Professional article

Twin Transformation and Open Innovation in the cosmetics industry

Every sector, every industry is affected by the “twin transformation”, i.e. the need for further digitalization to increase efficiency, new products, services and sales channels as well as the need for more sustainability in operations, production and products for better climate protection and optimized use of resources. Both developments (“transition” / “transformation”) overlap; digitalization is a central means of improving sustainability, but must itself also become “greener”, i.e. more energy- and resource-efficient.

What makes the twin transformation so challenging? Even before implementation, it is difficult for companies to get a clear picture of the innovation and transformation opportunities for the two key areas of “digitalization” and “sustainability”. Countless, often interlocking technology and innovation trends, countless, diverse innovations and solutions from start-ups - who can maintain an overview and prioritize the most relevant developments for their company and derive and design the right transformation measures from them?

Today, no company can understand and shape all of this on its own; every company is dependent on exchanging ideas with other market players in its industry and innovation ecosystem, from university institutes and start-ups to competitors, and finding cooperation partners for the twin transformation.

This opening up of the company's own innovation process for the strategic and operational use of the ideas, expertise and services of other ecosystem players, particularly universities and start-ups, is known as “open innovation”. With open innovation and targeted collaborations, such as venture clienting with start-ups, companies improve their efficiency, productivity, sustainability, time/cost/quality and fit-to-market as well as early warning and resilience management of unexpected market disruptions.

We have compiled examples of the most important market, technology, product and innovation trends for the production and packaging of chemical-technical and cosmetic products:

1. Market trends

• Sustainability and environmental awareness:
  There is a strong push towards environmentally friendly production methods to meet both regulatory requirements and consumer demand for “green” cosmetics and chemical products.
• Personalization of products:
  In the cosmetics industry in particular, the demand for individually tailored products that are adapted to specific skin and hair types and personal preferences is increasing.
• Vegan and cruelty-free approach:
  Products that are free from animal ingredients and have been developed without animal testing are becoming increasingly important.
• E-commerce and direct sales:
  The distribution of chemical-technical and cosmetic products is increasingly shifting to digital platforms and e-commerce channels, which brings with it new logistics and packaging requirements.

2. Technology trends

• Automation and robotics in production:
  The use of automation solutions to increase efficiency in production and packaging, including robots for filling and labeling, is on the rise.
• Artificial intelligence (AI) for recipe optimization and quality control:
  AI-based algorithms make it possible to develop faster and more precise formulations of chemical-technical products and cosmetics. AI is also used in quality control to minimize production errors.
• IoT and digital networking:
  Smart production facilities and devices that are networked with each other via the Internet of Things (IoT) enable better traceability and transparency in the supply chain.
• 3D printing of cosmetic products:
  First steps are being taken in the use of 3D printing to produce individualized cosmetic products, particularly in the area of make-up and skincare.

3. Product trends

• Clean beauty and minimalist formulas:
  Cosmetics manufacturers are focusing on fewer ingredients and avoiding harmful chemical additives in order to fulfill consumers' desire for “clean” products.
• Reusable packaging:
  There is a growing movement towards reusable or refillable packaging to reduce plastic consumption.
• Multifunctional products:
  In the cosmetics industry in particular, products are developed that fulfill several functions, e.g. combinations of skin care and make-up.
• Waterless formulations:
  Environmentally friendly, water-free products such as powders or solid soaps and shampoos are gaining popularity.

4. Innovation trends

• Bio-based chemicals:
  Renewable raw materials are increasingly being used in chemical-technical production in order to offer more sustainable alternatives to conventional petrochemical substances.
• Microbiome-friendly cosmetics:
  Products that promote the natural balance of the skin's microbiome represent a growing category driven by innovations in biotechnology.
• Sustainable production processes:
  New technologies such as green chemistry and cycle-based production processes play a central role in the manufacture of environmentally friendly chemical products.
• Upcycling of ingredients:
  The use of by-products from other industries, such as food processing, to manufacture cosmetic and chemical-technical products is a growing trend.

The breadth and variety of these trends offer a wide range of innovation and market opportunities for companies involved in the production and packaging of chemical-technical and cosmetic products. But where to start? For which trends are there already solutions from others that can be adopted and adapted? Where are there opportunities for cooperation in order to conserve own resources and minimize risks?

One strategic approach to solving this challenge is to use the “swarm intelligence” of the ecosystem to bring the ideas and innovative power of young, agile market players - start-ups - into your own company. As an example, we have compiled a list of start-ups worldwide that are active in the production and packaging of chemical-technical and cosmetic products and can be easily categorized in the above-mentioned trends:

These exemplary start-ups and many more worldwide represent the various directions of innovation in the production and packaging of chemical-technical and cosmetic products, from sustainability and bio-based chemistry to personalized and microbiome-friendly solutions.

Secure these innovations directly from the start-up world for your own company: Use the right venture clienting format. We offer you our customized venture clienting services.

Are you interested in working with us? Get in contact with us!