Beiersdorf CEO Warns EU Regulations May Overburden Cosmetics Industry

Regulatory Burden and Competitiveness

Vincent Warnery stated in a Berlin interview with the Deutsche Presse-Agentur that Europe risks losing its leading position if the industry becomes overburdened with regulations. He noted that cosmetics companies in the US, China, and South Korea face fewer regulatory burdens compared to the EU, intensifying competitive pressure on European firms.

Ingredient Safety and Waste Directive Dispute

Warnery emphasized that European skin care products already operate under some of the world’s toughest quality standards. He questioned the requirement to remove ingredients that pose no risk under normal conditions of use. Furthermore, he criticized the revision of the EU Urban Waste Water Treatment Directive, arguing that companies like Beiersdorf are required to make significant financial payments despite being responsible for only a small share of pollution.

Industry Context: Shift from Regulation to Innovation

This is not Warnery’s first comment on the increasing regulatory burden. Earlier this year, he joined L’Oréal CEO Nicolas Hieronimus in calling for European policymakers to stop being the "world’s chief regulator" and start becoming its "chief innovator" to safeguard the €180bn beauty industry. In March, The Value of Beauty Alliance, a group of executives from 17 beauty and personal care companies, urged EU policymakers to act or risk weakening one of the region’s most competitive industries.

Implications for B2B Procurement and Brands

For brands, shifting EU regulatory environments directly impact supply chain costs and formulation flexibility. Procurement teams must monitor ingredient compliance dynamics to avoid excessive costs for low-risk ingredients. Brands should also assess regulatory differences between the EU and key competitor markets to adjust global product strategies, maintaining pricing competitiveness and space for innovation.