Ecobusiness: socially inclusive, environmentally sustainable and economically enduring innovation in Brazil

In 2024, the natural and organic cosmetics market was valued at approximately USD 10.37 billion, and it is projected to expand to USD 12.89 billion by 2033, at a compound annual rate (CAGR) of 7.5%.

Brazil ranks among the world’s 18 most megadiverse countries, hosting an estimated 15-20% of global biological diversity. Yet  biodiversity transcends numerical metrics – here, it carries centuries-old wisdom embedded in ingredients like murumuru, cupuaçu, andiroba and priprioca, long used by traditional communities for their healing and nourishing properties. This dual significance, as both ecological treasure and cultural legacy, places the country at a unique crossroads in global debates on conservation, commercialisation and equitable benefit-sharing.

Traditional knowledge, in this context, becomes a strategic asset. Drawing on these time-honoured practices can reduce R&D costs while shaping more culturally attuned and ecologically intelligent product development pathways.

But something deeper is at stake. In a global scenario marked by climate crises and corporate distrust, companies that manage to incorporate nature-based solutions and resonate with the collective imagination of sustainability achieve something rare: differentiation, innovation and reputation – especially when these efforts are linked to sustainable branding strategies such as certifications and green labels.

Ecobusiness is driven by the growing consumer appeal for natural, ethical and sustainable products, known as the “green market”, which responds to a consumption profile guided by environmental and social values. Products derived from Brazilian biodiversity and the associated traditional knowledge, such as natural cosmetics, functional foods and herbal medicines, have come to occupy a privileged space in demanding market niches precisely because they combine technological innovation, environmental responsibility and respect for sociocultural diversity.

However, leveraging this potential without slipping into greenwashing requires a new kind of business model – one grounded in genuine collaboration with local communities.

There are increasing demands for appropriate access to culture, image and traditional knowledge, and for fair benefit-sharing with traditional communities for the value they bring.

This transformation requires new forms of relationship between companies and local communities. Instead of standardised contracts and extractivist approaches, it calls for active listening, co-authorship of solutions with traditional communities and investment in legal and legitimate access routes to biodiversity resources.

Legal compliance with the Biodiversity Law (Federal Law No. 13. 123/2015), and with international instruments such as the Convention on Biological Diversity (CBD) and the Nagoya Protocol on Access and Benefit Sharing, becomes not only a regulatory obligation but also a fundamental competitive advantage for companies operating or intending to operate in this sector.

As each signatory nation may define its own guidelines, understanding these regulations is essential to avoid legal risks and ensure compliance.

For companies operating in Brazil, the strategic use of traditional knowledge and biological resources represents a concrete opportunity to align with new regulatory demands and global sustainability goals.

Within this scope of work, FAS Advogados in cooperation with CMS supports entities in structuring strategies that go beyond regulatory compliance, actively aligning with ESG commitments and international sustainability standards. Legal advice includes building ethical and resilient supply chains that integrate community protocols into internal flows of research, development, marketing and compliance.

Successful implementation of these strategies demands early planning, multidisciplinary coordination and a long-term vision. In this context, we take pride in transforming legal instruments and governance practices into tangible and scalable solutions for environmental conservation and sustainable development. One of our most valuable lessons has been understanding that turning biodiversity into a competitive advantage requires translating ESG commitments into concrete routines. This includes adapting contracts to align with the logic and principles of community protocols, through to designing internal processes that ensure fair and equitable benefit-sharing.