L'Oréal's Biotech Venture to Reshape Cosmetics Supply Chain
In a groundbreaking move set to transform the cosmetics supply chain, L'Oréal has entered into a strategic partnership with Abolis Biotechnologies and Evonik Industries.
This collaboration aims to research, develop and produce an increased volume of bio-based ingredients, addressing a critical sustainability challenge in the beauty and personal care sector.
The industry's carbon footprint is heavily influenced by raw material sourcing, which accounts for 30-50% of its emissions. This new venture seeks to mitigate this environmental impact through innovative biotechnology solutions.
Barbara Lavernos, Deputy Chief Executive Officer in charge of Research, Innovation and Technology at L'Oréal Group, emphasises the significance of this partnership: "We are proud to invest in Abolis and expand our collaboration, working together as a tight ecosystem alongside our historical partner, Evonik.
“By mobilising our respective companies' research, innovation and manufacturing capabilities and expertise, we are building an end-to-end value chain that we believe has tremendous potential to be a game-changer in bio-based ingredients for beauty."
Boosting sustainability in the supply chain
L'Oréal, a global leader in personal care with annual earnings of US$45.85bn in 2023, has set ambitious sustainability targets. The company aims to power all its sites with 100% renewable energy by 2025 and halve greenhouse gas emissions from product transportation by 2030.
This new partnership aligns with L'Oréal's goal of sourcing 95% of its formula ingredients from bio-based sources, abundant minerals, or circular processes by 2030.
The journey with Abolis began in 2019, which led to an expanded lab setup in 2022. These developments have paved the way for further expansion of this collaboration.
Evonik, a German specialty chemicals company with operations in over 100 countries and revenues of US$17bn in 2023, brings its expertise to the collaboration.
Bernhard Mohr, Managing Director of Evonik Venture Capital, states: "With Abolis' competencies in strain development and metabolic engineering and our collaboration with L'Oréal, we aim to unlock new opportunities in cosmetics."
Driving the sustainable transformation
The partnership was solidified during Abolis Biotechnologies' 2024 investment round, which raised US$38.9m.
Samantha Etienne, Global General Manager of BOLD, L'Oréal's venture capital fund, adds: "This investment highlights our belief in Abolis' potential to create a more sustainable future across various industries, including beauty."
“By mobilising our respective companies' research, innovation and manufacturing capabilities and expertise, we are building an end-to-end value chain that we believe has tremendous potential to be a game-changer in bio-based ingredients for beauty."
Boosting sustainability in the supply chain
The French global leader in personal care, L’Oréal Group, boasts a workforce exceeding 90,000 and reported earnings of €41.18bn (US$45.85bn) in 2023.
Home to 37 renowned brands like Garnier, NYX Cosmetics and Maybelline, L’Oréal is steadfast in reducing its industrial greenhouse gas (GHG) emissions.
Over two decades, it has actively pursued energy efficiency, renewable energy use, and set explicit targets.
Its ambition stretches to powering all sites with 100% renewable energy by 2025 and slashing GHG emissions from product transportation by half come 2030.
The journey with Abolis began in 2019, which led to an expanded lab setup in 2022. These developments have paved the way for further expansion of this collaboration.
Evonik, a German specialty chemicals company with operations in over 100 countries and revenues of US$17bn in 2023, brings its expertise to the collaboration.
Evonik's proactive climate stance is articulated through its GHG reduction targets, attested by the Science Based Targets initiative (SBTi) to align with a 'well below 2 degrees' trajectory.
Bernhard Mohr, Managing Director of Evonik Venture Capital, states: "With Abolis' competencies in strain development and metabolic engineering and our collaboration with L'Oréal, we aim to unlock new opportunities in cosmetics."
Driving the sustainable transformation
The partnership was solidified during Abolis Biotechnologies' 2024 investment round, which raised €35m (US$38.9m).
Samantha Etienne, Global General Manager of BOLD, L'Oréal's venture capital fund, adds: "This investment highlights our belief in Abolis' potential to create a more sustainable future across various industries, including beauty."
This tri-party agreement represents a significant shift in the cosmetics supply chain, potentially reducing reliance on traditional raw material sources and paving the way for more sustainable, bio-based alternatives.
Cyrille Pauthenier, CEO of Abolis Biotechnologies, expresses enthusiasm about the collaboration: "We are thrilled to receive this round of funding which will allow us to take the next step in pushing the boundaries of innovation in biotechnology.
“Our collaboration with L'Oréal and Evonik will empower us to create ground-breaking solutions tailored to drive the sustainable transformation of the industries we serve including beauty, nutrition and healthcare."
With L'Oréal Group investing over €1bn (US$1.1bn) in R&I annually, a significant portion is dedicated to Green Sciences, primarily focusing on biotechnologies. This partnership is poised to accelerate the development of innovative, environmentally friendly ingredients for the beauty industry.
Make sure you check out the latest edition of Procurement Magazine and also sign up to our global conference series - Procurement & Supply Chain LIVE 2025
Procurement Magazine is a BizClik brand