3. The Challenges Facing Smaller Beauty Brands
Launching a beauty brand used to be a daunting task that required significant scale to meet the demands of big retailers like Sephora. However, with the rise of direct-to-consumer selling through the internet, smaller brands were able to enter the market more easily. But with the introduction of MoCRA regulations, the barriers to entry for these smaller brands are set to increase again.
By 2025, cosmetic companies will need to comply with facility registration, good manufacturing practices, recordkeeping, reporting of adverse events, and safety substantiation. This means that smaller brands will have to meet the same requirements as larger companies before they can sell their products. This will undoubtedly require more financial investment, which many aspiring entrepreneurs may not have readily available.
While these regulations may seem burdensome, they are ultimately in place to ensure the safety and quality of products for consumers. Smaller, homespun brands may face challenges in meeting these requirements, especially if they do not have proper specifications and controls over their raw materials. However, the FDA has indicated that certain exemptions may be granted to existing companies earning less than a million dollars a year.
4. Transparency in Ingredient Lists
One significant change brought about by MoCRA is the requirement for allergens to be disclosed on ingredient lists. This means that common irritants found in fragrances, such as limonene, linalol, and citral, will no longer be able to hide under the generic term “fragrance.” Consumers will now have access to more information about the ingredients in their products, allowing them to make informed choices for themselves and their families.
Karin Ross, from the Personal Care Products Council, emphasizes the importance of transparency in ingredient lists, noting that consumers deserve to know what is in the products they use. This practice is already common in the EU, where fragrance allergens are a significant source of irritation for consumers.
Overall, while these new regulations may pose challenges for smaller beauty brands, they are ultimately aimed at improving transparency and safety in the industry. By providing consumers with more information about the products they use, MoCRA aims to empower individuals to make informed decisions about their skincare and beauty routines.
