By Covalo Team
Sustainability has moved from buzzword to baseline in APAC’s beauty and personal care industry. What was once a differentiator is now a fundamental expectation, shaped by three converging forces: tightening regulations, more discerning consumers, and retailers raising the bar on what they will stock.
This shift is compelling brands to rethink not just packaging, but also the very foundations of how they formulate products, source ingredients, and design supply chains. The winners in this landscape will be those that can embed sustainability credibly and consistently: delivering both compliance and consumer trust while maintaining performance.
At Covalo, we are monitoring this change daily. As the largest, and smartest ingredients platform in the world, we are committed to bringing sustainability to the market in an intuitive way.
So what does this mean for the brands, formulators, and procurement teams operating in the Asia-Pacific region? Let’s dig into the data, the trends, and the practical playbook for building sustainability into every stage of product development.
Market Context: Why APAC Sustainability Matters
APAC is the global engine of beauty growth. The region accounted for about 23% of the global cosmetics and beauty market revenue in 2024, with its market size valued at around $61.8 billion and expected to grow at a CAGR of 6.8% between 2024 and 2031.
APAC dominates the global beauty industry with roughly 39.5% of the market share as of 2025, making it the largest and fastest-growing region globally in this sector. Skincare, haircare, and personal care categories here continue to expand rapidly, with digital commerce driving adoption and innovation cycles faster than in most other regions.
At the same time, sustainability has become a core part of brand positioning. Consumers in Japan and South Korea expect refill systems, while Southeast Asia is showing heightened demand for natural and ethically sourced products. Across the region, premiumisation trends mean shoppers are willing to pay more for products with proven environmental or ethical benefits.
Data also shows how sustainability is shaping sourcing behaviour: the volume of certified and plant-based options now available to buyers reflects the market’s pivot toward claims that can stand up to scrutiny.
Through this behaviour, both brands and suppliers are now looking to strengthen their product development and offerings to follow sustainability standards.
Regulatory & Standards Snapshot
The regulatory picture in APAC is diverse but trending in one direction – stricter sustainability requirements.
- Packaging and waste: Japan has normalised refills, while South Korea enforces detailed recycling schemes. Markets like Singapore are testing extended producer responsibility
- Ingredients: Regulators are increasingly active on issues such as UV filters, preservatives, and microplastics, often anticipating global shifts.
- Certifications: Standards such as COSMOS, RSPO, halal, and reef-safe labeling are moving from differentiators to expected entry requirements for cross-border launches.
For brands, this means sustainability claims must be substantiated with evidence: certifications, lifecycle data, and verified documentation. The fact that thousands of COSMOS-certified and plant-based ingredients are already visible on Covalo illustrates how suppliers are responding to these regulatory shifts in advance, preparing to meet the compliance burden.
In fact, the most used certifications filter at Covalo for the APAC region has steadily been COSMOS for the last six months.
Checklist for buyers navigating APAC regulation:
- Confirm relevant certifications (COSMOS, RSPO, halal, reef-safe) at sourcing stage
- Request environmental data (LCA, carbon or water impact) up front
- Map packaging specs against local waste and recycling schemes
- Track evolving restrictions on UV filters and microplastics
Demand Signals: What APAC Consumers Reward
Sustainability in APAC is no longer a background issue; it is shaping consumer choices in very direct ways. Across the region, natural and plant-based claims have become shorthand for safety and quality, particularly in markets such as China, Japan, and India.
Shoppers are not only more likely to reach for products with these attributes, they also demonstrate a willingness to pay a premium for them. Research shows that ethically sourced and plant-based products in APAC often command higher price points, signaling that sustainability can be a driver of revenue rather than a drag on margins.
Packaging formats are also evolving in response to consumer expectations. Japan has normalised refill systems for everyday beauty and personal care products, while South Korea and China are experimenting with refill stations and reusable packaging models. These practices are increasingly seen as part of a brand’s reputation, particularly in urban centers where eco-conscious lifestyles are gaining traction.
Ethical and transparent sourcing is another rising expectation, especially among younger consumers in Southeast Asia. Claims such as “fair trade,” “cruelty-free,” and “zero-waste” resonate strongly with this demographic, reinforcing the idea that sustainability is not just about environmental impact but also about aligning with personal values.
And brands are responding to this demand. The top used sustainability claims at Covalo go beyond natural, with vegan and bio topping the charts. At the same time, science-backed sustainability is gaining momentum.
Biotech-derived actives and fermentation-based ingredients are emerging as credible alternatives that combine ecological responsibility with performance. In markets where innovation and efficacy are highly prized, consumers are open to these new technologies, provided the claims are transparent and well-documented.
Taken together, these demand signals highlight a crucial reality for brands operating in APAC: sustainability is not a marketing add-on but a commercial driver. Consumers reward tangible action, credible certifications, and transparent communication, and they are increasingly willing to invest in products that prove their environmental and ethical value.
Supply-Side Innovation: Ingredients and Formulations
As sustainability moves from consumer expectation to operational requirement, suppliers and formulators across APAC are responding with a wave of innovation.
On the ingredient side, there is growing adoption of plant-based, biodegradable, and ethically sourced raw materials. At the same time, upcycling (repurposing food or agricultural by-products into functional ingredients) is gaining traction. This offers brands a way to reduce waste while delivering novel, story-worthy materials.
Formulation strategies are evolving alongside these ingredient trends. R&D teams are redesigning products to be more efficient, using lower concentrations of high-impact components without compromising efficacy.
Multi-functional formulas that reduce packaging and production footprint are becoming increasingly common. Preservative systems are being rethought to align with both safety and sustainability goals. The use of water-efficient formulations and concentrated formats, such as powders or refills, reflects a broader push to minimise environmental impact across the product lifecycle.
These innovations are not purely technical. They are driven by a need to align with consumer expectations, regulatory compliance, and operational efficiency simultaneously.
Brands in APAC are experimenting with formulations that not only meet regulatory and performance benchmarks but also clearly communicate their sustainability benefits to end consumers. This holistic approach – considering ingredients, formulation design, and packaging together – is shaping the next generation of beauty and personal care products in the region.
Data Deep-Dive: Trends Shaping Sourcing
Concentrated products, multi-functional SKUs, and water-efficient formulas are emerging as solutions to reduce environmental impact without sacrificing efficacy. These trends indicate a shift in how R&D and procurement teams prioritise ingredient selection and product design, balancing cost, performance, and sustainability.
Taken together, these signals show that APAC buyers are actively seeking ingredients and formulations that can deliver both compliance and market advantage. This creates a pipeline of products that meet regulatory requirements while appealing to environmentally conscious consumers.
Playbook: How to Source Sustainably in APAC
Sourcing sustainably requires a structured approach. Start by defining the sustainability claim you want to support – whether it’s plant-based, fair trade, low-carbon, or biodegradable. Map these claims against available certifications and regulatory requirements in your target markets. Pre-screen suppliers for relevant credentials and ensure documentation is available.
Next, integrate these considerations into formulation decisions. Prioritise multi-functional ingredients, water-efficient formulas, and upcycled or low-impact actives. Pilot new formulations to validate performance and confirm compliance. Build transparency into the product story, ensuring claims are clearly communicated and supported by evidence throughout the supply chain.
For teams navigating multiple markets and a growing pool of sustainable suppliers, sourcing platforms can streamline this process. Covalo helps you consolidate supplier information, certifications, and sustainability attributes into a single view, making it easier to shortlist and evaluate options quickly. This is where we help procurement and R&D teams turn sustainability goals into actionable outcomes without compromising on speed or compliance.
Conclusion
Sustainability in APAC’s beauty and personal care sector is no longer optional – it is integral to growth, consumer trust, and regulatory compliance. From sourcing plant-based or biotech-derived ingredients to rethinking formulations for efficiency and impact, brands that approach sustainability holistically are best positioned to succeed.
By aligning sourcing, formulation, and transparency efforts, businesses can respond to evolving consumer expectations while managing risk and building competitive advantage. The region’s dynamic landscape rewards those who act decisively, innovate responsibly, and embed sustainability into every stage of product development.
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