The Real Reason Eco-Friendly Beauty Products Remain Expensive
Beauty products that utilise sustainable raw materials and recycled content continue to face pricing challenges. One primary cause is that the current scale of demand is insufficient to encourage suppliers to increase capacity and reduce production costs.
As more brands adopt sustainable ingredients, there is a greater opportunity to achieve economies of scale, making these materials more accessible and price-competitive. This issue was a key topic of discussion during the ‘Beauty in Sustainability’ side event of the Indonesia International Sustainability Forum (IISable) 2026, organised by ParagonCorp in Jakarta.
Dr Sari Chairunnisa, Deputy CEO of ParagonCorp, stated that collaboration between brands is crucial to increasing the demand for sustainable materials. “Every brand has a role, whether large or small. When we move together, the scale changes, and more sustainable options become more accessible to all industry players,” said Sari during an interview in South Jakarta.
She noted that when demand from various brands is aggregated, suppliers gain a stronger foundation to invest and expand production capacity. Ultimately, this could help make sustainable materials more available, even for smaller-scale local brands.
Beyond Price Concerns
While price is a significant challenge, the use of sustainable materials is not solely about cost. Ridwan Sonjaya, Deputy Group Head of Research & Development at ParagonCorp, emphasised that materials must still meet strict standards for safety, quality, and product performance. This means eco-friendly alternatives cannot be used indiscriminately; the industry must ensure they provide consistent quality and meet the functional requirements of beauty products.
Prita Anggriana, Senior Account Manager for Fine Fragrance at IFF, also highlighted the importance of traceability, availability, and scale for the wider adoption of sustainable ingredients. From a consumer perspective, Jeany Hartriani, Deputy Head of Katadata Green, observed that opportunities for sustainable products remain open alongside market growth, while sustainability storyteller Vania Herlambang added that consumers tend to choose products that are trustworthy, understandable, and relatable to daily life.
Recycled Plastic Also Requires Scale
Price and scale challenges also extend to the use of recycled plastic for beauty product packaging. Dr Dicky Nugraha from Dynapack Asia noted that recycled plastic can become more competitive when product design, demand, and usage scale are aligned.
Furthermore, Ritchie Ned Hansel, Chairman of ADGI and Creative Director of PID ParagonCorp, argued that building a circular system must begin at the design stage. Decisions regarding materials and packaging design at the outset significantly impact how products can re-enter the recycling chain. Ernest C. Layman, CEO of Rekosistem, added that ‘take-back’ systems can help connect used packaging from consumers to the collection and recycling ecosystem.
Consequently, reducing the cost of sustainable products does not depend solely on raw material producers; it requires an ecosystem involving brands, suppliers, consumers, and waste managers.
Brands Begin Reducing Virgin Materials
Several brands have begun implementing recycled materials and reducing the use of virgin materials in their packaging. For instance, ParagonCorp noted that its brand, Tavi, uses 30% recycled plastic in its packaging, while Emina has reduced its plastic usage by 10%.
In addition to reducing virgin material use, companies are also running packaging collection programmes through the ‘Paragon Empties Station’. To date, consumers have returned 83,326 used beauty products through this initiative.
These efforts are part of developing a circular economy within the beauty industry. As more packaging is collected and re-enters the processing chain, the potential for a steady supply of recycled materials grows. Ultimately, making beauty products more eco-friendly is not just about replacing ingredients with greener alternatives; the industry must also create sufficient demand to ensure these materials become available, efficient, and price-competitive.