader movement towards “truth in marketing”, with sustainability becoming more than just a buzzword—it had to be proven.

Brands that excelled in 2024 were those that embraced “true sustainability”, focusing not only on eco-friendly ingredients but also on sustainable packaging, ethical sourcing, and reducing their carbon footprint. Moving forward, brands will need to double down on these efforts, ensuring their entire product lifecycle is designed to be environmentally responsible.

Transparency has been a significant theme this year, especially as consumers continue to demand clear, honest information about the ingredients in their cosmetics. The trend toward “clean beauty” — defined by simple, non-toxic ingredients and transparent labelling—intensified in 2024. Brands are under increasing pressure to disclose the safety and efficacy of their formulations, avoiding the use of harmful chemicals or potentially irritating additives.

However, this emphasis on transparency also came with challenges. The lack of a unified definition of “clean beauty” has allowed some companies to make broad, unsubstantiated claims, which has led to confusion and regulatory scrutiny. Regulators began enforcing stricter guidelines around how brands communicate the safety of their products, requiring clearer definitions of terms e.g. “non-toxic,” “free from,” and “chemical-free.”

In 2025, the cosmetics industry will likely see a push for “standardized definitions and criteria” for clean beauty products, helping to create a more uniform playing field and reducing the risk of misleading claims.

Ingredient Efficacy and Functional Claims - Consumers today are more informed than ever, and they want their cosmetics to “deliver results”. In 2024, ingredient-focused claims, particularly those backed by science, became a core part of marketing strategies. Terms such as “clinically proven,” “dermatologist-recommended,” and “tested in a controlled environment” were seen across product packaging and advertisements.

Regulatory Challenges and Changes in 2024
There were a number of challenges the industry had to face in 2024 notably from the Regulators:

1. Tougher Global Crackdown on Greenwashing
In 2024, regulators worldwide implemented new guidelines targeting greenwashing. The EU’s Directive on Unfair Commercial Practices and the UK’s Green Claims Code placed stricter rules on the substantiation of environmental claims. Companies were prohibited from using vague terms e.g. “eco-friendly” or “biodegradable” unless they could provide verifiable evidence.

In the United States, the Federal Trade Commission (FTC) updated its Green Guides, offering clearer guidelines on how brands could market their products as environmentally friendly. In Australia, the ACCC focused on penalising misleading claims across the beauty and personal care industries.

The challenge for brands in 2024 was adapting to these new regulations and ensuring that every sustainability claim was backed up with measurable, certifiable data. Brands failing to comply faced penalties, reputation damage, and product recalls. Moving forward, companies must invest in sustainability efforts that go beyond marketing and integrate sustainability into their core business practices.

2. Stricter Ingredient and Efficacy Standards
As cosmetic claims became more sophisticated in 2024, regulators required brands to substantiate their efficacy claims with solid scientific data. Terms e.g. “dermatologically tested” or “clinically proven” had to be accompanied by robust studies. Additionally, the EU’s Cosmetics Regulation expanded its requirements for testing and evidence, pushing for more transparency in how products are formulated and validated.

These stricter standards, while beneficial for consumers, presented challenges for smaller companies that may not have the resources to conduct large-scale clinical trials. Nonetheless, brands must continue to invest in “research and development” to stay competitive and meet regulatory demands.

3. Emerging Focus on Ethical Sourcing
The cosmetics industry has long been criticised for sourcing raw materials in ways that exploit labour and harm the environment. In 2024, regulatory bodies began taking a harder stance on “ethical sourcing”, requiring brands to prove that ingredients were harvested in ways that complied with environmental and labor laws.

In regions e.g. the EU and Canada, new rules focused on traceability, ensuring that brands could track their ingredients from origin to shelf. This emphasis on ethical sourcing not only responded to consumer demand but also set the stage for future regulations focused on human rights and supply chain transparency.

Concerns and Challenges Going into 2025
As the industry enters 2025, there will be three challenges of notable concern.

1. Green-Hushing: A New Dilemma
   While the crackdown on greenwashing was a dominant theme in 2024, “Green-hushing” — the practice of under-reporting sustainability efforts to avoid scrutiny — emerged as a growing issue. Some companies, wary of the regulatory risks of making environmental claims, opted to remain silent about their green initiatives.
   This trend poses a challenge going into 2025, as brands must find a balance between promoting their sustainability efforts and ensuring they comply with increasingly stringent regulations. The risk of green-hushing is that consumers may begin to lose faith in the cosmetics industry’s commitment to sustainability if brands are not transparent about their initiatives.
2. Emerging Marketing Trends: The Role of AI and Digital Engagement
   As we look toward 2025, new marketing trends are expected to disrupt the cosmetics industry, particularly the use of “artificial intelligence (AI)” and “personalisation”. Brands are increasingly using AI-driven platforms to recommend products tailored to individual skin types, concerns, and preferences. This personalised approach allows for hyper-specific claims, but it also presents regulatory challenges regarding data privacy and the accuracy of claims.
   Another trend on the rise is the use of “social media influencers” and “user-generated content” to promote products. While influencer marketing has been a key part of the cosmetics landscape for years, regulators are now scrutinising heavily how influencers disclose paid partnerships and whether their claims about product performance are truthful (!), and unbiased.
3. The Rise of Hybrid Beauty and Multi-Functional Products
   In 2025, we can expect continued growth in “hybrid beauty” — products that offer both skincare and cosmetic benefits in one formulation. This trend reflects consumers’ desire for simplicity, convenience, and multi-functionality. However, these hybrid products will need to substantiate complex claims, such as anti-aging effects combined with makeup coverage, and skinification, which could bring new regulatory hurdles as companies juggle multiple claims in a single product.

What to Watch for in 2025
Next year will be a busy year for cosmetics and their claims. Expectations are:

• Standardized Definitions for Green and Clean Beauty: The cosmetics industry is likely to see regulatory bodies introduce more standardized definitions for terms e.g. “clean” and “green” to reduce ambiguity.
• Increased Focus on Data-Backed Claims: With ingredient efficacy under the spotlight, brands will need to provide even more rigorous scientific backing for their claims, including concentration levels, clinical testing, and proven benefits.
• AI-Driven Claims Under Scrutiny: As AI and personalised recommendations become more prevalent, regulators will start examining whether AI-generated claims about product performance are truthful and transparent.
• Transparency in Influencer Marketing: Expect tighter regulations on how influencers promote cosmetic products, with clearer guidelines on the disclosure of paid partnerships and the accuracy of performance claims.

In Closing
The cosmetics industry in 2024 was marked by its transition towards greater transparency, sustainability, and scientific rigour. As we move into 2025, brands will need to navigate increasingly complex regulations (especially ‘green’ requirements), while responding to new marketing trends such as AI personalisation, hybrid products, and influencer-driven campaigns. Staying ahead will require a commitment to ethical practices, transparent communication, and a focus on innovation backed by scientific data. Claims legislators will be busy!

Happy Christmas Everyone!