When regulations spark innovation: the impact of EU’s TPO ban on the beauty industry

The EU has announced a ban on the chemical TPO (trimethylbenzoyl diphenylphosphine oxide) in cosmetics, effective from 1 September 2025. This regulation also applies in Switzerland, creating immediate consequences for the beauty industry and product suppliers. What looks like a challenge at first glance is also a lesson in adaptability and problem solving for business owners.

TPO has long been used as a photoinitiator in semi-permanent nail polish and gel systems. The substance has now been classified as toxic to reproduction, which makes it a category 1B CMR ingredient. From September onwards, all cosmetics containing TPO will be illegal to sell or use. For many Swiss businesses in the beauty sector, this means losing large parts of their product range overnight. Some owners report reducing their colour palette from more than 1500 shades to fewer than 50.

Business owners face three immediate challenges. First, they must identify and remove all non-compliant products. Second, they need to secure replacements that cure effectively under UV or LED lamps. Third, they must communicate these changes to clients, who may worry about safety or reduced choice. Add to this the financial loss of stock that can no longer be used, and the frustration of short notice, and it becomes clear why many feel overwhelmed.

Regulations are not optional. The real difference lies in how businesses respond. Owners who treat the ban as an opportunity can build resilience. By auditing stock quickly, working with reliable suppliers, and sourcing TPO-free alternatives, they position themselves as leaders in safety. By training staff and openly explaining the change to clients, they show professionalism and build trust.

Some brands have already reformulated their gels, replacing TPO with safer alternatives such as ethyl trimethylbenzoyl phenylphosphinate. These new products maintain performance without the same health risks. Businesses in the beauty industry that adopt such solutions early can promote themselves as compliant, forward-looking, and client-focused. Instead of resisting regulation, they use it to differentiate themselves in a crowded market.

Every regulation brings cost and disruption, but also opportunity. Companies in the beauty industry that adapt quickly to the TPO ban can strengthen their reputation, reassure clients, and even attract new customers who care about health and sustainability. By treating this challenge as a catalyst for innovation, owners learn to solve problems under pressure, a skill that is valuable far beyond the beauty sector.

The situation is also a powerful reminder of the skills tomorrow’s managers and entrepreneurs need. Business leaders must be able to make quick operational decisions, balance compliance with profitability, and guide teams through uncertainty. At the same time, international managers must understand how regulations in one market, like the EU, can instantly affect operations across borders, as seen here with Swiss companies forced to comply with EU rules.

This is why AUS offers business specializations such as Business Management and International Business. These programs equip students with the mindset and tools to adapt to uncertainty, transform disruption into strategy, and lead companies that thrive in complex international contexts.