Nowhere is this more evident than in product development. For formulators, R&D teams, and sourcing managers, traceability isn’t just a matter of reputation management. Every ingredient must be mapped, verified, and auditable, not only to ensure compliance but also to build products that genuinely meet rising standards of transparency and sustainability.
According to McKinsey’s State of Beauty 2025, consumers today “value conscious, skeptical of hype, and laser focused on whether products deliver”. BoF insights report that 63% of consumers say they believe premium beauty brands perform better than mass brands, highlighting how claims must be substantiated to gain trust. That means the ability to track every ingredient from source to shelf is the new baseline.
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Beauty’s biggest names are showing that traceability is no longer theoretical. Although an extra layer of work, traceability allows for a variety of benefits, that supports brand vision long term. Whether through blockchain, grassroots partnerships, or digital passports, these initiatives reveal how diverse the paths to transparency can be.
L’Oreal has partnered with IBM to deploy blockchain-based tracking systems. By combining AI with immutable ledgers, the company ensures ingredients are monitored from source to shelf. This allows real-time verification of product safety and authenticity, while reducing risks around counterfeiting – a growing concern in premium cosmetics. For formulators, it translates to faster access to reliable sourcing data, easing compliance and regulatory reporting.
The Body Shop continues to build on its activist heritage through its Community Fair Trade program. Working closely with local producers and NGOs, the brand verifies every step of ingredient sourcing through digital records and independent audits. This approach ensures ethical and sustainable claims hold weight behind marketing, while also giving R&D teams visibility into the quality and social impact of raw materials.
Through its “Clean at Sephora” initiative, Sephora sets a retail standard for ingredient traceability. Products marked under this program are backed by ingredient-level data, giving customers clarity on sourcing and sustainability. Behind the scenes, this also pushes suppliers and brand partners to meet stricter traceability requirements, creating ripple effects across the supply chain.
Niche fragrance house Bastille Parfum has adopted RFID tagging its product line. Each unit carries a digital identity, enabling granular tracking through the supply chain. This not only strengthens inventory management and reduces shrinkage but also supports sustainability monitoring and customer engagement. For brands exploring traceability, RFID offers a scalable model that links physical products with digital transparency.
For formulators and R&D teams, traceability brings practical benefits: clearer ingredient data, stronger compliance frameworks, and reduced risks around safety or counterfeit claims. For marketing and brand leaders, it provides a story that goes beyond efficacy: a story of responsibility, ethics, and innovation.
This is why luxury houses like LVMH and others are investing in platforms such as Provenance or the Aura Blockchain Consortium. Their goal goes beyond proving authenticity; it’s about preserving brand heritage in a market where counterfeiting costs billions annually. By giving every product a secure digital identity, they reassure customers that what they buy is genuine, ethically sourced, and future-proof.
At the same time, Digital Product Passports (DPPs) are emerging as the next frontier of traceability. By embedding a digital record into each product, DPPs give visibility not only into sourcing but also recyclability, carbon footprint, and end-of-life impact. For beauty brands, this aligns with incoming EU regulations that are expected to make DPPs mandatory across multiple industries. For formulators, it opens a new way to demonstrate the sustainability impact of ingredient and packaging choices.
The bottom line: traceability is about building resilient, future-ready brands. Those who embrace it today are not just preparing for compliance tomorrow, they’re creating a competitive advantage in a market where transparency is quickly becoming the new luxury.
From blockchain and AI to RFID tagging and Digital Product Passports, brands are finding ways to prove every ingredient’s journey, ensuring safety, sustainability, and authenticity.
As the industry moves toward full supply chain transparency, forward-thinking platforms are helping brands navigate these challenges efficiently. By integrating traceability into product development, beauty companies can not only meet regulatory demands but also turn transparency into a strategic advantage. This way we can set new standards for responsible and innovative beauty.
Covalo’s data-driven platform supports brands and suppliers in accessing verified ingredient information, mapping complex supply chains, and bringing transparency to every product. Explore how Covalo can help make traceability an integral part of your development process today!