Packaging sustainability in cosmetics: Key steps toward a circular economy

"The beauty industry has the power to inspire change, not just in how people see themselves but in how we care for the planet," said JD Ambati, Founder & CEO of EverestLabs.
"The beauty industry has the power to inspire change, not just in how people see themselves but in how we care for the planet," said JD Ambati, Founder & CEO of EverestLabs. (Getty Images)

Cosmetic and personal care brands hold the key to a more sustainable future—but only if they address critical packaging and recycling challenges.

The cosmetics and personal care industry is facing growing pressure to adopt sustainable packaging practices as regulatory frameworks and consumer preferences evolve. The US Environmental Protection Agency (EPA) estimates that only about 32% of municipal solid waste is currently recycled, far short of the national goal of 50% by 2030.

At the same time, a survey by California-based software company EverestLabs found that 57% of US consumers are more likely to buy products with eco-friendly or recyclable packaging. These figures underscore the urgent need for improved recycling systems and sustainable packaging solutions.

We spoke to JD Ambati, Founder and CEO of EverestLabs, who explained that manufacturers and suppliers in the beauty sector have a significant role to play in improving recycling rates and advancing circular economy goals.

“Cosmetics and personal care product manufacturers should focus on designing packaging that is not only recyclable but also compatible with current recycling technologies,” Ambati explained.

He emphasized that shifting to mono-material packaging and avoiding complex multi-layered designs can help ensure that packaging is easier to process in recycling facilities.

Collaborating with recycling facilities

Beyond packaging design, Ambati highlighted the importance of collaboration between manufacturers and recycling facilities. “Collaborating with recycling facilities and leveraging data-driven insights from technologies like AI can help identify and address gaps in material recovery,” he said.

He also stressed the need for consumer education, noting that standardized labeling can improve recycling practices by helping users understand how to dispose of products correctly.

The role of suppliers in driving sustainability

Suppliers, too, play a pivotal role in encouraging brands toward more eco-friendly materials and technologies.

“Suppliers can guide brands toward adopting sustainable materials, such as mono-material plastics or biodegradable options, which align with consumer demand and environmental goals,” said Ambati.

He pointed to the EverestLabs survey finding that more than half of respondents are likelier to buy products with eco-friendly or recyclable packaging as an indicator of the apparent market demand for sustainability.

AI and robotics in recycling

Despite not currently working directly with cosmetics and personal care product sectors, EverestLabs, known for its AI-driven recycling solutions, sees potential for its technology to benefit the cosmetics and personal care industry.

“Our AI can recognize brand-specific packaging, which helps CPG brands track whether their packaging is being recycled,” Ambati noted.

This data can provide valuable insights into why certain items are not being recovered and inform better packaging design.

Ambati also provided an example of how AI and robotics have contributed to increasing recycling efficiency. “At facilities like Caglia Environmental’s Cedar Avenue Recycling and Transfer Station (CARTS), our RecycleOS platform has significantly improved recycling efficiency,” he shared.

“By integrating EverestLabs’ AI and robotics, Caglia recovered over 1,500 aluminum beverage cans daily that would have otherwise ended up in the landfill,” he explained. He added that the AI system, trained on over two billion recyclable objects, can ensure efficient material recovery even when items are crushed or partially obscured.

Overcoming barriers in sustainable packaging

Looking ahead, technology could play an even more significant role in overcoming current barriers to sustainable packaging in the beauty sector. “When recycling facilities use our AI and robotics, they sort 2-3 times more material than manual workers,” Ambati explained.

He also noted that AI can identify problematic materials in packaging, providing data that can help brands design more recyclable options.

Preparing for Extended Producer Responsibility (EPR) laws

The issue of Extended Producer Responsibility (EPR) laws is another critical topic in the discussion of sustainability. These laws hold manufacturers accountable for the lifecycle of their packaging, imposing fees or penalties based on their environmental impact.

“In the long term, EPR laws will reshape the entire industry by encouraging innovation through legislation, leading to packaging designed for better recyclability,” said Ambati.

However, he cautioned that companies need to align their packaging with the capabilities of local recycling facilities to avoid compliance challenges.

Ambati advised manufacturers to invest in closed-loop systems and AI-driven technologies to prepare for these regulatory shifts. “This data can inform partnerships with recycling facilities, ensuring that packaging is not only theoretically recyclable but also realistically recycled,” he said.

Educating consumers on proper recycling

Regarding consumer education, Ambati underscored that “manufacturers and suppliers must take the lead in educating consumers about recycling cosmetic and personal care products by providing clear, consistent, and standardized labeling on packaging.”

He also highlighted the importance of collaboration with local governments to ensure that recycling systems are equipped to handle materials effectively.

Additionally, “small product sizes, mixed-material packaging, and contamination from residual formulations are major challenges,” Ambati said.

He noted that while AI-powered systems can sort these items with precision, consumers must clean out residual product before recycling: another facet of educating beauty consumers on sustainable recycling and disposal practices.

Rethinking packaging design priorities

Ultimately, according to Ambati, a shift in packaging design priorities can drive significant improvements in recyclability. “Minimizing the use of adhesives and coatings is the elephant in the room when it comes to improving recyclability in beauty and personal care packaging,” he remarked.

He urged manufacturers to prioritize mono-material designs that reduce the need for excessive adhesives and coatings.

“The beauty industry has the power to inspire change, not just in how people see themselves but in how we care for the planet,” Ambati concluded.

“Every product and package you create holds the potential to reduce waste or add to it. The choice is yours.”