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The Cosmetic Industry

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Heather Macdonald

on 1 August 2014

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Transcript of The Cosmetic Industry

Ingredients in the Cosmetics Industry
The Cosmetic Industry and the Environment
Our Arguement
The cosmetic industry needs to take a more proactive approach to its testing policies, packaging care, and its ingredients due to its negative impact on the environment.
Best and Worst Case Scenario
Animal Testing
The cosmetic industry uses animal testing to test the safety and hypoallergenic properties of products for use by humans
This can involve testing either a finished product or the individual ingredients of a finished product
These products or ingredients are normally applied to the mucous membrane of the animal
This includes the eyes, nose and mouth
Around 72 animals are used for each product
Cosmetic Industry Production Waste
1) Normal waste such as packaging
2) Chemical waste
3) Waste water

We can also include CO2 emissions related to production itself and transport
Table of Contents
Intro-Problem/Our Argument
Animal Testing
Chemicals and Ingredients
Certainties and Uncertainties
Possible Scenarios
Presented by:
Alexa Tutich
Chuan Han
Heather Macdonald
Kristy Paige Tucker
Zuzana Konopkova

The cosmetic industry (luxury one) = wasteful
Heavy packages for aesthetic and hygienic purposes which are left after using the actual cosmetic product
Excessive amount of empty containers discarded throughout natural habitats

(Did you know that in the Atlantic and Pacific Ocean there is a mass of plastic waste comparable to the dimensions of the USA? (cosmetic industry contributes considerably to it...)
New trend towards less emissions of waste and more green solutions
"green, eco, vegan, natural, organic, fully raw" labeled products
Gold business strategy with huge impact on costumers' choices with no correspondence with reality
P&G (Proctor & Gamble); Pantene, Olay, Old Spice: No landfill waste out of 45 of their factory locations globally = 1% of the company's materials is waste
FACT: P&G commits crimes
Greenpeace reveals: P&G sourcing palm oil companies in Indonesia are connected to forest devastation, forest fires and local habitat destruction (Sumatran tiger on the edge of extinction; orangutan habitat almost cleared up (Tanjung Puting National Park)
Green Approach
LUSH (The Great Britain)
May Kay (The USA)
"Pink doing green" program: reusable containers
Involved in planting trees in the Bitterroot Forest of Montana and Idaho to offset their carbon emissions
Waste reduction
Education programs for employees
Recycling and conserving natural resources
Environmental performance objectives renewed on an annual basis - improvement
Info. sharing
Recyclable pots, bottles, paper bags, and boxes
Encouraging costumers through green campaign to bring their own bags and containers
"naked product"
Staff trainings: to enhance sensibility to environmental issues
Reducing energy consumption (LED lights in fabrics and shops)
Reducing carbon emissions by 5%
Cruelty free: No testing on animals! (the same for MK)
Chemical Waste
Highly hazardous
Different chemical substances are released during production (ecosystem under the threat)
- Recycling material policy: Recover what is still usable!
- Reduction of harmful landfill disposals
- Special treatment units (Soil microbes and sunlight to treat waste)
- Specialized companies for specific waste categories
LIQUID SEWAGE: Discharged water from households, offices, retail buildings and manufacturing plants
Groundwater: Utilized in an agricultural facility, no longer considered fit for human consumption (pesticide, petroleum products, blood, cleaning liquids, fat)
Filtering and cleansing the water
Waste water treatment plants
Recycling process
Chemical filters
Environmentally friendly methods: REED BED SYSTEM (soap removal) - often followed by more effective chemical treatments
Communication and education to inspire individuals to have a more eco-friendly behavior
DEA (diethanolamine)

Coal Tar Dyes

Synthetic fragrances and perfume
Animal Testing
Around 78% of consumers believe that the products they use are not tested on animals
This is because companies do not normally test in the United States
However, most cosmetic factories are in China where it is required by law to test on animals
In June of 2014 China has implemented some new standards so that not every product has to be tested on animals
Animal Testing
In 2009 the European Union (EU) banned the testing of cosmetics on animals
By 2013 imported cosmetic ingredients that are tested on animals were phased out of the EU as well
In March of 2014 the U.S introduced the human Cosmetics Act which is intended to ban cosmetic testing on animals
Companies who do not test on animals us alternative methods such as in vitro screens
There are around 50 non-animal tests that have been validated for use
They are more expensive than animal testing
There are also over 5000 known safe ingredients for cosmetics
Companies and Testing
Companies such as Lush Cosmetics is one of the few who do not test any of their products on animals
Proctor & Gamble have a plan to phase out 80% of their animal testing by 2020
However, it does not look like they will reach their goal
L'Oreal just released plans for a new vegan line that will not be tested on animals
DEA (diethanolamine)
DEA is mainly found in moisturizers and sunscreens, while cocamide and lauramide DEA are found in soaps, cleansers, and shampoos
Health and Environmental Hazards:
DEA and its compounds cause mild to moderate skin and eye irritation. The Danish Environmental Protection Agency classifies cocamide DEA as hazardous to the environment because of its acute toxicity to aquatic organism and potential for bioaccumulation.
Regulatory Status:
The use of DEA compounds in cosmetics is unrestricted in Canada, although Health Canada has categorized them as "moderate human health priorities"
Coal Tar Dyes
Coal tar-derived colors are used extensively in cosmetics, identified by a five-digit Color Index (C.I.) number
P-phenylenediamine is a particular coal tar dye used in many hair dyes.
Health and Environmental Hazards:
Potential to cause cancer
Low levels of heavy metals contamination
P-phenylenediamine very toxic to aquatic organisms causing long-term adverse effects to the environment
Regulatory Status:
Several coal tar dyes are prohibited on Health Canada's Cosmetic Ingredient Hotlist and Canada's Cosmetic Regulations prohibit
However, dozens of coal tar-derived colors are still widely used in other cosmetics
Synthetic Frangrances and Perfume
Fragrance is an obvious ingredient in perfumes, colognes, and deodorants. Even products marketed as "fragrance-free" or unscented" may in fact contain fragrance along with a masking agent that prevents the brain from perceiving odor.
Health and Environmental Hazards:
Of the thousands of chemicals used in fragrances, most have not been tested for toxicity, alone or in combination. Many of these unlisted ingredients are irritants and can trigger allergies, migraines, and asthma symptoms.
Regulatory Status:
Fragrance recipes are considered trade secrets so manufacturers are not required to disclose fragrance chemicals in the list of ingredients.
What is the Cosmetic Industry?
The Global Beuty Market is usually divided into five main business segments: skincare, haircare, make-up, fragrances and toiletries
In the last 20 years Global Beuty Market has grown by 4.5% a year on average (CAGR), with annual growth rates ranging from around 3% to 5.5% - This pattern will continue into the next 20 years
Total sales in the beauty and personal care industry were roughly $426 billion in 2011
Average woman spends 20 minutes a day applying makeup (4 out of 5 women wear makeup)
Average woman spends $15,000 on makup in her lifetime
Stakeholders-Key Distributors
Drug Stores-The US drugstores industry includes about 20,000 companies with combined annual revenue of about $220 billion
Spa Services-The spa services industry in the US includes about 18,000 facilities with combined annual revenue of more than $13 billion
Department Stores-The US department store industry includes about 3,500 stores with combined annual revenue of $70 billion
Cosmetic Retail Market-The cosmetic, beauty supply, and specialty store industry includes about 13,000 stores with combined annual revenue of around $10 billion
Cosmetic Customers - from ages 16 to 65 both men and women
Advertisement companies
Make-up suppliers - employees and the company in general
Universal Problem
Landfills-Beauty products account for almost one third of all landfill waste
Animal testing-In the US alone, 1.28 million animals are tested on for beauty products (not including mice or rats)
Chemicals-Many ingredients and chemicals are not environmentally friendly and are often made with chemicals that can cause harm to the body
Uncertainties and Certainties
Steady consumers
Animal Testing continuation
Brand marketing
Packaging waste
Chemical waste
Consumers taking action
Industry regulation changes
Packaging minimization technique
Cleaner chemical components
Lush Trees
The 'Bloom of Youth'
Higher consumer demand
Industry economic & environmentally friendly
Higher consumer awareness
Decrease in packaging and chemical waste
Increase in production
Decrease in prices
Decrease in governmental regulations
Increase in animal testing and waste
Lower consumer demand
Increase in prices
Death of cosmetic industry
Ruined bio-dome
Industry Environmental Strength
Consumer Demand
Animal Testing
Negative effect on the environment due to animal waste disposal
Lack of responsibility of the industry
Industry environmental waste treatment implementation (Reed Bed System)
Environmental, Educational, and Packaging program
Chemicals and Ingredients
Indifference of countries to the environmental impact of its chemical ingredients
Need for more restrictive laws
"Behind the Brand: L'Oréal." The Ecologist. N.p., n.d. Web. 14 July 2014. <http://www.theecologist.org/green_green_living/behind_the_label/1008667/behind_the_brand_loral.html>.

"Cosmetics and Household-Product Animal Testing." PETA. PETA, n.d. Web. 12 July 2014.

"Environmental Impact of Cosmetics." Environmental Impact of Cosmetics. N.p., n.d. Web. 14 July 2014. <http://www.organicmonitor.com/r2504.htm>.

"Ethics of Cosmetics." Ethics of Cosmetics. N.p., n.d. Web. 14 July 2014. <http://www.inspiredtimesmagazine.com/Articles/HolisticArticles/ethicsofcosmetic.html>.

"Fact Sheet: Cosmetic Testing : The Humane Society of the United States." RSS. Humane Society, 13 Mar. 2014. Web. 13 July 2014.

"GLOBAL BEAUTY INDUSTRY TRENDS IN THE 21st CENTURY." (n.d.): n. pag. Active Citzenship by Managment, Knowledge Management and Innovation Knowledge and Learning. Make Learn, 19 June 2013. Web. 14 June 2014. <http://www.toknowpress.net/ISBN/978-961-6914-02-4/papers/ML13-365.pdf>.

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"TBC Beauty Facts, Figures, and Trends." The Beauty Company (2012): n. pag. TBC Beauty Facts, Figures, and Trends. June 2012. Web. 14 July 2014. <http://www.thebeautycompany.co/downloads/Beyer_BeautyNumbers.pdf>.

"You Have The Right To Know: 17 Chemicals To Avoid In Cosmetic And Personal Care Products." CollectiveEvolution RSS. N.p., n.d. Web. 14 July 2014. <http://www.collective-evolution.com/2012/04/10/you-have-the-right-to-know-17-chemicals-to-avoid-in-cosmetic-and-personal-care-products/>.

"Search for Cruelty-Free Companies." PETA. N.p., n.d. Web. 14 July 2014. <http://features.peta.org/cruelty-free-company-search/index.aspx>.

"Sustainable Packaging: The Beauty Industrys Perfect Storm?" Beauty Packaging Magazine. N.p., n.d. Web. 14 July 2014. <http://www.beautypackaging.com/articles/2010/04/sustainable-packaging-the-beauty-industrys-perfect>.

"Wasted Beauty: Packaging in the Cosmetics Industry | | Resource Magazine." Wasted Beauty: Packaging in the Cosmetics Industry | | Resource Magazine. N.p., n.d. Web. 14 July 2014. <http://www.resource.uk.com/article/Packaging/Wasted_beauty_Packaging_cosmetics_industry#.U8OOsDm7MlJ>.

"Why Makeup Should Be Greener." Urban Times RSS. N.p., n.d. Web. 14 July 2014. <http://urbantimes.co/2012/07/why-makeup-should-be-greener/>.

"Are We Approaching Sustainability in the Wrong Way?" CosmeticsDesign-Europe.com. N.p., n.d. Web. 14 July 2014. <http://www.cosmeticsdesign-europe.com/Market-Trends/Are-we-approaching-sustainability-in-the-wrong-way>.
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