Creating Fairtrade certified cosmetics for the UK market

The cosmetic and beauty products industry can tap into this dynamic market through Fairtrade labelling and help bring positive change to the lives of marginalised farmers in developing countries who are queuing up to sell more of their crops on fairer terms. By using Fairtrade certified ingredients, manufacturers can help create new opportunities for producers to sell more of existing natural ingredients and their derivatives, plus create the potential to develop new ingredients. Until recently, the estimated 31%1 of British public who would buy Fairtrade cosmetics could not do so because there was no Fairtrade policy that allowed the labelling of finished cosmetic products. However that has all changed. Since May 2009, the Fairtrade Foundation UK Cosmetic and Personal Care Products Policy has made it possible for cosmetic manufacturers to create products sold in the UK that carry the Fairtrade Mark and, for Fairtrade producers from developing countries, to have a share of the five billion personal hygiene items that are sold every year in Europe.2 Since the UK launch in May 2009, eight large, medium and small UK companies are using the Fairtrade Mark on over 120 products incorporating ingredients such as shea butter, cocoa butter, honey, sugar, Brazil nut oil, sesame seed oil, olive oil and apricot kernel oil from 11 Fairtrade certified producer organisations. UK brands such as AKOMA, Boots, Bubble and Balm, Bulldog Men’s Grooming, Essential Care, Lush, Neal’s Yard Remedies and Visionary Soap have launched products including body butters, shower gels, lip balms, body oils, soaps, shaving gels, moisturisers and foot lotions. That is the tip of the iceberg and is far from meeting the demand of the estimated 31% of UK consumers who want to buy Fairtrade cosmetics. Fairtrade aims to improve the situation of farmers and workers at the bottom of supply chains who are at the sharp end of exploitation and injustice in international trade. Many producers in the developing world get their income from crops which are commonly used for beauty and/or food products, however in the conventional market they often have to accept prices below their costs of production and so do not have the ability to meet their families’ most basic needs. Fairtrade sets product standards which include economic, social and environmental criteria. The standards include minimum prices that mean the producer organisation receives an agreed and stable price for their products which covers the cost of sustainable production. If the market price is higher than the Fairtrade minimum price, then traders must pay the market price. An extra sum of money – called the social premium – is also paid to producer organisations and allows them to invest in social and environmental projects that benefit the community, or strengthen their businesses. Producers decide democratically how this should be spent – improvements to health care, clean water supplies, schools, processing facilities – the choice is theirs. Landlocked Burkina Faso, for example, is one of the poorest countries in the world. Ms Yago is a member of the Union of Women Producers of Shea Products of the Sissili and Ziro provinces, a group representing 2,000 women. The group was set up to improve the position of women involved in shea butter production, most of whom are illiterate, and reduce poverty in the villages. Traditional shea butter processing is done by village women who gather, boil and sun-dry the nuts before they are pounded and ground to a paste. The paste is mixed with water to separate the fat, which is then manually churned into creamy butter. Ms Yago says: “When we work together, we can help many people out of poverty. Most importantly, Fairtrade enables us to help ourselves and to support each other. The Fairtrade premium allows us to offer training courses to the women in our group. They learn to write and can see how important it is to have their independence in life. The status of women in our society has now increased.” Around 1.5 million tonnes of ingredients3 are used to make cosmetics sold in Europe. Opening the beauty market to Fairtrade labelling can provide potentially huge market opportunities to both existing certified producers of long standing and well-recognised cosmetic ingredients like shea butter, cocoa butter, olive oil and honey, as well as producers of potential new Fairtrade ingredients (for example beeswax, avocado oil and mango butter). Approximately 250,0004 tonnes of bulk ingredients used in UK cosmetics could include Fairtrade ingredients. Of this amount, approximately 45,000 tonnes (18%) of leave-on type products could potentially use at least 2,200 tonnes of Fairtrade ingredients starting at 5% in the formulation. Approximately 205,000 tonnes (82%) of wash-off type products could potentially use at least 4,100 tonnes of Fairtrade ingredients starting at a minimum of 2% in the formulation.

The Fairtrade Cosmetic and Personal Care Products Policy

Based on extensive research, a formulation policy outlining thresholds content of Fairtrade ingredients for a product to be eligible for Fairtrade labelling has been developed, targeted specifically for the industry. The Fairtrade Cosmetic and Personal Care Policy specifies the minimum requirements that products must at least achieve in order to use the Fairtrade Mark on pack. Full details are published on the website of the Fairtrade Foundation at www.fairtrade.org.uk/products/ beauty_products/default.aspx and www.fairtrade.org.uk/business_services/ product_certification.aspx. Finished products are eligible to carry the Fairtrade Mark once they comply to the policy and the supply chain is fully certified and registered within the Fairtrade system. Currently the policy applies to the UK market but the Fairtrade Foundation are seeking international alignment with Fairtrade Labelling Organisations International for international use.