Insights in Five: A Fresh Look at Product Labels in the Beauty Industry

Insights in Five:

A Fresh Look at Product Labels in the Beauty Industry

A Suzy Micro Report

June 2022

Insights in Five:

A Fresh Look at Product Labels in the Beauty Industry From committing to organic and non-GMO ingredients to promoting cruelty-free production, brands are making big and bold claims in their product labeling to keep up with changing consumer sentiments and expectations. But what are today’s consumers really thinking about when they decide which beauty products to buy—and how important is the transparency of labels to consumers?

61% of consumers check the labels of beauty products before buying.

Consumers are looking for these claims when checking out a new beauty product label:

28% 61%

USDA Organic

TAKING A DEEPER LOOK:

27% PETAcertified crueltyfree

32% 25% MADE SAFE

23%

23%

Fair-trade certified

Non-GMO certified

None

While 64% of consumers are confident that the claims on a beauty product label are true when they're shopping, there’s a big disconnect when consumers actually use the product.

When consumers research beauty products, the resources they trust the most are:

49%

44% Online reviews

Despite their confidence at the store, nearly half (49%) of consumers said they felt misled by beauty product labeling information in the end.

41% Friends and family

33% Brand websites

29% Social media

26% YouTubers

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The top factors consumers look for in beauty product labels are:

4%

Organic

6%

Key Takeaways Spread the Word With most consumers unconcerned about product certifications, online reviews are one of the top resources for consumers when researching beauty product claims. Small and indie brands can take advantage of this by leaning into online reviews and tapping into other sources of influence—like social media or YouTube—instead of paying for expensive certifications.

Hypoallergenic

9%

For sensitive skin

Keep It Real As more consumers are starting to prefer cleaner and greener beauty products, "dirty" ingredients like synthetics and chemicals are becoming yesterday's news. But brands that want to tap into these consumer interests need to be wary of greenwashing, too. After all, 40% of consumers are unlikely to repurchase a product if they feel they've been misled by its labeling.

12%

Dermatologist recommended

Build Trust Through Transparency 14%

Natural ingredients

Whether it’s showcasing organic ingredients on your packaging or curating positive reviews from social media, authenticity matters to consumers.

Brands should only make accurate claims on their beauty products. By staying true to their core values and always being honest, brands can sustain loyalty from their audience for years to come.

Bottom Line: Being transparent in labeling and adopting word-of-mouth marketing is essential for beauty brands that want to resonate with today’s audiences. If brands decide to tap into the desire for natural ingredients, they need to be honest and open about what those terms mean to keep their customers.