With the global beauty and personal care market projected to reach $758 bn by the end of 2025, according to market research firm Statista, industry stakeholders are under mounting pressure to accelerate innovation, ensure regulatory compliance, and deliver personalized products at scale.
Enter virtual twin technology, a relatively new innovation that has transitioned from a theoretical concept to practical implementation in the beauty and personal care sector, according to Ray Wodar, Global Director of Business Consulting for Consumer-Packaged Goods and Retail at Dassault Systèmes.
In this CosmeticsDesign Q&A, we spoke with Wodar to learn more about how virtual twin technology can help manufacturers and suppliers test formulations faster, validate product claims, manage risk, and enhance operational efficiency, ultimately better navigating the complexities of a competitive landscape.
CDU: Can you provide an overview of virtual twin technology and how it applies to the cosmetics and personal care industry?
Ray Wodar (RW): Virtual twin technology has transitioned from theoretical concepts to practical implementations in the cosmetics and personal care sector, revolutionizing product development, customer engagement, and supply chain management. By creating dynamic virtual replicas of physical assets—from individual skin care profiles to entire production ecosystems—brands are delivering unprecedented personalization, product innovation, and sustainable transparency.
For example, cosmetics firms are adopting virtual skin twins to replace animal testing. These models replicate stratum corneum thickness, sebum production rates, and melanin distribution to predict reactions to formulations applied to the body.
On the production and supply chain side, virtual twins can map cosmetics supply chains, simulating scenarios like palm oil shortages or factory disruptions. For example, we saw a luxury perfume brand reduce carbon emissions by 18% after using a twin to reroute shipments around geopolitical conflicts.
Virtual twins allow for predictive outcomes of various business scenarios, so business leaders can plan for these events and factor these into their decision-making process.
CDU: How can personal care manufacturers and suppliers use virtual twins to streamline formulation development while ensuring regulatory compliance?
RW: Virtual twin technology emerges as a transformative solution, enabling manufacturers to simulate formulations, predict regulatory outcomes, and optimize production workflows—all while reducing development costs. Virtual twins streamline formulation processes and, in parallel, ensure compliance by creating dynamic digital replicas of formulations, modeling how ingredients interact under varying conditions like pH, temperature, or humidity.
For example, a shampoo twin can simulate surfactant behavior with coconut-derived cleansers to predict lather quality and scalp irritation risks. Inclusive of this process, automated Ingredient screening: Twins cross-reference formulations against global regulatory databases (EU, FDA GRASE, China’s CSAR), instantly flagging banned substances like PFAS or (exceeding concentration limits) of preservatives.
CDU: In what ways does virtual twin technology help accelerate innovation in a competitive product landscape, particularly for brands focused on sustainability and clean beauty?
RW: Virtual twins enable brands to test 10,000+ ingredient combinations in days rather than months. For instance, our client reduced surfactant formulation iterations by 45% by modeling lather performance against scalp pH variability.
In another example, a clean beauty brand leveraged similar technology to replace 78 animal-derived squalene prototypes with a plant-based alternative in 11 weeks, a process that traditionally required 18 months.
CDU: How does virtual twin technology support risk assessment and troubleshooting in the formulation process, especially when working with novel ingredients or product claims?
RW: Virtual twin technology significantly enhances risk assessment and troubleshooting in the formulation process, particularly when working with novel ingredients and supporting product claims. Virtual twins enable manufacturers to simulate and stress-test formulations in a digital environment before physical production.
When working with new ingredients, virtual twins help predict potential allergenic reactions or sensitivities across different skin types, they can also simulate how novel actives interact with existing formulation components or assess the environmental impact of new ingredients throughout the product lifecycle.
Virtual twins assist in validating and supporting product claims by providing data-driven evidence of efficacy through simulated trials. They enable real-time performance monitoring of products under various conditions and facilitate compliance testing and documentation for regulatory approval.
CDU: What challenges do cosmetics and personal care companies face when adopting virtual twin technology, and how can they overcome these hurdles?
RW: Cosmetics and personal care companies face several challenges when adopting virtual twin technology, including data privacy concerns, technical complexity, and a lack of standardized digital protocols. The complexity of developing and integrating virtual twins, especially for smaller brands, can be prohibitive due to the need for advanced infrastructure like AI, IoT, and cloud systems.
Data privacy is another critical issue, as virtual twins require the continuous collection of sensitive consumer information, raising concerns about cybersecurity and compliance with regulations. Additionally, the complexity of integrating virtual twins into existing workflows and determining the right tools for both current and future needs can create a steep learning curve.
To overcome these hurdles, companies can adopt several strategies. First, they can leverage pilot programs to demonstrate tangible benefits, such as cost savings or improved product personalization, which can build trust among stakeholders and justify investments.
Collaboration between manufacturers, technology developers, and regulatory bodies is essential to establish clear guidelines for implementation and compliance. Providing comprehensive training programs on AI and virtual twin principles can also help bridge knowledge gaps and ease integration into existing processes.
Lastly, adopting scalable solutions that align with long-term goals while prioritizing data security through robust encryption methods can mitigate privacy concerns and ensure sustainable growth in this competitive landscape.
CDU: Looking ahead, how do you see virtual twin technology evolving to further enhance product development and supply chain optimization in the beauty and personal care industry?
RW: Virtual twin technology is poised to evolve further, driving innovation in product development and supply chain optimization within the beauty and personal care industry. Looking ahead, its advancements will focus on enhanced personalization, sustainability, and operational efficiency.
Virtual twins will integrate more sophisticated AI and machine learning algorithms to simulate complex interactions between skin types, environmental factors, and product formulations. This will allow brands to create hyper-customized products tailored to individual needs while reducing time-to-market for novel formulations.
Virtual twins will move beyond predictive modeling to enable prescriptive, self-healing supply chains in the future. By dynamically adjusting inventory, production schedules, and logistics based on real-time data, companies can reduce costs, minimize waste, and improve delivery timelines.
For example, dynamic SKU-level safety stock targets will optimize inventory management based on localized demand patterns. By leveraging these advancements, virtual twin technology will empower beauty brands to stay competitive in a rapidly evolving market while prioritizing personalization, sustainability, and efficiency.