For innovation and R&D leaders in the CPG cosmetics space, ingredient strategy is no longer just a matter of trend alignment. It is a business-critical lever that impacts performance claims, brand positioning, sustainability targets, and regulatory compliance.

The conversation around sustainability in skincare has matured. What began as a consumer-driven push for “cleaner” ingredients is now a core consideration for teams navigating shifting regulations, rising consumer expectations, and intensifying competition.

At the same time, the market is expanding rapidly. The global market for bio-based cosmetics and personal care ingredients was valued at $5.24 billion in 2023 and is projected to reach $8.64 billion by 2032, growing at a CAGR of 5.72 percent. This growth reflects rising consumer demand for natural, eco-friendly, and high-performing beauty products.

In this context, biobased and bioengineered actives are no longer future-facing trends. They are today’s most pragmatic answer to a market demanding performance without compromise.

The real value lies in efficacy, consistency, and supply security

What sets biobased actives apart is not only their environmental benefit but the way they unlock new formulation possibilities. Unlike natural extracts, which can vary in quality and are often linked to supply chain vulnerabilities, biotech enabled actives offer precision, repeatability, and potency. For brands competing on claims and credibility, that matters.

This alignment between innovation and expectation is reflected in consumer behavior.

In a recent U.S. survey, 77% of skincare users said they are open to trying new ingredients if they believe the results will be better.

“Better” does not mean trendier. It means clinically proven, longer lasting, and more targeted results, particularly for consumers managing sensitive skin or chronic conditions.

Givaudan’s launch of PrimalHyal UltraReverse, a hyaluronic acid produced through precision fermentation using bioengineered yeast, is one example. It delivers ultra low molecular weight fractions capable of reaching the cellular layers of the skin, activating pathways associated with reversing signs of aging. This reflects how science can provide measurable, consistent results and align with evolving regulatory expectations.

Smaller players are setting the pace

The most strategic companies are not always the largest. Startups and ingredient suppliers operating at the intersection of biotech and sustainability are bringing to market high performance ingredients that larger players are beginning to license.

California-based Mother Science bioengineered Malassezin, a molecule derived from yeast that has been clinically shown to be up to ten times more effective than vitamin C in reducing oxidative stress, without the instability or irritation typically associated with ascorbic acid.

In Brazil, Nanovetores is advancing nanoencapsulation techniques across a broad portfolio of actives, improving stability, bioavailability, and targeted delivery. Their proprietary biodegradable systems have been applied to ingredients like vitamin C, retinol, and caffeine, enabling deeper skin penetration, reduced irritation, and controlled release. This technology helps overcome some of the most persistent challenges in cosmetic formulation.

In Spain, Vytrus Biotech is pioneering the use of plant stem cell cultures to produce high-purity actives with targeted efficacy. Their platform allows for the bioengineering of plant cells to deliver precise cosmetic benefits, such as microbiome modulation, oxidative stress reduction, and anti-inflammatory effects. With patented ingredients like Kannabia Sense and Photobiome, Vytrus is gaining attention for delivering proven biological results through sustainable, non-GMO plant cell technology.

Meanwhile, in Australia, Native Extracts has partnered with Kagome’s tomato processing plant to upcycle more than 5,000 tonnes of tomato seed waste into Red Velvet Oil, a potent antioxidant carrier oil rich in lycopene and phytosterols.

These companies are not just innovating on sustainability. They are redefining how performance is measured and delivered in skincare.

Why compliance and credibility are raising the bar for innovation

Regulators across key markets are raising the bar for ingredient disclosure, sustainability claims, and environmental safety. In the EU, new rules around microplastics and greenwashing are already in motion. At the same time, consumers are demanding more transparency.

In the UK, over 60% of adults report difficulty accessing reliable information about product safety and sustainability.

L’Oréal’s dermatological brand La Roche-Posay recently launched Lipikar ECZEMA MED, a topical cream that incorporates Endobioma, a bacteriophage derived enzyme that selectively targets harmful bacteria without disrupting the skin’s microbiome. This represents a step change in the industry’s approach to sensitive skin and a broader shift toward pharmaceutical grade precision within mainstream skincare.

These examples reflect a larger pattern. Leading companies are preparing for a future where biotech is a baseline requirement for product relevance and compliance.

What comes next is a race for differentiation, not access

As biotech platforms scale and ingredient availability increases, differentiation will depend on how quickly companies can identify the right solutions, validate performance, and bring them to market. The opportunity is not in being the first to use a biobased active. It is in selecting the right one, understanding how to frame its value, and integrating it in a way that makes sense commercially, operationally, and scientifically.

Innovation teams that move early can secure proprietary advantages through IP, co-development opportunities, or exclusive licensing deals. Those that wait may still have access but without the first-mover edge.

How SOSA helps companies lead in biotech skincare innovation

At SOSA, we support CPG and personal care leaders like Essity and Natura in sourcing and implementing the right technologies to meet new market demands. Through a curated network of startups and advanced ingredient developers, we help innovation teams navigate the growing biotech landscape, whether they are seeking new anti aging molecules, sustainable reformulation options, or upcycled ingredients that align with internal ESG goals.

We bring together scientific insight and commercial strategy to help our partners move from awareness to execution. That includes identifying under the radar technologies, assessing claims and data, and building a roadmap to implementation. For companies looking to move beyond cosmetic sustainability and toward measurable product performance, biotech is the lever and we are here to help pull it.