The SULA LABS Report No. 1
Authors: AJ Addae, Kahina Jean-Baptiste, Poornima Dorairaj
Abstract
We can all agree that 2022 saw some pivotal moments in beauty — more celebrity skincare brands than you’ve ever seen, the fall of Hyram Skincare, Glossier’s unexpected transition from DTC to omnichannel, the heroic $630 million acquisition of Hero Cosmetics, and the US MoCRA legislation that’s set to bring forth some serious regulations in beauty. And those are just a fraction of the highlights. This year, beauty R&D is poised to inevitably shift, as consumers are more influenced by information laid forth by experts such as cosmetic chemists, estheticians, and dermatologists. Furthermore, consumers have increasingly displayed a demonstrated interest to get down to the bottom of a question that we’ll continue to revisit in the SULA LABS Report — how can consumers know that these products will really perform like the claims say they do?
In this issue of the SULA LABS Report, we break down data-driven product trends observed right now in the industry (spoiler alert: sensitive skin is in), dissect a controversial acquisition in the Black beauty space, and end off with literature on raw materials we’ve spotted (and of course, provide our diversity critique on the approach to marketing these ingredients).
Now, let’s get into it.
Cash Flow
The beauty space has observed many acquisitions inked over the past few months, namely:
Unilever Ventures investing $2M In scalp care brand Straand that addresses the scalp microbiome
Black beauty retailer Thirteen Lune securing $8 million dollars to open and grow their brick-and-mortar location
Aesthetic treatment franchise service Heyday Wellness raising $12 million to expand their franchise locations
Heyday’s own acquisition of pimple patch brand Zitsticka for an undisclosed price
While all of these announcements have made many rounds and seen many congratulations, one acquisition story in particular has remained controversial.
The acquisition of Mielle Organics for an undisclosed price has been swarming beauty dialogues at the feet of the virality surrounding the brand’s Rosemary Mint Scalp & Hair Strengthening Oil. While plenty experts and leaders in the beauty space showed a large amount of congratulations towards the acquisition, many consumers took to the internet to vocalize feelings of betrayal from the brand. More specifically, a large amount of consumers expressed fear of a particular scenario that many Black consumers tend to fear — Post-Acquisition Reformulation (PAR).
Why do brands reformulate after acquisition?
We have seen PAR often with Black-loved brands — a popular example being Shea Moisture’s reformulated products after acquisition by Sundial Brands, and even a Pre-Acquisition Reformulation scenario of The Honey Pot’s Feminine Wash. The truth is that reformulation of products is actually quite common (especially by companies such as Johnson & Johnson and Unilever), and a lot of consumers are actually not aware of this. However, independent beauty brands usually get the fire for it. Ultimately, brands reformulate products for several reasons, typically:
Adjusting towards regulatory standards
Includes the addition or optimization of broad-spectrum preservatives
Reformulating sunscreens to adhere to global FDA regulations
New legislation such as MoCRA or California’s Proposition 65 law
Profit margins
Tweaking formulations for a cheaper cost of good (COG) to improve the company’s profit margins
Supply Chain
Some raw materials may be difficult to source in a convenient manner (especially in the wake of growing supply chain issues for raw materials), and can be ultimately switched out to similar or identical raw material sources, resulting in an updated INCI list
Some raw materials get abruptly discontinued
Product Improvement
Improving the product’s performance and function after receipt of consumer insight.
Why does this impact the Black consumer so much?
This is yet another nuanced situation in which Black consumers are impacted from multiple angles. Because we have so much purchasing power, we create significant cultural trends. Moreover, Black founders are more likely to own independent beauty companies (rather than venture funded), resulting in increased independent control over the formulation and go-to-market strategy. That is, until scaling the company through traditional CPG avenues such as retail and acquisition come into the picture. When independent beauty brands scale, they are more than likely to face all of the issues stated above. Therefore, if less venture capital dollars are going into Black founders’ pockets, it’s pretty likely that we face the scenarios listed above when we enter big box retail doors or get acquired.
Ultimately, blame is more often pointed towards Black beauty founders, rather than at a system created that’s meant to keep Black beauty founders in the outskirts of the beauty conversation — one that we helped start. At SULA LABS, we’re committed more than ever to Black beauty founders and advancing the Black beauty category by delivering on regulatory review (informed by our tech-forward R&D strategic partner The Good Face Project), formulating around data-driven trends observed around Black consumer concerns, and focusing on the long-term goals of all products developed in the event of an acquisition or retail partnership. Ultimately, we wish Mielle Organics all the best of luck, and hope to see more fruitful acquisitions in the Black beauty space.
Product Radar
Trend 1: Sensitive skincare is a large and growing segment
In Aveeno’s State of Sensitivity report in October 2022, the data reveals that 71% of the general population self-identified as having sensitive skin. This marks a 55% increase in this population in the past 2 decades. According to Spate Trend Data, the search term “barrier repair” is up +65.8% year over year.
Evidenced by this data, skincare designed to calm reactive skin - skin that is easily irritated by over exfoliation, stress, and pollution is going to continue to show growth this year. Here are some of the latest skincare drops over that address this needs base.
MAC Cosmetics Hyper Real SkinCanvas Balm Moisturizing Cream ($49/1.7oz)
Category: Cream
Claim: A moisturizing cream that strengthens and protects skin’s barrier and smooths skin immediately and over time while soothing and preventing visible irritation.
Key Ingredients:
Japanese Peony Extract - Botanical extract with anti-inflammatory benefits.
Hyaluronic Acid - Polymer produced by fermentation from glucose and yeast extract, demonstrating hydration benefits.
Ceramides - Lipids that restore skin barrier strength.
MAC Cosmetics Hyper Real Fresh Canvas Cleansing Oil ($48/6.7oz)
Claim: Removes stubborn makeup, pollutants and micro-dust — safe for sensitive skin.
Category: Oil cleanser
Key Ingredients:
Japanese Peony Extract - Botanical extract with anti-inflammatory benefits.
Vitamin E - Emollient with demonstrated potential to inhibit oxidative stress in the skin.
Glow Recipe Avocado Ceramide Moisture Barrier Cleanser ($28/5 oz) -
Claim: A hydrating, skin barrier strengthening cleanser packed with ceramides and pre & post-biotics to balance the skin’s moisture barrier, while effectively removing makeup.
Category: Cream cleanser
Key Ingredients:
Ceramides - Lipids that restore skin barrier strength.
Prebiotic & Postbiotics - Fermented bacterial lysates and bacterial fertilizers that are designed to assist your skin’s microbial function.
Colloidal Oatmeal - Soothes irritation, visibly reduces redness and retains skin’s moisture.
REN Skincare Perfect Canvas Smooth, Prep & Plump Essence ($55/100 ml)
Category: Facial essence
Claim: Clinically proven to help strengthen the skin barrier and help protect against pollution.
Key Ingredients:
Bacillus ferment - Fermented bacterial lysate designed to assist your skin’s microbial function.
Bio-fermented Hyaluronic & Polyglutamic Acids - Hyaluronic acid fermented from wheat, and and Polyglutamic Acid fermented from sugar cane.
Marrubium Extract
Elta MD Oil-in-Gel Cleanser ($34/3.4 oz)
Category: Oil cleanser
Claim: Preserves the skin barrier while gently cleansing without stripping skin's moisture or clogging pores. Enriched with antioxidants to help defend against free radical damage.
Key Ingredients:
Meadowfoam Seed Oil - Highly photostable emollient.
Vitamin E - Moisturizes and helps prevent free-radical damage.
Turmeric Root Extract
Dr Jart Ceramidin Cream-Infused Mask ($15/1 sheet mask)
Claims: Delivers 24 hours of moisture and boosts skin’s barrier strength by 31%.
Category: Face mask
Key Ingredients:
Ceramide NP — One of the skin’s six essential ceramides.
Trend 2: Active Aging - modern, daily solutions for early signs of aging, without the shame or stigma associated with aging.
In December 2022, the International Institute for Anti-Ageing rebranded as the International Institute for Active Ageing to promote positivity around the aging process and acknowledging we can take an active role in how we age based on our lifestyle choices. In the beauty industry this looks like focusing on daily skin health maintenance by featuring key aging-related ingredients like retinol, bakuchiol, and antioxidants. Notably, brands use strong claims around combating common early signs of aging (fine lines, wrinkles, hyperpigmentation, and loose skin). Additionally, we’ve seen a number of products that combine multiple forms of retinol at extremely minimal percentages to offset irritation. Ultimately, here are the latest skincare drops that addresses this need base.
Fresh Black Tea Advanced Age Renewal Cream ($95/1.6oz) -
Claim: A lightweight anti-aging cream with proven retinol-like performance of BT Matrix for 7x smoother wrinkles, 5x visibly firmer skin, and 4x more radiance.
Category: Cream
Key Ingredients:
BT Matrix - A patented blend of black tea and rambutan leaf extracts to correct signs of aging.
Ceramide NP - Helps strengthen the skin barrier.
Summer Fridays Midnight Ritual Retinol Renewal Serum ($69/1 oz) -
Claim: Powered by 2 forms of retinoids - retinol and retinyl linoleate - this gentle yet effective formula can help to reduce the appearance of fine lines and wrinkles, improve discoloration and restore the skin’s appearance when used regularly.
Category: Thin cream/serum
Key Ingredients:
Niacinamide, hyaluronic acid
Colloidal oatmeal — Soothes irritation, visibly reduces redness and retains skin’s moisture.
Chanel No1 De Chanel Revitalizing Cream ($115/1.76 oz) -
Claim: A velvety face cream concentrated with Red Camellia Extract and Red Camellia Oil that visibly smooths the appearance of wrinkles and leaves skin feeling soft with a youthful glow.
Category: Cream
Key Ingredients:
Red Camellia — Demonstrates anti-inflammatory and antimicrobial properties.
Ole Henriksen Dewtopia 5% Acid Firming Night Cream ($60/1.7 oz) -
Claim: A powerful retexturizing night cream, with 5% AHAs and edelweiss stem cell, that deeply hydrates, re-texturizes, evens skin tone and visibly reduces fine lines, wrinkles and dark spots.
Category: Cream
Ingredients:
Glycolic and Lactic Acids - Alpha hydroxy acid (AHA) exfoliants that help loosen and lift dead skin cells to reveal smoother, more even skin.\
Edelweiss Stem Cell - Helps promote skin firmness and improve the link of fine lines and wrinkles.
Shea Butter - Rich in fatty acids and vitamins. Works as an emollient to help hydrate and nourish skin.
Dermalogica Dynamic Skin Retinol Serum ($92/1 oz) -
Claim: 3.5% high-dose retinol serum visibly reduces 4 signs of skin aging in just 2 weeks. Gentle enough for nightly use, this high-dose retinol serum features a 3.5% retinoid complex + soothing Squalane to minimize the appearance of pores, smooth texture for softer skin, even tone, and reverse the look of wrinkles. Clinically proven to work faster than a leading competitor, Dynamic Skin Retinol Serum delivers the max benefits of a retinol while maintaining the health of the skin barrier.
Category: Cream
Ingredients:
3.5% retinoid complex — Hydroxypinacolone Retinoate and Retinol
Squalane — Emollient with components that mimic the skin’s sebum.
Ami Cole Lip Treatment OIl in Smitten ($20/0.15 oz) -
Claim: The oil-to-gloss treatment nourishes lips and adds a comfortable, non-sticky shine. Triple threat offering treatment benefits, a shiny finish, and color deposit all in one.
Key Ingredients:
Baobab Seed Oil - Moisturizing emollient.
Camellia Oil - Moisturizing emollient.
Passionfruit Seed Oil - Moisturizing emollient with antioxidant properties.
Ingredient Report
Solaveil™ AT-300
Supplier: Croda Inc.
Material Category: Sunscreen UV filter
Description: Solaveil™ AT-300 is a titanium dioxide material used for broad spectrum UV protection, mainly in sunscreens.
Summary of how UV Filters work: Organic (“chemical”) sunscreen filters work by completely absorbing UV rays while inorganic (“mineral”) sunscreens both absorb and scatter the UV rays (but mainly absorb) which allows them to perform over a broad wavelength.
Have we tested this at SULA LABS? Yes
Efficacy Tests: In a “whitening test” using the measurement of a whitening scale (calculation shown below), the material claimed to return a lower whitening index, signifying greater transparency of the formulation and thus more adaptable to darker skin tones without as much of a white cast.
Claimed benefits: From the report on the ingredient, “A light feeling lotion that is non-greasy, easily absorbed and offers enhanced UVA protection.”
SULA LABS’ Critique:
The good: The “whitening test” is a promising novel approach to determining the white cast potential of sunscreens
The improvement: This whitening test was done on a black piece of paper, but replicated on a light skin tone (shown below) to demonstrate the “lessened whitening ability” of the material.
