Consumers are increasingly seeking out cosmetics products that align with circular economy principles and are environmentally responsible, a new report from GlobalData has suggested.
As it noted, ‘upcycled’ actives, oils, exfoliants, and functional powders are all ‘gaining traction’ in the cosmetics market, as are brands the adhere to zero-waste principles and deliver transparent sustainability claims.
This echoes the findings of GlobalData’s Q4 2025 consumer survey, which found that close to half (47%) of respondents cited ethical, environmentally friendly, or socially responsible considerations as ‘always’ or ‘often’ influencing their beauty purchasing decisions.
‘Clearer proof points’
“Consumers are increasingly sceptical of broad sustainability claims and are looking for clearer proof points around sourcing and impact,” commented Greeshma Kasturi Katamaneni, consumer analyst at GlobalData.
As it noted, consumers are demanding clearer evidence of where ingredients come from, and the measurable impact that a product delivers, prompting manufacturers to incorporate more upcycled ingredients – often recovered from food and agricultural byproducts that would otherwise be discarded – and transforming them into functional inputs.
“Upcycled ingredients resonate because they are tied to identifiable waste streams and can be communicated with more traceable, measurable narratives, provided brands can back their claims with robust verification and consistent product performance,” Katamaneni added.
Examples of upcycled ingredients in common use across the cosmetics industry are coffee grounds, which are commonly used as exfoliants, while fruit seeds such as watermelon, raspberry, and passionfruit, can be cold pressed into oils for barrier support and conditioning. Elsewhere, grape skins and citrus peels are often processed into antioxidant extracts, while oat or rice byproducts are used in gentle formulations for sensitive skin.
Brands to take advantage of these trends include Upcycled Beauty Company, which launched Pumpkin TONIQ hair shine last year, which utilised rejected pumpkin seeds.
“However, scaling upcycled beauty requires more than ingredient storytelling,” Katamaneni noted. “Converting byproducts into cosmetic-grade inputs requires efficient supply chains and close collaboration between suppliers and laboratories to refine, stabilise, and standardise materials so they perform consistently in formulations. Variability in harvests and processing conditions can affect composition, colour, odour, and active content, making quality control, safety testing, and specification management essential for reliable commercial use.”
Brand differentiation
According to GlobalData, upcycled ingredients can support brand differentiation and consumer engagement, with consumers increasingly receptive to circular economy messaging.
“Upcycled ingredients represent a significant growth opportunity for cosmetics brands looking to combine sustainability credibility with product performance,” said Katamaneni. “Companies that can secure reliable byproduct supply, meet cosmetic-grade quality requirements, and substantiate impact claims will be best positioned to convert upcycling from a trend into a durable competitive advantage.” Read more here.
