L’Oréal strengthened its position as the global beauty leader once again this year.
Continuing the trend from 2022, the beauty market proved extremely dynamic, with growth of +8%, fuelled by a combination of high valorisation in mature markets and remarkable gains in emerging markets, which are key growth drivers for the Group.
(in %)
| Year | Value |
|---|---|
| 2000 | +5% |
| 2001 | +4% |
| 2002 | +5% |
| 2003 | +4% |
| 2004 | +4% |
| 2005 | +4% |
| 2006 | +5% |
| 2007 | +5% |
| 2008 | +3% |
| 2009 | +1% |
| 2010 | +4% |
| 2011 | +4% |
| 2012 | +5% |
| 2013 | +4% |
| 2014 | +4% |
| 2015 | +4% |
| 2016 | +4% |
| 2017 | +5% |
| 2018 | +6% |
| 2019 | +5% |
| 2020 | -8% |
| 2021 | +8% |
| 2022 | +6% |
| 2023 | +8% |
(in %)
| Geographic Zone | Value |
|---|---|
| North America | 29% |
| North Asia | 29% |
| Europe | 24% |
| Latin America | 9% |
| SAPMENA-SSA | 9% |
| Category | Value |
|---|---|
| Skincare | 40% |
| Haircare | 21% |
| Makeup | 17% |
| Fragrances | 12% |
| Hygiene products | 10% |
(in billions of USD)
| Global players | Value |
|---|---|
| L’Oréal | 40,3 |
| Unilever | 25,1 |
| Estée Lauder | 16,4 |
| Procter & Gamble | 14,4 |
| Shiseido | 8,2 |
| LVMH | 8,1 |
The global cosmetics market has repeatedly demonstrated its robustness and remarkable resilience in the face of economic slowdowns and geopolitical upheaval. This offer-driven sector is constantly adapting to the new expectations of consumers, who are looking not only for quality, performance and innovation but also for meaning in what they buy.
The sector is increasingly omnichannel, with growing complementarity between different online and offline touchpoints. At the global level, 27% of all beauty products are sold online. The growth of e-commerce has made it possible to reach more consumers, well beyond the scope of traditional retail. E-commerce will be the distribution channel of the 21st century, with huge growth potential in many countries.
The beauty market is expected to include some 600 million more middle- and upper-middle-class consumers worldwide by 2030. Opportunities abound in SAPMENA-SSA, the world’s most densely populated region, home to more than 3.5 billion people in 2023. Countries such as Indonesia, Pakistan and Egypt have become new cultural influencers to watch on a regional level. China’s younger generations also embody huge consumer demand for increasingly sophisticated beauty products and services.
In mature markets, the “boomer” generation (around 20% of the population in North America and Europe) continues to thrive and support the upmarket shift.
| Geographic Zone | 2022 | 2030 |
|---|---|---|
| North America | 300 | +20 |
| Europe | 575 | +40 |
| Latin America | 210 | +35 |
| SSA | 60 | +25 |
| SAPMENA | 590 | +280 |
| North Asia | 600 | +180 |
The number of new middle- and upper-middle class consumers is expected to increase by 2030 by more than 60 million in North America and Europe combined, and by more than 460 million in SAPMENA and North Asia combined.
Holistic beauty embraces a comprehensive view of beauty, taking four aspects into consideration: physical, mental, emotional and spiritual beauty. It includes daily rituals and cultivates sensory pleasure through products, services and experiences. The popularity of holistic beauty treatments continues to grow as more consumers seek solutions that combine beauty and wellbeing.
In 2023, L’Oréal acquired Australian icon Aēsop – a holistic, luxury beauty brand with a singular combination of design, hedonism and lifestyle. This one-of-a-kind company is a perfect and complementary addition to L’Oréal Luxe’s portfolio of products, services and experiences.
Interest in dermocosmetics continues to surge, driven by two structural trends. The consumer quest for health and safety remains paramount, fuelled by the escalating prevalence of skin disorders, which affect more than one in four people worldwide. Factors such as an ageing, climate change (pollution, exposure to UV rays) and stress contribute to this trend. There is also a surge in aesthetic procedures, along with more extensive use of dermocosmetics prescribed by dermatologists.
The success of L’Oréal’s Dermatological Beauty Division is underpinned by its longstanding leadership in medical prescriptions and a complementary portfolio of brands that meet the full range of consumer expectations, ranging from skin conditions to aesthetics.
(in %)
| Year | Dermocosmetics market | Global beauty market |
|---|---|---|
| 2019 | +6% | +5% |
| 2020 | +2% | -8% |
| 2021 | +13% | +8% |
| 2022 | +9% | +6% |
| 2023 | +13% | +8% |
The defining feature of our era lies at the intersection between heightened consumer demand for personalisation and the advent of technological solutions that combine artificial intelligence, augmented reality and machine learning to enable a shift from “beauty for all” to “beauty for each”. Ninety-one percent of gen zers and millennials prefer personalised products and services. The number of connected consumers is also expected to increase significantly, from 5.3 billion in 2023 to 7.5 billion in 2030.
Using advanced research, data analysis and artificial intelligence, L’Oréal is championing new ways to connect more closely with consumers and offer tailored solutions to meet their needs through augmented products, smart devices, online platforms and a range of digital services.
The popularity of refillable beauty products, which are more sustainable, continues to develop, particularly in the luxury sector. The expansion of these offerings in the fragrance category is part of this trend. There is also a demand for refills and refillable products in the makeup category. In 2023, L’Oréal significantly accelerated the rollout of its refillable model across all Luxe categories. In the fragrance category, all our major launches and blockbusters are now refillable.
