Functional Skincare and Sustainability Lead Expo West Trends
Trendspotting from the Expo West 2026 natural products trade show highlights key directions for emerging wellness brands. Major themes include functional skincare that blurs beauty and ingestibles, advanced sustainable packaging, and the use of next-generation natural ingredients like mushroom-based actives and marine botanicals.
- The global functional cosmetics and skincare ingredients market is projected to grow from USD 53.5 billion in 2023 to over USD 68 billion by 2032. This growth is largely driven by consumer demand for products with tangible benefits like anti-aging and hydration. - M&A activity in the beauty sector remains strong, with 43 deals in the year-to-date 2025, a 22.9% increase year-over-year. Buyers are particularly interested in brands that blur the lines between beauty and wellness and have clinically proven efficacy. - Sustainable packaging is a key focus, with regulatory pressure mounting. The EU's Packaging and Packaging Waste Regulation (PPWR) will be fully applicable by August 2026, and California's SB 54 mandates 100% recyclable or compostable packaging by 2032. - In response to new regulations, companies like Aptar Beauty are launching innovations such as fully recyclable, all-plastic spray pumps to comply with Extended Producer Responsibility (EPR) schemes. - Mushroom-derived ingredients are gaining significant traction in skincare for their hydrating, antioxidant, and anti-inflammatory properties. Brands like Tata Harper and REN Clean Skincare are incorporating varieties like Tremella (snow mushroom) and white mushroom extract into their products. - The off-price retail channel, a key part of TJX's strategy, often acquires inventory from well-known brands that are reformulating products or selling excess stock. An estimated 30% of beauty merchandise in these stores is created specifically for the off-price market. - Supply chain disruptions are a major concern, with a recent report indicating the global beauty industry is missing out on $86 billion in potential profit due to inefficiencies. These challenges are driven by ingredient volatility, packaging constraints, and complex global regulations. - Major beauty corporations are actively acquiring high-growth independent brands with strong scientific backing. L'Oréal recently acquired Color Wow to bolster its professional hair care division and took a majority stake in the dermatological brand Medik8.
