PurposeThis paper aims to explore the relationship between the various variables present in the packaging plastic waste management system in the cosmetics industry.Design/methodology/approachIn this paper, the authors deal with plastic packaging waste in the cosmetic industry with the help of system dynamics. The model broadly divides the system into six sections – Cosmetic Packaging, Waste Generation, Waste Collected, Waste Sorted, Waste Treated and Waste Dumped. Businesses have been investing in each section depending on their progress and targets. The authors are looking at case studies of two leading cosmetic brands, L'Oréal and L'Occitane en Provence, to validate the industry practices against our model.FindingsFrom a business perspective, using the case study methodology for L'Oréal and L'Occitane, the authors inferred that out of the various investment vehicles available, companies are targeting technological advancement and third-party collaborations as they have the potential to offer the greatest visible change. However, most of these investments are going toward the treatment subsection. Still, there is a scope for improvement in the collection and sorting subsystems, increasing the efficiency of the whole chain.Originality/valueThere has been a lot of research on packaging plastic waste management in the past, but only a few of them focused on the cosmetic industry. This study aims to connect all the possible variables involved in the cosmetic industry’s packaging plastic waste management system and provide a clear output variable for various businesses looking to manage their packaging waste because of their products efficiently.