Charcoal, Mushroom, And Other Natural Ingredients Are Powering Next-Gen Beauty Routines

Fueled by the rise of indie and direct-to-consumer brands, beauty products are evolving to meet consumer desire for transparency and clean products. Today’s consumers are more ingredient-conscious than ever and are increasingly associating beauty ingredients with health.

As consumers seek health benefits from and transparency in their beauty products, we see some beauty companies beginning to follow trends in the food world. Like food brands, beauty companies are beginning to integrate plant-based ingredients, spices that have not traditionally been used in Western markets, and more into their products. 

Using CB Insights data, we analyzed beauty startups that have raised investment since 2016 and surfaced 15 trending ingredients:

1. Castor oil
2. Jojoba
3. Moringa
4. Sea buckthorn
5. Quinoa
6. Rice
7. Turmeric
8. Caffeine
9. Green tea
10. Charcoal
11. Silk & keratin
12. Probiotics
13. Algae
14. Mushroom
15. Carrot

These include both new ingredient types as well as ancient ingredients (e.g., East Asian beauty ingredients) that have recently been introduced to Western markets.

Scroll down to view more detailed descriptions of these ingredients, with infographics highlighting the recently funded startups using each one. Several of these companies are using many of these ingredients across their products.

CASTOR OIL

Castor oil is an ancient oil rich in ricinoleic acid — a fatty acid that helps protect the skin against bacteria and viruses. With applications across food preservatives, industrial coatings, and other areas, castor oil has become a trending ingredient for haircare, makeup, and skincare products.

Investors are backing a variety of beauty startups harnessing castor oil. Kreyol Essence, which was accepted in Sephora’s beauty accelerator in 2017, produces hair and bodycare products that feature Haitian black castor oil as the main ingredient. In makeup, Mented Cosmetics, which raised $1M in pre-seed funding earlier in October, uses castor oil to create moisture in its lipsticks.

Men’s grooming brand Beardo and customizable skincare startup Skin Inc Global also integrate castor oil into their products. Both companies saw corporate minorities in March 2017 from Marico and Spackman Entertainment & Spackman Media respectively.

JOJOBA

Originally discovered by Native Americans, jojoba comes from the seed of the jojoba plant, which is native to Arizona, California, and Mexico. Jojoba oil, which is the liquid wax extracted from the seed, is primarily used in pharmaceuticals and cosmetics for reported moisturizing and hydrating properties. 

Jojoba has emerged across a range of skincare and haircare products. Ogee, which has raised $1.65M in disclosed equity funding, offers a jojoba-infused organic skincare line while Wander Beauty, which raised a $4.5M Series A in April, uses jojoba oil in its lipstick and lip gloss products for easy application and moisture.

Natural beauty company FATCO, which was recently accepted in Target’s accelerator program (Target Takeoff), also features jojoba oil for both hair and skin products.

MORINGA

Moringa, an emerging ingredient in food products, is a superfood native to South Asia. Rich in antioxidants, moringa reportedly touts anti-aging benefits. HUM Nutrition, which provides beauty-enhancing vitamins and is distributed through Sephora, integrates moringa into its superfoods powder while True Moringa offers hair and skin products that feature cold-pressed moringa oil as a core ingredient. Like the aforementioned FATCO, True Moringa was recently accepted into Target’s accelerator program.

SEA BUCKTHORN

Sea buckthorn oil comes from seeds or pulp of sea buckthorn berries. Another ancient oil, sea buckthorn oil contains Vitamins A & E, fatty acids, and beta carotene. The product can be used in foods such as jellies and sauces and has rising applications in cosmetics.

Startups such as The Moms Co. and BeautyCounter offer body oils that use sea buckthorn oil while LOLI Beauty sells customizable “blend it yourself” beauty recipes with natural ingredients such as sea buckthorn juice.

QUINOA

Besides its nutritional value as a complete, plant-based protein, quinoa touts beauty benefits for skin and hair. Hydrolyzed quinoa, a quinoa extract, can reportedly strengthen, repair, and protect hair. It can be found in shampoos and conditioners including in those of personalized shampoo provider Function of Beauty, DIY hair coloring company eSalon, and others.

Natural cosmetics producer Pacifica Beauty, which raised a private equity round from Alliance Consumer Growth in 2016, has used quinoa seed extract.

RICE

Rice and its derivatives have served as a powerful East Asian beauty ingredient for centuries due to their natural antioxidants. Among many benefits, many believe it has anti-aging, brightening, and conditioning properties. 

Rice has been emerging across Western beauty products. In skincare, luxury beauty brand Tatcha, which provides a skincare line inspired by traditional Japanese beauty rituals, offers several exfoliating products that feature rice enzyme powder as a key ingredient. Both smart money-backed cult beauty brand Glossier and organic skincare line One Love Organics, which was accepted in Sephora’s accelerator program in 2016, use rice extracts in certain products.

TURMERIC

Similar to the East Asian use of rice, turmeric, which is traditionally found in Indian cuisine, offers reported beauty benefits. Curcurmin, the antioxidant extract found in turmeric, has anti-inflammatory properties.

Startups are introducing turmeric to Western shoppers in both topical products — such as facial masks and lotions by Apto Skincare (skincare line of on-demand facials provider the Ritualist) — as well as through oral supplements offered by the aforementioned HUM Nutrition, and hair-growth supplements producer Nutrafol — which raised a Series A round from Unilever Ventures and CircleUp in May 2017.

CAFFEINE

Caffeine can provide utility to consumers beyond a cup of joe. The stimulant touts antioxidants and anti-inflammatory properties that are primarily used in age-delaying products.

India-based MCaffeine, which has raised $300K in angel funding, produces caffeine-infused beauty products including shampoos, conditioners, face washes, and lotions. The Ordinary, a Deciem brand known for hyper transparency and science-backed ingredients, features a high-caffeine solution for eye puffiness. Earlier in June, Estee Lauder took a corporate minority in Deciem, which just launched the Ordinary line in Sephora in December 2017.

GREEN TEA

Green tea, which originated in China, has served as an Eastern beauty remedy for generations due to reported detoxifying and anti-aging benefits.

Many startups are integrating green tea as an ingredient in clean beauty products. For example, Milk Makeup, which saw a private equity round in January 2017, uses matcha — a powdered form of green tea — in a few of its skincare products, while cruelty-free luxury skincare brand Drunk Elephant, which has raised over $8M in private equity funding, incorporates green tea into an eye cream product for its nourishing benefits.

CHARCOAL

Charcoal has been used in medicine, cooking, and other industries for centuries and has recently been upping its presence in the beauty industry due to reported abilities to absorb toxins and pollutants.

Startups such as BeautyCounter offer charcoal bars and masks while PiperWai (which also participated in Target’s 2017 inaugural incubator) integrates charcoal into its natural deodorant line due to its absorbent properties.

With makeup giant MAC Cosmetics having recently launched a charcoal-based skincare line, we could begin to see corporates further betting on charcoal as a staple beauty ingredient.

SILK & KERATIN

Beyond luxury garments, silk has increasing applicability in the beauty industry. Rich in amino acids, silk protein can serve as a strengthening ingredient that creates elasticity and shine. Silk biomaterials company Silk Therapeutics has raised nearly $23M for its proprietary liquid silk that serves as an active ingredient in its skincare line.

Keratin is another protein that can be found in human hair, skin, and nails to prevent breakage. Virtue Labs, which raised a $15M Series A in August 2017, provides a haircare line based on its proprietary Alpha Keratin 60ku that was developed through regenerative medicine. eSalon integrates both silk and keratin across its haircare products.

PROBIOTICS

Probiotics, which are live microorganisms that positively affect digestive health, support the philosophy that beauty begins from within. With the increasing tie between better-for-you foods and cosmetics, probiotics are becoming a trending ingredient in beauty products due to gut benefits which can reportedly reduce inflammation and create glowing skin. 

Probiotics are being used both topically and orally. Probiotic-based skincare line TULA attracted $8.5M in a Series A round earlier in February from L Catterton while HUM Nutrition offers a probiotic in its assortment of supplements.

Even corporates are researching more into this area. Johnson & Johnson is partnering with probiotic-based skincare startups while L’Oreal has been conducting R&D on probiotic skincare. And on the M&A side, Procter & Gamble recently acquired natural deodorant brand Native (not pictured), which incorporates probiotics to deter body odour.

ALGAE

Outside of the ocean, algae, seaweed, and other derivatives are emerging across both food and beauty products. Many believe that algae and microalgae extracts provide intense hydration, antioxidants, and other benefits which make them attractive for beauty products.

Algae is a featured ingredient across multiple products for certain brands. For example, Restorsea‘s Vibransea complex (which is anchored by an enzyme from salmon eggs) also contains brown algae for skin elasticity. Another line, Microphyt, has developed a microalgae-based skincare line of anti-aging creams and moisturizers.

MUSHROOM

Fungi-powered beauty is trending. Startups are capitalizing on mushrooms’ reported beauty benefits (based on their vitamin and antioxidant content). Charlotte Tilbury Beauty, which received funding from smart money VC firm Sequoia Capital in April 2017, uses mushroom extract in a makeup foundation that claims to enhance skin firmness and moisture, while Glossier uses mushroom extract in its moisturizer.

Aforementioned Restorsea and Limelight by Alcone (which saw a corporate minority from natural cosmetics giant L’Occitane in May 2017) both integrate songyi mushroom extracts in their products for anti-aging benefits.

CARROT

Beauty startups are bringing carrots outside of the kitchen. Carrots contain antioxidants, beta-carotene, and Vitamin C, which many believe can provide anti-aging and brightening benefits.

Natural beauty line Yes To, which has raised $74M from Viking Global Investors and other investors, provides a carrot-based beauty line, among other plant-based ingredients, and sells both online and in Walgreens, Target, Walmart, and other stores. Another Sephora Accelerate participant, Thrive Causemetics uses both carrot root extract and carrot seed oil in its lipsticks to help firm and restore suppleness.

Company	Select Ingredients	Total Funding	Select Investors
Beardo	Castor Oil	$0.5M	Marico, Venture Catalysts
BeautyCounter	Castor Oil, Jojoba, Moringa, Quinoa, Rice, Caffeine, Green Tea, Charcoal, Algae, Carrot, Sea Buckthorn	$41.89M	TomorrowVentures, TPG Growth
Charlotte Tilbury Beauty	Algae, Mushroom	N/A	Samos Investments, Sequoia Capital, Venrex Investment Management
Colorescience	Jojoba, Green Tea	$67.74M	Bridge Capital Holdings, SkinMedica, VMG Partners
Context	Algae, Jojoba, Charcoal, Green Tea, Silk & Keratin	N/A	Volta Global
Deciem	Caffeine	N/A	Estee Lauder Companies
Drunk Elephant	Algae, Green Tea, Quinoa, Sea Buckthorn	$8.33M	Leandra Medine, VMG Partners
eSalon	Castor Oil, Quinoa, Rice, Silk & Keratin	$22.28M	AvTech Ventures, Encore Venture Partners, Smart Technology Ventures
Ethique	Jojoba	$0.36M	PledgeMe
Eu’Genia Shea	Moringa	N/A	Sephora Accelerate
FATCO	Castor Oil, Jojoba	N/A	Target Takeoff
Fresh Monster	Rice	$0.67M	Telluride Venture Accelerator
Function of Beauty	Algae, Quinoa, Rice	$9.62M	GGV Capital, Y Combinator
Glossier	Castor Oil, Jojoba, Mushroom, Rice, Sea Buckthorn	$35.4M	Index Ventures, Lerer Hippeau Ventures, Thrive Capital, TOMS Capital
Goddess Garden	Carrot	$4M	Renewal Funds
HUM Nutrition	Algae, Carrot, Green Tea, Moringa, Probiotics, Turmeric	$7.5M	CircleUp Growth Partners, Imaginary Ventures, Strand Equity Partners
Indie Lee & Co.	Carrot, Jojoba	$3.7M	Winona Capital Management
Kaia Naturals	Charcoal	N/A	Sephora Accelerate
Katherine Cosmetics	Silk & Keratin	$3.26M	N/A
Kopari (Koco Life)	Green Tea, Rice	$13.55M	L Catterton, Mila Kunis, Ashton Kutcher, Hilary Duff
Kreyol Essence	Castor Oil, Moringa	N/A	Sephora Accelerate
Limelight by Alcone	Algae, Jojoba, Mushroom, Rice,	N/A	L’Occitane
LOLI Beauty	Carrot, Turmeric, Sea Buckthorn	$0.61M	Grand Central Tech, Project Entrepreneur
Madison Reed	Castor Oil, Silk & Keratin	$70M	First Round Capital, Maveron, True Ventures
MCaffeine	Caffeine	N/A	Harminder Sahni, Kaushal Aggarwal, Krishna Mehra
MDRejuvena	Green Tea	$9.22M	Oxford Finance, N/A
Mented Cosmetics	Castor Oil	$1M	BBG Ventures, iSeed Ventures, Outbound Ventures, Target Takeoff
Microphyt	Mushroom	$2.76M	CEA Investissement, Horizon 2020, Sofimac Partners
Milk Makeup	Green Tea, Jojoba	N/A	Main Post Partners
Nailmatic	Castor Oil	$2.34M	Odyssee Venture
NUDE Skincare	Carrot, Probiotics, Rice, Sea Buckthorn	N/A	BeautyCounter (Acquired)
Nutrafol	Turmeric	$1.33M	CircleUp, Unilever Ventures
Nuvesse Skin Therapies	Caffeine	$54.68M	Advanced Technology Ventures, Delphi Ventures, Flybridge Capital Partners
Oars + Alps	Jojoba, Charcoal	$1.3M	Breakout Capital
Ogee	Jojoba	$1.65M	FreshTracks Capital, N/A
One Love Organics	Jojoba, Rice, Green Tea, Algae, Mushroom, Sea Buckthorn	N/A	Sephora Accelerate
Pacifica Beauty	Quinoa	N/A	Alliance Consumer Growth
Pai Skincare	Castor Oil, Jojoba	N/A	N/A
Paula’s Choice	Green Tea	N/A	Bertram Capital Management, TA Associates
PiperWai	Charcoal	N/A	Target Takeoff
Restorsea	Mushroom	$57.03M	LMN VC
Sahajan	Jojoba	N/A	Sephora Accelerate
SAHI Cosmetics	Caffeine	N/A	Rise of the Rest, Zell Founders Fund
Savvy Travelers	Castor Oil,	$0.5M	N/A
Silk Therapeutics	Caffeine, Silk & Keratin	$22.58M	Highland Consumer Partners, Prism VentureWorks, Sheri Disney, The Kraft Group
Skin Inc Global	Castor Oil, Algae	N/A	Spackman Entertainment Group, Spackman Media Group
SoapBox Soaps	Jojoba	$7.78M	N/A
Sprout A Revolution (SW Basics)	Castor Oil, Turmeric, Carrot	$1.12M	N/A
Tatcha	Rice, Silk & Keratin, Algae	$21.27M	Castanea Partners
The 7 Virtues	Castor Oil, Silk & Keratin	N/A	Sephora Accelerate
The Moms Co.	Sea Buckthorn	$1M	DSG Consumer Partners, Saama Capital
The Ritualist	Rice, Turmeric, Green Tea, Algae, Mushroom, Carrot	N/A	JAB Holding Company, Roger Planes, Sephora Accelerate
Thrive Causemetics	Jojoba, Carrot	$0.27M	Sephora Accelerate
True Moringa	Moringa	N/A	Target Takeoff
TULA	Rice, Turmeric, Probiotics	$8.46M	Great Oaks Venture Capital, L Catterton
UNICORN	Mushroom	$0.15M	500 Accelerator, AppWorks Ventures
Virtue Labs	Quinoa	$15.33M	HighCape Partners, N/A
Vital Proteins	Carrot	$19M	CAVU Venture Partners
Wander Beauty	Jojoba, Green Tea	$4.48M	DGNL Ventures, Maveron, The Pritzker Group
Winky Lux	Jojoba	$2M	BBG Ventures, Female Founders Fund, GGV Capital
Yes To	Charcoal	$73.48M	Bridge Capital Holdings, San Francisco Equity Partners, Viking Global Investors
ZO Skin Health	Caffeine, Jojoba	$6M	N/A

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