The beauty sector has successfully negotiated the various hurdles provided by the pandemic crisis and subsequent economic slowdown over the last two years, and it is now on the road to recovery and growth. The beauty sector generates $100 billion in sales income worldwide each year, indicating its importance to the global economy. Top cosmetic companies have faced fierce competition in recent years, as consumers have greater purchasing power as a result of the emergence of online shopping trends.
According to Brand Finance, this has forced beauty companies to become more dynamic and innovative in order to fulfill shifting consumer demands.
The beauty and cosmetics sector remains profitable both globally and nationally. The global cosmetics business is currently estimated at $571.10 billion, with the United States accounting for at least $49.2 billion in cosmetic product sales per year. Women and men are increasingly purchasing skincare, hair care, make-up, perfumes, toiletries, deodorants, and oral care items. As a result, the business shows no signs of stopping.
In fact, it is rising at a pace of about 5.3% every year. With the average American spending between $244 and $313 on cosmetics each month, the cosmetics industry’s future seems bright.
How Much do Skin Care Companies Make?
The cosmetics sector is one of the most valuable markets in the world, and the United States is significantly responsible. The cosmetics industry is rapidly expanding as more people around the country purchase personal care and beauty goods. Some data analysis team discovered the following after lengthy research:
- Approximately $49.2 billion is generated by cosmetics sales in the United States each year.
- On average, Americans spend between $244 and $313 on cosmetics every month.
- The global cosmetics industry is valued at $571.10 billion.
- The cosmetics industry is growing at a rate of 3.8% each year.
- Personal care products make up 44.4%, with a market volume of $253.3 billion of the cosmetics industry, representing the largest segment of the market.
- In 2020, the beauty and cosmetics market fell by 8% as a result of COVID-19.
L’Oréal achieved an amazing $38.2 billion in annual revenue as of 2021. Furthermore, the international cosmetics corporation controlled 20% of the Western European cosmetics sector.
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Unilever, Procter & Gamble, The Estee Lauder businesses, and Shiseido Company are among the other major cosmetics businesses that have dominated the market alongside L’Oréal since the early twentieth century.
| Brand | Revenue (2021) |
|---|---|
| L’Oreal | $38.2b |
| Unilever | $24.1b |
| Estée Lauder | $16.2b |
| P&G | $14.4b |
| Shiseido | $8.7b |
| Bath & Body | $7.9b |
| Johnson & Johnson’s | $7.7b |
| LVMH | $7.5b |
| Natura & Co | $7.1b |
| Beiersdorf | $7b |
In 2020, sales of eye cosmetics earned approximately $1.96 billion, while sales of facial cosmetics generated approximately $1.9 billion. In the eye cosmetics area, mascara was the most profitable product, followed by eyeliners, eye shadows, and eyebrow makeup.
Meanwhile, the most profitable product in the facial cosmetics area was Neutrogena makeup remover. Furthermore, hair care items accounted for 24% of the beauty business, with lip cosmetics sales totaling $647.31 million.
In comparison to the previous year, there has been a noticeable improvement in the brand value of the top 50 beauty brands this year. However, this expansion has yet to approach the proportions seen prior to the commencement of the pandemic in 2020. According to the Top 20 Global Beauty Companies 2021 Report, The Procter & Gamble Company, The Estée Lauder Companies Inc., and Unilever PLC are the world’s largest beauty companies.
1. L’Oreal
L’Oreal, a French multinational founded in 1909, is the world’s largest beauty company, with $34 billion in sales. The principal product line comprises hair care, skin care, color cosmetics, and perfumes sold under several brand names and distributed through multiple channels. As the company’s new CEO, Nicolas Hieronimus, has stated, the company intends to achieve remarkable growth in the coming years by pursuing an offensive product launch strategy while also focusing on investment in innovative growth key drivers for future growth and brand desirability.
2. Unilever PLC
Unilever PLC, a British multinational founded in 1929, is a cosmetics behemoth with $26 billion in sales. Unilever has a presence in 190 countries and 25 million retail outlets worldwide. It is the world’s second largest advertiser in terms of media spend. The firm controls 50 of the world’s top worldwide consumer brands.
3. The Estée Lauder Companies Inc.
The Estée Lauder Companies Inc. (NYSE:EL), a U.S.-based firm founded in 1946, is a well-known beauty stock with $16 billion in sales. The company has more than 25 high-end skin care, makeup, fragrance and hair care brands which are sold in 150 countries under brand names namely Estee Lauder, Aramis, Clinique, Lab Series, Origins, Tommy Hilfiger, DKNY, M·A·C, La Mer, Bobbi Brown, Aveda, Jo Malone London, Smashbox, Michael Kors, Darphin Paris, Tom Ford Beauty, Ermenegildo Zegna, AERIN, Bumble and bumble, Le Labo, Glamglow Kilian Paris, Too Faced, Dr.Jart, The Ordinary and NIOD.
4. The Procter & Gamble Company
The Procter & Gamble Company, founded in 1837, is a leading beauty company with 14.4 billion dollars in revenue. The principal product lines include hair care (Head & Shoulders, Rejoice, Herbal Essences, Pantene) and skin/personal care (Olay, Safeguard, Old Spice, Secret, and SK-II), which includes antiperspirants, deodorants, and personal cleansing. During the Covid-19 epidemic, Procter & Gamble focused on producing novel product lines including as personal care, hair care, and skin care products, which increased its annual sales.
5. Shiseido
Shiseido, a Japanese multinational corporation, is one of the world’s oldest beauty companies, with $9 billion in sales. To accelerate its future growth, the Japan-based company intends to invest in luxury skin beauty goods as well as online platforms. Prestige, Fragrance, Cosmetics, Personal Care, and Professional range are its five key brand categories. Shiseido recently signed a three-year worldwide strategic agreement with Tencent to collaborate on developing an innovative D2C model and improving its E-commerce platform.
6. Bath & Body Works, Inc.
Bath & Body Works, Inc., a U.S.-based multinational founded in 1990, is a leading beauty company with $7.9 billion in sales. Personal care perfumes, lotions, body creams, shower gels; candles, hand sanitizers, liquid hand soaps, and home aroma diffusers are among the products available. Fall in Bloom Fine Fragrance Mist, Cinnamon Sandalwood Body Wash and Foam Bath, and Sweet Whiskey Ultimate Hydration Body Cream are among the new products.
The company formally split from Victoria’s Secret in 2021 to become an own brand, which proved to be a great option. Sales increased by 22% to $7.9 billion from the previous year. Despite the fact that the pandemic period hampered the company’s overall growth, it was nevertheless able to expand its global footprint through digital platforms and the buy-online-pick-up-in-store, or BOPIS, model, which further strengthened the company’s online visibility and increased its client base.
Bath & Body Works, along with The Procter & Gamble Company, The Estée Lauder Companies Inc., and Unilever PLC, is one of the world’s largest beauty brands.
7. Johnson & Johnson
Johnson & Johnson (NYSE:JNJ), a U.S.-based multinational founded in 1886, is one of the world’s largest beauty companies, with $7.7 billion in sales. Johnson Baby Products, Dabao, Le Petite Marseillais, Aveeno, Clean & Clear, OGX, Lubriderm, Neutrogena, Vivvi, Bloom, Lubriderm Extra Dry Skin Advanced Therapy, Neutrogena Clear Coverage Makeup, Neutrogena Stubborn Acne & Marks Treatments, and Sundown are among its notable beauty brands.
8. LVMH
LVMH, a premium products corporation created in 1987, is another top beauty company with $7.5 billion in sales. It is a French corporation known for its high-end perfumes and beauty goods, such as Christian Dior. This year, Miss Dior Roses N’Roses, J’adore Infinissime perfumes, and Rouge Dior make-up performed well. The corporation is regarded as one of the world’s greatest conglomerates of luxury goods. Surprisingly, the firm owns a number of premium labels, including Tag Heuer, Louis Vuitton, Givenchy, Tiffany & Co., Bvlgari, Acqua Di Parma, and Marc Jacobs Beauty.
9. Natura & Co Holding S.A.
Natura &Co Holding S.A., a Brazilian multinational founded in 1969, is a large beauty company with $7.1 billion in sales. Natura, Aesop, The Body Shop, and Avon are among the big brands it owns. Aesop: Exalted Eye Serum, Natura: Biome body and shampoo bars, and The Body Shop: White Musk fragrance range, breath, boost, and sleep health collection are among the new brands that have recently debuted. Roberto Marques, the company’s executive chairman and CEO, has stated that he is confident in the company’s ability to maintain its growth trajectory in 2022-2024.
Despite the company’s hard 2020-2021 fiscal year, the CEO expressed confidence in long-term profitable growth, citing an 8.8% increase in overall sales, with more than half of revenues coming from digitally enabled sales.
10. Beiersdorf
Beiersdorf, a German multinational founded in 1882, is a notable beauty company with $7 billion in sales. Nivea, La Prairie, 8×4, Labello, Eucerin, Aquaphor, Florena, SlekMaestro, Atrix, Gammon, Hidrofugal, and Coppertone are among the important brands it owns. Nivea MagicBars, Eucerin Dermo-pure Serum, Nivea Men Sensitive-Pro Ultra-Calming facial skin care, Nivea EcoRefill hand soap, and Pure & Simple sunscreen spray are some of the most recent additions to the company’s product line. The company feels that its skincare section contributed to meeting sales targets, which were made feasible primarily through E-commerce activity.
Nivea is the company’s primary brand, and sales are expected to increase by 5.5% in 2021. Another brand, La Prairie, generated higher-than-expected sales for the corporation in the year after the outbreak. In June of this year, the company joined forces with Borealis, Clariant, and Siegwerk to reduce plastic waste and hence the impact of climate change.
11. Coty Inc.
Coty Inc., a French-American multinational founded in 1904, is a top beauty company with $5.3 billion in sales. The company’s goods include fragrances, color cosmetics, skincare, and body care items for both its premium and consumer lines. Kylie Jenner, Alexander McQueen, Bottega Veneta, Chloé, Marc Jacobs, Gucci, Escada, Burberry, Calvin Klein, Veneta, Davidoff, Hugo Boss, and Philosophy are among the firm’s luxury labels. Adidas, CoverGirl, Max Factor, Sally Hansen, Rimmel, and Nautica are some of the company’s brands.
Coty Inc. has been gaining traction in the US market since 2021, because to its ecommerce and innovative methods. Coty Inc. (NYSE:COTY) exited the Russian market in April of this year, following the country’s invasion of Ukraine. Kim Kardashian closed down her fragrance brand, KKW Fragrance, in May 2022, in order to re-introduce it under a new name, as the actress’s initials had changed after her divorce. Notably, the company controls 20% of Kardashian’s KKW Beauty and KKW Fragrance brands.
12. Kao
Kao, a Japanese beauty brand founded in 1887, is a $5 billion beauty industry behemoth. Kao operates in two main segments: consumer products and chemical products. The principal brands of the corporation are Curél , freeplus, Athletia, Kanebo, Sofina iP, Molton Brown, RMK, Kate, Kao Sekken White Sensai, Suqqu, Asience, Bioré, Cape, Blauné, Guhl, Jergens, Liese, Essential, John Frieda, Kms, Merit, Rerise, Segreta, My Kirei, Success, Goldwell, and Oribe. Sensai Absolute Silk Illuminating Cream, Goldwell Rainbow Dye, Sensai Contouring Lipstick, and Allie Chrono Beauty Line are among the new products introduced.
Despite the fact that the global pandemic period hampered the company’s growth, net sales recovered in 2021. Since March 2022, the company has been a part of the global call for assistance in the Ukraine crisis. In this regard, it has given significant gifts to UN organizations totaling up to $502,000. Kao has also contributed needs like as personal hygiene supplies, sanitary items, and newborn diapers to refugees.
13. LG
LG, a South Korean firm founded in 1958, is also one of the world’s largest beauty brands, with $4.8 billion in sales. LG has a cosmetics, hair care and skin care range that includes major brands such as The History of Whoo, CNP, O Hui, Belif, Beyond, SU:M37, Code Glokolor, Veilment, Dermalift, CNP Rx, Isa Knox, Sooryehan, Dr. Belmeur, VDL, Vonin, Carezone, The Saga of Xiu, TheFaceShop, FMGT, Nature Collection, Elastine, Organist, Reen, Yehwadam, Silk Therapy, and Gentology.
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Despite the uncertain economic global environment, LG has also introduced vegan beauty cosmetics, especially The Crème Shop in 2021, which has been a success. LG established a new research and development (R&D) center in Hokkaido, Japan, in May of this year, with a primary focus on microbiome beauty products. The company’s top management has stated that the R&D center will build a natural fermentation production system and will introduce various microbial elements.
14. Amorepacific
Amorepacific, a South Korean company founded in 1945, is one of the world’s largest beauty firms, with $4.4 billion in sales. Amore Pacific, Primera, Goutal Paris, Hanyul, Sulwhasoo, Mamonde, Innisfree, Laneige, Sienu, Etude, Hera, IOPE, and Lirikos are among the company’s more than 20 luxury and daily care beauty and health care brands.
In recent years, the brand has earned global notoriety and customer attention through a diverse online channel portfolio and innovative digital marketing.
Amorepacific, like The Procter & Gamble Company, The Estée Lauder Companies Inc., and Unilever PLC, is one of the world’s largest beauty brands.
Summary
The beauty and cosmetics sector remains profitable both globally and nationally. The global cosmetics business is currently estimated at $571.10 billion, with the United States accounting for at least $49.2 billion in cosmetic product sales per year.
Women and men are increasingly purchasing skincare, hair care, make-up, perfumes, toiletries, deodorants, and oral care items. As a result, the business shows no signs of stopping.
In fact, it is rising at a pace of about 5.3% every year. With the average American spending between $244 and $313 on cosmetics each month, the cosmetics industry’s future appears bright.
