Stagnation Or Evolution?: The Fierce Debate Over Beauty's Sputtering Ingredient Innovation

Beauty industry insiders have been chewing and stewing over ingredient innovation stagnation. In a recent piece in the publication Happi, for example, Akshay Talati, chief innovation officer at Supergoop, and marketer Maya Sarin address this concern. They argue that what’s happening is refinement over reinvention, and there’s progress being made in regenerative medicine, personalization, artificial intelligence trendspotting and longevity.

To explore whether others agree with Talati and Sarin’s take, for the latest edition of our ongoing series posing questions relevant to indie beauty, we asked 19 beauty manufacturers, cosmetic chemists and consultants the following: How do you characterize the state of ingredient advancement or lack thereof in beauty today? What are the causes of that state? Are there any specific ingredients or classes of ingredients you think will be genuine breakthroughs?

Laura Lam-Phaure Founder and Cosmetic Chemist, Lam Phaure Beauty

I wouldn’t say that ingredient suppliers aren’t innovating, but rather that the challenge is in adapting these advancements for consumers. Launching a novel ingredient can be risky in today’s market, where tried-and-true ingredients already have strong consumer trust.

Additionally, as access to information, whether scientifically validated or not, continues to grow, what not to include in formulas are sometimes more popular. What ingredients consumers will tolerate in their formulas is decreasing. This makes it even more challenging for suppliers to position and sell their innovations to brands.

That said, I believe that ectoin appears to be on track to becoming as popular as hyaluronic acid and niacinamide. It has been growing in a number of brands, including The Inkey List, Biossance, Tower28, Skinfix and Kate Somerville, among others.

With its broad consumer acceptance across all economic demographics and lack of negative media attention, ectoin is well-positioned to avoid being placed on any formulate-without” lists, which makes me feel that it will continues to grow and become more mainstream.

Thomas Mooy CEO, Allure Beauty Concepts

While ingredient innovation has been evolving at a steady pace, a few emerging technologies have the potential to drive real breakthroughs. Advances in biotechnology, upcycled ingredients and microbiome research are shaping the future of skincare, moving beyond surface-level improvements to deliver deeper, more targeted benefits. AI and beauty tech are also accelerating smarter formulations and personalized skincare solutions.

One of the most promising areas is bio-authenticated exosomes. These extracellular vesicles enhance cell-to-cell communication, improving how actives are absorbed and utilized by the skin. By increasing intracellular delivery, they drive deeper penetration and more precise results, elevating product efficacy.

At the same time, next-generation delivery systems such as deep delivery systems (DDS) and hydroxysomes are redefining ingredient absorption and stability. These technologies protect actives from oxidation and degradation while ensuring they reach their intended targets with maximum potency. From dermal regeneration to hair follicle repair, these advancements are paving the way for a more sophisticated, results-driven approach to skincare.

AI and beauty tech are reshaping skincare, enabling smarter ingredient delivery and hyper-personalized formulations. From predictive modeling to precision diagnostics, these advancements ensure actives are more targeted, effective and tailored to individual skin needs.

As the industry moves toward sustainable, biotech-driven solutions, the fusion of bioengineered ingredients and cutting-edge delivery mechanisms will define the next chapter of beauty, offering greater performance while reducing environmental impact.

Magdalena Bembenek Founder and CEO, Knockout Brands

While there are advancements in formulation science, delivery systems and sustainability efforts, I believe we have not seen the introduction of groundbreaking new ingredients at scale. This is largely due to several factors, including the high cost of R&D, the regulatory hurdles associated with bringing new ingredients to market and the preference for familiar, proven ingredients that consumers trust.

Another factor contributing to this innovation plateau is the rise of "dupe" culture, where brands rapidly reformulate existing products to create lower-cost equivalents. This dynamic reduces the incentive for companies to invest heavily in new ingredient development when they can achieve market success by refining existing formulations.

That said, there are promising areas of advancement. Growing interest in health and wellness ingredients like NAD+ is shifting the beauty industry’s focus toward cellular aging and skin longevity.

As the beauty industry continues to blur with biotechnology, regenerative medicine and personalized skincare, we may see more meaningful ingredient breakthroughs emerge in the coming years.

Loren Scott Founder, Health and Beauty Partners

There’s been a lot of talk about ingredient innovation hitting a plateau, but it’s less about stagnation and more about refinement. Instead of constantly discovering brand-new molecules, the beauty industry is finding smarter ways to optimize existing ones, making them more effective, sustainable, and personalized. I believe we are experiencing a calm before the storm.

What’s Actually Happening In Ingredient Innovation?

We’re seeing big strides in three key areas:

Biotechnology and regenerative medicine: Think lab-grown collagen, biomimetic peptides and exosomes that mimic the body’s natural regenerative processes. These advancements may change the game for anti-aging and skin repair.
AI-powered formulation and personalization: Artificial intelligence is being used to predict ingredient synergies, fine-tune delivery systems and personalize skincare based on microbiomes and genetics.
Sustainability and green chemistry: Brands are moving toward bioengineered, nature-identical actives like fermented ingredients that are just as effective, but with a smaller environmental footprint.

Why Does It Feel Like Innovation Has Slowed Down?

The industry isn’t standing still, but a few factors make it feel like major breakthroughs are happening less often:

Regulatory hurdles: Getting a brand-new active ingredient approved, especially in the U.S. and EU, is a long, expensive process, which is why many brands refine what already works.
R&D costs and market readiness: Developing a novel molecule costs a fortune, and brands often stick to what’s already consumer-approved.
The shift toward sustainability: Instead of chasing synthetic breakthroughs, brands are focusing on eco-friendly reformulations and biotech-driven alternatives, which may feel less “revolutionary,” but are still major advancements.

What’s Next? Breakthrough Ingredients To Watch

Some ingredient categories are poised to shake things up in a big way:

Bioengineered Growth Factors And Peptides

What they are: Lab-grown epidermal growth factors (EGFs), exosomes and insulin-like growth factor (IGF-1) alternatives.
Why they matter: These ingredients mimic the body’s natural repair signals, helping with collagen production, wound healing and overall skin longevity without the ethical concerns of human-derived sources.

Postbiotics And Microbiome-Modulating Ingredients

What they are: Lactobacillus ferment lysates, bacteriophage technology and short-chain fatty acids.
Why they matter: Instead of just adding probiotics, postbiotics actually rebalance the skin’s microbiome, helping with acne, inflammation and skin barrier health at the source.

Senolytics For Skin Longevity

What they are: Fisetin, auercetin and FOXO4-DRI peptides.
Why they matter: These ingredients target and remove senescent (“zombie”) cells that speed up aging, offering a fresh take on longevity-focused skincare.

AI-Optimized Adaptive Ingredients

What they are: Smart peptides that change function based on skin needs, plus dynamic delivery systems.
Why they matter: AI-driven discoveries are helping to create ingredients that adapt to different skin types and conditions, making products more effective for a broader range of consumers.

The beauty industry isn’t running out of ideas, it’s just getting smarter about how it innovates. The real breakthroughs won’t come from a single “miracle” ingredient, but from how we use biotechnology, AI and regenerative science to make skincare more effective, sustainable and personalized.

Lorne Lucree Founder, Quiet Coyote

Andrew Ross, the senior advisor and venture partner at XRC Ventures who I think is so smart, made a brilliant observation on LinkedIn: "2024 saw the end, or beginning of the end, of two 'growth supercycles' in beauty." The first is the decline of the Chinese market, and the second is the consumer tipping point, with shoppers overwhelmed, customer acquisition costs rising and major retailers like Sephora and Ulta nearing saturation.

While hair, body and fragrance offer growth, they’re not enough to sustain momentum. As Ross put it, "Perhaps generative AI creates a new growth supercycle, but we see it more as an enabler of 'How to Win.'”

I think that raw material suppliers have recognized and embraced AI as an enabler of “how to win,” so instead of trying to innovate by category, they are using AI as inspiration to make existing ingredients feel fresh and new by putting them together in innovative combinations.

So, yes, while net new ingredient launches might feel like they have slowed, what is happening is a lot of reimagining, which is kind of cool and in some ways even more creative. I’m seeing lots of newness from raw material suppliers like colla-peptides, hya-collagen, collagen delivered by exosomes, all words a guy in his early 40s wants to hear, so I'm not complaining.

David Chung Founder and CEO, iLABS, Morae Packaging and The Rootist

I believe beauty innovation is more necessary than ever, which is why innovation is our main focus at iLABS. I believe innovation should be tailored to the needs and desires of consumers, which evolves with time.

I do agree with Akshay and Maya that we have seen tried-and true ingredients like retinol and vitamin C “refined” with better delivery systems, more stable forms and more clinical research proving efficacy. One of the reasons we have seen this drive towards refinement from an ingredient standpoint is because raw material suppliers have significantly invested in clinical studies to solidify their claims. As a result, we have seen a saturation of specific actives and ingredients promoted through viral marketing.

I have always been an advocate for better ingredients in sunscreen, which is why I have dedicated iLABS chemists who work on innovating sun care formulas with new ingredients, delivery systems and technologies. Efficacy of actives and the functional ingredients that enable the final formula to deliver on its claims are equally important.

At iLABS, we apply the 12 principles of green formulation established by the 12 principles of green chemistry, which brings innovation to every step of the product life cycle. Prioritizing biodegradable or upcycled ingredients, focusing on concentrated formulas that reduce waste and utilizing biotechnology allows us to do a small part to help to create a healthier, more sustainable beauty industry. I believe we will continue to see innovation in green chemistry and the sun care category.

Jami Mitchell Director, Research & Development, Cohere Beauty

The beauty industry is evolving from the invention of new ingredients to the refinement of existing ones. This change is driven by cultural, economic, environmental and technological factors that are reshaping consumer demand.

The push for diversity and personalization in skincare has prompted brands to select ingredients tailored to specific skin types such as unique tyrosinase inhibitors for different Fitzpatrick skin types to address hyperpigmentation.

Economically, consumers are seeking multifunctional products that simplify their routines, driving brands to choose ingredients that serve multiple purposes while ensuring quality and stability. Environmentally, there is a growing focus on eco-friendly and upcycled ingredients, although performance remains a priority.

The evolution of ingredient advancement in the beauty industry reflects a thoughtful shift driven by the need for diversity, multifunctionality and environmental responsibility. Brands are increasingly focused on refining existing ingredients to meet the nuanced demands of consumers, prioritizing safety and efficacy through clinical testing and innovative delivery systems.

This shift not only aims to enhance product performance, but also aligns with a broader cultural and economic landscape that values personalization and sustainability. As the industry continues to adapt, the future of beauty will be defined by a commitment to meaningful, science-driven advancements that resonate with the diverse needs of consumers.

Several specific ingredients and classes of ingredients are poised to be game changers. At the forefront are advancements in ingredient delivery systems, including exosomes, liposomes and hydrosomes. These advanced systems significantly enhance the effectiveness of active ingredients by allowing for more targeted delivery, ensuring that the actives penetrate the skin more efficiently and yield better results.

Additionally, developments in cell signaling actives and bio-fermented ingredients are set to elevate product performance. Cell signaling actives can communicate with skin cells to promote repair and regeneration, while bio-fermented ingredients offer enhanced efficacy and stability, aligning with the growing demand for clean beauty solutions.

The integration of AI in ingredient discovery is also transforming the industry, enabling the formulation of highly targeted products that address specific skin concerns with remarkable precision.

Ultimately, the beauty industry is evolving beyond transient ingredient fads. It is about reimagining the consumer experience through thoughtful ingredient selection and innovative formulations that prioritize efficacy, safety and sustainability. This commitment to science-driven advancements promises to redefine beauty standards and deliver transformative results for consumers.

Anushka Nadkarni Product Development and Innovation Lead, Bentley Labs

You’ve nailed one of the biggest challenges in beauty innovation—true breakthroughs are rare because the industry has prioritized speed over substance. Instead of investing in long-term R&D, brands are repurposing skincare actives into other categories, giving the illusion of innovation, while actually just extending ingredient life cycles. It’s a smart short-term strategy, but it’s also contributing to the stagnation we’re seeing.

Dermaceuticals and nutraceuticals are definitely areas where we could see real innovation. Dermaceuticals, especially, have the potential to push boundaries with high-quality, research-backed ingredients that mimic or complement professional treatments. They could help bridge the gap between the dermatologist’s office and at-home skincare, making advanced treatments more accessible.

Nutraceuticals tap into the growing consumer demand for holistic beauty—skincare from the inside out. With more consumers looking at beauty as an extension of health, this category has room for real breakthroughs, especially if brands move beyond the typical collagen and biotin offerings and start integrating more bioavailable, clinically validated ingredients.

Paul Marotta Senior Director Research & Development, FP Labs and Federal Package

The rising costs of goods and services, transportation and new regulatory compliance are barriers to ingredient innovation. Given the costs associated with development and testing, brands are likely to invest in launches that promise predictable results. Many brands and manufacturers are working on version 2.0 of existing formulations, enhancing their efficacy and delivering faster, more visible results.

In spite of that, new innovative ingredients like carbon-captured ethanol, bio-synthetic collagen and various bio-ferments are very exciting. Ingredients like bioengineered silk proteins, biotech-derived ceramides and peptides are growing in popularity with brands and consumers, thanks to their performance capabilities and the fact that they can be sustainably sourced.

Shannaz Schopfer CEO, The Beauty Architects

The conversation around ingredient innovation in beauty is an important one, and I agree with Akshay Talati and Maya Sarin that we are in an era of refinement rather than radical reinvention. However, I wouldn’t characterize this as stagnation, it’s a shift in focus.

Rather than a constant search for the “next big ingredient,” the industry is prioritizing deeper research, better bioavailability and smarter formulations that enhance efficacy and sustainability.

Several factors contribute to this evolution. First, regulatory scrutiny is intensifying globally, particularly in the U.S. and EU, making it more challenging to introduce entirely new, untested compounds. Second, consumers are more informed and skeptical, demanding proof of performance and safety over novelty. Third, supply chain constraints and sustainability concerns are pushing brands to rethink how we source, manufacture and optimize ingredients.

That said, there are promising frontiers in ingredient science that could drive genuine breakthroughs:

1. Regenerative Bioactives—Inspired by longevity research, ingredients like peptides derived from regenerative medicine and epigenetic science are advancing how we address skin aging at a cellular level. Look at exosome technology and bioengineered growth factors, they have the potential to revolutionize repair and rejuvenation.

2. Skin Longevity And Senotherapeutics—With the rise of the longevity movement, we’re seeing ingredients targeting cellular senescence such as senolytics and NAD+ precursors being explored for their ability to prolong skin health rather than just treating surface signs of aging.

3. AI-Driven Ingredient Optimization—Artificial intelligence is transforming how we identify, test and formulate ingredients. By analyzing massive datasets, AI helps refine ingredient combinations for peak efficacy, stability and personalization, leading to more effective, tailored skincare.

4. Microbiome-Modulating Compounds—While microbiome beauty has been a buzzword, new postbiotic and quorum-sensing technologies are moving beyond prebiotics and probiotics, targeting the skin’s microbial communication to enhance barrier function and immune response.

5. Biotech-Derived Ingredients—Lab-grown collagen, fermented antioxidants and precision fermentation-derived actives are replacing traditional sources, providing greater sustainability without compromising efficacy.

The industry isn’t stagnant, it’s maturing. The future belongs to those who can bridge scientific advancements with real consumer benefits, creating products that aren’t just trendy but truly transformative.

Megan Cox Founder, Genie Supply

I agree with this take. We rely heavily on ingredient manufacturers to innovate and refine their products, but, ultimately, the degree of sophistication of a product is largely up to the skill of the chemist.

A good analogy might be dining: Assuming the ingredients are the same, what's the difference between an everyday establishment and a Michelin star restaurant? Presentation (packaging) is important, but, ultimately, the difference in food quality—the skill in working the ingredients and putting them together—will come down to the chef.

So, in short, we will continue to rely on ingredient manufacturers to refine and innovate the manufacturing processes of their ingredients, including adding additional transparency in the sourcing, harvesting and feedstock of ingredients, upcycling old favorites from new by products and generally honing in on material stability and size.

However, and actually along the same lines, one category we do expect to see major innovation in is ingredient biotech. While many might be excited about the prospect of new chemicals, we are most excited about the prospect of readily available, stable chemicals that we already know and love.

Biotech ingredient manufacturers can now create stable ingredients that replace their original natural formats in a reliable, consistent way that does not harm the environment. Biotech will free the ingredient supply chain from the inconsistencies of nature, which will continue to evolve and increase with climate change.

Alli Reed Founder, Sespia Labs and Stratia

I completely agree with the conclusions Akshay Talati and Maya Sarin reached in their Happi article. The beauty community has tired of the frantic throwing-spaghetti-at-the-wall product development strategies of the last decade, and besides, this was never a solid strategy for skincare, which requires consistency to see results, versus makeup which can change on a whim.

Customers are getting better educated on the science of beauty, thanks to the rise of video-based social media like TikTok. I personally think this trend of refinement over reinvention is more in line with scientific progress in general, and I’m optimistic it will lead to more effective skincare.

Kyle LaFond Founder, Natural Contract Manufacturing and American Provenance

For years, I've attended trade shows and conventions to discover the latest and greatest in consumer packaged goods. Unfortunately, on many occasions, I've walked away less than impressed.

I agree that what we're seeing now in health and beauty is more refinement over reinvention, and I think that's a good thing. Ingredient vendors have improved their science and processes and are now able to provide higher quality ingredients than they could just a few years ago. This continual refinement will lead to better products, benefiting the consumer.

I personally prefer ingredients provided by nature with minimal processing. I hope that we see more ingredient panels with scientific names that people actually know and can pronounce.

Krupa Koestline Founder and Cosmetic Chemist, KKT Innovation Labs

The current state of ingredient innovation in beauty feels like a period of refinement, where biotech is making a real impact in terms of sustainability and personalization.

Instead of focusing on entirely new ingredients, there’s a lot of progress being made in optimizing existing technologies, especially through biotech, AI and personalization. Brands are prioritizing eco-conscious solutions and more effective formulations, reflecting consumer demand for safer, more sustainable products.

Biotech, in particular, is driving sustainability by using lab-grown ingredients and bio-fermentation to create effective alternatives to traditional sourcing methods, reducing the environmental impact.

AI is also playing a huge role in personalizing skincare, with products now being tailored to an individual’s unique genetic makeup and environmental factors. Longevity-focused ingredients like those targeting the microbiome or exosome-based technologies are on the rise, promising long-term skin health and resilience.

I believe biotech is at the heart of the beauty industry’s next wave, where science is advancing sustainability and creating more precise, personalized solutions for consumers. It’s less about reinventing the wheel and more about making smarter, more sustainable innovations that will shape the future of beauty.

Richie Rubin EVP, Garcoa

We have seen a significant slowdown on true innovation, and we think there are a number of reasons why. American businesses are currently navigating a very complex set of circumstances.

We are one month into a new administration, the retail footprint is changing, various parts of the country are impacted by significant natural disasters, and the world is waiting to see how various conflicts play out.

In addition, the cost of innovation in the United States is increasing. This is creating the perfect storm for American businesses. As we start to adjust to our circumstances, we will start to see more innovation.

Amy Hart Chief Innovation Officer, Elevation Labs

Similar to new product launches, I’d characterize the state of ingredient advancement as very intentional versus plentiful. We’re seeing new ingredients that truly move the needle with thorough clinical claims testing, which in turn offers chemists new tools to drive a more seamless problem-solving approach in formulation.

To stand out in market, consumers are looking for products that deliver meaningful and visible results. The only way to achieve this is through careful selection of functional ingredients that deliver on performance, claims and aesthetics—the total package.

Some of the breakthrough categories of ingredients we expect to see further growth across multiple channels would be materials inspired by AI, biomimicry and biotechnology.

Conrad Debaillon Director, Product Development and Marketing, Cosmetic Solutions

Given the speed and frequency of ingredient advancements and launches over the past few years, one would be concerned that we are nearing a point of saturation.

Overall, we do not seem to be at that point yet, but proceed with caution. Brought about by the ever-increasing competition in the marketplace, it can be a challenge for ingredient suppliers and CDMOs alike to break through the noise and drive traction for their true innovations backed by data with compelling reasons to be excited.

Therefore, now is the time to be more intentional with innovations versus flooding the market with innovations for the sake of volume. Keeping a few and fresh approach to innovations while laser-focusing on key benefits can help you stand out among the crowd.

Before jumping full force into new innovation development, I would first ask if you are fully maximizing the potential with your current portfolio. Can the unmet need you are trying to solve for be addressed by applying your portfolio in a new and innovative way versus a completely new development?

Asking yourself this question could help make sure your portfolio is working harder for you rather than cannibalizing itself with new developments (unless that is the goal). Remember, your portfolio is composed of ingredients and formulations that were considered breakthroughs at some point and still have relevancy.

A great example of how we recently brought innovation to market with this mindset is through our Hot To Glow collection. We collaborated with ingredient supplier IMCD US Beauty Studio to create a skincare capsule collection to address the unmet needs of gen alpha. The ingredient composition we identified are not new to the marketplace, but effectively addressed the needs of the target audience. As a result, we created a collection that accomplished our goal and grabbed the attention of our brand partners.

Aside from the growing focus on gen alpha, I expect us to see greater breakthroughs within the neurocosmetics space. The fusion of skin health and mental well-being is still a relatively new concept with a significant runway for growth. We can expect to see further developments in this space: more ingredient/formulation advancements as well as diving deeper into the claims and efficacy of ingredients and formulations that are currently in the marketplace.

Kailey Bradt Founder, Syndeo

I generally agree with this piece. Innovation makes itself apparent in a number of different ways, and what I’m seeing more of on the ingredient side is improvement as it relates to climate impact—energy efficient processes, upcycled feedstocks, lab-grown materials from the advancements of synbio, implementing AI for optimization—all of these are notable innovations behind the scenes.

Previously in the last innovation cycle (1990-2020), we saw software implemented to increase our capabilities behind the scenes, for example statistical software to optimize design of experiments.

The next innovation cycle we’re entering now, the sixth wave, relates to reshaping consumption patterns with a focus on climate. Therefore, I expect to see this trend of advancements continuing to be driven by climate and by the dynamic regulatory landscape we’ve been experiencing.

I’ve seen a lot of biotech companies focus on innovating actives, when arguably what we need more of are the commodity ingredients. It makes sense we had to start small and with high value, low volume ingredients to penetrate the market, but now we need to focus on climate impact.

These ingredients that make up a majority of an ingredient list need more attention. The consumption is high, and as biotech continues to optimize and scale their processes, I hope to see more affordable options for these ingredients. We went from fossil fuel origin to plant origin, and now we’re at a science-meets-nature moment that is about to take off across the board—surfactants, oils, humectants, emollients, you name it.

To say these aren’t genuine breakthroughs would be a fallacy. We don’t realize how much time, human capital, financing and other resources have gone into the work to get to this point because, as a brand and especially as a consumer, we are so far removed from the research. Our supply chains have become more fragmented, and therefore there is less transparency.

What we need next, and why innovation seems slow, is because we’ve lacked adoption on the brand side. Brands can help drive intentional innovation and provide direction for the innovators by communicating what they need and more importantly what their customers need.

Brands also need to put the time into their development cycles to give the new materials the space to come to market. Brands should also take advantage of the opportunity that consumers want more transparency and play off of that to offer more education around the what’s changing behind the scenes.

I’m optimistic we will see the emergence of more innovation infrastructure to support the adoption of these new innovations with advancements in AI and increased collaboration across the beauty ecosystem.

Marisa Plescia Senior Product Innovation Chemist, Bell International Laboratories

Ingredients are the true backbone of a formulation and product. They provide stability, aesthetics and efficacy. Ingredients are more than just marketing.

As Akshay Talati and Maya Sarin discussed in their Happi article, ingredient innovation is shifting and evolving in ways that differ from its traditional perception. We are actually in, what I believe to be, an exciting time where ingredient innovation is much more than just the introduction of brand-new INCI names to the ingredient deck.

There’s innovation of well-known ingredients such as retinol, vitamin C, niacinamide, etc., in terms of formulation challenges and improvements in stability and delivery. Even sourcing is an opportunity for ingredient manufacturers and scientists.

For example, retinol notably has a reputation to be challenging in terms of stability and potential irritation, yet it is well-known and desired among consumers due to its well-researched benefits. With recent retinol innovation, formulators now have a multitude of retinol options that have better stability, delivery and processing.

There are now retinol encapsulation technologies on the market that can allow for not only improved stability, but enhanced efficacy. Additionally, there is even now a 100% naturally sourced retinol on the market, which can be a more sustainable solution to brands that do not want synthesized retinol.

Innovation in ingredients is surely not stagnant, but dynamic and progressing to align with the current needs and trends of the market.

If you have a question you’d like Beauty Independent to ask beauty manufacturers, cosmetic chemists and consultants, please send it to editor@beautyindependent.com.