Market Research & Sourcing Risk Assessment for Cosmetic Raw Materials

Client Context

A European cosmetics company was undertaking large-scale product reformulation initiatives to increase the use of organically sourced and sustainable raw materials. While this transition aligned with evolving consumer expectations and corporate social responsibility commitments, it also introduced significant sourcing, cost, and availability risks across critical raw materials.

To support informed decision-making, the client engaged Kepler Ventures to conduct a comprehensive market research study covering key cosmetic raw materials, global sourcing dynamics, and viable alternatives.

The Challenge

The client faced growing uncertainty across its raw material supply base driven by sustainability-led reformulation efforts:

Rising shortages and price volatility for selected organic and responsibly sourced raw materials
Limited visibility into global supply chains, trade flows, and concentration risks
Need to identify technically viable and sustainable alternatives without compromising product performance
Increasing CSR, regulatory, and reputational risks associated with sourcing practices
Weak alignment between R&D and procurement teams, leading to longer approval cycles and delays

Kepler’s Approach

Kepler Ventures executed a structured four-month engagement combining market intelligence, technology assessment, and sourcing risk analysis.

Phase 1: Raw Material Profiling & Value Chain Analysis

Comprehensive analysis of the current raw material portfolio to understand sourcing origins, processing methods, and value chain stakeholders.

Phase 2: Market & Trade Scenario Assessment

Evaluation of global supply and demand trends, trade regulations, and macroeconomic factors impacting availability and pricing.

Phase 3: Technology, Alternatives & Sustainability Assessment

Technical scouting for bio-based or synthetic alternatives that meet sustainability criteria while maintaining product efficacy.

Phase 4: Competitive & Supplier Landscape Analysis

Benchmarking of global suppliers based on their sustainability certifications, capacity, and reliability.

Impact & Outcome

Supply and price volatility were driven by concentrated sourcing regions and growing demand for organic inputs
Several raw materials exhibited high dependency risks despite strong sustainability credentials
Viable technical and process alternatives existed for multiple materials but were underexplored
Early involvement of procurement in R&D decision-making significantly reduced approval timelines and sourcing risks

Client

European Cosmetic Products Manufacturer

Industry

Cosmetics & Personal Care

Service

Market Research, Strategic Sourcing & Sustainability Risk Assessment

Timeline

4 Months

Key Results

raw materials analysed

3–5

alternatives per material identified

CSR & sustainability risks assessed

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Suresh Kumar

Suresh Kumar is a Corporate Legal, regulatory, and Governance Advisor. He has been a leading legal counsellor in the manufacturing, automotive, software, and fintech sectors in India and the Middle East for more than 30 years.

He has been the Global General Counsel, Senior Vice President of Legal, and Company Secretary for prestigious business conglomerates, such as Hyundai Motor India, Ashok Leyland Group, Ramco Systems, Polaris, Financial Software & Systems, and Omzest Group. He has worked closely with Boards, promoters, and CXOs on issues related to corporate governance, compliance, mergers and acquisitions, contracts, and regulations.

At Kepler Ventures, he advises clients with governance frameworks, risk management, and complex legal and regulatory challenges.

S Sundara Moorthy

Strategy & Advisory Services

Sundara Moorthy is a leader in strategy and market intelligence with 18+ years of experience guiding businesses, investors, and organizations on growth strategies, market entry, and business transformation.

He has directed multi-sector engagements spanning manufacturing, consumer, retail, and supply chain industries, integrating comprehensive market analysis with results-oriented advisory services.
At Kepler Ventures, he oversees Strategy & Advisory Services, collaborating closely with leadership teams to define strategic priorities, inform decision-making, and facilitate scalable growth. Renowned for his methodical reasoning and practical methodology, Sundara assists organizations in converting intricate market dynamics into well-defined, actionable strategies.

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Khaja Hameed

Managing Partner

Khaja Hameed is the Managing Partner at Kepler Ventures, with over two decades of experience across technology leadership, digital transformation, and investment-led advisory.

He has worked with corporates, investors, and promoters on technology strategy, platform scaling, and value creation initiatives, including M&A, strategic investments, and i2i-led advisory engagements. Khaja brings strong expertise in IT governance, transformation programs, and transaction-driven decision support.

At Kepler Ventures, he drives firm strategy, client delivery, and investment advisory platforms, supporting organizations in evaluating, structuring, and executing growth through acquisitions, partnerships, and technology-enabled investments.

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Bernard Ouriou

Founding Partner

Bernard Ouriou is the Founding Partner of Kepler Ventures, offering nearly twenty years of international expertise in strategy, consulting, and industry leadership.

He is a graduate of École Centrale de Paris and ESCP-EAP Business School. Bernard’s career reflects a dual path across management consulting at Bossard and senior roles in industry, primarily within the automotive sector—enabling him to build wide, cross-sectoral expertise. He is a specialist in rail, aeronautics, chemicals, and capital goods industries.

At Kepler Ventures, Bernard shapes strategic direction, drives international partnerships, and advises clients on cross-border growth and market expansion.

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