Cosmetics industry to brace for environmental regulatory change in EU

The EU is undergoing transformation of its environmental regulatory landscape which will affect a number of businesses but in particular, those operating in the cosmetics space. The European Commission has already targeted revision of key legislation, including the Cosmetic Products Regulation (CPR), the Packaging and Packaging Waste Directive (PPWD), and the Urban Wastewater Treatment Directive (UWTD), and is considering introducing restrictions on substances commonly used in cosmetics products.

Cosmetics companies will need to monitor the shifting regulatory landscape and start to prepare for the changes coming into force over the next few years.

Revision of EU Cosmetics Products Regulation

The CPR sets out the labelling, packaging and safety requirements for cosmetic products being placed on the EU market. In March 2022, the EC launched a consultation on the revision of the CPR based on the EU chemicals strategy for sustainability. The strategy forms part of the European Green Deal and aims to protect consumers and the environment from harmful chemicals.

The consultation considered proposals for improving labelling information on cosmetics products, with the possibility of introducing digital labelling. It closed in June 2022 and, since then, the Commission has implemented a number of changes, including adding entries to the prohibition and restriction lists for cosmetic ingredients. Additionally, from 31 July 2024, cosmetic products containing formaldehyde releasers must bear a warning label.

There has not yet been an update on digital labelling and therefore, there may be further amendments made in the future.   

Packaging and Packaging Waste Regulation

In November 2022, the Commission introduced a new proposal on packaging and packaging waste. This will repeal the existing PPWD, expanding its scope and turning the main piece of EU packaging legislation into a regulation which directly applies to all Member States. The Commission recently concluded a feedback period on the draft regulation on 24 April 2023.

Under the proposal, all packaging placed onto the Union market must be scaled down to the minimum size and include mandatory QR codes that provide information to consumers on its reusability. A ban will also be placed on unnecessary packaging, such as miniature shampoo bottles and other miniature packaging.

While excess packaging will need to be minimised, it must remain compliant with the labelling requirements under the CPR. Whether the CPR is revised to introduce digital labelling provisions will therefore be important for cosmetics companies as this would complement compliance with the proposal.

Restriction on microplastics and PFAS

A new UWTD was put forward by the Commission in October 2022, which identifies the cosmetics industry as a major source of micropollutants – including polyfluoroalkyl substances (PFAS) and microplastics – in waste water.

The revision will introduce extended producer responsibilities for cosmetics products, meaning producers will be required to cover the costs of waste water treatment if their products generate micropollutants at the end of their life. The measures under the proposal will be progressively applied until 2040.   

The Commission is also considering restriction proposals on both microplastics and PFAS under the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) Regulation. Microplastics are used as cleansing or exfoliating agents in a range of personal care and cosmetic products, while PFAS are used to make products easier to apply. PFAS are also used in paper packaging to prevent oil and grease soaking through. However, both have been linked to health and environmental risks.

After rounds of discussions in the REACH Committee, the Commission's proposal to restrict the sale and use of microplastics was approved by a majority of the Member States. It shall now be scrutinised by the European Parliament and Council.

The restriction will affect several categories of products, with very few exceptions. A range of transitional periods are proposed for different uses of microplastics: for example, transitional periods of four years for use in rinse-off cosmetics products and 12 years for lip, nail and make-up products have been suggested.

Additionally, on 7 February 2023, the Commission announced the details of the proposed restriction of around 10,000 PFAS submitted by authorities in Denmark, Germany, the Netherlands, Norway and Sweden. The restriction is submitted on the basis that there is sufficiently strong evidence that technically and economically feasible alternatives to PFAS exist in the cosmetics sector and there is no evidence pointing to a shortage of supply of alternatives. Therefore, no derogations for the sector are proposed.

A six-month public consultation on the restriction began on 22 March 2023.

Osborne Clarke comment

The cosmetics industry has traditionally been reliant on the use of plastics in its products, however, with the regulatory changes taking place in the EU, cosmetic companies' focus must shift towards sustainability while maintaining product safety.

It is important for the industry that adopted revisions to key regulations maintain a sectoral approach which consider the specific challenges faced by the fast-moving, competitive and diverse sector. Therefore, businesses should continue to monitor the changes and engage with the Commission's proposals where the opportunity is presented.

If you have any questions on the forthcoming changes, or in relation to submitting feedback or responding to the consultation, please contact one of our experts below.

Anna Baines, Trainee Solicitor, assisted in the writing of this Insight