In today’s global economy, consumers want transparency. They want to know where their products come from, who produced them, and how they were processed. Regulators, too, are tightening their expectations around sourcing, reporting, and environmental impact. At the same time, supply chains are growing more complex and decentralized.
Leading beauty brands are embracing blockchain technology to meet these demands.
How Blockchain Creates Sustainable Supply Chains
Traditional supply chains operate in silos. Manufacturers, suppliers, distributors, and retailers all maintain their own systems and records, often with little integration. The result frequently makes it difficult to verify claims, track raw materials, or ensure compliance.
Blockchain is a decentralized, tamper-proof digital ledger that records transactions across a shared network. Each entry—known as a “block”—is time-stamped, encrypted, and linked to the previous block, forming an immutable chain of data. In a supply chain context, this means:
- Traceability: Every step in the product journey—from raw material to store shelf—is recorded and verifiable.
- Data Integrity: Once data is entered, it cannot be changed without network consensus, reducing the risk of fraud or error.
- Shared Access: All authorized participants see the same trusted version of events, improving collaboration and transparency.
Examples from the Cosmetic Industry
The beauty industry is under increasing pressure to demonstrate its commitment to sustainability in measurable and verifiable ways. Since many cosmetic products rely on complex, global ingredient networks, Blockchain enables companies to prove that ingredients are ethically sourced, genuine, and sustainably processed.
L’Oréal
L’Oréal uses blockchain to enhance traceability and sustainability.
-
- Under its L’Oréal for the Future program, the company has partnered with blockchain platforms to track the journey of raw materials such as mica and palm oil.
- These ingredients are often tied to ethical and environmental concerns.
- Blockchain ensures transparency because each batch of raw material is logged on a decentralized blockchain ledger accessible to auditors, regulators, and consumers via digital interfaces or QR codes.
Aveda (Estée Lauder Companies)
In 2020, Aveda launched a blockchain pilot project with Estée Lauder Companies.
-
- They track the journey of vanilla beans from smallholder farmers in Madagascar to their manufacturing site in Minnesota.
- The system recorded data at every stage: harvest, processing in France, transport, and final product manufacturing.
- Over 450 smallholder farmers participated, ensuring visibility into fair labor and sustainable agriculture practices.
Revlon
Revlon is partnering with Plastic Bank, an organization that uses blockchain to track the collection and reuse of ocean-bound plastic.
-
- Through the partnership, Revlon removes 4 plastic bottles from the environment for each Eksperience™ hair-care product purchased.
- The plastic is reintroduced into the global manufacturing supply chain as Social Plastic feedstock. The blockchain system ensures transparency, real-time tracking, and circularity.
- The plastic waste is collected by coastal communities to provide access to health, work, life insurance, and social assistance.
Final Thoughts
From tracking ethically sourced ingredients to combating counterfeits and minimizing environmental impact, blockchain enables cosmetic companies to meet the demands of a more conscious consumer and build trust in the process.
