From January to August 2024, several significant regulatory developments occurred in the APAC region. Notably, China introduced a transition period along with several regulatory documents for safety assessments and amended the Safety and Technical Standards for Cosmetics. Taiwan eliminated the category of specific purpose cosmetics and implemented unified management for all cosmetics. Additionally, updates regarding cosmetic ingredients, particularly the prohibition of specific substances, remain a key focus across various countries. It is crucial for enterprises to stay informed about these changes and adjust their strategies to comply with regulatory requirements.

Here are brief updates on key developments.

1. China

1.1 NMPA Amends the Safety and Technical Standards for Cosmetics 2015

On March 21, 2024, NMPA announced significant amendments to the Safety and Technical Standards for Cosmetics (2015 Edition) (STSC). The updates include:

1. Addition of 5 newly prohibited ingredients: Bimatoprost, Tafluprost, Taflupamide, Travoprost, and Latanoprost;
2. Revision of 3 existing testing methods, including those for dioxane and other prohibited and restricted ingredients;
3. Introduction of 11 new testing methods, covering areas such as acute inhalation toxicity, skin sensitization, and reproductive toxicity.

The updated ingredient list is in effect immediately, while the revised testing methods will take effect on December 1, 2024.

1.2 China Sets Transition Period for Submitting Complete Safety Assessment Reports and Issues Multiple Regulatory Documents to Clarify Safety Assessment Requirements

Under CSAR framework, cosmetics registrants and notifiers are required to submit product safety assessment documents during registration and notification. Until May 1, 2024, they have the option to submit a simplified safety assessment report. However, from May 1, 2024 onwards, the full version of the assessment report must be submitted.

Considering industry challenges, China’s National Medical Products Administration (NMPA) has extended the transition period. Registrants and notifiers can still submit a simplified safety assessment report before May 1, 2025, as long as the assessment was started before May 1, 2024.

To guide companies, in April and July 2024, NMPA issued several new regulatory documents related to safety assessment. This includes guidelines that classify submission requirements based on risk management principles and provide self-examination points for the assessment reports.

ChemLinked Comments

With these supporting policies and optimization measures, the full safety assessment report system can be effectively implemented in China’s cosmetics industry.

Although the NMPA has provided a transition period for companies, it is advisable to proactively prepare for the full version of the report. This includes assembling qualified personnel, reviewing ingredients and addressing data gaps, and seeking expert consultants, etc.

2. Taiwan

2.1 TFDA Amends Cosmetic Ingredient Use Requirements

Taiwan Food and Drug Administration (TFDA) issued several announcements on December 13, 2023, January 4, 2024 and May 30, 2024, regarding the revision of prohibited and restricted ingredients for cosmetics. Please refer to the table below for the specific amendments.

2.2 Taiwan Cancels Specific Purpose Cosmetics Category and Implements Unified Management for All Cosmetics

On July 1, 2019, Taiwan enacted the Cosmetic Hygiene and Safety Act, its primary regulation for cosmetics. According to the Act, the category of specific purpose cosmetics was discontinued as of July 1, 2024. From that date, all cosmetics in Taiwan are regulated under a unified management system, resulting in changes to the scope of application and expressions of Taiwan’s cosmetic regulations, including ingredient lists, pre-market notification, Product Information Files (PIF), Good Manufacturing Practices (GMP), and product labeling.

Beginning July 1, 2024, manufacturers and importers of cosmetics previously classified as specific purpose must complete product notifications, establish product-specific PIFs, ensure GMP compliance, and meet updated labeling requirements before marketing their products in Taiwan.

3. South Korea

3.1 South Korea Bans THB in Cosmetics

On December 7, 2023, South Korean Ministry of Food and Drug Safety (MFDS) proposed an amendment to the Regulation on Safety Standards for Cosmetics. The purpose was to prohibit the use of 1,2,4-trihydroxy benzene (THB) as an ingredient in cosmetics. The decision was based on safety verification results from the Cosmetic Ingredient Safety Evaluation Committee, which indicated that the genotoxicity potential of THB cannot be ruled out.

The amendment was finalized on February 7, 2024, and MFDS officially implemented the ban on THB in cosmetics.

3.2 South Korea Consults on Cosmetic Safety Standard

On August 2, 2024, the Ministry of Food and Drug Safety (MFDS) released a notice to solicit public feedback of the modifications to Cosmetic Safety Standard till October 3, 2024. The authority proposed to designate one new UV filter, delete one UV filter, and enhance the usage limits of six restricted ingredients.

MFDS Consults on Cosmetic Safety Standard: Enhancing Management of UV filters, D4, D5, and Other Ingredients as below;

4. Japan

4.1 Japan Approves a New Ingredient for Rinse-off Hair Styling Products

On March 8, 2024, the Ministry of Health, Labour and Welfare (MHLW) of Japan released a proposal for the Standards for Cosmetics, inviting public consultation. The proposal requests the inclusion of “Cysteamine Hydrochloride” as an ingredient for rinse-off hair styling products. The proposal was finalized on July 12, 2024, and came into force upon issuance.

ChemLinked Comments

Cosmetic manufacturers and distributors are required to adhere to the updated guidelines, which may involve modifying product formulations, manufacturing processes, labeling, and quality control measures.

5. ASEAN

5.1 ASEAN Updates ASEAN Cosmetic Directive (ACD)’s Ingredient Annexes

The ASEAN Cosmetic Committee (ACC) and ASEAN Cosmetic Scientific Body (ACSB) hold meetings twice a year to discuss the latest developments in ASEAN cosmetic industry and related regulations, annexes related to ingredients.

On July 1, 2024, the Singapore Health Sciences Authority (HSA) issued the updated ingredient annexes approved during the 39^th ACSB meeting. The key amendments include:

1) Annex II – List of Prohibited Ingredients: 1 revised

2) Annex III – List of Restricted Ingredients: 3 revised, 1 added

3) Annex VI – List of Permitted Preservatives: 9 revised

4) Annex VII – List of Permitted UV Filters: 2 revised

In addition to the amendments mentioned above, there are also some updates to the CAS No. information for 56 entries in the annexes.

ChemLinked Comments

The amendments to the ingredient annexes of ACD apply to all ASEAN member states. However, the timeline for each member state to formally adopt these amendments may vary. So far, member states such as Malaysia, Singapore, Vietnam, and the Philippines have adopted these amendments.

6. Indonesia

6.1 Indonesia Proposes to Amend Cosmetic Ingredient Use Requirements

On March 1, 2024, the Indonesian Agency for Food and Drug Control (BPOM) released the amended draft of the Technical Requirements for Cosmetic Ingredients for public consultation until March 19, 2024. The proposed amendments include:

1) Deleting requirements specifically related to cosmetics containing alpha arbutin or beta arbutin;

2) Appendix I: List of Restricted Ingredients – 1 revised;

3) Appendix III: List of Permitted Preservatives – 2 deleted;

4) Appendix IV: List of Permitted Sunscreens – 1 revised;

5) Appendix V: List of Prohibited Ingredients – 75 added.

ChemLinked Comments

The proposed amendments to Indonesian cosmetic ingredients align with the amendments made to the ingredient annexes of the ASEAN Cosmetic Directive (ACD) during the 36^th, 37^th, and 38^th ACSB meetings.

For salicylic acid in Appendix I List of Restricted Ingredients, the only adjustment is the serial number in the usage requirements, which is a result of the removal of two preservatives from Appendix III. The usage limit and conditions for salicylic acid remain unchanged.

7. Thailand

7.1 Thailand Amends Cosmetic Ingredient Use Requirements

From January to August 2024, Thailand issued several announcements regarding revisions to the requirements for cosmetic ingredients. Some of these announcements were formal revisions, while others were drafts. The updates are as follows:

1) List of Prohibited Ingredients: 2 added, 1 revised, and 56 proposed for addition.

2) List of Restricted Ingredients: 8 added, 1 revised, 1 deleted, 3 proposed for addition, and 1 proposed for revision.

3) List of Permitted Colorants: 1 revised and 1 proposed for revision.

4) List of Permitted Preservatives: 1 revised.

5) List of Permitted Sunscreens: 1 added and 1 proposed for revision.

ChemLinked Comments

As a member of ASEAN, Thailand has been somewhat delayed in adopting the revisions to the ingredient use requirements outlined in the ACD. The above adjustments aim to align with previous updates from the ACD.

8. New Zealand

8.1 New Zealand EPA Bans PFAS in Cosmetics

On January 30, 2024, the New Zealand Environmental Protection Authority (EPA) announced a ban on PFAS in cosmetics. The ban, outlined in the updated “Cosmetic Products Group Standard,” reflects New Zealand’s precautionary approach to managing the potential risks associated with these chemicals.

To ensure compliance, the ban on PFAS in cosmetics includes the following transitional provisions:

1. Manufacture Ban: Starting from December 31, 2026, the manufacture and import of cosmetic products containing PFAS will be prohibited;
2. Sale Ban: As of December 31, 2027, the sale of cosmetic products containing PFAS will be banned;
3. Product Disposal: All remaining cosmetic products containing PFAS must be disposed of by June 30, 2028. This ensures the complete removal of these products from the market and minimizes potential PFAS exposure.

9. Australia

9.1 Australia Adopts Updated Sunscreen Standards

On April 11, 2024, the TGA announced the adoption of the Australian/New Zealand Standard: Sunscreen products – Evaluation and Classification (AS/NZS 2604:2021) (amended) into therapeutic goods legislation framework. This updated standard enhances testing and labeling requirements for sunscreens available in the Australian market. Notable changes compared to its predecessor include:

• Incorporation of the latest ISO Standards for sunscreen testing, including “ISO 24444:2019 Cosmetics—Sun Protection Test Methods—In Vivo Determination of the Sun Protection Factor (SPF),” “ISO Standard 24443:2021 Determination of Sunscreen UVA Photoprotection in Vitro,” and “ISO 16217:2020 Cosmetics—Water Immersion Procedure for the Determination of Water Resistance.”
• Introduction of a new flow chart to guide sponsors (product owners) in determining the applicable sections of the standard for primary and secondary sunscreens.
• Addition of labeling instructions for aerosol and spray pump pack sunscreens, advising consumers on the appropriate amount for effective protection against UV radiation, and cautioning against spraying these products on the face or in windy conditions to avoid product inhalation.

Further Reading

• China Expands Recognized Ingredient Safety Data for Safety Assessment Report
• Taiwan Restructures Cosmetic Ingredient Lists, Effective July 1, 2024
• Updates to ASEAN Cosmetic Directive (ACD)’s Ingredient Annexes: 15 Revised and 1 Added
• Australia Adopts Updated Sunscreen Standards

ChemLinked Cosmetic Portal (cosmetic.chemlinked.com) is a media platform operated by REACH24H Consulting Group. Our focus is on providing comprehensive one-stop-market access information services and solutions to members of the cosmetics industry, including domestic and foreign manufacturers, trade logistics, raw material companies, as well as government departments, industry associations, and research institutions.

We offer a wide range of global cosmetic market entry services, including Global News Alerts, Cosmetics Product Registration and Notification, New Cosmetic Ingredient (NCI) Registration/Notification, Regulatory Consultation, Customized Training, Market Research, and Branding Strategy. Please contact us to discuss how we can help you by cosmetic@chemlinked.com

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Every month, Simon Pitman (Editor, Journalist) takes a look at what’s shaken up the industry. From acquisitions to launches and everything in-between, don’t miss the latest cosmetics news, only here at in-cosmetics Connect.

Kao Corp invests $136m into digital transformation

Japanese multinational beauty player Kao has been hard hit by the pandemic, leading company executives to take the decision to invest big in a digital transformation to offset declining sales. The company says it is investing $136m to create digital tools that will enhance the competitiveness of its cosmetics division in an effort to build on the value of its current portfolio offering, improve the user experience and reach new consumers.

Company executives want to engage the many consumers who have shifted to digital shopping during the pandemic, as well as tailoring its offering to significantly changing consumer needs and a number of key new trends that have appeared as a result.

“A good example of this approach is Kate Lip Monster, a lipstick launched in April​,” said President and CEO Yoshihiro Hasebe.

“By effectively communicating its features, of not discolouring easily even when a face mask is worn and long-lasting moisture by using digital marketing, we succeeded in gaining its recognition and support among consumers. As a result, the product gained a high market share.”​

Last month the company announced that it was ditching physical hair dye swatches, a measure that it estimates will reduce the amount of plastic it used by 56 tonnes a year. The swathes have been replaced with an augmented reality tool that stimulates hair colours using an app created by Taiwanese tech player Perfect Corp, together with the company’s YouCam Make-up App.

Kao says the new technology takes advantage of a new development that every hair colourant product in every shade can be tested using its HK Dye Technology to show different hair colours in all types of light angles. The investment in the new digital technology is part of the company’s aim to get its sales back on track after revenues fell by more than 5% during 2020 while operating income decreased by more than 17% on a like-for-like basis.

In particular, the company’s colour cosmetics sales performed particularly poorly, slumping by more than 20% in 2020, but this was counterbalanced by an increase in skincare products, driven by hygiene and hand soap products.

The company says it is also considering divesting a number of smaller beauty and personal care brands over the course of the next two years, although it did add that this will only include brands with a profit margin of less than 15%.

L’Orêal gets a full score for the 2021 Disability Equality Index

L’Orêal has received a full 100 out of 100 for its 2021 Disability Equality Index (DEI) rating, the fourth year in a row the company has secured a perfect score.

The DEI is the result of a joint venture between Disability IN and the American Association of People with Disabilities (AAPD), a programme that aims to create full opportunities for people with disabilities as well as specific amenities to accommodate a range of disabilities in the workplace.

“At L’Oréal USA, we have a responsibility to create an inclusive and accessible work environment where individuals with disabilities feel supported and positioned for success,” said Angela Guy, chief diversity & inclusion officer, L’Oréal USA

“As a business leader with my own disabilities, I appreciate the encouragement to generate an open dialogue across the business and ensure we are always working to foster an inclusive workplace culture among our employees.”

The DEI was launched in 2015, rating corporations according to how well they accommodate disabilities employees using a score out of 100 that has been linked to a constantly evolving index rating that has been developed by the DEI committee and a voluntary group of experts over the course of the last six years.

In 2021 319 corporations enlisted to become involved in the DEI benchmarking efforts, evaluating participants according to nine different categories.

Those categories include:

• Culture & Leadership
• Enterprise-Wide Access
• Employment Practices (Benefits, Recruitment, Employment, Education, Retention & Advancement, Accommodations)
• Community Engagement
• Supplier Diversity
• Non-U.S. Operations

For 2021, the DEI was adapted to changing workplace conditions created by the pandemic, which meant the addition of weighted questions relating to advance digital and remote accessibility, as well as mental wellness benefits and flexible work options.

“The Disability Equality Index shines a spotlight on companies that believe they have a stake in creating a more equitable society for people with disabilities,” said Maria Town, President and CEO of AAPD.

“It is a conduit for our work championing disability rights for the 60 million Americans with disabilities and knocking down barriers to employment, technology and healthcare, and we’re thrilled to see the progress being made today.”

EWG partners with Amazon on Climate Pledge Friendly list

The Environmental Working Group’s (EWG) verified products have been added to Amazon’s Climate Friendly list after the two organisations struck up a new partnership. Amazon’s Climate Pledge Friendly is designed to make it easier for consumers to buy more sustainable products. It works by ensuring that brands hold at least one or more approved certification seals that are a part of the Climate Pledge Friendly programme.

Amazon launched the initiative in 2020 and to date, it already includes more than 75,000 different products that have been able to meet the criteria. The programme has been made possible through Amazon’s partnership with a number of government organisations and non-profits that are responsible for distinguishing and certifying products that do not have a negative impact on the environment, therefore making them more sustainable.

By signing up to the Climate Pledge Friendly programme, the EWG joins a number of other leading certifiers also involved in it, including Carbonfree Certified, Certified Animal Approved, Climate Neutral by ClimatePartner, Fairtrade International, Cradle to Cradle Certified, Regenerative Organic Certified, EPA Safer Choice and Compact by Design, among others.

Compact by Design is Amazon’s own certification, created to identify products that incorporate a more efficient design, which, for example, might include the removal of excess air and water, or products that have been designed to have less packaging in order to make them easier to ship.

Both Amazon and the EWG state that their sustainability efforts have been vetted by experts within both Amazon, as well as third-party consultants.

“The EWG Verified mark is recognized as the gold standard for health and transparency,” said Carla Burns, EWG’s senior director of cosmetic science.

“EWG has long verified cosmetics and other personal care products, and recently expanded into household cleaners, baby diapers and ingredients. “Because of this new EWG partnership with Amazon, more consumers will learn about the rigorous science-based criteria we’ve developed to measure a product’s impact on human health and our fragile environment,”

Amazon customers can identify products that are a part of the Climate Pledge Friendly programme by the accompanying badge or by shopping on the dedicated portal. They then simply click on the badge to find out more about the exact certifications the products have complied with and what makes them sustainable.

As well as beauty and personal care products, the programme also extends to groceries, household, fashion and personal electronic products, among others.

Read more about the multinational giants accused of not tackling the root of the plastic pollution problem.

Every month, Simon Pitman (Editor, Journalist) takes a look at what’s shaken up the industry. From acquisitions to launches and everything in-between, don’t miss the latest cosmetics news, only here at in-cosmetics Connect.

Unilever acquires Paula’s Choice

Unilever has confirmed that it is acquiring digital skincare brand Paula’s Choice from TA Associates, in a move that seeks to boost the brand’s international reach. The deal comes as Paula’s Choice has enjoyed a period of significant growth because their digital beauty and direct-to-consumer (DTC) e-commerce channels have flourished during the COVID-19 pandemic.

The brand is distributed through global DTC avenues and select retailers in North America, which is its mainstay market, as well as Europe and Asia.

“Paula’s Choice will join our Unilever Prestige family. Paula’s Choice is a pioneer in the digital space for beauty and has created a mission-based brand rooted in truth and transparency. We can’t wait to introduce the brand and its iconic products to an even bigger audience,” says Vasiliki Petrou, Unilever EVP and prestige CEO.

The brand was launched in 1995 and became popular thanks to its accessible, science-based and high-performing ingredients as well as its cruelty-free claims. However, in recent years it has built a firm foundation in the digital space, offering digital content and tools to help consumers decode the science behind skincare, including an extensive Ingredient Dictionary that includes research and clear explanations for more than 4,000 ingredients.

The brand has also built up a digital rapport with its customers by offering its Expert Advice service, which is a curated online hub of skincare and ingredient knowledge.

“Unilever and Paula’s Choice are joining forces. With Unilever, we can build on our work and vision spanning 26 years of creating products and giving people the self-confidence that comes from knowing they are taking the best possible care of their skin,” said Paula Begoun, founder of the brand.

Beierdsdorf develops new hub in Liepzig

Multinational beauty and personal care player Beiersdorf is creating a new European hub with a €170 million investment to build facilities in Leipzig, 100 miles Southwest of Berlin. The state-of-the-art hub will be located next to the company’s new  €220 million production facility, serving as the conduit for the demands of the huge European consumer market.

Beiersdorf is a major player in the European market thanks to brands like Eucerin, La Prairie and Hansaplast, while it also has developed a significant international footprint presence thanks to the strong performance of its Nivea brand, which is the number one skincare brand in the world. 

The €390 million project spend represents Beiersdorf’s largest-ever investment worldwide in a single location and will ultimately serve to enhance both production and research and development efficiencies by placing the two facilities next to one another. 

The company is currently in the process of acquiring a neighbouring piece of land adjacent to the production facility in the Leipzig-Seehausen II industrial estate, where construction on the new hub will start once planning permission is granted by the Leipzig city council. The operation of the new hub will be entrusted to specialist service providers, which the company says will help to create a further 400 jobs, in addition to the 200 jobs created by the production centre. 

“With the combination of the production site and hub, Beiersdorf wants to position itself optimally for consumer habits and retail landscapes of the future and to create the conditions for state-of-the-art supply chain infrastructure in the heart of Europe,” says Harald Emberger, Beiersdorf corporate senior vice president Supply Chain. 

“The interplay between production and hub offers unique development opportunities in this context to offer our customers completely new solutions. We would be delighted to be able to implement this project in the city of Leipzig, an attractive location with a skilled workforce and a good investment environment.”

Multinationals accused of using false plastic waste solutions

Break Free From Plastics (BFFP) claims multinational FMCG giants, including some leading beauty and personal care players, are using false plastic waste solutions that do not tackle the root cause of plastic pollution.

The NGO says its research highlights how FMCG companies are highlighting projects that just scratch the surface of the environmental problem, often failing to tackle deeper

problems and prevent the cycle of manufacturing new plastic packaging that then goes to landfill waste. The report, titled ‘Missing the Mark: Unveiling False Solutions to the Plastics Crisis‘, highlights a lack of ambition to make permanent and meaningful changes to reduce plastic footprints.

“The only solution companies should be investing in are those that reduce plastics use and find alternative ways of delivering products without reliance on single-use packaging,” says Emma Priestly BFFP’s global corporate campaigns manager.

“Many FMCG companies are piloting reuse, but the ambition is mostly low and needs to be scaled up and made accessible to all.”

The report draws specific attention to Procter & Gamble, which ran a campaign to highlight its special edition Head & Shoulders bottle that was made from ocean pollution plastics sourced from local clean-ups. While the intentions for the project were good, the BFFP report points out how the clean up does not prevent plastic waste from happening in the first place, while also highlighting the fact that the vast majority of ocean waste plastics can never be recovered. “Beach clean-ups are mainly cosmetic, with more with more plastic waste being washed up onto the beach with each tide,” the report states.

Bill to update 80 year-old US cosmetics regulations

A new bill has been introduced in Washington DC that aims to update the 83-year-old law that governs the legislation of beauty and personal care products in the US. The Personal Care Products Safety Act has been introduced by senators Dianne Feinstein (D-Calif.) and Susan Collins (R-Maine) with the goal of updating the Food and Drug Administration’s oversight of beauty and personal care products, which many experts believe is largely self-regulating. 

“We use personal care products every day, but most Americans don’t know the government lacks authority to ensure the safety of products we put on our bodies and hair,” said Senator Feinstein.

“What’s particularly striking is that when the FDA finds an unsafe product, it cannot force a company to stop selling it. Our bipartisan bill will finally bring the FDA into the 21st century by giving it authority to ensure personal care products are safe.”

The new rules will give the authorities greater powers to oversee the regulation of the beauty and personal care products, which to date have been relatively arbitrary. The FDA has traditionally sent out warning letters to companies not complying with the regulations, but this measure has not always proved effective.

The new bill will serve to update regulations, while also bringing them in line with international rules, particularly the more stringent rules employed by the European Union, through the REACH chemical regulations and rules governing beauty and personal care products in Japan. 

The FDA and product safety experts are currently reviewing the toxic dosing of certain ingredients in BPC formulations. In some cases, these ingredients are completely outlawed by international regulatory authorities, particularly in the European Union, where the list of banned ingredients is extensive. 

The new bill aims to empower the FDA to review ingredients contained in beauty and personal care products, as well as providing companies with clear guidance on ingredient safety, dosing levels and consumer warnings should they continue to choose to formulate with certain ingredients.

The bill has also been supported by academic institutions, BPC organizations, and beauty brands, including Burt’s Bees, Beautycounter, Au Naturale, L’Oréal USA, The Estée Lauder Companies, Procter & Gamble and the Environmental Working Group.

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Halal beauty is synonymous with quality and transparency. Demand for halal cosmetics is growing globally and it cannot be classed as a “niche” area of the industry. So how does that intersect with K-beauty? We chatted to Dr James Noh, senior lecturer and founder of the Korea Institute of Halal Industry, about the change in attitude to halal beauty and how this affects the Korean market.

The term ‘halal’ is widely known as a religious dietary practice of the Muslims. What does it mean by halal cosmetics, and what are the key features of halal beauty products?

Usually, halal applies to meats and processed foods intended for human consumption. However, beauty products also matter because human skin can absorb some ingredients of cosmetic products used on lips or eyes. From the early 2000s, we have witnessed a rapidly increasing demand for beauty products whose ingredients are compliant with Islamic standards and do not cause adverse health effects in humans. In 2008, Malaysia introduced the halal cosmetics manufacturing standards, and Malaysian and Indonesian companies began to launch halal beauty product in earnest by the 2010s.

When we set religious aspects aside, the bottom-line of halal cosmetics is that what ingredients are used. Generally, halal ingredients come from plants, aquatic organisms, minerals, compounds, and microorganisms that do not present a potential harmful effect to the human body.

In particular, much caution should be given to terrestrial animals. Any ingredient derived from animal blood or porcine animals is strictly forbidden. The use of ingredients derived from bovine, ovine, caprine animals and poultry is allowed only when the Islamic rules of slaughter have been observed. Forbidden ingredients include drinkable alcohol, such as liquor. Under unavoidable circumstances, cosmetics manufacturers may use denatured alcohol only. The maximum limit for residues of alcohol in halal foods is extremely low, whereas – as long as it is not edible – halal cosmetic products can contain alcohol content at a reasonable level.

Halal beauty consumers are also interested in vegan cosmetic products because they do not contain any animal-derived ingredients, but manufacturers should pay extra attention to a potential risk factor, for example, a source of alcohol content or other additives that may contain non-halal elements. Thus, the best solution to become a ‘halal (permissible)’ cosmetic product is to acquire halal certification.

Muslim spending on cosmetics in the Middle East is growing at a fair clip, forecast to reach $95 billion by 2024 with increasing natural, organic and vegan cosmetics certifications, according to the State of the Global Islamic Economy Report, a market analysis report published in Dubai. How do you find the current halal beauty market size and Muslim cosmetics consumer trends?

In the past year, the global cosmetics market has been severely affected by the COVID-19 pandemic and halal cosmetic products were no exception. According to the State of Global Islamic Economy Report 2020-2021, Muslim spend on cosmetics increased by 3.4% in 2019 to $66 billion and is forecast to drop by 2.5% in 2020. The report also says that Muslim cosmetics spend will grow at a 5-year CAGR of 2.9% to reach $76 billion by 2024.

These figures are lower than those forecast in the previous year which estimated a 5-year CAGR of 6.9% and a total revenue of $95 billion by 2024. Like other consumer product sectors, the halal cosmetics market has been significantly impacted by the COVID-19. Extended stay-at-home and social distancing practices have drastically affected sales of makeup and perfume products, whereas sales of facial sheet masks and at-home hair dyes rapidly grew during the pandemic.

As mask-wearing continued, lipstick sales fell but conversely, eye makeup sales grew. Aside from these, many companies released halal, cruelty-free, and vegan cosmetics to keep up with growing ethical consumerism among the young Muslim population.

What are the most outstanding features of Korean cosmetics for Muslim consumers? And what makes them buy Korean beauty products?

By and large, Muslim consumer perception of Korean beauty products consists of the following three elements:

1. Koreans have crystal clear skin (this notion is heavily influenced by Korean Wave drama actors and actresses)
2. Korean cosmetics are made with fine natural ingredients
3. Korean beauty companies have innovative technologies.

The first perception leads Muslim consumers to redefine what they think of beauty under the globally popular K-beauty. The second perception encourages local manufacturers to import ingredients from Korea and integrating them into their quality products. The third perception gives consumers confidence that Korean cosmetics are cost-effective and trendy.

As a result, Korean cosmetic exports to Islamic countries has continuously increased over the past few years.

Global beauty companies have huge ambitions for the growing halal cosmetics market.  What are the leading companies and countries in the global market? Is there a Korean company that has been successfully increasing its presence in this emerging market?

Many global beauty companies have made considerable achievements in Southeast Asia, operating their own local manufacturing facilities. For example, Unilever expands Indonesia-made and halal-certified personal care products for Muslim consumers not only in Indonesia but also in neighbouring countries.

Another global beauty giant, Shiseido acquired halal certification for its Vietnam-manufactured Za products for export to other Southeast Asian countries. Besides Shiseido, other Japanese beauty companies, such as Kao and Lion have successfully launched halal version products of their own brands in Indonesia and Malaysia.

Korean cosmetics manufacturers are actively engaged in OEM market. Cosmax established its Indonesian affiliate for supporting local OEM customers. Kolmar Korea operates a halal-certified cosmetics production line in Korea, supplying brand products to its Malaysian customers. Cosmecca, Megacos, and other Korean manufacturers are fully ready for making their headway into overseas markets with appropriate halal certifications.

Now, ‘halal’ does not simply stand for ‘Muslim’, rather it is a symbol of quality assurance. What are the essential requirements for halal-certified cosmetics?

Basically, halal-certified cosmetics require the use of permitted ingredients and a manufacturing system preventing cross-contamination.

For the ingredient side, neither main components nor additives should contain non-halal element. Solvents used for extracting and dissolving process should not be originated from animals. Moreover, filters for water purification and growth media for microorganisms must be animal-free.

For the manufacturing system side, a Good Manufacturing Practice (GMP) must be in place because halal certification requires not only halal elements in ingredients but also hygienic and safe production systems. In this regard, Malaysia and Indonesia introduced the halal assurance system, defining essential requirements for halal production systems.

Korean companies are intensifying their efforts to explore the halal cosmetics market, the so-called ‘blue ocean’ of K-beauty. What are the major challenges they face when entering into new markets and what are the key conditions that allow Korean cosmetics companies to tap into rising demand among 1.8 billion Muslim consumers?

The ideal approach is to set up and operate another manufacturing facility dedicated and exclusive to halal cosmetic products so that they can be treated separately from non-halal products. Alternatively, companies may design and implement a series of systematic procedures to prevent a risk of cross-contamination at their manufacturing facilities.

However, either way, cosmetics manufacturers have to bear additional costs and expenses. Although this extra burden may discourage companies from acquiring essential halal certifications for their export products, fortunately enough, recently, large Korean OEMs and ODMs willingly began to invest in new plants dedicated to halal beauty products, and we anticipate that the halal-certified cosmetics products will consistently increase for years to come.

One thing that I’d like to add for those Korean beauty companies that cling to ‘Made in Korea’ is that they need to build a localized supply chain as many Japanese companies do. Products that maintain a high level of brand awareness but suffer from intense competition in the Korean market, or have already reached the maturity stage of their product life cycle, would be able to find a breakthrough in Indonesia or Malaysia, if they are locally manufactured and marketed with appropriate halal certifications.

With this strategy, Korean cosmetics companies can not only meet increasing local consumer demand but also set up an outpost to advance to the global halal beauty market, covering South Asia, Central Asia, Middle East and Africa.

Want to hear more? Dr James Noh will be running a session at in-cosmetics Korea 2021 called “The future of Halal Beauty and the response of K-Beauty” so check it out!

France is leading the charge in making GMP certificates easier to obtain in a bid to reduce the number of products that require animal testing when exported to China.

Last August and November, China released the first and second draft Instructions for Cosmetic Registration and Notification Dossiers which proposed that general cosmetics can be exempted from animal testing.

General cosmetics refer to all the products complying with the definition of cosmetics within the Cosmetic Supervision and Administration Regulation (CSAR), except for the special cosmetics namely hair dyes, hair perming products, freckle-removing and whitening products, sunscreens, anti-hair loss products and cosmetics claiming new efficacy. But it should be noted that the draft ‘Instructions’ regulate two preconditions and three exceptions for the animal testing exemption:

Preconditions:

Only by fulfilling both of the following two conditions can companies of general cosmetics apply for the exemption of animal testing:

1. General cosmetic manufacturers have obtained the GMP certificates issued by the competent authority of the country (region) where they are located
2. The safety assessment results can fully confirm the safety of products.

Exceptions:

As long as one of the following 3 conditions applies, companies are still required to conduct animal testing:

1. Products claim to be used by infants/children;
2. Products using new cosmetic ingredient during their 3 years of required monitoring;
3. The notifier/RP/manufacturer is listed as a key supervision target according to the results of the quantitative rating system established by the NMPA.

GMP Certificates

For the first precondition-submission of GMP certificates, ChemLinked commented that “some overseas cosmetic companies may face a barrier for the animal testing exemption as they may fail to submit the GMP certificate granted by the local government cosmetic authority. In some regions, like the EU, the government cosmetic authority won’t issue an official GMP certificate due to the local cosmetic regulatory scheme. The GMP certificates that can be provided are generally issued by cosmetic associations or international standardization organizations.”

However, it now appears that the official GMP certificates may not be a barrier. Recently France ANSM (National Agency for the Safety of Medicines and Health Products), the French health authority, announced that it would issue the GMP certificates for local cosmetic manufacturers and has already launched an online platform for them to obtain the certificates.

Additionally, more countries in Europe are considering joining the league. “The U.K. government is working closely with industry to create a certification system that will satisfy new Chinese regulations on cosmetics, following the removal of the requirement for animal testing on imported cosmetics,” said a U.K. Department of International Trade spokesperson.

Nevertheless, it’s an open question whether the Chinese government will recognize the GMP certificates.

Safety Assessment

Apart from the GMP certificates, safety assessment is also a mandatory condition for the animal testing exemption, which may pose a challenge for cosmetic companies as well.

China has released the draft Technical Guidelines for Cosmetic Safety Assessment for public consultation on July 29, 2020. However, the draft Guidelines introduce very strict requirements for safety assessment, such as:

• For finished products, the safety assessment shall not only focus on the assessment of all ingredients but also on the overall stability of the product, even the interaction of the packaging material and the content.
• Safety assessors are required to have a professional background, such as pharmacy, chemistry or toxicology, and at least 5 years of relevant working experience, and need to understand the cosmetic production process, quality and safety control requirements, toxicological assessment methods, etc.

Furthermore, the draft ‘Guideline’s haven’t clearly stated whether to recognise the safety assessment report issued by foreign institutions or foreign safety assessors.

As the ‘Guidelines’ haven’t been finalized, whether the safety assessment will still be subject to such strict requirements remains to be seen.

ChemLinked Comment

Now the animal testing exemption for general cosmetics is still on the drawing board. Once it is implemented, international cruelty-free brands will be able to tap into the Chinese cosmetic market under new conditions. Although there are great limitations and challenges, the exemption would undeniably be a great benefit for international cosmetic companies and also a big step taken by China towards reducing animal testing.

ChemLinked is a leading provider of Asia-Pacific regulatory information and market intelligence across Cosmetic, Chemical, Food and Agrochemical Industries. ChemLinked boasts a multidisciplinary team of scientists, compliance specialists and language experts backed by the vastly experienced technical teams at REACH24H, to ensure over 44,000 registered members to acquire authoritative information and dependable consultancy services. ChemLinked aims to remove any regulatory barriers that prevent you from exporting your products into China and other countries in the Asia-Pacific region

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In the world of personal care, how has the hygiene category stepped up during the pandemic?

Host Simon Pitman, Journalist & Communications Specialist, chats to Natasha Spencer (Lion Spirit Media) and Belinda Carli (Institute of Personal Care Science) about the increasingly important role of hygiene during the pandemic and the opportunity this has created in an otherwise challenging time for the industry.

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Want to hear more from Simon? Check out some of our other podcast episodes

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In this latest instalment of the in-cosmetics Connect podcast series, Simon Pitman discusses the European regulations North American businesses cannot afford to ignore.

With guest speakers Angela Diesch (Managing Partner at Diesch Law Group, APC) and Janell Schroeder (Document Control & Certification Specialist at Intelligent Nutrients), we consider how EU cosmetic regulation can impact businesses operating outside of the European Union and why it is important for such businesses to keep in step with those regulations.

Want to hear more from Simon? Check out some of our other podcast episodes

China is speeding up the approval of new cosmetic ingredients under the CSAR. Four new ingredients, Ethyl Lauroyl Arginate HCL, Methoxy Peg-23 Methacrylate/Glyceryl Diisostearate Methacrylate Copolymer, Calcium Phosphoryl Oligosaccharides and Steareth-200, will be approved as existing cosmetic ingredients.

On December 2, 2020, China National Medical Products Administration (NMPA) opened a public consultation on the approval of Ethyl Lauroyl Arginate HCL, Methoxy Peg-23 Methacrylate/Glyceryl Diisostearate Methacrylate Copolymer, Calcium Phosphoryl Oligosaccharides and Steareth-200 as new cosmetic ingredients.

The basic information about the four new cosmetic ingredients are as follows:

1. ETHYL LAUROYL ARGINATE HCL

Chinese Name: 月桂酰精氨酸乙酯 HCl

CAS No.: 60372-77-2

Trade Name:

• LAE-P (The abbreviation of pure substance)
• LAE
• Lauric arginate
• Ethyl Lauroyl arginate
• Mirenat-N
• Aminat
• Lauramide arginine ethyl ester
• LAE TECNICO DESHIDRATADO

Source: Chemical Synthesis

Intended Use: Cosmetic Preservative

Application Scope: Apply to all kinds of cosmetics except lip products, oral hygiene products and spray products

Limit: 0.4%

2. METHOXY PEG-23 METHACRYLATE/GLYCERYL DIISOSTEARATE METHACRYLATE COPOLYMER

Chinese Name: 甲氧基 PEG-23 甲基丙烯酸酯/甘油二异硬脂酸酯甲基丙烯酸酯共聚物

CAS No.: /

Trade Name: ISPolymer

Source: High-Molecular Polymer

Intended Use: Skin Conditioning Agents and Humectant

Application Scope:

• Rinse-off skincare products: cleaning products, massage products.
• Leave-on skincare products: toner, lotion, cream, essence, facial mask, etc.
• Makeup cosmetics: foundation, various base creams

Limit: 2%

3. CALCIUM PHOSPHORYL OLIGOSACCHARIDES

Chinese Name: 磷酰基寡糖钙

CAS No.: 1124316-47-7

Trade Name: POs-Ca

Source: Potato Starch

Intended Use: Skin Conditioning Agents

Application Scope: Applies to all kinds of cosmetics used on face, scalp and whole body, except eye cosmetics

Limit: 5%

4. Steareth-200

Chinese Name: 硬脂醇聚醚-200

CAS No.: 9005-00-9

Trade Name: Brij S200

Source: High-Molecular Polymer

Intended Use: Emulsifier and Solubilizer

Application Scope: Hair cosmetics

Limit: 1% (When used with oxidized milk (“氧化乳” in mandarin Chinese) in oxidative hair dye, 1.0% shall be the maximum concentration after mixing)

ChemLinked Comments

The current registration process of new cosmetic ingredients in China is tedious as the compliance requirements are quite strict. From 2004 to 2014, only 10 new ingredients have been given the green light for use in cosmetics by the authority, and none since then. This not only hinders industry innovation but also fails to keep pace with consumer demands and global practices.

Approved New Cosmetic Ingredients (since 2004)

1. Alkyl (C12-C22) trimethyl ammonium, bromide and chloride (Jun 2004)
2. Potassium Methoxysalicylate (Apr 2007)
3. Methylisothiazolinone (May 2007)
4. Carnitine Tartrate (Jun 2008)
5. Lathyrus odoratus flower extract (Aug 2008)
6. Fructooligosaccharides (Aug 2008)
7. Dimethoxytolyl Propylresorcinol (Mar 2012)
8. Polymethacryloyl Lysine (Mar 2012)
9. Phenylethyl Resorcinol (Dec 2012)
10. Elaeagnus mollis Oil (Oct 2014)

However, the situation is about to change with the introduction of the Cosmetic Supervision and Administration Regulation (CSAR). As per the new regulation, management of cosmetic ingredients will be stratified based on their inherent risk level. Namely, high-risk ingredients such as preservatives, sunscreens, colourants, hair dyes and whitening agents will require registration with the NMPA and be subject to stringent supervision. In contrast, low-risk ingredients are available for use only after quick notifications.

China’s intention to approve the above four new ingredients after 6 years of stagnation is an active signal that the regulatory stance on new cosmetic ingredients is being softened and the classified management of such ingredients is being put in place. ChemLinked expects that more advanced ingredients can be approved and used legally in the Chinese market next year, and the industry will enter a new era of rapid development.

ChemLinked is a leading provider of Asia-Pacific regulatory information and market intelligence across Cosmetic, Chemical, Food and Agrochemical Industries. ChemLinked boasts a multidisciplinary team of scientists, compliance specialists and language experts backed by the vastly experienced technical teams at REACH24H, to ensure over 44,000 registered members to acquire authoritative information and dependable consultancy services. ChemLinked aims to remove any regulatory barriers that prevent you from exporting your products into China and other countries in the Asia-Pacific region

• LinkedIn: https://www.linkedin.com/company/chemlinked/
• Facebook: https://www.facebook.com/chemlinked/
• Twitter: https://twitter.com/ChemLinked

In the recent non-special use cosmetics (Non-SUC) filing process in China, the review of trademarks in foreign languages has become stricter. We collected the most common review issues on trademarks and combined with relevant laws and regulations to summarize the Chinese labelling requirements of foreign trademarks.

Non-SUC Filing Review Opinions on Trademarks

1) Beijing MPA

Review Opinions

According to the latest instructions of the NMPA, whether it is the English trademark in the product name or on the label, the following Chinese interpretation must be labelled:

• **是注册商标，其含义是** (** is a registered trademark, and its meaning is **)
• **仅为注册商标，无具体含义 (** is only a registered trademark and has no specific meaning.)

Only marking ^® on the trademark or only submitting the trademark registration certificate will fail the filing review. All the English on the label must be explained in Chinese.

Failure Reasons

English trademarks without Chinese interpretation.

2) Shanghai MPA

Review Opinions

The interpretation of the trademark in the Chinese label contains exaggerated claims: “Dr. Deep” is the product brand name and a registered trademark. “Deep” represents that the product quality is worthy of deep trust. “Dr” represents the product is so professional that can be a doctor of family skincare. The brand is committed to selecting high-quality ingredients and developing safe and reliable cosmetics.

Failure Reasons

Trademark interpretation contains non-compliant claims.

3) Guangdong MPA

Review Opinions

Please provide the trademark registration certificate of “Nutribase” in the product name.

Failure Reasons

Without a valid trademark registration certificate.

Regulations on Trademark Labeling

CSAR Subsidiary Regulation: Administrative Measures on Cosmetics Labeling (Draft for Comments)

Article 7 (Requirements for Label Text) Standard Chinese characters shall be used in cosmetic labels. If other languages or symbols are used, standard Chinese characters shall be used on the product sales packaging to provide corresponding interpretations, except for websites, name and address of overseas enterprises, and conventional professional terms that must use other languages.

Article 8 (Requirements for Trade Name, Generic Name and Attribute Name) The name of a cosmetic product generally consists of three parts: a trade name, a generic name, and an attribute name, all of which shall meet the following requirements:

…

(II) The medical effect or the efficacy that the product does not have shall not be claimed by a trade name. Where the name of the ingredient or a term implying that it contains a certain ingredient is used as the trade name, and the ingredient appears in the product formula, the purpose of use shall be explained in the visual panel of the sales packaging; and the ingredient does not appear in the product formula, it shall be clearly labelled on the visible panel of the sales packaging that the product does not contain such ingredient, and the ingredient name is only used as a trade name.

Article 9 (Requirements for Labeling of Product Name)

Chinese names of cosmetics must not be named using letters, Chinese Pinyin, figures, symbols, etc., except for registered trademarks, sunscreen index, color numbers, serial numbers, or other letters or symbols that must be used. Where the letters, Chinese Pinyin, figures, symbols, etc. are used in the registered trademark in the Chinese name of a product, the meaning thereof shall be explained in the product label.

Labelling Requirements of Foreign Trademarks

Based on the above review opinions and regulations, trademarks in foreign languages should meet the following requirements.

1) Foreign trademarks must provide a valid trademark registration certificate during cosmetics filing or registration. Only marking ^® on the trademark or only submitting the trademark registration certificate will fail the filing review. The following Chinese interpretation must be labelled on the packaging:

• For registered trademarks with specific meanings, shall label “**是注册商标，其含义是**” (** is a registered trademark, and its meaning is **).

Examples:

LYMPHODIA is a registered trademark. “LYM” is the abbreviation of “Love You More”, which means to love you more. “PHO” means bright, and “DIA” is the abbreviation of the diamond. The overall meaning of the trademark is: based on the concept of love, our brand cares for the skin and brings a diamond-like lustre for the skin.

• For registered trademarks without specific meanings, shall label “**仅为注册商标，无具体含义” (** is only a registered trademark and has no specific meaning).

Examples:

P. Jentschura is the name of the brand founder, Peter Jentschura. P is an abbreviation of Peter, with no specific meaning.

1) Trademark interpretation must not contain non-compliant claims;

2) Pay attention to the new requirements in the draft labelling regulation. Where the ingredient name or a term implying an ingredient is used as the trade name:

• For products containing that ingredient, the purpose of use should be labelled on the packaging;
• For products without that ingredient, it shall be labelled on the packaging that the product does not contain such ingredient, and the ingredient name is only used as a trade name.

The new cosmetic overarching regulation CSAR will be implemented on Jan. 1, 2021, bringing more stringent requirements for cosmetics market entry and heavier penalties for non-compliance. We recommend you stay in touch with any CSAR updates, which you can find out more about here.

ChemLinked is a leading provider of Asia-Pacific regulatory information and market intelligence across Cosmetic, Chemical, Food and Agrochemical Industries. ChemLinked boasts a multidisciplinary team of scientists, compliance specialists and language experts backed by the vastly experienced technical teams at REACH24H, to ensure over 44,000 registered members to acquire authoritative information and dependable consultancy services. ChemLinked aims to remove any regulatory barriers that prevent you from exporting your products into China and other countries in the Asia-Pacific region

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• Twitter: https://twitter.com/ChemLinked

In Brazil, there is no specific regulation that defines the criteria for natural or organic cosmetics, for that reason, every company which desires to regularise their products are subject to the same requirements as conventional cosmetics. The Brazilian Health Regulatory Agency (Anvisa in Brazilian Portuguese) is the body that regulates the manufacturing of cosmetics in the country and defines guidelines and technical requirements for the making of these products.

According to the Brazilian Association of the Cosmetic, Toiletry and Perfumery Industry (ABIHPEC in Brazilian Portuguese), since 2011 they have been hosting discussions on organic ingredients and cosmetics that take place within the Brazilian Association of Technical Standards (ABNT), through the study commission ABNT/CE-57:003.04. As from these discussions, the ABIHPEC internalised the ISO 16128, which sets important concepts that can be applied to the sector’s products. They are as follow:

– Natural and natural derivative;
– Mineral and mineral derivative;
– Organic and organic derivative.

This ISO is divided into two parts. The first part was published in 2016 and presents a definition guideline for organic and natural cosmetic products and ingredients. The second part, however, deals with the criteria which need to be met so that the ingredients and cosmetics are classified according to the definitions described in part one.

According to the ABIHPEC, that text was produced to align the language used amongst different countries. Before ISO 16128, there were no exclusive criteria to define natural or organic ingredients, nor to determine the natural index of a cosmetic product thus leading into a lot of confusion as there are several conflicting certification standards.

Even amidst searching for advancement, it is undeniable that the natural and organic sector has been constantly growing in Brazil and the World. Recent research by Euromonitor International, “Beauty and Personal Care Voice of the Industry”, forecasts that in the next 5 years there will be 3 main world trends in the beauty sector: digital engagement, appreciation of products with organic and natural properties, and ethical positioning. The research also highlights the role of inspiration in independent brands and the appreciation of new ingredients and formulations.

To the chemical engineer Renata Franco, cofounder of the training platform Cosmetologia do Bem, in the absence of specific laws for the regulation of natural and organic cosmetics in Brazil, several companies resort to national and international certifying bodies to give their products a certification that proves the properties of their cosmetics: “When a consumer sees a certification stamp, they understand that product is certified by a certifying body and,
depending on the trust they hold on that institution, they are certain that that cosmetic has been approved by the certifier’s guidelines and requirements to be considered organic”, explains the specialist.

To Renata, one of the most important things in the manufacturing of organic and natural cosmetics journey is to be transparent with the consumer and give them the power of choice. She warns about companies that use greenwashing, making false advertising, relating the product to the natural world by using green colour on their
labels, or claiming that their product is organic when, in fact, it keeps the traditional formula, which makes the consumer confused.

In this advance in legislation movement, that benefits the consumer of cosmetics, there is a recent resolution published by Anvisa that forces manufacturers to make the composition of formulas available in Portuguese on the labels of personal hygiene, perfumery and cosmetics products. The measure will be in place as from the 5th of November in 2021 and it will cover all cosmetics, not just green ones.

“I like to point out that information is the first step for transformation. We play a very important role in that because our mission is to bring more and more information to people. The more knowledge, the less susceptible to deviation, misleading labels, marketing, so on and so forth, the consumer is. I think it’s a win-win situation when we have consumers who are increasingly aware, wise and informed”, wraps Renata.