Keywords: biotechnology, sustainability, beauty ingredients, innovation, 
natural alternatives, misconceptions

From now until the end of the year, Covalo, the world’s largest ingredients platform, is kicking off its campaign on biotechnology in the cosmetics and personal care space.

Biotech refers to “technology based on biology” – using living organisms, cells, and our biological processes to develop and enhance products. It allows for lab-developed alternatives to animal and plant-derived ingredients, promoting sustainability and safety, without compromising on performance.

Wait a minute, sustainable AND high-performing? Is it possible to have the best of both worlds? There’s no doubt that biotech has been a hot topic in beauty over the past couple years, combining the power of nature with science to create effective and innovative cosmetic solutions, while preventing the overuse of nature’s resources.

Covalo, along with other industry brands and suppliers says: YES, it is indeed possible to have both, and the answer lies in Biotech. It’s time to make some noise around Biotech, create clarity for both brands and the end consumer through education, and drive positive change in the industry. According to Grand View Research, a market research company, “the global biotech ingredients market size was $1.61 billion in 2019, and it’s expected to grow at a compound annual growth rate of 9.3% to reach $3.01 billion in 2027,” which means it’s certainly already a growing trend. Several beauty brands are already leading the way in leveraging biotechnology to create innovative, sustainable products. Brands like Biossance and Algenist are at the forefront, utilizing bio-engineered ingredients like squalane derived from sugarcane and algae-based compounds to replace less eco-friendly alternatives. Aveda and L’Oréal have also embraced biotechnology, investing in lab-grown ingredients that minimize environmental impact while enhancing product efficacy. By integrating biotech innovations, these brands are not only improving the performance of their products but also setting new standards for sustainability in the beauty industry.

Leading the way in innovative biotech-based raw materials and cosmetic ingredients are supplier companies like Givaudan, Evolved by Nature, LipoTrue, CLR Berlin, and Core Biogenesis. Givaudan is known for producing highly pure squalane through the fermentation of plant sugars, offering a sustainable alternative to traditional sources. Evolved by Nature has developed the first 100% natural peptide derived from silk, setting new standards in natural skincare. Core Biogenesis specializes in growth factor ingredients, advancing regenerative beauty solutions. CLR Berlin focuses on microbiome-enhancing probiotics with their fermented kefiran ingredient, while LipoTrue pioneers active ingredients obtained from the fermentation of a new marine species, harnessing the potential of marine biotech. These suppliers are shaping the future of cosmetics with sustainability and efficacy at the forefront.

The purpose of this campaign is to gather industry perspectives on the Biotech topic, to help brands bring sustainable products to market faster, and to help their promising products succeed in the market. Yann Chilvers, Co-Founder of Covalo, comments: “Biotechnology is rapidly shaping the future of personal care innovation, but for it to reach its full potential, brands and consumers need greater education and clarity. At Covalo, we believe biotech offers transformative solutions to the industry’s most pressing challenges, with sustainability at the very top of the list. Our campaign aims to drive sustainable change through education.”  

Misconceptions

Biotech is a truly promising category full of opportunities that can help address some of the industry’s greatest challenges. However, there are some misconceptions and barriers to adoption that must be addressed. As the go-to platform that 5,000+ beauty brands use to speed up their product development work every day, we at Covalo have exclusive access to data, allowing us to derive some fresh insights and analysis based on search activity and patterns performed by formulators and brands.

1. Natural (deceptively) does not equal sustainable

Natural is the #1 most prominent trend we’re seeing across search activity on Covalo. In fact, “Natural” and “COSMOS” are two of the most-used filters on the platform. While it’s positive that brands and formulators are actively looking for natural and organic products, presumably as a way to drive sustainable practices, there are 2 issues with this.

Firstly, consumers tend to wrongfully perceive anything natural as being sustainable. This is not always the case. Sourcing ingredients from nature somehow sounds more sustainable, but it’s important to think of the process as a whole. Contrary to popular belief, there are many natural ingredients that are extremely environmentally costly to produce, as they take up valuable resources. Michelle Wong, Chemistry PhD, gives an example: “Take essential oils, for example. It can take hundreds to thousands of kilograms of plant material to get a single kilogram of essential oil, and many essential oils are mostly sourced from plants growing in the wild.” Additionally, natural products tend to have shorter shelf lives and expire faster than products with more synthetic components, resulting in lots of waste. This means that not only is natural not synonymous with sustainable, natural ingredients and products can actually be quite disastrously unsustainable, as they use up resources.

In the cases where natural products are harvested in a sustainable way, it’s important to remember that sustainability involves an entire end-to-end process, from sourcing to packaging and beyond, so there are many data points that make up what it means to be sustainable.

Biotech ingredients, while synthetic and developed through innovative scientific processes in the lab, can drive real sustainability in the industry as they do not use up the earth’s valuable resources.

2. Sustainable alternatives are in high demand, but these alternatives should not be limited to natural ingredients

Covalo search volume for palm oil alternatives is 325% higher than searches for palm oil itself. There is very little demand for Elaeis Guineensis or palm oil on the Covalo platform, but shea butter – a widely considered palm oil alternative – is the 25th most-searched term across the platform.

This is interesting in the context of the “Naturals” trend discussed above, since consumers and the industry are placing sustainability at the top of their agendas, and pushing for it from all corners. It seems like brands and consumers alike are catching onto the fact that palm oil, a versatile and inexpensive vegetable oil found in various personal care products, is extremely unsustainable due to the widespread deforestation, habitat destruction that’s associated with its production, leading to increased greenhouse gas emissions. While certain specific natural ingredients have been blacklisted and labeled “no-go’s,” due to growing awareness of the detrimental effects, the industry still has a highly favorable view of natural ingredients in general, despite the fact that many natural ingredients still require the harvesting of the earth’s real resources – some in more harmful ways than others.

Rather than purely considering alternatives from other nuts and vegetables, which may come with similar environmental impact, it’s important to open our minds to new innovative solutions offered by biotech, such as Biosurfactant by Kaneka Belgium, a palm oil alternative which is biodegradable, plant-based, renewable, eco-friendly, clean, safe, cruelty-free, and more.

This interest in sustainable alternatives shows that the drive for sustainable beauty is more than a trend – it’s here to stay. Brands and consumers are striving to make sustainable choices, and want to do the right thing, but a lack of true understanding around sustainability as an end-to-end process, and getting tripped up by sustainable-sounding terms like “natural,” may be getting in the way.

Another pattern we’re seeing on our Covalo platform, that reveals that brands are pushing for sustainability, is that Mica and titanium dioxide are in high demand, while polyethylene terephthalate (PET) is rarely searched for. Mica and titanium dioxide are considered common components for biodegradable glitter, while PET is widely known to be environmentally harmful.

3. GMOs (Genetically Modified Organisms) are not always bad

“GMO” has limited search volume on Covalo, but we’ve noticed that this search comes with an intent to avoid GMO. For example, “GMO-free” or “Non-GMO.”

GMO refers to the modification of the genetic code (DNA), to introduce a new or improved characteristic. The general public often views GMOs with skepticism and concern. Many consumers worry about the potential health risks, environmental impacts, and the lack of transparency in the use of GMOs in food and products. There is a fear that altering an organism’s genetic structure could lead to unforeseen side effects, such as allergens or long-term health consequences. Additionally, concerns over the use of pesticides and the domination of large biotech corporations in agriculture also contribute to public hesitation. Misunderstandings and lack of education about what GMOs actually are often fuel these fears.

When used in biotechnology for cosmetics and personal care, however, GMOs can actually provide numerous benefits. Genetically modified microorganisms, for example, can be engineered to produce ingredients like hyaluronic acid, vitamins, and proteins in a sustainable and efficient way. These bioengineered ingredients can be safer, more consistent in quality, and less reliant on traditional agricultural processes, reducing the environmental footprint. Furthermore, the production of these ingredients is heavily regulated and tested for safety, ensuring they meet stringent industry standards. This application of GMOs can lead to innovative, effective products that are both environmentally friendly and safe for consumers. There is work to be done to debunk the myth that GMOs are always bad.

Measurable impact of biotech vs. natural ingredients

With sustainability at the top of the industry’s list of concerns, biotech is the route to solve some of the industry’s most pressing issues, with measurable impact. Here are some examples of biotech cosmetic ingredients compared to their natural counterparts, highlighting how biotech can be more sustainable or effective:

Example #1: Hyaluronic Acid

In the 1960s, Hyaluronic acid was historically sourced from animal or human connective tissues – a common source being rooster combs. This required farming, slaughter, and extraction, which uses significantly more land and resources. In terms of effectiveness, this natural method would mean variable quality and molecular structure, which could affect performance in formations. Over time, the use of animal-derived hyaluronic acid has decreased due to potential allergic reactions, ethical concerns, and the rise of more sustainable and cruelty-free methods that leverage Biotech.

The biotech version, produced using biofermentation, a process using lactic acid bacteria, is typically created in controlled environments, ensuring consistent molecular weight and purity. This avoids the traditional extraction from animal tissues, reducing environmental impact and promoting cruelty-free sourcing. Biotech-derived hyaluronic acid often has a more consistent molecular size, allowing for better hydration and absorption in skincare formulations.

Example #2: Squalene

In the natural version, squalene, an oil compound, is extracted from the liver of deep-sea sharks or from olives. Needless to say, shark squalene harvesting contributes to overfishing and endangers shark populations, while olive-derived squalane requires large agricultural land areas and is prone to crop yield variability. In terms of performance, both natural and biotech-based squalene perform similarly, but the environmental cost makes biotech squalene a more ethical choice.

Biotech-based squalane (a lighter, usually plant-derived derivative of squalene) is created via fermentation using genetically modified yeast or sugarcane, which produces a high-quality, sustainable squalane. Givaudan’s Neossance™ Squalane, for example, is made via fermentation of Bonsucro-certified renewable sugarcane.

Biotech squalane production results in up to 30% fewer carbon emissions compared to harvesting shark liver oil, the traditional source. Sugarcane-based squalane farming requires less land compared to other traditional oil sources. In both of these examples, biotech versions offer significant advantages in sustainability, consistency, and effectiveness, making them not only a more ethical choice, but often a more reliable one in terms of product performance. Trust us, there are plenty of other ingredients that have a similar story – and we want to spread the word!

Who is Covalo?

Covalo helps consumer goods companies bring sustainable products to market faster, by empowering them to better connect, collaborate, and transact with their suppliers. The result? A one-stop-shop platform that simplifies and accelerates the consumer goods product development process.

As an industry connector, enabling meaningful relationships between brands and suppliers, with a strong focus on sustainability, we wanted to gather all the relevant perspectives and information on Biotechnology from the industry, to provide education on where the industry currently stands, and why Biotech is a promising space to watch, full of opportunities for a more sustainable future.

Curious about what we have in store for our Biotech campaign?

Follow Covalo’s LinkedIn page and blog for regular updates!