Opinion: How label ingredients have become table stakes for emerging brands

Published: 14-Apr-2026

The new key metric in the beauty industry is science-backed evidence for efficacy. Investment banking advisory firm Green Circle Capital Advisors explains how this is setting new standards for beauty brands

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We have observed that a certain transformation, similar to what has already occurred in food and beverages, is now occurring in other consumer categories such as beauty. 

Personal care, health and beauty brands continue to innovate, and more now seem to purvey a brand positioning based around cleaner labels, natural ingredients, cruelty-free testing policies and transparency – and efficacy claims backed up by clinical testing.

Here is how this positioning is changing the face of beauty in 2026.


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The evolution to natural ingredients as a ‘have to have’

The natural personal care market only represents roughly 7.5% of the overall global industry, according to analyst Persistence Market Research, but it has grown at a rapid CAGR of 9.2% from 2019 to 2024.

It is projected to grow at a similar clip through 2032, substantially outpacing the broader industry’s growth of only about 5%.

Encore Consumer Capital is a private equity firm in San Francisco that identified the trend for ‘clean’ beauty early on. 

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