The beauty industry has a packaging problem — and consumers are paying attention. In 2023, global beauty and wellness retail sales reached $446 billion, generating an estimated $33 billion in beauty packaging alone, according to data from Pact Collective, a nonprofit founded to tackle hard-to-recycle beauty packaging.
Yet, despite more than 75% of US consumers prioritizing sustainable packaging options, only a fraction of the 120 billion units produced annually are actually recycled, Pact’s insights revealed. Instead, many consumers engage in “wishcycling” — placing items in the recycling bin with hope, rather than certainty, that they’ll be properly processed.
To address this critical challenge, Pact Collective is rallying brands, retailers, and suppliers together in a pre-competitive push for progress. With over 150 member companies, including Ulta Beauty, Credo Beauty, ILIA, and Summer Fridays, Pact has already diverted over 500,000 pounds of material from landfills through its in-store and mail-back collection programs.
In a recent virtual deskside event titled Sustainable Beauty with Pact, Ulta, and Credo Beauty, executives from all three organizations shared updates on sustainable packaging innovations, consumer behavior trends, and practical ways brands and suppliers can accelerate their environmental impact.
In this CosmeticsDesign Q&A, we spoke with Carly Snider, Executive Director at Pact Collective, Amiee Bayer-Thomas, Chief Retail Officer at Ulta Beauty, and Christina Ross, Director of Science & Policy at Credo Beauty for their key insights from the discussion — and the path forward for a more circular beauty industry.
Carly Snider, Pact Executive Director
CDU: Can you share the latest advancements in Pact’s sustainable packaging initiatives and how they impact beauty brands and manufacturers?
Carly Snider: Pact recently unveiled NewMatter – a suite of circular materials designed to transform hard-to-recycle beauty packaging collected via Pact’s collection programs into materials that can be used again within our industry.
NewMatter aims to keep beauty packaging waste out of landfills by repurposing the waste to create closed-loop, industry-wide solutions. Pact currently offers HDPE and polypropylene resins to its members exclusively.
CDU: What are the biggest challenges brands face in implementing sustainable packaging, and how can Pact help overcome them?
CS: The biggest challenges are getting out of our individual lanes and siloes, and adapting a pre-competitive approach. We can compete on everything except sustainability – our planet’s needs are too pressing.
If we can view each other as peers rather than competitors, conversations around what has worked and what isn’t working will be more out in the open and lead to quicker advancements for the entire industry.
CDU: What materials or packaging formats are proving to be the most effective in reducing beauty industry waste?
CS: Refill and reuse when applied correctly and evaluated properly before production (for example, through assessments and LCAs) are the gold standard. Highly recyclable materials like aluminum and glass are also great options; however, they have much higher carbon implications upstream.
Lastly, content PCR materials using high-value plastics like PET, HDPE, and PP are ideal.
CDU: How does Pact work with manufacturers and suppliers to improve recyclability and end-of-life solutions for beauty packaging?
CS: Pact provides educational design resources to help suppliers and manufacturers understand the implications of their material choices and their end-of-life likelihood. We have to approach design both upstream (in design and production) and downstream (diversion from landfill).
CDU: What are the key trends you’re seeing in consumer expectations around sustainable beauty packaging, and how should brands respond?
CS: Over 75% of US consumers prioritized ‘sustainable packaging’ for cosmetics in 2023, yet only a fraction of the 120 billion beauty packaging units produced annually are recycled.
This means the demand and expectation from the consumer is there and will continue to grow, and this means that we as an industry have work to do when it comes to our packaging’s end-of-life outcome to fulfill the customer’s expectations.
Amiee Bayer-Thomas, Chief Retail Office, Ulta Beauty
CDU: How is Ulta Beauty working with brands and suppliers to enhance sustainability across its retail ecosystem?
Amiee Bayer-Thomas: At Ulta Beauty, we are committed to empowering our brand partners with the tools and resources they need to advance their sustainability journeys. Through Conscious Beauty at Ulta Beauty, we offer a range of complimentary initiatives designed to support brands at any stage of their sustainability efforts.
For example, our Supplier LOCT program provides brands with access to resources for measuring, reporting, and acting on emissions reduction targets. Additionally, our Conscious Beauty partner Novi Connect offers a marketplace where brands can source clean and sustainable ingredients and packaging materials.
We also conduct expert-led training sessions on topics like sustainable packaging to help brands make informed choices.
And for our guests, Conscious Beauty allows us to empower and guide them toward discovering products that align with their values. Our platform helps them easily identify brands that are clean, sustainably packaged, cruelty-free, vegan, or those that give back, making conscious shopping easier and more accessible.
CDU: What are the key factors you consider when deciding to stock a sustainably focused brand?
ABT: While sustainability is an important factor, we assess all brands holistically to ensure they align with Ulta Beauty’s broader assortment strategy. This includes evaluating product innovation and efficacy, guest demand, brand differentiation, and overall market potential.
A strong sustainability commitment can enhance a brand’s appeal, but it must also meet the high standards we set for efficacy, quality, and relevance within our assortment.
CDU: What initiatives has Ulta Beauty implemented to educate consumers about sustainable beauty choices?
ABT: We strive to make sustainable beauty more accessible and transparent for our guests through multiple educational initiatives, including:
- The Beauty Drop-Off: In partnership with Pact Collective, our in-store empties drop-off program, available nationwide in Ulta Beauty’s 1,400+ doors, encourages guests to responsibly dispose of hard-to-recycle beauty products at end of life, helping to reduce beauty-related waste and divert them from landfills.
- Conscious Beauty at Ulta Beauty: Coming to life through in-store displays and online resources, Conscious Beauty educates and guides guests on our five pillars – Clean Ingredients, Sustainable Packaging, Cruelty-Free, Vegan, and Brands That Give Back – so they can make informed purchasing decisions. Product badging also allows us to highlight those items that meet our Conscious Beauty standards to provide greater transparency to our guests.
- Marketing and Educational Campaigns: We have launched campaigns focused on topics like sustainable packaging and mission-driven brands, ensuring our guests can explore beauty in ways that align with their values.
CDU: How have consumer purchasing behaviors around sustainable beauty changed in recent years, and what does this mean for brands?
ABT: At Ulta Beauty, we continue to see our guests’ interest in sustainable beauty grow and evolve, especially among younger generations who prioritize transparency, ethical sourcing, and environmental responsibility.
Our research shows that many of today’s beauty enthusiasts seek clean, cruelty-free, vegan, and sustainably packaged products at all price points, and they expect brands to demonstrate authenticity in their sustainability efforts.
We also see this trend reflected across our Conscious Beauty assortment, where over 300 brands are certified and actively working to advance their products and brands through a conscious, earth-friendly lens.
The continued interest from consumers underscores the importance of brands integrating sustainability authentically – whether through ingredient sourcing, packaging innovation, or giving back initiatives – to meet the expectations of today’s beauty enthusiasts.
CDU: What advice would you give manufacturers and suppliers looking to align with Ulta’s sustainability goals and retail strategies?
ABT: To align with Ulta Beauty’s sustainability efforts, we recommend brands and suppliers review our annual ESG reports, engage with industry partners (like Pact Collective and ChemForward), and take actionable next steps to advance their practices – whether exploring more sustainable packaging options, setting emission reduction targets, or incorporating safer chemistry.
Christina Ross, Director of Science & Policy at Credo Beauty
CDU: How do Credo’s Sustainable Packaging Guidelines influence the decisions of manufacturers and suppliers in the beauty industry?
Christina Ross: Our Sustainable Packaging Guidelines are both a set of requirements to be sold at Credo Beauty and also a guidance document that sets actionable standards that help manufacturers and suppliers be as sustainable as possible in our industry.
Our Guidelines push for smarter design (like lightweighting), the full elimination of single-use plastics, and ensuring packaging is made from plastic that is designed for end of life and/or has another sustainability metric like biodegradable or compostable.
We also provide insight on green claims and what technologies really are too good to be true (like biodegradable plastic additives), so our brands don’t fall into a greenwashing trap.
Our Guidelines influence the decisions of brands (manufacturers and suppliers, too) because we require metrics to be met in order to be sold at Credo, and also because we’re showing what’s possible and where the technologies are heading. I have seen that suppliers feel the pressure from consumers, which also accelerates progress toward real sustainability.
CDU: What are the biggest regulatory or policy shifts currently shaping sustainable beauty packaging?
CR: In many areas (US and the broader market), there’s growing pressure to reduce plastic waste, improve recycling systems, and disclose more about packaging materials and their end-of-life.
Policies like the EU’s Single-Use Plastics Directive and California’s circular economy initiatives are leading as well as some state Extended Producer Responsibility (EPR) laws and California’s recycling laws are pushing for verifiable claims and better end-of-life outcomes.
CDU: How can manufacturers and suppliers ensure they meet clean beauty and sustainability standards while maintaining product efficacy?
CR: Manufacturers and suppliers know, of course, that sustainable packaging shouldn’t mean compromising on product quality. Whether it’s using recycled materials, biodegradable options, or lightweight packaging, the materials should still protect product integrity, and this can be verified through standardized testing protocols.
Staying ahead of the curve often means working with suppliers who understand the nuance of packaging formats that are best suited for the product.
CDU: What role does ingredient transparency play in sustainability, and how can brands communicate this effectively to consumers?
CR: We’ve seen that consumers are more informed, questioning, and curious than ever, and they want to know exactly what’s in the products they’re using. The leading brands in the space are upfront about their sourcing, the environmental impact of their ingredients (to the extent they know – and are transparent when they don’t know), and the impact of their packaging.
We’ve seen brands communicate this through clear labeling, social media and web platforms, and storytelling. It’s not enough to just say “clean” or “sustainable” anymore; consumers (and some of the new regulations) expect brands need to back it up.
CDU: What common mistakes do brands make when trying to improve sustainability, and what best practices should they adopt instead?
CR: One of the biggest mistakes brands make is focusing too much on a single aspect of sustainability, like using PCR plastic, without addressing the bigger picture. More sustainable products should take a holistic approach with thoughtful design on the whole product lifecycle.
Another misstep is making green claims without evidence to back them up, which can lead to unintentional greenwashing. Brands should focus on transparency, use certified materials, design for reuse or recyclability, and ensure their entire supply chain aligns with their sustainability goals (and regulations).