Investing in Innovation: Industry Validation and Backing of Biotech

A Game Changer in Personal Care

By harnessing the power of nature and advanced scientific processes, biotech enables the production of bioactive ingredients that are both potent and environmentally responsible. Unlike traditional methods, which often rely on synthetic chemicals or resource-intensive practices, biotech utilizes processes like fermentation, genetic engineering, and cellular biology to create ingredients that are not only safer for consumers but also gentler on the planet. These approaches not only improve the efficacy of skincare products but also reduce the environmental footprint of production. In fact, there are seven key benefits biotech-based ingredients and practices add to formulations, society, and the planet: 

• Innovative ingredients with enhanced properties
• Customization and personalization 
• Efficacy 
• Sustainability 
• Strengthening product claims 
• Safety 
• Regulatory compliance 

This innovation not only opens up a new world of possibilities, allowing brands to deliver skincare and beauty solutions that are even more effective, and also align with the growing consumer demand for products that are ethical, sustainable, and cutting-edge. Biotech is paving the way for personalized skincare solutions, where formulations can be tailored to an individual’s unique skin needs based on genetic or microbiome insights, all aspects that are worth embracing as an industry. 

Economic Impact of Biotech in the Personal Care Industry

Looking at the economic impact of biotechnology in the beauty industry, we can see it is rapidly expanding, with its innovations driving significant growth and reshaping market dynamics. In 2023, the global biotech ingredients market size was valued at $2.17B and is expected to grow at a compound annual growth rate (CAGR) of 7.8% from 2024 to 2030. Biotech not only enables the development of new ingredients and formulations but also enhances operational efficiency and reduces costs by streamlining production processes. 

Active cosmetic ingredients dominated this market with a 49% share in 2023 due to the increasing consumer demand. Fragrances are expected to emerge as the fastest-growing segment over the forecast period. The anticipated growth can be attributed to the increasing consumer demand for natural, ethical and sustainable products, where the demand for biotech-driven products will continue rising. As a result, this sector is poised to become a key driver of economic growth within the global beauty market, creating new revenue opportunities for both established companies and startups. 

Biotechnology’s integration into the beauty industry is also fostering job creation and driving innovation across multiple sectors. From research scientists and product developers to sustainability experts, the demand for skilled professionals in biotech-related roles is on the rise. This surge is not only boosting employment opportunities but also contributing to the industry’s overall growth as companies invest in advanced labs, production facilities, and collaborative projects. 

Major Funding and Investment in Biotech

In recent years, major players in the beauty industry, such as L’Oreal and Unilever, have significantly increased their investments in biotech, recognizing its potential to transform the personal care market. These companies are collaborating with biotech innovators to create sustainable, high performance ingredients and products that meet the growing demand for eco-friendly solutions. 

For instance, Unilever started this movement in June 2022 with a $120m investment to develop, alongside Geno, an alternative, plant-based ingredient using biotechnology. This will combat the need for fossil sources and palm oil alternatives that can be produced at a large scale, while actually being sustainable. In September 2022, Kao made an additional investment, which aims to offer an effective sustainable alternative that can be offered to the combined $635b home and personal care markets. 

Dr. Neil Parry, Head of Biotechnology at Unilever emphasizes that are three key opportunities to strengthen the impact of biotech within the company, such as:

• Creating high-value premium ingredients 
• Sustainable substitutes with added consumer benefits 
• Unlocking resilient supply chains 

L’Oreal then made an added investment into this collaboration with Geno, through their corporate venture fund BOLD. Barbara Lavernos, Deputy Chief Executive Officer in charge of Research, Innovation and Technology, at L’Oreal states that:

“We are thrilled to partner with Geno, whose unique approach to developing alternative, biotechnology-based ingredients aligns perfectly with our vision of a more sustainable future.”

This investment is a key step towards the reduction of the environmental footprint of the beauty industry. Then, in July 2024, L’Oreal Groupe partnered with the biotech company Debut, to develop more than a dozen bio-identical ingredients to use in various L’Oreal brands across personal care. Using advanced bio-manufacturing processes that combine fermentation and cell-free technology, these ingredients will reduce the need for conventional farming and chemical synthesis, preserving natural resources. 

Furthermore, the European Union Commission has identified biotech as one critical technology that allows Europe to establish a leadership position. The commission wants to help companies scale up and attract private investment by including specific challenges and biomanufacturing with the European Innovation Council accelerator work programme for 2025. 

The commission has taken it a step further and has promised to establish an EU biotech hub by the end of 2024 to help companies navigate existing regulations and verify how legislation can be streamlined for faster approvals and market access, and can lead to an EU Biotech Act in 2025.

Why Biotech is the Present and Future of Personal Care

Advancements in personal care science are driving a new era of innovation, blending cutting-edge technology with sustainability to meet the growing demands of modern consumers. 

The consumer demand for sustainable personal care products has shown exponential growth in the last few years, and companies are listening to this need, with Euromonitor registering a 10% CAGR growth from 2020 to 2023. Beyond skincare, it is high-priority for consumers across various product categories, which is heightened by the scrutiny of ingredients used. Today’s shoppers are seeking products that not only deliver better results but also align with their values.

But just how are consumers accepting biotech products? 

Brands like K18 have revolutionized the consumer experience in hair care, with thousands of social media users raving about how it restores their hair. Why is this so successful? They introduce a new way of hair bonding, created with biotech, through the K18PEPTIDE™  that not only promises to reverse hair damage, but was created with every hair type in mind. Another trending product is SkinCeuticals C E Ferulic ®, which is not only popular among consumers but with dermatologists alike. By using bioengineered L-abscorbic acid, ferulic acid and vitamin E has high efficacy in combating oxidative stress and improving skin tone and texture. 

These innovations provide brands with the tools to develop more effective and sustainable solutions, while offering consumers exciting new options that redefine the standards of personal care. As the field continues to evolve, we can expect to see even more groundbreaking developments in sustainable ingredients, personalized skincare, and advanced formulations. The next frontier in personal care will be defined by more sustainable, customizable, and science-driven solutions that meet both consumer demand and the planet’s needs. 

The Future is Bright with Biotech

The future of biotechnology in personal care is bright, driven by long-term investments and transformative potential that will shape the industry for years to come. The EU is actively supporting biotech research with dedicated funding while addressing regulatory complexities to streamline advancements. Next-generation technologies, including gene editing and biomanufacturing, promise groundbreaking innovations, from tailored skincare solutions to sustainable ingredients productions. 

With its ability to align with global sustainability goals, biotech is poised to revolutionize beauty, fostering an industry that is more innovative, eco-conscious, and aligned with the needs of the consumers and the environment. 

Conclusion

Biotechnology is far more than a passing trend - it’s a proven game-changing innovation with the power to reshape the beauty industry. Backed by robust support from leading businesses and governments, biotech delivers credible, sustainable solutions to some of the industry’s most pressing challenges, from resource scarcity to consumer demand for clean and effective products. As the validation and investment in biotech continue to grow, it's clear that this is the future of beauty, and the time to embrace it is now. Brands that grasp biotech now will position themselves as leaders in innovation, sustainability, and consumer trust. Biotech is rapidly becoming the cornerstone of beauty’s future, offering an unparalleled opportunity for companies to lead the charge toward a more sustainable and cutting-edge industry. 

👉 Explore how bioengineered actives and innovative biotech ingredients can transform your product line and align with the future of beauty. 

Want to learn more about biotech in beauty? Learn all about biotech’s transformative potential and by reading the articles in our Biotech campaign.