Consumer & Sustainability Perceptions 2024: APAC

This report takes a deep dive into the APAC market and explores how Asian consumers in Japan, South Korea, China and India view beauty and sustainability. It will include data and insights around buying behaviours as well as examples of local brands leading in the beauty sustainability space.

This report was created in partnership with trend analysis, innovation and forecasting agency Asia Cosme Lab.

Overview

APAC Key Insights:

• Sustainable omni-presence: green and sustainable initiatives are thriving in Asia, especially regarding new recycling projects.
• As sustainability is rising as an important purchasing factor for Asian consumers, brands are pushing various themes and claims such as paper packaging, reduced CO2 emission, biodegradability of the formula, and smart farm-sourced actives.
• 300+ homegrown Indian clean beauty brands with eco-friendly attitude, in 2022.

87% of Korean consumers want to consume in a more sustainable way

• 49% believe buying sustainable products is a demonstration of who they are, 40% are prepared to invest time and money in companies that try to do good (Kantar).

94% of Chinese consumers indicate sustainability as important.

• Over 80% of consumers in Chinese Mainland GBA (Greater Bay Area) cities said they like to use brands that share the same social values as they do, while 24% want to be given the option to offset the carbon impact of their purchases (InSites Consulting & Human8).
• 84% of Japanese consumers are interested in environmental issues, while 56% are somewhat interested (Cuore).

Sustainable Initiatives & Priorities: Snapshot

Regions: APAC

Four key markets in the APAC region will be covered in this report:

Sustainable Omni-Presence

Press articles, brand campaigns and brand initiatives in magazine editorials reflect the rise of eco-awareness in this region as seen in the examples below:

• Hot topics in the press and recent sustainable actions by brands include: 100% natural, waterless, cultivation of limited resources and upcycling trends.

• 2023 new green beauty trend: smart green beauty guide for the summer focusing on a co-existence between human, nature and animals as seen in Elle Korea.

• “Magic 8” empty bottle recycling station: accepts any brand or packaging but it must be a skincare bottle. The empty bottles are recycled into desks and chairs donated to schools or reshaped into a WOLLUP co-branding skateboard.

Overarching Sustainable Product Trends

Six top sustainable beauty product and packaging trends in Asia.

1. Recycled Packaging - Paper

• The Japanese make-up brand KATE's Bright Future Box collection features single eyeshadows in a mono-material package made entirely of natural paper pulp, including the dish.  

• Korean supplier KOLMAR KOREA has developed a stick-type cosmetic containers made from non-wood paper. With the exception of the product's fixed rear cap, it is entirely composed of paper, reducing plastic usage by 86%.
• The body of the packaging is made from non-wood paper called mineral paper. Mineral paper is created using leftover stones discarded from quarries or mines. When disposed of, it naturally decomposes under light and returns to its original form as stone powder, making it an environmentally friendly material. It is characterised by its high durability, is water-and-moisture resistance, and it does not easily tear.

2. Less CO2 Emission

• For the production of its serum Eudermine, Shiseido is the first in the world to adopt Liquiform - a packaging technology that simultaneously manufactures the bottle and fills it with the content for cosmetic use. This reduces CO2 emissions by approximately 70%.
• The Korean vegan brand VIVIDRAW’s Cherry Collagen Firming Capsule Ampoule is produced with an eco-gredient technology. The maturation and extraction process is done at room temperature instead of using heat or low temperature, saving 35% energy, 35% CO2 emission and 17.5% heat emission. 

• Japanese brand Lycopure uses woody biomass, a carbon-neutral fuel. CO2 is extracted from the combustion gas and used for photosynthesis in tomatoes, helping to reduce CO2 emissions.

3. Biodegradable Formula

• Products with biodegradable ingredients and formulas is a rising sustainable beauty trend in Asia.
• Kruhi is a Japanese brand that offers products that are 100% naturally derived and environmentally and human-friendly, with a biodegradability rate of 98.9%. They prioritise sustainable manufacturing by up-cycling non-standard fruits and utilising recyclable aluminium bottles. Their dedication to sustainability has earned them the Gold Award at the "Sustainable Cosmetics Awards 2022.

• The hair and body care range of the Korean brand Seedbee boasts a 97% biodegradable formula, a first for a Korean body care product.
• Amore Pacific-owned Laneige's Water Bank Blue Hyaluronic range claims to have a high biodegradability formula to protect the aquatic environment including 95.6% for its Cream (for oily to combination skin) and up to 99.8% for the Cleansing Gel.  

4. Upcycled Ingredients

• Chinese brand Herbeast’s Reishi Spore Purifying Mask is formulated with reishi extract and corn starch, instead of kaolin or charcoal. The reishi extract is sourced from leftover powder from the production of the brand’s Reishi Oil. 

• WASTECARE™ is a Japanese premium ‘night serum’ product made from wastewater from AIZOME’s textile dyeing factory. Because AIZOME only uses plants, water and ultrasound (instead of synthetic chemicals in their dyeing process), the wastewater, like the textiles, has natural health benefits including anti-inflammation, pain-relief, and skin rejuvenation, certified by the National Eczema Association and the University of Cambridge.

• SIITA's Hand Cream integrate fragrances made of 100% upcycled ingredients, saving energy and raw materials. 

5. Smart Farm Grown Actives

• In the quest for sustainability, brands turn to smart farms that enable full control of the ingredients’ growth while saving energy. Smart farms are free from external influences; the crops can grow safely, independent of pollution or weather changes. Until now smart farms have been mostly used in the food industry but now it represents a new way for brands to claim "clean beauty" in Korea.
• Nature Republic’s new vegan skin & body care collection is formulated with smart farm grown herbs.

• Monday Edition’s Pink Inspiration Cream Drop is a cream ampoule that contains red clover extracts grown in a smart farm.
• Sustainability meets efficacy in SNP’s The Cica 4.0 range, formulated with smart farm-grown THE CICA™ that is 4 times more concentrated in actives compared to a normally grown centella asiatica.

6. Seasonality as an Approach to Sustainability

• Appreciating an ingredient’s seasonality is a way to approach sustainability, while adding the appeal of limited availability for consumers. 
• Indian brand Forest Essentials' Fresh From The Forest range is a limited edition range for summer with a made-to-order product system and seasonal harvesting to deliver fresh potent Ayurvedic ingredients. Forest Essentials is serving a limited-edition range that is based on the ‘farm-to-bottle’ concept. 
• SHIRO created the "Seasonal Series" with the hope that people will enjoy seasonal ingredients on their skin just as they enjoy eating them. SHIRO uses Kigashira Yuzu, from the Kito area of Tokushima Prefecture (known as the 'Golden Village'), that was harvested at its peak in November 2022. Its juice was squeezed on the day of harvest. 

China

Market & Consumer Insights

Sustainability boom: in 2022, 32% Chinese consumers prioritise sustainability and environmental impact in their purchase decision making process (eeo..com.cn 2022)

• Sustainability is a lifestyle that KOLs says is about caring for the planet. Solid formats and natural ingredients are highly recommended. 
• KOLs and influencers play an important role in refillable products. They highlight the advantages of using refills, which is cheaper and more ecological.
• Top KOLs proposes “clean and effective” in product formulation, which refers to skin-friendly, animal-friendly, planet-friendly, and efficacy even for sensitive skin.

Environmental Sustainability

LIN QINGXUAN

High-end skin care brand LIN QINGXUAN has started construction of its “carbon neutral plant and R&D center” in Shanghai. With an investment of nearly 300 million RMB, the center which spans a total area of 45,000 m2 will be in operation by the end of 2023. 

This new factory will be built into a “carbon neutral energy efficiency platform” to achieve “zero CO2 emission”. The brand will continue to focus on quality innovation and bring more quality products to consumers.

Local Sustainable Beauty Brands

HerBeast

• Established in 2021 with sustainable lifestyle branding.
• Inspired by classic Chinese culture, the brand offers premium skincare with sustainable packaging, herbal ingredients, and modern science.
• Sustainable actions: refillable, recycled & recyclable packaging, reused raw material, sustainable offline events.

One Leaf (Chicmax)

• Established in 2014 and rebranded to clean beauty in 2022 focusing on skin barrier repair.
• For sensitive skin consumers, the mass brand uses botanical ingredients and active scientific ingredients to strengthen the skin barrier.
• Sustainable actions: ingredients naturality index for each product, FSC certified paper, printed with ecological ink.

Dewy Lab

• Established in 2021 and famous for base make-up.
• Sensitive skin friendly, the mass makeup brand avoids suspicious ingredients and pays attention to formula freshness to create skin-loving makeup products.
• Sustainable actions: refillable, recycled & recyclable packaging, FSC-certified paper,  printed with soy ink

Marketing Insights

• On trendy social media platform RED, popular posts educate the audience on the meaning of sustainability using logos such as cruelty-free, recycled, and recyclable symbols.
• The top search result is hashtag #ChangedWasteToTreasure. It teaches the audience how to reuse expired products, how to fix broken lipstick, and how to finish the product without wasting it.

Clean, vegan, cruelty-free, natural, and minimalist are always mentioned when discussing sustainability.

• There has been a significant rise in clean beauty since 2022 when 'clean beauty' was used in the China’s market for the first time.  

Japan

Market & Consumer Insights

• Organic & sustainable: in response to the mask-wearing lifestyle and the rise of sensitive skin, manufacturers have been introducing fragrance-free and additive-free products to provide comfort to individuals with delicate skin.
• Additionally, there is an increasing consumer preference for products that align with the SDGs (Sustainable Development Goals) and do not contain ingredients that have a negative impact on people or the environment. This has led to a focus on organic and sustainable ingredients in the cosmetics industry, with a shift away from petroleum-based materials towards plant-derived alternatives. Companies that promote "additive-free" and "free-from" as part of their brand value are resonating with consumers' natural inclination (SYOGO NEWS,2023).

Japan's beauty industry is slowly embracing organic and sustainable cosmetics. The aim is to lead to responsible consumption and eco-friendly practices that contribute to both personal well-being and societal impact.

• According to a survey conducted by FUMIKODA Co., Ltd. in March 2020, targeting 956 men and women aged 20+, awareness regarding terms such “ethical” and "sustainable" remained low, with recognition rates at 18% and 21% respectively. Regarding "SDGs“, 58.2% of respondents answered that they were "not familiar" with the term.
• Although there is a significant interest in "ethical" products with 48.8% preferring them, only 4.1% would pay double for ethical products, suggesting price sensitivity hampers their adoption in the industry.
• According to a 2018 survey by Macromill Inc. involving 1,000 respondents aged 20-69, 65% felt plastic packaging and disposable items were "unnecessary." Specifically, 56.7% found "outer packaging film" excessive. 24% said they would refuse such items during purchases, with women more inclined to do so. 

• In a survey conducted by Hakuhodo Inc., 82.7% of respondents stated that they would not buy products with negative environmental or social impacts. Excessive packaging is easily associated with environmental destruction, making it more likely to lead to boycotts.
• Interest in sustainability is increasing as lifestyle changes due to the coronavirus pandemic. Consumers tend to choose products with sustainable properties such as "long-lasting" and "reusable“.

Millennials and Gen Z are the most inclined to change their consumption habits with regard to the environment.

Local Sustainable Beauty Brands

Shiseido

• Launched in 1872.
• Skincare, make-up, suncare brand that combines Western and Eastern innovations to inspire beauty & share the Japanese sense of spiritual beauty. 
• Eudermine serum created with a specific technology which combines "bottle manufacturing" and "liquid filling" to reduce CO2 emissions.
• Sustainable actions: compactable refills to reduce waste mass, Ultimune serum refill stations also available.

SK-II

• Launched in the 1980s.
• High-end skincare brand featuring main active PITERA™; fermented ingredient derived from yeast.
• SK-II NOW programme is a point intitative that awards “Miracle Drops” when consumers give back empty containers. Based on the purchased price of the product, which can be exchanged for samples and eco-friendly goods or donated to SK-II Zero Waste Japan.

Marketing Insights

Shiseido

• Inspired by the unique Japanese concept of "MOTTAINAI" (to have a deep regret over “wastefulness”), Shiseido explains how it carries out environmental initiatives through #ShiseidoSBAS, an online community. The brand held a pop-up store that explained how the sustainable packaging of its EUDERMINE Serum reduces CO2.

• The brand has developed a range of SDGs and these goals will sit under the Shiseido's new initiative called Sustainable Beauty Actions (SBAS). There are a set of logos expressing these actions, which is indicated on the product packaging.

South Korea

Market & Consumer Insights

40% of Korean consumers have previously purchased conscious beauty (sustainable) products. 56% of these purchases are skincare items, 33% are bodycare and 28% haircare (MezzoMedia, 2023).

• Going further than clean or vegan beauty, Korean Millennials and Gen Z consumers are interested in conscious beauty, which considers the use of renewable raw materials, eco-friendly and ethical production processes, and the recycling of leftover material.
• In a 2022 survey conducted by the magazine Singles, 67% claimed to have a growing interest in a beauty brand’s values and ethical behaviour.

7 out of 10 said that values of cosmetics brands affects their purchase decision. 58% say they are interested because they feel the need to protect the environment. 

• 66% say they would by from a brand if the brand is sustainable. However this notion remains vague for consumers, as 48% claim safe ingredients is the most important factor in sustainable beauty. 
• According to Kantar’s Sustainability Sector Index 2022, Korean consumers are the most sensitive in Asia when it comes to sustainability.
• While 49% believe buying sustainable products is a demonstration of who they are, 87% of respondents are unsure about brand’s sustainable initiatives. They are prepared to invest time and money in companies that try to do good, but 46% are still concerned brands’ sustainable initiatives are only for marketing purposes. 

Environmental Sustainability

COSMAX

One of Korea’s biggest beauty suppliers, COSMAX has announced to stop producing products with micro-plastics under 5mm by 2030, including raw material. The company announced their long-term eco-friendly strategy which includes:

• 2030 Plastic Initiative: expand the use of eco-friendly materials, with a focus on facilitating recycling.
• "COSMAX Conscious Beauty" system: sets standards for ingredients, classifying them into categories of human and environmental safety and creating certification for products meeting these standards. Management of environmental impact during the production process (water resources, air quality, waste management, chemical substances), with standards exceeding legal requirements. They are also actively reducing emissions through their in-house purification system.

Local Sustainable Beauty Brands

Siita

• Re-launched in 2021 as a zero-waste vegan cosmetics brand. 
• Vegan & sustainable skincare & body care brand. Zero-waste company. 
• Collects all containers that are made of biodegradable plastic and turns it into organic compost.
• Uses upcycled raw material for its fragrance.

Longtake (Amore Pacific)

• Launched in 2022 as a sustainable & vegan lifestyle brand focused on woody fragrances inspired by the forest. 
• Fragrance-focused vegan hair, body brand.
• Integrates upcycled oakwood fragrance, derived from leftover sawdust.

Vividraw (Gowoonsesang)

• Launched in 2022 by Gowoonsesang cosmetics, the mother company behind the popular derma skincare brand Dr. G.
• Vegan & clean functional brand.
• Energy-saving eco-gredient production processes, features biodegradable formulas and solid cleansing bars (water/plastic saving).

Marketing Insights

Laneige

• Since July 2022, Laneige has been focusing on its HUG for Universal Goodness sustainability campaign. The Amore Pacific owned brand has been taking part in activities that spread the value of water and preserve water resources for the past 10 years based on the belief that water, the origin of all life, is the key to beautiful skin and vibrant life. The brand is working to reduce its products' impact on water and the environment.
• On its website, the brand communicates how much water has been saved during their production processes.
• The brand's Instagram account highlight marine preservation initiatives conducted in Korea, China and Thailand in collaboration with WWF.
• Laneige is also motivating consumers to reduce water consumption in their daily routines with the hashtag #SAVEWATER by carrying a reusable cup for example.

India

Market & Consumer Insights

“As consumers' choices grow conscious, sustainable beauty brands in India continue to increase. Relying primarily on quality ingredients that are sourced responsibly, mindful, and slow beauty trends are solidifying their hard-earned place in the Indian beauty industry” (Vogue India, Oct 2022)

• While green issues are at the heart of sustainability globally, for Indian consumers it also centres around human rights, gender rights and creating an equitable society.
• People perceive sustainable brands as friendly and helpful. They are thought of as more inclusive and ‘we-oriented’. Organisations perceived as supportive, down-to-earth and empathic are building an eco-friendly image and tend to be more popular (Nepa).

60% of consumers in India are willing to pay a premium for ‘sustainability products’ (Bain & Company) 

• 88% of Indian consumers are willing to spend on products that are either made locally or are sustainable in nature. (PwC Global Consumer Insights Pulse)

• However, 71% say  ‘it is really hard to tell which products are good or bad ethically, for the environment or for sustainability’ (Kantar).
• The number of Indian consumers citing air quality as a top three environmental concern is higher than the global average: 43% of Indians compared to 36% of the global average (Mintel).

Indian consumers’ sustainable behaviours is focused on simplicity and frugality.

• Buying fewer new clothes (46 %), recycling packaging (39%) and buying products certified to be less harmful to the environment (37%) are the three top sustainable behaviours (Mintel).
• When asked about solutions they perceive to have a high-to-moderate positive impact on the environment, consumers are supportive of forestation and conservation projects and investments in renewable energy (Mintel).

Environmental Sustainability

Leading Indian celebrities champion sustainability through innovative partnerships such as collaborations with The Disposal Company.

• India's renowned celebrities and their brand labels, such as Kriti Sanon's HYPHEN, Alia Bhatt's Ed-a-Mamma, Anushka Sharma and Virat Kohli's Blue Tribe Foods, and Deepika Padukone 's 82°E , are embracing environmental sustainability. 
• These icons are trailblazing a plastic-neutral movement by collaborating with The Disposal Company (TDC), actively endorsing ethical recycling, supporting waste workers, and promoting sustainable practices.
• Premium skincare brand 82°E, for example, has recycled 1,200kg of plastic waste and contributed to reducing over 70,000 tonnes of CO2 emissions annually.

Local Sustainable Beauty Brands

Soultree

• Launched in 2008, acquired by Lotus Herbals in 2022.
• The brand positions itself as: beauty that contributes to sustainable living, while also supporting the livelihoods of women farmers in Uttarakhand.
• Opened the first solar-powered beauty store in India in Gurugram.
• Supports fair trade sourcing & sustainably sourced ingredients. Certified organic products.

Juicy Chemistry

• Founded in 2014.
• One of the first organic & natural skincare brand in the Indian landscape.
• Sourcing & manufacturing processes are eco-friendly and any waste generated gets reused or repurposed.
• The brand has turned plastic neutral in 2022.
• Partners with the Disposal Company. Possibility of contributing INR5 at checkout to make the order “plastic positive”.

ASA

• Launched in 2020 as clean & sustainable make-up brand. 
• Empowering one to choose a more conscious way of life –“clean awakening” -to embrace authentic products that accentuate their natural beauty, while also preserving the environment.
• Ecocert ingredients, all products are refillable.

Marketing Insights

Asa

• Asa refillable programme: India's first luxury clean beauty brand with refillable solutions for every product in every shade.
• The smart refillable and reusable system aims to build a world focused on mindful consumption and sustainable choices.

"Every time you purchase a refull, you are a step closer to generating less waste, Choose not just for yourself, but for the planet as well."

• The three-step refillable system makes it very easy to adopt a conscious lifestyle without having to compromise on the efficacy or quality of the product.

Key Takeaways

• In the post pandemic era, brands and consumers in Asia are adopting a more sustainable way of life.
• Recycled/recyclable and refillable or compostable packaging are becoming hot topics in Asia.
• In terms of formulations, there is increased effort put on biodegradability, but also on producing ingredients without impacting/damaging the planet, pushing brands to invest in bio-tech and green farming innovations.
• Clean and naturality is about transparency, non-toxicity and safety but also efficiency for Asian consumers.
• Vegan beauty remains strong especially in Korea and India, where it is widely understood and associated with green beauty in the mind of most consumers (can lead to confusion and “veganwashing”.) In South Asia: Indian natural brands are starting to commit to more sustainability, but it is still associated with premium positioning and is not affordable for most consumers. For Indian consumers, sustainability is associated with a more general vision of equity.
• In Indonesia and Thailand, the topic is not really emerging on the beauty scene, however some beauty retailers are offering recycling programmes in store. Most consumers are more attracted to natural ingredients/clean beauty than sustainability.