Eye-catching packaging and influencer marketing campaigns are effective strategies for beauty brands, but that only goes so far in the skincare space. It is what’s under the hood, so to speak, that keeps consumers brand loyal over the long haul. A consumer is likely to shelve one brand’s serum for another if she’s not satisfied with the results. Facing higher prices and tighter budgets, her beauty dollars are too precious to pour down the drain, especially when she may already be spending more on skincare than her budget allows. 

According to a new report from Advanced Dermatology, one in six Americans admit to spending more on beauty and wellness than they can afford. And even with that financial strain, one in three plan to increase their spending on appearance in 2025 compared to 2024.

Americans spend, on average, $897 a year on their appearance with women spending $1,064 per year to maintain their looks. Women spend about $600 a year on skincare. There are many who spend more—a lot more.

Putting Actives into Action

One industry insider Happi spoke with challenged the use active ingredients for performance, not label presence.

“For decades marketing ruled product development by analyzing what the consumer’s desires were and then requesting R&D satisfy those needs and wants. Formulation became mostly about copying past work…and tweaking it with a new “trend” ingredient. And the ‘R’ in ‘R&D’ has greatly diminished over time,” said Alec Batis, CEO and “chemist co-founder” of skincare brand Sweet Chemistry. “We all accepted that, and since marketing directed development, the game became about claiming as much benefit as possible with the lowest cost possible. The result was appropriately named ‘marketing’ levels, or as some of us in the industry like to call it, ‘fairy dusting.’”

As an example, Batis pointed to use of a botanical antioxidant at 0.01%. He said marketers can speak about how that ingredient protects skin from free radical damage “without having to actually include the material in any credible concentration. Something about that has always bothered me and it’s time for a shift in our thinking as an industry.”

Batis—who has worked for Pfizer, L’Oréal Group/Redken/Kiehl’s and Shiseido/Nars in formulating and marketing roles—launched his brand in 2023 in partnership with Xylyx Bio, a spinout of Columbia University’s Laboratory for Stem Cell and Tissue Engineering. 

Sweet Chemistry has two products. Its Elasticity Reinforcing Cream is a treatment moisturizer with 30% less water and a total active concentration of 45% in formulation, according to Batis. Sweet Chemistry’s Reparative Oil-Serum Infusion offers a waterless blend of certified organic botanicals and dermatological actives boasting a 99.8% concentration of actives in formulation without carrier oils or significant allergens. 

Both contain 3% Matrikynes Regenerative ECM Polypeptides which have been used in clinical applications to repair damaged organs. They’re derived from upcycled bovine bone. 

“Matrikynes are novel because being peptide fragments of natural ECM, their function is to repair the skin without having to damage it first and the collagen formed is healthy living tissue instead of non-functioning scar tissue. They are also able to regenerate skin tissue significantly more effectively than current singular artificial or vegetal peptides with hundreds or regenerative multi-peptides that are currently being used in regenerative medicine,” Batis said. “Tissue regeneration involves complex systemic interactions between cells, extracellular matrices and soluble mediators, including potent bioactive signals called matrikines. Our Matrikynes are proprietary combinations of matrikine peptides that promote functional tissue repair by activating intracellular signaling pathways that facilitate cell differentiation, matrix synthesis and restoration of tissue homeostasis.”

The polypeptides are currently manufactured at a research facility located at SUNY Downstate Medical Center.  

“It is a complex proprietary process, and we have plans to ramp up production capabilities with a key partner once we are poised to reach global scale. Other actives we use are industry leaders and all botanical extracts and oils are organic and included at 1% minimum,” Batis said.

Biotech skincare brand Mother Science is building its range around Malassezin. It is a patented and “first-to-market” ingredient said to be a 10x more powerful antioxidant than vitamin C. 

According to Edna Coryell, co-founder and CEO of Mother Science, Malassezin was hiding in plain sight.

“This molecule, which naturally occurs on skin, has the unique ability to target hyperpigmentation in all three areas of the pigmentation pathway, improve the skin’s moisture barrier through a novel mechanism, and provide potent antioxidant protection for powerful benefits without irritation,” she said. “Malassezin works through a novel pathway that has undergone 600 million years of evolutionary refinement.”

The component is used across the brand’s product line. Mother Science’s Molecular Hero Serum pairs Malassezin with niacinamide for brightening and hydration, alpine rose extract for redness reduction and improved elasticity, and carnosine for smoothing wrinkles.

Earlier this year, Mother Science rolled out Retinol Synergist. It’s the first pairing of Malassezin technology with retinol.

According to Coryell, Malassezin and retinol have complementary effects on skin. She said Malassezin’s calming properties and skin barrier support decrease the retinization period, allowing for a stronger product with minimized irritation for a faster reduction in the look of fine lines and wrinkles with less irritation.

Further study has led to another planned launch.

“We also saw that Malassezin supported the strength and flexibility of the skin barrier cells and structure while restoring integral lipids in the barrier,” noted Coryell.

In this latest formula (due out soon), chemists pair Malassezin with a “powerhouse” of growth factors for smoothing fine lines and wrinkles, copper peptides for soothing and plumping skin, and hyaluronic acid and squalane to draw water into the skin and lock it in for all day moisturization.

OneSkin—the female-led skincare brand which recently closed its Series A investment round—expanded its range with OS-01 Body SPF, a daily sunscreen that goes beyond UV protection to support the health and longevity of the skin. The formula contains OneSkin’s senescence blocking peptide known as OS-01. Fast Company named OneSkin one of the most innovative beauty companies of 2024.

Musely recently unveiled a new acne cream  formulated with proven actives such as tretinoin, clindamycin, azelaic acid and niacinamide. It targets the four primary causes of acne, including bacteria, excess oil, inflammation and clogged pores. It also reduces redness and inflammation, accelerates healing of breakouts, and prevents new ones from forming, according to the brand, which offers the prescription cream via its telehealth platform.

New Active Ingredients

Brands looking to level up their next launch have options from leading suppliers that are addressing myriad issues and researching active ingredients across a range of skin types.

“Skin conditions manifest themselves differently depending on age, skin type, ethnicities or medical conditions. Recognizing these specificities fuels consumers’ demand for products addressing their specific needs and identities, pushing brands to innovate and develop formulations for underserved market segments. Formulators should really understand more specifically how different skin types will react in order to select ingredients that will be more optimized for each individual. Selecting ingredient that have been clinically tested on diverse skin types and demographics can help develop formulations better tailored to those specific needs,” said to Sebastien Massard, global director of strategic marketing—PC, at Vantage.

Vantage introduced a new version of its inflammaging solution, Strataphix Poly PF. The composition was designed to meet the growing need for natural and clean formulations, according to Massard. Strataphix Poly PF is a potent combination of extracts with high anti-oxidative potential. It was created to help address skin inflammaging brought on by various stressors. Vantage collected new clinical data to understand how this ingredient can also help address post inflammatory hyperpigmentation (PIH). A clinical study conducted on panelists with Fitzpatrick Skin Type IV-VI demonstrated that Strataphix Poly PF could help people suffering from PIH. 

“The new data complement previous clinical tests that demonstrated the moisturizing and soothing benefits of the ingredient, even when combined with drying actives such as retinol,” said Massard.

At Coast Southwest, ingredient technology is a high priority. 

“The brands and formulators we work with market to an educated and ingredient-savvy consumer base that demands quality, innovation and results. We are committed to evolve to continue to meet the ever-changing needs and expectations of our customers with ingredients that are smarter, work harder and are multifunctional. Ingredients that provide more than one benefit and address more than one concern,” said Traci L. Cassell, VP-anti-aging.

Coast Southwest’s Bellativa product line offers multifunctional, anti-aging ingredients delivered through a proprietary technology that allows formulators to create next generation beauty formulations with powerful results. The line has three featured ingredients in which two or more anti-aging ingredients are conjugated to a gold delivery system, according to officials. Bellativa Golden Matrix is a unique combination of well-known palmitoyl pentapeptide-4 and plant-based Asiaticoside to reduce visible signs of aging and address one of the key factors of aging skin. Bellativa Gold Renewal uses three new mimetic peptides specially designed to work together synergistically with a triggered activation release to maintain skin health balance. Bellativa Gold Q10 is an antioxidant powerhouse that combines coenzyme Q10 (ubiquinone) and glutathione to protect skin from environmental stressors.

Coast Southwest says formulators are also redefining daily exfoliation using GlySmart, which Cassell called a “different twist” on glycolic acid.  

“The multifunctional ingredient takes glycolic acid to a new level by delivering the same exfoliation benefits that it’s known for, plus the advantage of a controlled release technology. Formulating with high-purity, formaldehyde-free GlySmart with skin-conditioning Arginine provides a smarter and gentler way to brighten skin,” she asserted.

Seiwa’s iVC series, its patented vitamin C range developed by the fusion of vitamin C and glycerin, is one of the company’s most popular actives. All grades are original materials and have different function and efficacy, according to officials. The basic line includes iVC DGA (rich, moisturizing), 3GA (anti-photoaging) and 2GA (pure moisturizing), which are versatile ingredients based on their stability and water solubility. Customers prefer these in vitamin C concentrated serums thanks to less color, less stimulation and nice texture, said officials. Other options include “advanced” iVC HG (autophagy activator), iVC MGA (pore minimizer) and iVC 3LGA (ceramide promoter, gluthathione booster), as well as iVC CGA, which offers “unprecedented functionality,” according to Seiwa.

Evolved by Nature’s newest cosmetic bioactive peptide is Activated Silk 8A-α. It supports natural late-stage cell differentiation and is clinically proven to reduce the appearance of hyperpigmentation and improve the appearance of skin brightness. Activated Silk 8A-α doesn’t irritate the skin like chemical peels nor does it degrade easily like vitamin C, according to the company. Instead, the scientifically-designed peptide naturally replenishes the outer layer of the epidermis and reduces the appearance of hyperpigmentation. Like all the company’s peptides, it is petrochemical-free, cruelty-free certified, non-GMO, naturally derived, biodegradable, and made from upcycled materials and renewable resources. Officials say Activated Silk 8A-α has exciting benefits in multi-active formulas, too.

From Provital, Shiloxome offers “multi-ome” skin protection aligned with the principles of barrier care, according to officials. In vivo and in vitro studies confirm its effectiveness in combating the signs of aging. Shiloxome strengthens the skin’s natural barriers, protects against pollution and addresses mature skin needs, including post-menopausal conditions, by improving TEWL, brightness, smoothness, elasticity and skin structure.

Provital’s Altheostem, derived sustainably from lab-grown stem cells of Althaea rosea petals, offers a new biotechnological approach to target skin senescence, according to the company.  By selectively inducing senolysis in aging skin, Altheostem acts as a “dermohacker,” delivering targeted biological actions that improve skin’s mechanical, visual and tactile qualities. In vitro studies demonstrate this component’s efficacy by reducing the number of senescent cells in a dose-dependent manner, specifically decreasing their viability by 44%, and inducing apoptosis in cells previously resistant to it, according to Provital. It also promotes gene expression related to extracellular matrix (ECM) remodeling in senescent human dermal fibroblasts, according to Provital. In vivo, Altheostem enhances skin glow and elasticity, reverses age-related thinning in both dermis and epidermis, smooths skin texture, and reduces wrinkle depth and volume, creating a rejuvenating effect equivalent to 5.7 years younger in the periocular area. Provital also noted that AI-based analysis further quantifies Altheostem’s age-reversing impact, showing a reduction of 3.26 years in visible age after 56 days.

According to Univar Solutions, vitamin B12, from DSM-Firmenich, provides several key benefits in skincare by targeting inflammation, sensitivity and environmental damage. Known for its skin-soothing properties, vitamin B12 helps modulate the skin’s response to stress and irritants, reducing skin sensitivity and calming redness, making it particularly effective for sensitive, stressed or reactive skin types. By interacting with the inflammasome—a component of the skin’s innate immune response—it helps limit the production of inflammatory molecules, which plays a role in managing conditions like redness and irritation. This makes it useful in formulations for sensitive skin, products aimed at soothing post-sun exposure irritation and formulas targeting skin again, as it addresses general inflammatory responses in the skin caused by emotional stress and environmental pollutants, known contributors to premature aging. Vitamin B12’s protective role against oxidative stress and environmental aggressors, like UV exposure, helps to mitigate sun damage, enhancing skin resilience. Additionally, its anti-inflammatory action complements active ingredients often associated with skin sensitivity, allowing chemists to create more comprehensive formulations without compromising skin comfort. 

Silab’s range of natural active ingredients for the face and body care are available in aqueous solution or in preservative-free powder, which makes them easy to formulate, according to company executives. Commusys, for example, is a natural anti-aging active ingredient rich in biopeptides derived from the yeast Pichia stipitis, which acts on transcompartmental communication. By regulating the molecular players involved in communication from the dermis to the epidermis (proteome, extracellular vesicles including exosomes, IGF-1 pathway), it reactivates epidermal biological functions. This patented active ingredient is recommended in all care products dedicated to mature skin at a dose of 0.4 to 1.7%. 

Silab’s Liftilience is a film-forming natural active ingredient obtained from a novel technology, enabling functionalized helical biopolymers to be obtained from chestnuts. This material smooths microrelief, enhances complexion radiance and improves skin softness. In addition, when included in a foundation or a primer, it favors makeup holding power, according to the brand. Officials also point out that Liftilience offers multiple rapid and long-lasting benefits for the face and body. The patented active ingredient is recommended in all tensor care products at a dose of 0.16 to 0.64%. Available in preservative-free powder, Liftilience has a natural origin content of 100% (ISO 16128).

Underarm skincare is on the rise. To that end, Deolya is Silab’s natural deodorant active ingredient derived from meadowsweet (Spiraea ulmaria L.). Respectful of the axillary area skin physiology and providing dual efficacy, it limits perspiration odors by acting on Staphylococcus hominis (a bacterial species responsible for unpleasant odors), and it relieves irritation by reducing inflammation and strengthening the barrier function. As a hygiene and skincare active ingredient, it has an immediate and long-term deodorant action and provides a soothing effect daily and after shaving/epilation. It is recommended in all deodorant care products at a dose of 0.1 to 1.0%. Available in an aqueous solution, it has a natural origin content of 99.2% (ISO 16128). 

From Ashland is Perfectyl biofunctional, a high-tech chamomile extract organically cultivated in the mountains of Oregon and extracted using patented zeta-fraction technology. It clarifies skin across multiple ethnicities by targeting blemishes, enlarged pores, hyperpigmentation, oily skin, redness, fine lines and uneven skin tone. According to Ashland executives, the technology mitigates impacts of environmental stress and lifestyle factors by helping to regulate sebum overproduction, clear blemishes, smooth signs of aging and even skin tone.

Liftyl biofunctional is Ashland’s premium face-sculpting extract upcycled from rosewood chips using supercritical CO2 extraction. The oil addresses ethnogenomic face sculpting markers unveiled by Ashland’s AI to lift facial contours. Liftyl biofunctional offers an alternative to retinol with similar-proven efficacy and no irritation potential, according to the company.

Scalp care continues to gain importance among consumers. Ashland also offers Sclareance biofunctional, a patented sclareolide obtained from purified clary sage flowers, that is “bio-transformed” using non-GMO biotechnology. It reduces scalp flaking and irritation by limiting growth of Malassezia and boosting skin and scalp’s capacity to activate vitamin D. Sclareance biofunctional can visibly improve the appearance and comfort of compromised skin or scalp, for a healthy look and feel, according to the company.

Working with Essential Ingredients, chemists can explore several components from leading brands. For example, the Actique line from Aurorium includes Actique Hyal Matrix (hydrating blend of seven hyaluronate derivatives, providing extensive hydration to the skin’s deepest levels), Actique Shikon (natural extract for skin soothing, anti-inflammatory, colorant), and Actique GlyAc70 (which exfoliates and boosts collagen to improve skin tone); and ElfaMoist AC from Nouryon (which easily penetrates the skin to deliver and increase hydration, keeping skin moisturized for more than 30 hours, even after one application).

Essential Ingredients also pointed to components from IFF, Sophim, Lubrizol and Lipotec. IFF’s Genencare OSMS BA is natural osmolyte that protects cells from environmental and thermal stressors by controlling cell water balance and reinforcing the skin barrier, bringing moisturization, protection and sensorial benefits. Sophim’s Phytosqualan restores lipidic skin barrier, preventing TEWL and moisturizing the skin. Lubrizol’s AlgaPur HSHO Algae Oil offers immediate and long-lasting moisturization, improved skin barrier function and anti-aging effects (increasing collagen and elastin synthesis and repair from photodamage). Lipotec’s Actismart SW Plus Calendula offers improved hydration and skin barrier function, improvement of dryness and desquamation, and helps reduce skin redness caused by sensitivity.

Collaborative Development 

The pathway to successful NPD begins when skincare brands and their partners join forces to source the best active ingredient for the task at hand.

“We carefully select well-established ingredients with proven mechanisms of action, pairing them in a way that feels almost intuitive, as each component is meticulously chosen not only for its efficacy but also for how it harmonizes within the overall formulation,” noted Coryell of Mother Science. “In our process, creativity is as important as scientific rigor. We think about the sensory experience, the texture, the way the product feels as it’s applied, and how it absorbs into the skin. It’s an art to capture both efficacy and elegance in one product. This balance allows us to deliver a product that doesn’t just meet high-performance standards but also delights in experience, creating a transformative experience for our customers.”