ENTREPRENEURSHIP

A Guide To Key Certifications And Verifications

Consumers are increasingly well-informed as shoppers. For proof, look no further than the rise of “skintellectuals,” a group of consumers knowledgeable about skincare ingredients and their benefits that gravitates to scientifically verified products. To respond to consumer demands, brands and stores are paying very close attention to ingredients in beauty products, the way they're …
Taylor Bryant·February 2, 2023·8 min read
The 30-second read
Consumers are increasingly well-informed as shoppers. For proof, look no further than the rise of “skintellectuals,” a group of consumers knowledgeable about skincare ingredients and their benefits that gravitates to scientifically verified products.

To respond to consumer demands, brands and stores are paying very close attention to ingredients in beauty products, the way they’re made and where they’re from. As such, there’s been a proliferation of ingredient directives at retailers and marketing terms introduced to encapsulate ingredient attributes, ranging from vegan and gluten-free to “no nasties” and eco-friendly.

As terms and retail ingredient requirements spread, consumers have grown suspicious of claims being deployed by brands attempting to stand out in a crowded beauty market. To hold themselves accountable to consumers and gain credibility in a sea of clean and green, many brands have turned to third-party certifications and verifications.

External validation communicates a message of corporate responsibility and helps provide transparency to customers calling for it. It can build trust and bolster brand equity by conveying commitments to sustainability, safety, cruelty-free practices, organic ingredients and fair labor conditions to consumers and retailers.

According to market research firm Mintel, almost a third of beauty and personal care shoppers report third-party certifications such as those from the organizations Environmental Working Group (EWG) or Leaping Bunny drive brand trust. Some certifications, though, hold more weight than others. Mintel highlights that shoppers prioritize Leaping Bunny and COSMOS. The firm states, “81% of US adults who have heard of clean beauty agree that brands that truly value animal welfare offer products that are both cruelty-free and vegan.”

Younger shoppers are most keyed into the contents and production practices of their beauty products. According to influencer platform Kyra’s IQ State of Beauty survey in 2021, 50% of gen Z respondents in the United Kingdom and United States said they wouldn’t buy products from skincare brands not certified cruelty-free.

In this white paper, we review popular certifications and verifications—certifications involve extensive auditing, while verifications don’t—available for beauty brands and provide insight into the upsides and downsides of each.

Fair Trade Certified

Leaping Bunny

Beauty Without Bunnies

EWG

Made Safe

USDA Organic

COSMOS

Fair Trade Certified

What it means: Fair Trade USA audits the supply chain and production process of every product to ensure it meets standards for safe working conditions, environmental protection, sustainability and fair economic standards.

The process: Brands complete an online application form and a Fair Trade Certified representative reaches out to them with information about the process, how to become certified and how to maintain the certification. Brands are required to disclose the percentage of ingredients present in their products. After a product is approved, they must report future sales and purchases to Fair Trade. The organization performs regular audits to ensure that products and production processes remain in compliance with their guidelines.

Cost: At least $1,000, excluding yearly costs.

Time: Up to nine months

Strengths:

  • Regular audits
  • Affordable process

Weaknesses:

  • A verification versus certification
  • Extensive requirements
  • Limited ingredients used in beauty are considered fair trade

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Leaping Bunny

What it means: Products haven’t been tested on animals in all stages of development.

The process: The certification process begins with an online application. Once approved, brands fill out a detailed questionnaire about their operations. Brands must collect signed statements from their manufacturers and suppliers declaring that no animal testing is employed in the creation of the products. Leaping Bunny certifies companies as a whole as opposed to individual products. Brands must be willing to undergo audits and make an annual commitment to be cruelty-free.

Cost: There’s no cost associated with applying or becoming certified. If a brand wants to use the logo on its packaging, website or social media, a one-time fee ranging from $500 to $4,500 is required based on the company’s gross annual sales.

Time: Around three months. The timeframe depends on how quickly manufacturers and suppliers sign their declarations.

Strengths:

  • Certifies the company as a whole
  • Affordable

Weaknesses:

  • Based on the brand and the brand’s partners’ word
  • A verification versus certification

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Beauty Without Bunnies

What it means: Awarded by PETA, the Beauty Without Bunnies seal indicates a product hasn’t been tested on animals and won’t be tested on animals in the future. Products that aren’t tested on animals and don’t contain animal-derived ingredients may apply for an “animal test-free and vegan” certification.

The process: After reaching out via email, brands are directed to submit a legally binding statement of assurance signed by their CEO verifying the company and its suppliers don’t conduct, commission, pay for or allow animal testing for ingredients, formulations or finished products anywhere in the world. Brands are required to have agreements in place with suppliers to ensure no animal testing is done. They’re also required to submit paperwork disclosing how products are tested, where they’re sold and the ingredients used in them.

Cost: Free to apply and become verified. However, there’s a one-time $350 licensing fee to use the Beauty Without Bunnies logo.

Strengths:

  • PETA name recognition
  • Affordable
  • A certification versus verification

Weaknesses:

  • No auditing
  • Based on the brand’s word
  • Certifies individual products versus the company as a whole

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EWG

What it means: Products are free of chemicals on EWG’s “unacceptable” list, including ingredients it determines have “health, ecotoxicity and/or contamination concerns.”

The process: EWG’s team of scientists and toxicologists review ingredients submitted by the company. Brands submit documentation to verify product safety and comply with ingredient naming and labeling guidelines.

Cost: $250 evaluation fee for new formulations. EWG offers a sliding scale for licensing costs based on brand revenue.

Time: Around six to 12 weeks.

Strengths:

  • Comprehensive list of unacceptable ingredients
  • Team of experts make up its review board
  • Affordable

Weaknesses:

  • No annual audits
  • Unacceptable ingredients mostly consider safety rather than environmental concerns
  • A verification versus certification

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Made Safe

What it means: A product has been made with ingredients not known or suspected to damage human health and negatively affect the environment. Products are screened to ensure they avoid more than 6,500 substances on Made Safe’s banned and restricted list.

The process: Brands undergo a 13-step verification process that begins with submitting all of the substances in a product. Made Safe looks into the manufacturing and formulation process. The ingredients are run through a database to determine whether they’re permitted or not.

Cost: Annual fees vary depending on the brand’s revenue. They starts at $4,500, and there’s a $600 screening fee per product.

Time: Can take up to several years.

Strengths:

  • Screening for over 6,500 perceived toxic ingredients
  • Lengthy verification process

Weaknesses:

  • No annual audits
  • Expensive
  • A verification versus certification

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USDA Organic

What it means: Personal care products made up of agricultural ingredients such as honey or shea butter meet the USDA Organic’s production, handling, processing and labeling standards.

The process: Brands submit an application to the United States Department of Agriculture’s National Organic Program (NOP) where a certifying agent reviews and verifies the company’s practices. An on-site inspection of the company’s operations is conducted.

Brands can apply for various labels, including “100 Percent Organic” and “Organic,” which mean the product contains a minimum of 95% organic ingredients, or “Made with Organic,” which means the product contains at least 70% organically produced ingredients. If the products contain less than 70% organically produced ingredients, brands aren’t allowed to use the USDA organic seal.

Cost: A few hundred dollars to several thousand. Costs include an application fee, annual renewal fee, assessment of annual production or sales and inspection fees.

Time: Depends on the size of a business and its supply chain.

Strengths:

  • An annual review and inspection process
  • Tiers to the labeling
  • A federal regulatory program
  • A certification versus verification

Weaknesses:

  • Designed for food, not personal care products
  • Total costs aren’t clear

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COSMOS

What it means: A product contains at least 95% organic ingredients, the manufacturing process adheres to green chemistry principles and the packaging is deemed environmentally friendly by COSMOS standards.

The process: Companies contact one of COSMOS’s authorized certification bodies directly. A representative will perform an audit visit of the applicant’s site. Additional announced and unannounced visits may occur as part of the annual audit process.

Brands can attain two different certifications: COSMOS Organic and COSMOS Natural. The former declares that a product contains a minimum percentage of organic ingredients, while the latter complies with standards, but doesn’t require products to meet the minimum percentage of organic ingredients.

Time: Several months depending on the products and manufacturing process.

Cost: A minimum of $5,000 per year. A license fee is applied to products and raw materials.

Strengths:

  • Thorough vetting process
  • Annual audits
  • Certification bodies across 130 countries
  • Entire supply chain considered
  • Entire formula, not just individual ingredients, reviewed
  • A certification versus verification

Weaknesses:

  • Costly
  • Time-consuming

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The players

3 mentioned
Brand

Formulate

HQUnited States
Brand

AS Beauty

Founded2019
HQNew York, New York, United States
Revenue Range$150M+
Investor

Addition