Genomatica, a manufacturer of plant-based plastic and textile fibers, has announced L'Oréal as the third and final founding investor in its Geno-led venture, which aims to meet the growing demand for sustainable ingredients. It will use biotechnology to improve the environmental profile of popular products while meeting consumer demand for more traceable supply chains.

The involvement of L'Oréal, along with other founding members Unilever and Kao Corporation, brings the collective member revenue to more than USD 100 billion, providing Genomatica access to the beauty and personal care market. The funding from investors is expected to support in developing, producing, and selling of biotechnology-based alternatives as well as sustainable ingredients used in everyday cosmetics, personal care, and cleaning products.

Genomatica plans to use its biotechnology platform to produce sustainable surfactants by fermenting plant sugars using engineered microorganisms. These surfactants will be used in L'Oréal's products to help the latter achieve its sustainability goals of 100% eco-designed formulas and 95% bio-based ingredients by 2030.

Analyst QuickTake: Securing L'Oréal as an investor and partner is Genomatica’s latest efforts to commercialize its bio-based products across various industries. In June 2022, the company formed a joint venture with Unilever for plant-based alternatives to palm oil and fossil fuel-based cleansing ingredients. Genomatica previously also partnered with Cargill, Covestro , and Aquafil to produce commercial bioplastics, bio-based HMDA and bio-nylon, respectively.