REGULATION
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Why cosmetics compliance is due a digital makeover
Beth Peckover – Kallik
The cosmetics industry is big business in many different geographies from the US to China, with the dynamics of each country evolving and changing at high speed. Yet none are quite as big as the European cosmetics market, reaching an annual consumption value of over €76 billion.1 But with many of the largest
conglomerates owning dozens of brands, each with their own extensive product ranges catering to different market segments, there is a complex web of processes that must be carefully managed and regulated. This article discusses the complex regulatory landscape for cosmetics firms and argues potential upcoming changes in the European market should spark a rush for greater digital management. The cosmetics industry is highly
competitive with a diverse range of sub- markets, making it a complex space to operate in. From formulation, testing and all the way through to design, product turnover is now more important than ever. Going forward, cosmetics businesses must
optimise product development, establish best-practice approaches for efficiency and compliance, and harness advanced technologies to match market evolution and demands. These areas may function day-to-day without major issue but introduce any unexpected change, such as new regulations, and it can bring the entire business value chain to a halt. Not having the right tools to adapt with change can set businesses back and even risk its place in the market all together. As a result many cosmetics firms still
struggle to inject agility, visibility, and end- to-end management into critical areas of their business.
Cosmetics: a lengthy product process which needs time, care, and attention Picture a typical cosmetics product, such as a skin care cream. The production of a new cosmetics product requires extensive research and testing to identify gaps in the market and consumer demand, formulate product composition ensuring the right concentration and combination of ingredients is used, source the ingredients from cost-effective sources and test product safety. This process informs everything from product odour,
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colour and texture to packaging and labelling requirements. When this process is completed, the
product then needs the right labels, logos and regulatory symbols, to ensure non-negotiable health and safety requirements are met, and then it is packaged in a box covered in similar assets and branding. For many products, they may also include an enclosed supplementary leaflet. The individual assets and phrases used in this will likely number in the dozens – each carefully designed, reviewed and approved. It is easy to see from this the sheer
complexity of the processes that must be managed in cosmetics manufacturing and how any amends or updates to products will have a significant ripple effect, which will be multiplied across each individual affected product line – requiring a large-scale operation to ensure all the relevant changes are made.
The winds of regulatory change have reached the cosmetics market When a new regulation comes into play, products must comply with and pass quality, compliance, and labelling regulations in all target regions for commercialisation, spanning
toxicology, microbial or stability to prove product safety. Since the EU Cosmetics Regulation came
into force in 2009 – replacing the older Cosmetics Directive – cosmetics firms looking to sell their products into the EU markets have faced a consistent set of rules to comply with.2
As always, ignorance of the law is no
excuse and no defence, and the penalties for non-compliance can be severe with heavy fines. We have recently seen the EU overhaul
legislation in other industries which have traditionally been considered ‘highly regulated’, with medical devices the latest to be affected by tighter requirements, and an ongoing consultation on chemical labelling and packing. The cosmetics industry looks set to be next in line – and firms must prepare for the change and disruption this will entail, or risk those heavy fines, a potential increase in workload, and a setback in market positioning.
Compliance must be met The revision of the Cosmetics Regulation to better align with EU sustainability goals, had been undergoing public consultation, but at the time of writing was set to be adopted by
January 2023 PERSONAL CARE
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