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In a rapidly evolving, highly competitive personal care global market, it’s critical for brands to stay aligned with consumer preferences. Shell Insights, working with Foresight Factory, conducted proprietary global research in February 2023* to shed light on current consumer perceptions that influence ingredient selection in personal care, and the results revealed that a significant shift is underway. Consumers are still prioritising product performance and scent, but they are also increasingly conscious of sustainability.

Top desired characteristics, product features, and ingredients of concern

Above all, consumers want products that ensure the most effective personal care routines. Across all six countries surveyed—Great Britain, USA, Germany, Brazil, France and China—these were the most non-negotiable product characteristics:

1. Performance quality. Context from a survey respondent from the US: “Overall, people want a product that works and does what is promised and advertised. Why would a consumer want to waste their money on something that doesn’t deliver what they want it to do? Therefore, the performance quality is most important.”
2. Pleasant scent. Scent is the second most important product attribute, particularly in the USA and with younger consumers, with more than 40% of 18-29-year-olds identifying it as the most important. From a respondent in Germany: “Having and using a product that has a nice smell is much more fun to use for a consumer. We make a connection between the smell and a feeling. For example, a shampoo that smells fresh makes me happy every time I wash my hair.”
3. Designed to tackle my hair/skin type. One perspective from Great Britain: “We like to feel that products are designed specifically for us, and we will pay more for products that treat us as individuals.”

The survey also revealed leading ingredients of concern^** most likely to deter consumers from making a purchase for health, safety or environmental reasons:

• Palm oil
• Formaldehyde
• Parabens
• Alcohol
• Sulfates

Sustainability demand is rising. How far will consumers go?

Survey findings indicate that consumers want brands to demonstrate commitment and progress towards sustainability, even if full sustainability is not yet achievable.

• At least 3 in 4 respondents in every country surveyed expressed substantial interest in bio-based (e.g. soy or corn-based) personal care products.
• As summarised by one respondent from France, “To be honest, I am not searching for 100% sustainable products, but I think that every brand should make an effort. I am okay with 60-70% sustainability, but would avoid brands that make zero effort.”
• Sustainable products were most widely associated with being “natural”, “eco-friendly” and “healthy”.

This emerging trend presents an exciting opportunity for personal care manufacturers to explore bio-based feedstocks or ingredients as a sustainability solution. While bio-based feedstocks can be more expensive to procure, research indicates that this cost may be strategically passed on to the consumer. According to the study, a growing number of consumers are not just interested in sustainability but are willing to pay at least up to 10% more for more sustainable or natural products. This premium is even higher for daily beauty users.

In fact, the majority of consumers in all major markets do not want to compromise product performance or experience for sustainability (Great Britain 78%, USA 81%, China 80%, France 80%, Brazil 85% and Germany 73%). There are, however, some characteristics that consumers may be willing to trade off for greater sustainability. When trendspotters were asked what feature they would be willing to sacrifice if a brand were to make their ingredient formulas more sustainable, most picked smell – but only if the product’s performance remained unchanged.

Certifications are valuable consumer indicators

Certifications from highly trusted organisations can be critical in helping consumers navigate their choices and help verify whether a product is safe, effective or sustainable, according to the survey.

More than 25% of global consumers reported they would be less worried if their top “ingredients of concern” (palm oil, formaldehyde, parabens and alcohol) were certified; nearly 30% of global consumers indicated this same sentiment for sulfates.

Related to performance and quality, consumers are also more likely to choose products that contain science-certified ingredients or formulas. This want is particularly prominent in China, where the research indicates there is a deeper fear of false product claims. In the Chinese market, science-certified ingredients were a top-three priority for 31% of respondents in the 30-44 age group.

Surprisingly, consumers asserted the importance of certifications while also admitting the difficulty of ascertaining which certifications can be trusted. In response, some consumers expressed interest in digital traceability solutions, more accessible ways to learn or understand information and clear product labels.

where our experts discuss the considerations needed when choosing a voluntary certification system to help product manufacturers meet rising consumer demand for sustainable products.

Sustainable steps forward

Survey insights suggest a challenge to brands--incorporate more sustainable ingredients and processes, but not at the expense of performance. Product manufacturers and brand owners should consider verification or certification from a trusted source, as well as some degree of consumer education and engagement to maximise the return on these efforts.

Nevertheless, there are bright spots in the path ahead. Bio-based feedstocks may lead to personal care products with unique properties that continue to meet consumer demand for high performance (Industrial Biotechnology, February 2023), and drop-in bio-based materials are available today that do not require significant changes to the manufacturing process (Deloitte, June 2023). Further, the trend toward simplified supply chains can help improve transparency for sustainability claims, enabling clear information about the origin and impact of products (World Economic Forum, September 2023).

*Methodology:

All statistics/claims are from Shell Insights/Foresight Factory unless otherwise indicated.

Shell Insights, working with Foresight Factory, conducted proprietary global research in February 2023 that surveyed approximately 1,800 participants across Great Britain, the USA, China, France, Brazil and Germany to identify levels of and reasons for concern and understand consumer attitudes/awareness regarding different personal care ingredients. The research utilised a quant survey, Bandwidth, Google Trends and in-depth Trendspotter consultations.

**Footnotes

Palm oil Oil palm is the second largest source of edible oil, next only to soybean. It contributes approximately one-fifth of the world’s production of oils and fats (, 2023). Most consumers who avoid palm oil do so due to its negative impact on the environment.

Formaldehyde is a colorless pungent gas in solution made by oxidizing methanol (). In personal care products, it is used as a preservative to prolong shelf life and prevent bacterial contamination. Concerns are mostly driven by fears that it is an unsafe ingredient that poses serious health risks.

Parabens are a family of related chemicals that are commonly used as preservatives in cosmetic products (). A majority of concerned consumers believe that parabens may cause major health issues such as endocrine and hormone disruption.

Alcohol is used in personal care products for its high volatility (it disappears immediately after application) and its drying, refreshing and antimicrobial properties (). Consumers are concerned that it may cause minor health issues, and some think there are better ingredients.

Sulfates are surfactants, meaning they attract both oil and water (, April 2021). They are avoided mostly due to their ability to disturb, irritate and dry the skin.

Sources

“Alcohol in Cosmetics.” Loreal. https://inside-our-products.loreal.com/ingredients/alcohol-cosmetics#:~:text=In%20cosmetics%2C%20alcohol%20is%20used,on%20the%20skin%20or%20hair.

Arunachalam, V.“Palm Oil.” Science Direct. https://www.sciencedirect.com/topics/agricultural-and-biological-sciences/palm-oil

“Biotechnology: Personal Care Market Report.” Industrial Biotechnology. February 2023. https://www.liebertpub.com/doi/10.1089/ind.2023.29299.cro

“F�ǰ��������������.”&�Բ�����;The Chemical Company. https://thechemco.com/chemical/formaldehyde/

“Nature Positive: Role of the Household and Personal Care Products Sector.” World Economic Forum. September 2023. https://www3.weforum.org/docs/WEF_Nature_Positive_Role_of_the_Household_and_Personal_Care_Sector_2023.pdf

“Parabens in Cosmetics.” FDA, February 2023. https://www.fda.gov/cosmetics/cosmetic-ingredients/parabens-cosmetics#:~:text=Parabens%20are%20a%20family%20of,both%20the%20products%20and%20consumers.

“The Truth About Sulfates.” Odele. April 2021. https://odelebeauty.com/blogs/the-rinse/what-are-sulfates

Yankovitz, David et al. “The future of materials.” Deloitte. (June 2023) https://www2.deloitte.com/us/en/insights/industry/oil-and-gas/the-future-of-materials.html

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