Natural Cosmetic Ingredients: Sustainability + Cost

Utilizing nature and the healing properties from plants have been a part of cultures from all over the world for a very long time… we know this. However, it has taken the beauty industry a little white to adopt these same principles. Using natural cosmetic ingredients as a holistic approach to skincare and haircare is what we here at Essential consider to be our roots, not only as a manufacturer of natural and naturally derived hair and skincare, but as humans who occupy our little space in the universe on earth. What we use to nourish our body’s internal organs is extremely important, so why would we treat our largest organ (our skin) any differently? For a healthy diet, one looks to natural and fresh products, so using what nature has so graciously provided in cosmetics seems... well natural. However, as our population continues to grow, and demand for these amazing resources continues to climb, we find ourselves at an intersection of ingredient supply, demand, cost, and sustainability.

Natural & Naturally Derived Cosmetic Ingredients – Supply & Demand

As more of us pay attention to, and research the ingredients in our hair and skincare products, we are becoming more demanding of which ingredients are included and even more so of which ingredients are excluded from the products we buy. We hear this from many of our customers who own retail brands and whose customers are insisting they keep their products as natural as possible. Their customers are insisting on more natural ingredients and are specifically demanding certain ingredients not be used at all. More information about the risks of certain ingredients is readily accessible online and this concern over using possibly harmful ingredients has caused a sharp rise in demand for natural ingredients. While most natural ingredients are amazing, they are subject to mother nature and all of her moods. This includes climate change, poor crop conditions, weather conditions and often more demand than can reasonably be supplied. When Russia invaded Ukraine, there was a worldwide shortage on sunflower oil, creating low supply and an increase in cost. The ever-increasing demand for natural ingredients leads to at least two important issues: Quality and cost of ingredients.

Natural & Naturally Derived Cosmetic Ingredients – Quality

“Quality is the number one consideration when it comes to purchasing any ingredients.” says Michelle Falls, Purchasing Manager for Essential. “Cost is secondary, but quality is always the top priority when purchasing.” Proof of performance, technical information, quality documentation, and regulatory data are all ways in which vendors and suppliers can prove the quality and effectiveness of their ingredients. And this documentation is becoming more important as new suppliers enter the market. This has caused many vendors and suppliers to invest in new systems, testing methodologies, facilities and technical services to meet the demand for proof of their ingredients' ability to be effective and from nature.

Natural & Naturally Derived Cosmetic Ingredients – Cost

With more demand for natural ingredients and the simple fact that supply is restricted by what is able to be grown and harvested, it’s no surprise that we see an increase in cost. Prices can also be driven up by the suppliers’ increased expense of equipment and scientific studies to prove the quality and effectiveness of their ingredients. Not only did cardboard and paper (big needs in the beauty industry) increase 75% 2020-2022, but soybean, olive oil, and so many other crops have been inflated by poor crop, reduced soil moisture, pandemic and wars, while extreme summer temperatures have exacerbated the cost problem. We are very fortunate to have an experienced purchasing manager who watches crop conditions and pricing like a hawk, however, even with Michelle’s diligence, we are experiencing increased cost in manufacturing due to ingredient prices rising.

These factors may raise concerns for you all, but we are certainly trying to mitigate these issues. We too are buying in bulk to get an economy of scale and reduce overall prices, to maintain as best we can our prices for our customers. Some degree of scarcity of ingredients is almost inevitable as the natural skincare industry balloons, so it pays to plan ahead. While many agriculturalists are looking for better and more efficient water waste and more effective and targeted fertilizers to help mitigate the problems, Essential continues to care about Sustainability as we care for the earth.

Natural & Naturally Derived Cosmetic Ingredients – Sustainability

You will notice many of our ingredients fit into the realm of Green Chemistry and have for years, as we became interested in Sustainability in the aughts. Green Chemistry focuses on minimizing the use of hazardous substances, focusing on 12 key principles. Among these principles are: working on waste prevention, designing safer chemicals (remember, even water is a chemical) and using sustainable raw materials. For example, years ago Essential stopped selling any salts mined from the Dead Sea. As of 2024, the Dead Sea (actually a terminal lake) is now half the size it was in 1976, with levels dropping close to 50 inches every year. If we sell something at Essential, we want to rest assured that it is a sustainable version, which might include our costs being a little higher. It took us years to find sustainable argan oil when argan was at its popular peak, but we didn’t give in and buy any until we were able to find truly sustainable argan.

Naturally derived products can fulfill the principles of green chemistry, thus being sustainable and Essential continues to source environmentally friendly, ethically sourced and responsibly grown ingredients.