L’Oréal backs Raiku’s wood-based packaging as beauty industry seeks plastic alternatives
ESTONIA – L’Oréal has selected Estonian start-up Raiku Packaging to join its Sustainable Innovation Accelerator, a five-year, €100 million (US$119m) program designed to identify, pilot and scale breakthrough solutions addressing sustainability challenges across the cosmetics value chain.
Raiku develops compostable packaging filler made from wooden springs and woven wood fabrics, positioned as a premium alternative to conventional plastic- and paper-based void-fill materials.
Targeted primarily at the global luxury cosmetics segment, the solution combines natural aesthetics with functional performance, aligning with brands seeking both sustainability and elevated unboxing experiences.
According to the company, Raiku’s wood-based filler reduces resource usage by up to 90% compared to traditional filling materials.
The start-up says L’Oréal’s backing validates the material’s potential for industrial-scale deployment and reflects growing pressure on beauty brands to reduce packaging-related environmental impact without compromising brand presentation.
“Being selected by L’Oréal is a strong validation of our novel material and a signal that the world’s largest companies are investing seriously in supply chain innovation,” says Karl Pärtel, co-founder of Raiku Packaging.
He adds that collaboration with a global beauty leader will help accelerate adoption beyond niche applications.
Raiku has already attracted high-profile customers, including Louis Vuitton Moët Hennessy (LVMH), and has secured €5.6 million (US$6.6m) in funding from the European Innovation Council.
The company has also been recognised by EU bodies as a strategic technology capable of reducing packaging pollution at both regional and global levels.
The L’Oréal Sustainable Innovation Accelerator, delivered in partnership with the Cambridge Institute for Sustainability Leadership, focuses on key priorities such as alternative packaging materials, sustainable ingredients, low-impact manufacturing and the phase-out of fossil-based plastics.
Selected companies take part in a two-month program covering pilot design, readiness assessment, and real-world deployment, supported by mentoring from sustainability and industry experts.
Pärtel notes that beauty and personal care represents one of the fastest-growing markets for sustainable packaging innovation.
“The program allows us to demonstrate that sustainability, performance and luxury design can coexist, particularly in premium segments where packaging plays a critical role,” he says.
L’Oréal’s collaboration with Raiku forms part of a broader sustainability push across the group.
In recent years, the beauty giant has promoted refillable packaging through its #JoinTheRefillMovement, adopted recyclable tube solutions for hair care, and worked with suppliers such as Albéa and Cosmogen to redesign primary and secondary packaging formats.
Beyond packaging, L’Oréal continues to invest heavily in operational efficiency and brand expansion, including a €60 million upgrade of its Gauchy factory in France and an increased stake in dermatology specialist Galderma.
Together, these moves underline the group’s strategy of pairing sustainability-led innovation with long-term industrial and brand growth.
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