Beauty industry prognosticators predict clean beauty will grow. For example, Research and Markets expects the worldwide clean beauty segment to accelerate at a compound annual growth rate of 12% from 2023 to 2028. That rate leads to clean beauty reaching $14.36 billion in sales by 2028, up from $7.22 billion in 2022. By contrast, McKinsey & Co. anticipates the global beauty industry as a whole will register between 7% and 8% sales increases annually between 2022 and 2026.
It’s not going to be smooth sailing, however, for brands early to the clean beauty scene to benefit from clean beauty’s growth. They’re encountering increased competition from the likes of Haus Labs by Lady Gaga and Humanrace by Pharrell that label themselves clean beauty brands, but are far cries from the small, passionate founder-led brands that characterized the beginning of clean beauty.
Fierce competition, capital constraints, heightened digital customer acquisition costs, legal battles and the expenses of playing at retail have been factors in beauty brand closures, including clean beauty brand closures. Forward-thinking clean beauty brands such as Vapour, Bite Beauty and Athr Beauty have shuttered. Meanwhile, clean beauty principles are being challenged as scientists and cosmetic chemists decry retailers’ and brands’ clean beauty ingredient restrictions that have caused the avoidance of parabens and other ingredients they deem to be safe.
Against the backdrop of the changing business dynamics of clean beauty, for the latest edition of our ongoing series posing questions pertinent to indie beauty, we asked 25 clean beauty brand founders the following questions: How can a brand early to the clean beauty segment compete in today’s beauty industry? What are you doing to make sure your brand remains relevant?
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Joy Ekhator Founder, Lovinah As we all know, the beauty industry is very competitive, with new products entering the market daily, and brands always trying to outdo each other with the latest trendy ingredients and innovation. It can be very tough for smaller indie brands in the clean beauty segment to compete or stand out from the crowd without innovative products or unique selling points (USPs). Telling customers that a product has clean ingredients is not going to work, as today's beauty consumers are more selective than ever, very savvy and knowledgeable about ingredients.
To compete in this crowded, very fast-paced and highly competitive market as a smaller clean beauty brand, I'm taking a multifaceted approach focusing on selling solutions and not the product. I’m investing in marketing efforts, including influencer and affiliate marketing (ShareASale); educating our customers on what set us apart from the competition, including the benefits of using our products; delivering an excellent shopping experience; trying to retain old customers by offering free deluxe items and loyalty programs as it's cheaper to keep old customers than to acquire new ones; providing transparency when it comes to ingredients and the sourcing process; selling bundles and customizable products with price breaks; and moving away from trying to sell trendy ingredients to selling must-have products.
- Rachel Winard Founder, Soapwalla
That's a great question, one I've been mulling over a lot recently. The industry looks so much different now than it did when I started 14 years ago. When I get overwhelmed by the noise, I go back to the reasons I started Soapwalla: 1. Creating the best quality products I can, and 2. Supporting our customers as best I can. That's my advice for pretty much everything.
I stay abreast of scientific articles studying natural ingredients and keep an eye on trends regarding purchasing and climate perspectives. I try not to get too caught up in the packaging or social media trends because they're often too short-lived to make financial or environmental sense. I listen to what our customers are saying, and if I see a request over and over, I start investigating how to best fulfill it.
- Annie Tevelin Founder, SkinOwl
In a world filled with new and shiny packaging, star ingredients and head-turning photography, it’s imperative a new brand knows what problem they are solving.
SkinOwl’s relevancy and staying power leans heavily on how dialed into the problem we are solving. If we stay focused on that message, our brand grows.
Just because it’s new and shiny, doesn’t mean it will stick around. Figure out what problem you are solving and make everything about that message.
- Munemi Imai Founder, MŪN
In today's clean beauty market, simply being "clean" is no longer enough. To effectively compete as an early brand in the clean beauty segment, it's crucial to differentiate your brand with a unique value proposition that extends beyond clean ingredients. This can involve incorporating sustainable packaging and innovative formulations that offer exceptional product performance while embracing holistic wellness.
Understanding your target audience, leveraging technology to enhance the customer experience and fostering an engaged community are all essential. Moreover, a commitment to sustainability and transparent communication about your efforts are also very important.
Equally important is highlighting the founder or founders behind the brand. Consumers want to know the story and the values driving the brand. Sharing the founder's journey, their expertise and their personal connection to clean beauty can create a stronger emotional connection with consumers. Authenticity and transparency are highly valued, so showcasing the people behind the brand can build trust and loyalty.
In this overcrowded market, clean beauty brands have to find a way to navigate the saturation by being creative, capitalizing on their unique value propositions, actively engaging with their target audience and showcasing the passion and expertise of the founder or founders. Building strong brand loyalty becomes most important. Collaborations, strategic partnerships and establishing a well-defined niche can aid clean beauty brands in carving out their space and differentiating themselves.
To stay relevant, I am practicing the points mentioned above. At MŪN, we have identified who our loyal customers are, and our returning customer rate has been higher than 70%. I am very grateful to have incredibly loyal and supportive customers.
In addition, I have personally started putting myself out there much more in our marketing emails and on Instagram to better connect with our customers and community. What sets me apart from other clean beauty brand founders is that I am Japanese, born and raised in a country with its values and traditions. Combining my long career as a makeup artist with Japanese simplicity, philosophy, cosmetic science and skincare practice has always been a big part of MŪN products.
I realize that communicating what makes MŪN unique is important to our customers and community. Whether it’s our formulations, ingredients, business practice or story behind who I am and why I do what I do, I want our customers to experience all these elements through our products. Integrity and intention are so important.
- Peter Schafrick Founder and CEO, Schaf Skincare
I'm convinced that the clean beauty industry is here to stay, and what started as a crucial trend will soon be mainstream, if it isn't already. More ingredients are likely to face restrictions and bans in the years to come, ensuring this movement's continuity.
From my perspective, the clean beauty market doesn't significantly differ from most other sectors, but a decade of experience has taught me that product formulations, their active ingredient concentrations and effectiveness often fall short against heavy marketing and advertising spend.
I often joke to my friends and family that I could discover a cancer cure, but, without a multimillion-dollar marketing budget, it would go unnoticed. The playing field right now is tilted heavily toward those who can make the most noise, so that’s where most of your resources need to go, even at the sacrifice of efficacy.
It's a formidable task for any indie brand, particularly bootstrappers, to get heard in this very noisy space. Companies with deep pockets can scream louder and be heard, so they stand the highest odds of carving out market share. The market has never been more skewed in favor of those with the capital for extensive marketing and advertising, and don’t get me started on celebrities.
The era of distinguishing oneself through a unique product or positioning has been displaced by ad expenditure. The adage about building a better mousetrap still stands, but, nowadays, one must also be prepared to invest heavily in advertising to gain recognition. So, I guess I just answered my own question, I’m off begging for capital.
- Kari Gran Founder, Kari Gran
A couple years ago, companies placed a priority on brand storytelling, which resonated well with customers (we did this), but now I think the tide is turning. Customers now have higher expectations of the brands they shop, so I feel the attention should be back on them.
For us, we focus on the customer, what makes us different, how our products perform and being unapologetic in our approach.
- Nina Zilka Co-Founder and CEO, Alder New York
When Alder New York launched, we were definitely pioneers in the clean beauty space, and now the term "clean" beauty is ubiquitous. Whether brands actually are or not, many have the branding aura of being a clean brand.
So, we've come to believe that third-party validation is the only way to communicate to consumers these days that there is actually an effort being put into making truly safe products. For instance, Alder New York is EWG-verified and Vegan Action-certified.
At the same time, I don't think a brand can rely on their clean credentials to stand out anymore. I think brands now need to display that their products have other values a customer would be concerned about in addition to being clean.
For Alder New York, our focus has always been around gender-inclusive, uncomplicated skincare. We think of it as the skincare brand for people that aren't obsessed with skincare. Our products are designed to be highly effective, make you look and feel beautiful, with minimal effort or skincare knowledge.
The fact that we are a safe, truly clean brand is one of our brand pillars, but not what makes Alder New York so special, that is our unique, easy-to-use formulas and design philosophy.
- Susanne Norwitz Founder, Maya Chia
We have never been driven by trends or the urgency to stay relevant. I would argue in many instances clean indie beauty brands can lead, innovate and create the trends the other more slow-moving behemoths tend to follow.
Because we are small, we can move fast, we can experiment and take risks. We have the freedom to innovate without the concerns of splicing and dicing every nickel spent.
Our company has never been driven by slick marketing and trends. That kind of business is fleeting and short-lived. I formulate what I think could be improved upon or a solution for a need that doesn't currently exist and think it could be fun to fill that white space.
The drive to innovate and create something that performs for our customers exceptionally well is what drives our brand. Otherwise, it's just not that interesting to make a redux of what's already been done.
We want to be a part of our customers' lives for the long term. We're celebrating our 10-year anniversary this year, and we're fortunate that our customers are incredibly loyal.
- Shannon Davenport Founder, Esker
For Esker, when we launched in 2018, we were definitely talking a lot about being clean and natural. Body oil was newer to a lot of customers, so one concept we used in marketing messaging was about making clean swaps and talking about how oils can be amazing moisturizers that are anhydrous and don't require preservative systems or synthetics the way body lotions do.
Today, the conversation is much different. It seems like efficacy and and/or emotional connection to brands is much more important. While all of our products still fall into the clean bucket, we focus more on education in body care and self-care.
I think clean and natural products are here to stay, but what has changed is the fear-based marketing around toxins and chemicals, almost scaring people into switching to clean. In a way I think the shift is a good thing because brands that are starting out today need to really consider the problem they're solving for their customer and how they can stand out with thoughtful products and solutions.
- Shrankhla Holocek Founder and CEO, Uma Oils
I think it's sometimes easy to overlook the value of traditional marketing techniques as you are constantly bombarded by the multitudes of acquisition tactics purporting to be cutting edge.
Assuming you have a great product and a clear point of differentiation (if not, then really ask yourself why you want to be in this space), I really do believe that great press placements (traditional PR), good ol' word of mouth (amplified through the right mechanisms, of course) and several other traditional channels (even direct marketing, if you're at the right price point!) can work wonders.
- Chase Polan Founder, Kypris
From a technical perspective, if you look at the brands that launched about a decade ago that really drove the clean/green market and compare them to most of the brands today calling themselves clean, most of the more recent launches, the ones that qualify by retail standards as being clean or sustainable or green, are still, for the most part, not to the standards the clean/green beauty communities established a decade and more ago.
What passes today as clean and sustainable in our minds simply isn’t. They still haven’t caught up, and they still can do much better. They try to take advantage of the opportunity of the category through clever marketing without making the investment or doing the work.
And as far as relevance, I believe a sustainable, regenerative future is a combination of conservation and innovation. Good science is always relevant. There is so much incredible innovation out there that needs to be applied and implemented. It’s exciting!!!
- Sarah Villafranco Physician, Founder and CEO, Osmia
As with any enduring brand in any space, you have to evolve. If you stay still too long, you’ll sink to the bottom.
As new packaging options and better ingredient sourcing become available, we update our line. We don’t launch new products often, but, if there’s a hole in the market, we try to meet the need.
And we stay relevant by having a timeless message (Healthier, Happier Skin) and by getting consistent, meaningful results for our customers because that never gets stale.
- Kapua Browning Founder, Honua Hawaiian Skincare
I had to stop thinking we could "compete" in a world where some influencers charge more to make and share one video than I can pay myself and my staff some months. And to stay relevant in this social world of TikTok and Instagram, we need a lot more than one of these people to share our products/story.
We also can't come close to the advertising and marketing spend of these new emerging big budget brands, so we really do have to be resourceful and creative. What we have done to stay afloat is focus on our why, what Honua was built on, and put energy into rewarding our current customer base and dedicated tribe, doing community events that bring some brand awareness while taking care of our earth. We are creating more authentic and educational content to share in email, blogs, social posts and with our retail partners.
Last, but not least, we are giving our aesthetician community some love. I was an aesthetician before I was a brand founder, and Honua seems to be resonating with them. So, we are following this natural flow. Also, stay tuned for our beautiful new eco-chic packaging created by a local artist. We are rewarding our hard work and resilience with a new outfit!
- Tara Pelletier Co-Founder, Meow Meow Tweet
I think relevancy is a moving target, and it can be exhausting to chase that constantly. I also think that relevancy isn't just one thing since there is a wide variety of customers with different needs out there.
What works for our brand is to stay connected to why we do what we are doing. We've had a lot of moments in our brand's life where we probably weren't relevant, but we stayed the course, and we found our people. Short answer, forget about relevance and focus on authenticity.
- Mia Fiona Kut Founder and CEO, Luna Nectar
Innovation is important for a brand to compete in the clean beauty segment. We're at the point where we as brands need to think beyond just recyclable packaging and natural ingredients. How do we raise the industry standard as a whole?
To remain relevant, our brand focuses on fulfilling UN's Sustainable Development Goals of Responsible Production and Consumption. We have implemented a Water Conservation Initiative in which the majority of our line, including our hair density products, are water-free formulas to decrease our water footprint while increasing the efficacy of our products.
We're also potentially involved in an exciting, university-backed project that sheds exposure on pollutants in personal care products. More to come later!
- Naa-Sakle Akuete Founder, Eu'Genia and Mother's Shea
In a world of much excess and stuff, it's important to create a product that fills an actual gap in the market. When it came to Eu'Genia, I noticed that most moisturizers on the market were full of icky ingredients that did not offer long-lasting coverage. I took my time identifying ways to make our product stand apart from the rest, considering factors like formulation, performance, efficacy and packaging design.
As for how we've maintained brand relevance, it's centered on quality in our products and behind the scenes. Our customers value transparency, ethical sourcing and formulations free from harmful chemicals. We prioritize the health and safety of both individuals and the planet, offering products that promote natural beauty and well-being.
For us, as a clean beauty brand, it is not just about personal care, it is a conscious decision to support values like sustainability, cruelty-free practices and overall wellness.
- Katharine L'Heureux Founder, Kahina Giving Beauty
I don't give much thought to what is happening in the industry at all or what we need to do to stay relevant. The most important thing about Kahina for me is that we remain true to our original mission to create the most effective, luxurious skincare with ingredients sustainably and ethically sourced from our partners, the Berber women of Morocco.
I am proud that over the years we have not only continually provided a fair income for these women via ethically sourcing our ingredients from them, but that we have also helped them in other meaningful ways.
We have a long-time, loyal customer base that loves our products and wonderful retail partners all over the globe. One of the best things we did at the outset was to make sure our formulations met regulatory requirements in the EU, which opened up that market for us.
As soon as China lifted its animal testing requirements, we were well-poised to enter that market and take advantage of its amazing potential. In this way, we have been able to weather the changing market in the U.S.
Both our customers and retail partners not only continue to provide incredible support, but they also help to spread the word about how wonderful Kahina products are. Our brand has and continues to grow organically this way, and I couldn't be happier.
- Lisa Mattam Founder and CEO, Sahajan
In the early days of clean beauty, the point of differentiation was often natural, clean, small batches or “toxic-free” (the latter is problematic). As clean is now becoming the norm, that specific point of differentiation is no longer as valid.
For some of the OGs in clean, there is a huge opportunity to leverage the longevity and leadership of their brands and their founders and spend time digging into their stories. Many of the early clean brands were bootstrapped, founder-driven, homegrown stories, and those stories are so powerful.
At Sahajan, we are rooted primarily in Ayurveda, which has always been our point of differentiation and marrying that with clinical science. We were one of the first clean brands to employ clinical testing and the first Ayurvedic brand to do so.
This has allowed us to lean into not only the Ayurvedic foundation, but to lead in the cleanical space. This is where our leadership will continue.
- Emily Yeston Co-Founder and CEO, Doré
Having clean product formulations is totally table stakes now, so it’s not really a unique selling point anymore. Is it a part of the story definitely, but it can’t be the only thing a brand has to lean on.
For us, we’ve leveled up what clean means through our EWG verification from the very beginning and, given EWG’s strict standards, this feels important and unique to our products and how they are formulated beyond just using “clean” to differentiate them.
Beyond that, our focus is really on creating a brand that consumers are excited by and can trust for great, essential skincare. So much of that is about developing great products—we’ve seen so much growth from word of mouth—and then also just having a really clear message around our modern French pharmacy skincare and not getting distracted from that.
I think having a strong point of view and staying really focused rather than following trends is essential for building a brand that can be relevant for longer than a TikTok trend cycle. It may be a slower path to growth, but it’s one that builds a loyal and dedicated following.
- Anna Buss Founder, Fitglow Beauty
When building Fitglow Beauty my goal was never to be on industry trend or go viral, but instead to help people solve their skin and beauty problems in a natural, healthy way.
To stay relevant, I always lean on our community to provide feedback and learn about what they are looking for. Everything at Fitglow Beauty truly is built from our customers' feedback, and our mission is to develop the best formulas that will solve their biggest beauty problems.
- Raeka Morar Founder, Raeka
To ensure that Raeka remains relevant, we as a brand are taking several key initiatives. Firstly, we are combining ancient botanicals from Ayurveda with scientifically backed ingredients, creating a unique and innovative skincare line. This approach allows them to cater to both the interest in traditional practices and the demand for effective, evidence-based skincare.
Raeka also focuses on making Ayurvedic beauty approachable to everyone by adopting a fun and playful take on skincare. By not gatekeeping and simplifying the complexities of understanding a 5,000-year-old medical system, they eliminate barriers and make their products accessible to a broader audience.
We aim to stay relevant and capture the interest of consumers in the clean beauty segment by introducing them to authentic and truly unique botanicals that extend far beyond turmeric, ashwagandha and other commonly known ingredients associated with South Asian beauty.
- Laura Xiao Founder, Henné Organics
I think it's important to be authentic and stick to your brand's core ethos. It's tempting to jump on the bandwagon when new ingredient and beauty trends pop up, but, if it doesn't fit your brand, it just comes off as disingenuous.
- Fabian Lliguin Co-Founder and Hairstylist, Rahua
The brand must be original in the sense of its ingredients, package, concept and more, and it must be heavily invested in a clean environmental work to reverse global warming and clean CO2 from the air.
Every SKU of Rahua is heavily dependent on research. The ingredients have to be plant-based and super effective. We have replaced the most well-known ingredient made from petroleum, i.e. silicon, with a better or at least similar performing ingredient obtained from plant oils, thus reducing the impact of the synthetics in the human body, the waterways and the environment at large.
All our activities combined achieve reduction of the amount of CO2 from the air considerably. The earth’s benefits need to be elevated again and again at all times. The sky is the limit, and the more efforts the better, including cleaner ingredients with better performance. It is a positive circle.
With time, Rahua works even more effectively with Ecoagents to save and secure larger extensions of rainforest from destruction, allowing these forests to absorb over 750,000 tons of CO2 per year. By the end of 2023, we are scheduled to sequester over a million tons of CO2 from the air we breathe, and more activities need to be done and never stopped.
- Greg Starkman Co-Founder, Innersense Organic Beauty
We continue to disrupt the clean beauty industry by prioritizing transparency of ingredients and formulas for our consumers. Today, the safe cosmetic consumer is more informed than ever, and we are committed to curating formulas that use certified organic ingredients and are free from 3,000-plus known toxins.
Providing safe, pure formulas to consumers creates the trust and brand loyalty that makes Innersense Organic Beauty a leader in clean haircare. We continue to push the boundaries and will be introducing the cleanest, professional hair color line in early 2024.
Along with our conscious chemistry, we use the power of influencer marketing, digital activations, social media and UGC to authentically communicate and educate our consumers on our points of difference. Innersense is recognized as an innovative leader in clean beauty and has become a trusted authority in clean chemistry. Focusing on top-funnel marketing coupled with customer retention, we have built long-term consumer loyalty.
Lastly, consumers today look to a brand's actions to validate their values. Innersense is actively advocating for state and federal safe cosmetic legislation working in concert with cause partners and peer brands.
As a certified B Corp and a member of the B Beauty Coalition, we work to push our industry forward. Our People, Plant & Purpose initiatives support our sustainability efforts through the company’s commitment to 1% for the Plant, Climate Neutral and rePurpose Global, which support our carbon and plastic offset efforts.
- May Lindstrom Founder, May Lindstrom Skin
Our greatest successes have always come from doubling down on what makes us who we are, what's been the foundation, the soul of us, from day one. We are meticulous in our raw ingredient sourcing and intimate in-house manufacturing processes, obsessive in our commitment to quality, and over the top in our dedication to exceptional service and to bringing you the most beautiful client experience we could dream up.
We created a new standard for luxury organic skincare when we launched a dozen years ago, and the demand for results-oriented, sensorial formulas that lead from pleasure and delight (and coddle concerns from eczema to acne) has never been higher. This is our world and where we've earned our reputation. It's what we do the very best.
If you have a question you’d like Beauty Independent to ask beauty entrepreneurs, please send it to editor@beautyindependent.com.
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