This post was reviewed and updated by Sarah Otto, Dermatology Nurse Practitioner and Founder of Otto Skin Goods on July 15, 2026.

Skincare labels have a reputation for being indecipherable—and admittedly, Niacinamide isn't exactly a household word.

With food, the general rule of thumb is simple: if you can pronounce it, it's probably good for you. Skincare doesn't follow the same logic. The ingredients that look the most intimidating on a label are often the ones doing the most for your skin. Avoid them out of caution, and you may be missing out on exactly what your skin needs.

But how can we know what each ingredient is, what it does, and if it's good for our skin?

That's why we put together a complete guide to reading skincare labels, so you know exactly what you should be looking for when you pick up a product: the science, the ingredients, and necessary things to keep in mind before purchasing.

1. Active Ingredients

Products containing high percentages of active ingredients tend to be more potent. Keep in mind that skincare ingredients are listed from highest to lowest percentages, so make sure active ingredients are higher up on the list.

Also, avoid overusing potent actives in multiple products. You should never layer the same active ingredients on your skin when one product already has it covered. Make sure that the products you are using—whether cleanser, toner or serums—have a balanced assortment of active ingredients that complement each other. Overuse of potent active ingredients can lead to irritation and sensitized skin.

It’s also very important to use active ingredients at the right time of day. Your skin will benefit from Vitamin C, Peptides and Hyaluronic Acid during the daytime. Simply put, Vitamin C is a potent antioxidant that helps fight pollution and boost the effectiveness of your sunscreen, while Hyaluronic Acid hydrates and Peptides plump. Alpha Hydroxy Acids (aka, AHAs) and Retinol are best used at night because they can increase sun sensitivity. We also recommend using Niacinamide at night because of its powerful multitasking benefits. It works best if left on your skin for longer periods of time, unaltered by makeup, sweat, sunscreen and other daytime distractions. When combined with AHAs, Niacinamide penetrates better and works harder to get to the deeper levels of your skin.

2. Plant-Based Ingredients

These ingredients offer great benefits for your skin. Not to mention, they’re directly derived from plants. Since these ingredients are more likely to come from nature, they’re less processed. They also complement active ingredients and help boost the effectiveness of some of our favorite powerhouse actives (think: Vitamin C, Niacinamide and Hyaluronic Acid).

The main caution with plant-based ingredients? Don’t overuse them. That’s because they tend to be irritating and potentially allergenic. That being said, it’s best to use less than five plant-based extracts in a product and limit the use of flowering extracts, as these can be the most highly allergenic.

Just like your active ingredients, be aware of the types of plant-based extracts you’re using in your products. You want to avoid overusing them in multiple products and layering them on your skin unintentionally.

The main group of plant-based extracts to use caution with are those in the Compositae or Asteraceae family (like ragweed, for example). Some of the most common ones include: burdock, arnica, chamomile, dandelion, daisy, edelweiss, goldenrod, marigold, sunflower, blue tansy and yarrow. Also, it probably goes without saying, but avoid any plant-based ingredients you have food allergies to. For example, if you’re allergic to tomatoes, avoid applying anything with tomato extract to your skin.

3. Preservatives

This one’s a non-negotiable. If a product contains water, it absolutely needs a preservative. Even oils and powder-based products need a preservative if they have the possibility of having water mixed into the product. Preservative-free should never be a selling point, especially for those products claiming to be “all natural.” Products need preservatives to be considered safe—otherwise, you run the risk of rubbing bacteria, mold or yeast all over your skin, and that is definitely not healthy.

However, there are a few preservatives you should avoid. Potentially, some may be hormone disruptors, toxic or a major allergen risk. These include parabens, formaldehyde-releasing preservatives (DMDM Hydantoin, Diazolidinyl Urea, Quaternium-15), Ethanolamines (DEA, TEA, MEA/ETA), EDTA and Methoxyethanol/Methylchloroisothiazolinone (MCI/MI).

4. Allergenic Ingredients

Skin allergies often lead to irritation and sensitized skin. The main cause of skin allergies is typically from fragrance, plant extracts, preservatives and lathering agents.

Both synthetic and natural fragrance have the potential to cause significant allergies (yep, even essential oils). If you’re going to use a product that contains fragrance, it should be listed as individual ingredients and not just “fragrance,” so you always know exactly what you’re using.

FYI, essential oils such as lavender and cinnamon are some of the most common causes of skin allergies. Plant-extracts, especially flower extracts, should be avoided if you have sensitive skin and limited to less than five in each individual product. Fruit extracts tend to be less allergenic unless you have a food allergy to a specific fruit. As stated above, preservatives can also be allergenic. Some of the most highly allergenic preservatives are formaldehyde-releasing preservatives. And finally, lathering agents can also be very allergenic and irritating to the skin. A potentially allergenic lathering agent is cocamidopropyl betaine, which is commonly found in soap, shampoo and facial cleansers.

One common myth with skin is that starting a new product is the only way to develop an allergy. The truth is you typically need to be exposed to an allergen before an allergy occurs. This means that a product you’ve been using for years can certainly start giving you allergic reactions. This is why you don’t want to overexpose your skin to too much fragrance, plant-extracts, preservatives or lathering agents—although harmless now, an allergy to one of these could develop over time.

Quick Tips: Things to Avoid When Reading Skincare Labels

1. Long Lists of Ingredients

If a product contains a long list of ingredients, chances are you’re not benefiting from many of the active ingredients. It’s too crowded with emulsifiers, fillers and plant extracts. A simplistic, straightforward ingredient list containing the active ingredients you actually need, such as Niacinamide, Vitamin C, AHAs, Retinol and Antioxidants are going to work harder and simply do more for your skin.

Don’t get fooled into thinking that multiple plant extracts are “good.” Most often it’s just a trend or false selling point. The truth is that these “natural” plant extracts can be some of the most highly allergic ingredients you put on your skin.

Instead, look for complementing plant extracts that boost the effectiveness of the actives in the serum—just make sure they’re limited to less than five. Some of the best include bearberry, licorice root, gotu kola, kakadu plum, watermelon extract and green tea, berry and fruit extracts.

2. Any Time of Day Products

Serums that are designed to be applied in the morning and at night are wonderful because they consider what your skin needs at any given point in the day—think: pollution-fighting antioxidants, skin-plumping peptides and collagen-building Vitamin C. Serums containing AHAs or retinol are best to use at night because these can cause sun sensitivity. Also, using more reparative ingredients at night helps them work better, because they can remain on the skin for a longer period of time without sun, sweat and makeup disrupting them. Be sure to look for a night serum containing exfoliating fruit acids, gluconolactone or lactic acid, niacinamide or retinol.

3. Over-Applying Too Many Products / Overusing Active Ingredients

It’s essential that you study your skincare ingredient lists, especially if you plan to layer on multiple products. Reason being, you want to ensure you’re not applying the same active ingredients, plant extracts and even preservative systems—you’d be surprised by how many repeated ingredients you’re using on your skin! Overuse of certain actives can quickly add up, and applying higher-than-normal percentages of active ingredients can lead to irritation, skin barrier damage, risk for sensitized skin or a potential allergic reaction.

Instead, keep it simple: apply only one potent serum in the morning and one at night. Also, be sure to choose serums that are a good mix of actives, and look for ones that only target your skin’s concerns. Oh, and skip cleansers and moisturizers that contain multiple active ingredients, because let’s face it, that’s just unnecessary.

4. Avoid Brands with a “Signature or Proprietary Blend” in Every Product They Create

If a product line contains a “signature blend” of ingredients that’s found in every single product they sell—skip it. This is not healthy for your skin to be exposed to the same cocktail of actives, probiotics or plant-based extracts multiple times a day in every product you use (like your cleanser, serums or moisturizers). It can lead to sensitized skin, allergy and irritation. Let’s be concise: repeating the same group of ingredients in every product you use is completely unnecessary and is only a selling point for the product line. A good mix of active and plant-based extracts spaced throughout the day gives your skin exactly what it needs, without ever overloading your skin.

Frequently Asked Questions

Why does ingredient order on a label matter?

Ingredients are listed from highest to lowest concentration, so where an active ingredient falls on the list is a good indicator of its potency. If a product's hero ingredient is buried near the bottom, it's likely not present in a meaningful amount.

Can I layer multiple products with the same active ingredient?

It's best to avoid it. Layering the same active across your cleanser, toner, and serum can quickly push you into overuse territory, which raises the risk of irritation and a compromised skin barrier. Aim for a balanced mix of complementary actives instead.

When should I use ingredients like Vitamin C versus Retinol?

Vitamin C, Peptides, and Hyaluronic Acid are best suited for daytime, where they support antioxidant protection, hydration, and plumping. AHAs and Retinol are better reserved for nighttime, since they can increase sun sensitivity. Niacinamide also performs best overnight, when it can work uninterrupted by makeup, sweat, or sunscreen.

Are plant-based ingredients always a good sign?

Not necessarily. While plant-based extracts can complement active ingredients and boost their effectiveness, they're also more prone to causing irritation or allergic reactions, particularly extracts from the Compositae/Asteraceae family, like chamomile, arnica, and marigold. A good rule of thumb is to look for fewer than five plant-based extracts in any one product.

Why do skincare products need preservatives?

Any product containing water needs a preservative to prevent bacteria, mold, or yeast growth. "Preservative-free" shouldn't be viewed as a selling point; it's often a red flag rather than a benefit. That said, certain preservatives, like parabens and formaldehyde-releasing agents, are worth avoiding due to their potential to disrupt hormones or trigger allergies.

What typically causes skin allergies?

Fragrance, plant extracts, preservatives, and lathering agents are the most common culprits. Fragrance should always be listed as individual ingredients rather than a vague "fragrance" catch-all, and essential oils like lavender and cinnamon are frequent offenders despite their "natural" reputation.

Can I suddenly become allergic to a product I've used for years?

Yes. Allergies typically develop after repeated exposure to an ingredient, not on first use. This is why moderation matters, even ingredients that seem harmless now could become problematic with prolonged, frequent use.

Is a long ingredient list a good thing?

Generally, no. A crowded label often means the formula is diluted with fillers and emulsifiers rather than concentrated with active ingredients. A shorter, more deliberate ingredient list tends to deliver more noticeable results.

Should I be wary of brands with a "signature blend"?

Yes. If the same blend of actives or extracts appears in every product a brand sells, you risk repeated over-exposure throughout your routine, in your cleanser, serum, and moisturizer alike. Variety across your routine serves your skin better than repetition.