Beauty consumers are increasingly demanding transparency in the supply chain, seeking information about ingredient sourcing, ethical practices, and environmental impact. Ninety-four percent of consumers are more likely to be loyal to a brand when it commits to full transparency and are often put off by brands who are not entirely honest about their supply chains.
In today's industry, many brands struggle to provide the level of detail consumers are looking for due to complex global supply chains, inconsistent regulatory standards, and the challenge of tracing raw materials back to their origins. Despite these difficulties, the pressure from this growing number of informed consumers is pushing the market towards greater accountability regarding transparency, driving a shift towards more sustainable and ethical working modules.
For California-based ingredient supplier Macro Oceans, transparency is as simple as putting the name of the farmer that sources its ingredients on every bottle of its Big Kelp Hydration bioactive ingredient, known for its hydrating properties that benefit the skin and hair. As the ingredient is sourced so simply, with minimal damage to the environment, the brand chooses to share its journey on the bottle to keep their customers informed.
“From talking to our beauty brand and formulation partners, we know that traceability really resonates across all generations of beauty consumers,” says Matthew Perkins, Founder and CEO of Macro Oceans. “For us, traceability starts with the kelp farms in the Gulf of Alaska. We label every pack with the name of the farmer, the location of the farm, and the harvest date. The most forward-thinking brands realize that, just like eggs or milk, many consumers want to know where their products come from.”
Macro Oceans traceability begins each fall with kelp cultivation when local farmers dive for wild sorus tissue, the fertile component of a kelp plant. The farmers then use this tissue to cultivate small kelp seeds called sporophytes. Over a few weeks the seeds begin to grow gradually and attach to ropes which go on to be outplanted on the ocean farm. When winter approaches, the kelp algae lays dormant, allowing it to preserve its energy. As water temperatures rise in spring, the small plants begin to grow at pace, thriving in the nutrient-rich waters of the Gulf of Alaska, transforming into healthy, vibrant blades up to 10 feet long.
“Partnering with Macro Oceans has been an engaging and highly rewarding experience for us,” said Alf Pryor, Alaskan kelp farmer and supplier. “We have worked closely with Matthew and the team to ensure that the process has a minimal impact at every step of the way, which has been a great challenge to undertake and highly rewarding. Ultimately, because the processes behind Big Kelp Hydration are so simple, it means there is nothing to hide, so transparency is a given.”
When summer approaches, Pryor and his fellow farmers harvest the kelp, stabilizing it using a natural low-energy process provided by Macro Oceans. The farmers use green chemistry to extract naturally occurring bioactive compounds, which have evolved to protect the kelp from sun, pollution, dehydration, and other environmental stressors.
“Sourcing in the US enhances sustainability and lead times,” says Perkins. He goes on to explain that this geographical choice has not only raised the business’s sustainability profile, but also helps to make supply chains shorter and more secure. “The fact that our kelp bioactive extract is US-made helps create a reliable domestic source, while ensuring dependable delivery and one-week lead times.”
Furthering sustainability efforts, Macro Oceans implements zero waste principles, and upcycles by-products to create a secondary packaging material. The brand is also building on a body of scientific evidence to prove the efficacy of Big Kelp Hydration, and recently completed phase two of its in vivo clinical study, with results available to consumers to further transparency.
Macro Oceans is one of several beauty businesses pushing to improve the visibility of its supply chain for consumers. The EcoBeautyScore Consortium is a voluntary environmental impact assessment and scoring system that was created by Henkel, L'Oréal, LVMH, Natura &Co, and Unilever in 2021. The tool provides consumers with clear, transparent, and comparable environmental impact information based on an assessment methodology created alongside sustainability consultancy Quantis.
At the beginning of this year, more big beauty names came together to find a solution for supply chain responsibility. TRASCE, spearheaded by Chanel, is a consortium of 15 industry leaders—including Albéa Group, Groupe Clarins, Dior, and the Estée Lauder Companies—looking to enhance supply chain mapping. The collective is sponsored by Fédération des Entreprises de la Beauté, the French federation of cosmetics industries.
The consortium's founding members have mapped their supply chains entirely—from ingredients and components used (and their origins) to supplier names, operations, and transformation sites contained within Transparency-One, an ISN company digital platform. In the long term, TRASCE aims to develop a collective approach for analyzing supply chain social and environmental risks, which will then be used to interpret a joint progress plan.
"Through shared digital tools and close collaboration, we have an opportunity to move the needle in transparency and elevate how we source responsibly, with attention to potential impacts on people and the environment," Meghan Ryan, Executive Director of Responsible Sourcing at the Estée Lauder Companies, said at the time of the consortium’s launch.
Whether it's an individual company taking responsibility for supply chain clarity or a large consort coming together to think of a wider plan for the industry, supply chain transparency is essential for beauty brands as it promotes the sourcing of ingredients, reduces environmental impact, and increases social responsibility. Fostering these sustainable habits, no matter how small, allows brands to meet increasing consumer demand and build trust, resulting in an enhanced brand reputation while working towards a more ethical future for the industry. The sector possesses the required resources to create a meaningful impact, but it is crucial for companies to openly and honestly communicate their supply chain procedures and be ready to implement the needed adjustments in order to reap the benefits.
