How Consumer Needs Drive Circular Cosmetics Supply Chains

Consumer purchasing preferences are increasingly reshaping how companies structure their supply chains and product development strategies.

According to Euromonitor, 60% of all new products launched globally in 2025 carry at least one sustainability claim, demonstrating how consumer expectations are driving fundamental changes in how businesses source, produce and deliver goods.

The company's Voice of the Consumer report details how evolving customer demands are compelling organisations to rethink their entire value chain approach.

Understanding consumer purchasing barriers

Euromonitor's report reveals that consumer demand for sustainable products faces three primary obstacles: higher prices (40%), unclear labelling (27%) and uncertainty about which claims to trust (25%).

These barriers are prompting retailers to embed sustainability into their core value proposition, treating it as a complementary feature to important purchase drivers like flavour, quality and performance.

This consumer-driven shift is building trust between brands and buyers. The Voice of the Consumer survey shows that the most trusted product claims in 2025 were recyclable (57%), locally sourced (55%) and natural (54%).

The report describes specific sustainable consumer profiles with distinct purchasing behaviours that are influencing how brands structure their operations.

Supply chain transparency 

Consumer demand for transparency and ethical practices is reshaping supply chain operations, particularly among Green Spenders, which account for 25% of consumers. These buyers are willing to pay more for products that deliver on quality, performance and purpose, as long as they can see evidence of a product's impact and fair labour practices.

Estée Lauder is responding to this demand by building a responsible supply chain. Its focus on responsible sourcing involves using high-quality ingredients and materials while paying attention to potential impacts on people and the environment.

Nancy Mahon, Chief Sustainability Officer at The Estée Lauder Companies, says: "Guided by the values of our customers, we are committed to creating meaningful, long-term value as we work towards becoming the world's most consumer-centric prestige beauty company."

Circular economy driven by consumer expectations

Consumer demand for waste reduction is driving circular economy initiatives across industries. The Zero Wasters, making up 25% of consumers, are compelling brands to implement repair, reuse and recycling programmes.

According to the report, businesses should make packaging easy to recycle, offer refill packs and support repair or resale in response to these consumer demands.

L'Oréal is championing circularity in its product design, developing refillable products including at-home refills with pouches, pods and bottles for everyday essentials. The company also provides in-store refill stations in select locations.

The most prominent consumer type is the Naturalist, making up 30% of the global consumer base. These consumers look for simplicity and transparency when it comes to product labelling.

Unilever has been redesigning its packaging for easy recycling, including deploying a recyclable pump on its Vaseline Intensive Care lotions to meet its goal of making 100% of its rigid plastic packaging reusable, recyclable or compostable by 2030.

Kristina Friedman, Head of Sustainability at Unilever North America, says: "Unilever's long-term ambition is an end to plastic pollution through reduction, circulation and collaboration. Vaseline designing its pumps for recycling is another step in the right direction."