2020-01-03 19:41:00

Is Refillable Packaging the Path to Sustainability in Beauty?

2020-01-03 19:41:00

Sustainability has become an important concern in the beauty and personal care industry, but its exact meaning to consumers is subject to interpretation. Refillable packaging concepts can help achieve environmental and financial sustainability, but have their own sets of challenges due to the changes required in consumer purchasing behavior. How is the beauty and personal care market introducing refillable packaging to consumers, and is it enough to help solve the sustainability crisis in the long-run?

Euromonitor’s Health and Nutrition Survey confirms that the environment is a top concern among consumers. In 2019, 63% of U.S. respondents agreed that they try to have a positive impact on the environment through everyday actions. Additionally, sustainable/green/ethical features were among the most important new beauty and personal care product launches in 2018, according to Euromonitor’s survey of beauty and personal care industry professionals. The word “sustainability,” much like the term “naturals” in beauty and personal care, has become a nebulous term that, although it generates a positive reaction, is interpreted differently among consumers.

Sustainability focuses on meeting the needs of the present without compromising the ability of future generations to meet their own needs. Sustainability has three pillars—economic, environmental and social. Given the different levels of understanding among consumers, how can beauty and personal care brands zoom into the concept of sustainability in a way that is easy for consumers to understand, minimizes pressure on the environment, and encourages a change in personal consumption behavior?

One trending manifestation of sustainability in beauty and personal care in the U.S. is refillable packaging, and it is gaining traction among smaller Indie players, mid-size players, and multi-national CPG firms.

Different Concepts of Refillable Packaging

Refillable packaging is not new, but it has evolved into an area of growth and opportunity for beauty and personal care players. An earlier generation of refillable packaging was concentrated in large pack sizes that consumers can use to replenish the contents of a smaller bottle, such as Dial Hand Soap Refill in 52 fluid ounce PET. Although consumers were able to purchase the product at a cheaper price per unit, resources were still required to produce the large rigid plastic, fill it with the product, and ship it to a retail location, with only a passive call to action to recycle the single-use plastic bottle. Eventually, some brands opted to use stand-up flexible plastic pouches, which had lower breakage rates and can be more densely packed in palettes, resulting in lower shipping costs. S.C. Johnson’s Method capitalized on this refill format in their line of hand soaps while Latin American cosmetics giant Natura&Co uses this pack type not just for its hand soap items, but also for its skincare products.