Hair Care Industry ESG Thematic Report, 2023

Hair Care Industry ESG Thematic Report, 2023

Compliance, ESG Challenges & Framework, ESG Trends

  • Published Date: Nov, 2022
  • Report ID: Astra-100272
  • Format: Electronic (PDF)
  • Number of Pages: 62

Environmental, Social, and Governance (ESG) in the Hair Care Industry

Sustainable investments have become key trends in recent times, where corporations, governments and consumers are striving to make a change in an impactful manner.

There are a wide range of issues in the hair care industry in terms of ESG, where the key leaders of the market are striving to create a positive impact on the environment. Challenges pertaining to social and environmental aspects of the ESG in the industry such packaging and chemical ingredients used on the products are some of the hindering factors in the spheres of environment and social of ESG arena for the market.

Recent change in the consumer preference over the chemical based products and the awareness amongst the key companies of the industry have affected the ESG trends. The United Nations’ Sustainable Development Goals (UN SDGs) is a comprehensive framework that helps companies in this market obtain a perspective on the impact of their products and operations on ESG parameters.

ESG Trends

Key leaders of the hair care industry have improved their policies on waste management, packaging life cycle and plastic pollution. Major companies of the market have pledged to make the packaging recyclable and reusable through using combinations of materials used for manufacturing the packages by using the cradle to cradle method, thereby promoting the UN SDG 13: climate action.

Some of the leading companies of the market have made initiatives against climate change, where they have committed to sustainable practices such as creating a deforestation free supply chain and net zero emissions along with a regenerative agricultural code for all the suppliers, which reflect the governance core values, promoting the UN SDG goal of Institutions for peace and justice (SDG16).

Challenges such as the microbeads in the products of the hair care products, can be threatening to consumers as well as to the environment. These being one of the important components that tend to damage the hair and scalp of the consumer, when mixed in the water, causes water pollution.

Preservatives such as Parabens and Triclosan, which are found in the majority of the products of the hair care market, are also responsible for ocean chemical pollution, contrasting to the UN SDG goal of life underwater (SDG14). Oxybenzone one of the ingredients in shampoos and hair conditioners are considered as an endocrine disruptor and it has been reported that fourteen thousand tons of oxybenzone is released into ocean every year causing damage to coral reefs, in contrast to the UN SDG goal of life underwater (SDG14).

One of the key companies of the Beauty and Personal Care products market, which specializes in production of organic beauty products through their products is reducing the aforementioned impacts of the preservatives, replacing them with natural and organic components, thereby promoting the UN SDG goals of climate action (SDG13) and good health and wellbeing (SDG3).

Growth of the Hair Care Market

The hair care at global scale was valued economically at USD 80.81 billion as of 2020 and is forecasted to expand with a CAGR (compound annual growth rate) of 6.6% from 2021 to 2028.  The policies that direct the actions of the companies in the market are based on the UN SDG Goals. Integrating the sustainable manufacturing process of the products and organic components into the products are some of the positive aspects of the hair care market in terms of ESG.

Key Companies in this theme

    • L’Oréal S.A.

    • Beiersdorf AG

    • Procter & Gamble (P&G)

    • Unilever

    • Johnson & Johnson Services, Inc.

Scope of the Hair Care Industry ESG Thematic Report

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Aspects of the Hair Care Industry ESG Thematic Report

    • Offers a global perspective of the hair care industry and the policies and measures taken by the players, for overcoming the challenges faced in terms of Environment, Social and Governance.

    • Key insights into the sustainability practices of major players in the market.

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