The 'eco-label', what does it mean for your cosmetic business?
The beauty industry is undergoing significant changes as new eco-label regulations come into effect. These standards are designed to reduce environmental harm and increase consumer safety. But what exactly does the "eco-label" mean for your cosmetic business, and how will it affect your day-to-day operations?
What is the eco-label?
The eco-label is a certification granted to products that meet stringent environmental and safety standards. For cosmetics, this label ensures that ingredients, production processes, and packaging are all in line with new, more sustainable regulations. This means a shift towards cleaner, safer products—both for consumers and the planet.
When will it be enforced?
These new regulations will start being enforced in the coming months, and compliance will be mandatory. If businesses fail to meet these standards on time, they risk significant disruptions in sales, hefty fines, and other operational challenges.
Potential impact on your business
Not managing these changes proactively can cause serious issues:
- Sales disruption: Non-compliant products may need to be pulled from shelves, leading to lost revenue.
- Fines: Failure to meet eco-label standards can result in substantial penalties.
- Operational challenges: From formulation adjustments to discontinuing certain products, the impact can be far-reaching.
Key changes to watch
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Preservatives and Colorants:
Ingredients classified as H317 or H334 are now banned, regardless of concentration.
Impact: Businesses will need to change the ingredients in existing products, leading to discontinuation, formulation changes, and avoidable costs if not managed early. -
Animal Testing:
Though banned for cosmetics ingredients since 2009, aquatic toxicity tests involving fish are no longer allowed.
Impact: Ongoing processes will need to be adjusted, leading to time loss and employee retraining. -
Fragrance-Free Rules:
Fragrances will be banned in children's products and those marketed as "mild" or "sensitive."
Impact: Businesses will need to reformulate or discontinue products, which can lead to waste and extra costs that could have been foreseen. -
Ban on Harmful Chemicals:
Chemicals like BHT, EDTA, microplastics, and nanomaterials are now banned.
Impact: Many formulations will need to be changed, affecting the majority of the industry except for natural brands. This will lead to product discontinuations, formulation changes, and higher costs. -
Ban on SVHCs (Substances of Very High Concern):
These materials are now completely banned, regardless of concentration.
Impact: Businesses will face significant disruptions if they don't anticipate these changes, including discontinuing products and dealing with unnecessary costs.
How Arkive 2.0 solves this problem
Arkive 2.0 helps businesses stay ahead of regulatory changes by streamlining the process of managing unsellable inventory, reformulating products, and adapting to new eco-label standards. By logging products and tracking ingredients, Arkive allows businesses to foresee potential issues and avoid last-minute disruptions. Whether it’s repurposing unsellable stock or managing changes in formulation, Arkive minimizes the risks and costs associated with the new regulations.
Through Arkive, businesses can:
- Avoid unnecessary waste by finding alternative channels for unsellable products.
- Manage ingredient and formulation changes efficiently.
- Ensure compliance with new eco-label standards, reducing fines and sales disruptions.
Register Now
Ready to take control of your sustainability claims and streamline compliance? Register at our portal to get started with Arkive and ensure your cosmetics business meets all the necessary standards efficiently.