The top 20 global beauty companies - with a Brazilian in the list
The global cosmetics market is growing and is expected to reach a value of $805.61 billion by 2023. According to a report by Orbis Research, a market research firm made for Beauty Packaging, this year has been a good year in sales , with many of the companies listed here showing growth results this year. The future of the industry looks set to continue to be promising. According to market research firm Euromonitor International, one of the most promising markets is China, whose cosmetics sales forecast to exceed $ 40 billion by 2021, beating surpassing the US as the world's biggest market for makeup and skin care.
Among the 20 companies listed in the Orbis Research report, Brazil's Natura & Co appears in 18th place, with a sales value of $ 2.9 billion in 2017 - including Aesop and The Body Shop. NaturaBrasil, alone, reached 2.4 billion, with the Brazilian market accounting for most of the company's revenue - 73%. The timing certainly seems right for Natura & Co, with its focus on eco-friendly packaging and clean formulations—as well as efforts to benefit society via its corporate philosophy. In No. 18 position on this year’s Top 20 list, the Brazil-based brand is making a bigger splash in the global market—accessing "green" brands, opening retail stores in the U.S. and, according to rumors, even making a recent bid for Avon.
The report points out that: "The Companies were analyzed based on 2017 data. Beauty sales included only cosmetics, fragrance and personal care items when possible. Figures for companies outside the U.S. were based on the exchange rate for the fiscal year on the day it ended. Estimates are provided in cases where full disclosure was not available."
1. L'Oréal, $ 31.2 billion - The company not only maintained its position, but sales for the year increased by $ 4 billion, a figure higher than the annual total of some of the companies at the bottom of the list. Headquartered in France, L'Oreal has annual sales of beauty products worth more than $ 27.2 billion. It sells products in colorful cosmetics (makeup, enamels, products for hair coloring), skin care, sun care and fragrances. Its main brands are: L'Oréal Paris, Garnier, Maybelline New York and Softsheen. The company also sells luxury brands such as: Lancôme, Giorgio Armani, Yves Saint Laurent and Kiehl's. And also professional hair products, such as Kérastase, Redken, Matrix and Pureology.
2. Unilever, $ 24.8 billion - In 2017-2018, Unilever made major strides in appealing to a new generation of environmentally conscious global consumers—focusing on recycling and reducing packaging waste and developing more "natural" brands, in some cases developing its own incubated products. In fact, Marijn Dekkers, the company’s chairman, noted, "Unilever has a clear purpose—to make sustainable living commonplace."
In Personal Care, turnover was up 2.6% over the previous year, reaching $24.8 billion, accounting for 39% of Unilever’s turnover for the period. The Personal Care category is Unilever’s largest of four, and includes five €1 billion brands: Axe, Dove, Lux, Rexona and Sunsilk. Prestige brands, a more recent focus of Unilever, achieved a turnover of €425 million from brands such as Dermalogica. Four of the Anglo-Dutch personal care giant’s markets—U.S., India, Brazil and Indonesia—generated turnover of more than €1 billion.
3. Estée Lauder, $13.7 billion - The Estée Lauder Companies Inc. (ELC) reported even stronger than expected 2018 financial results for its fourth quarter and fiscal year ended June 30, 2018—achieving net sales of $13.68 billion, a 16% increase compared with $11.82 billion in the prior year. The fourth quarter of fiscal 2018 results marked the 16th straight quarter of improved earnings. In May, ELC’s Fabrizio Freda was named to the first-ever CEO RepTrak study, as one of the world’s most reputable CEOs. The global study shows what drives CEO reputation, the direct correlation between corporate reputation and stakeholder support. For the fourth quarter, in August, ELC reported a hefty jump in sales, especially in high-end skincare in travel retail and elsewhere, and announced that La Mer had become a billion-dollar brand. According to ELC, global prestige beauty is continuing to perform exceptionally well in fiscal 2019 and is estimated to grow 5% to 6% during the fiscal year. ELC expects to grow ahead of the industry.
4. Procter & Gamble $ 12.4 billion - P & G has beensimultaneously adding value and tightening its belt to fortify its bottom line for long-term growth. In terms of branding, the company eliminated and/or consolidated over 100 non-core brands, slimming its category representation from 16 to 10 in 2016. By focusing on 65 brands in 10 categories, P & G's net income rose (44%), Europe (24%), Asia Pacific and Greater China (both 9%), and Latin America and India / Middle East / Africa (both 7%). Amid the cuts, there were some strategic additions. In March, P & G acquired New Zealand-based Snowberry, which markets a carboNZero-certified range of anti-aging skincare products. The company still holds several well-known brands such as: Aussie, Gillette, Head & Shoulders, Herbal Essences, Ivory, Olay, Old Spice, Pantene, Safeguard, Secret, Crest, Oral-B, Scope, Shaving Art and more.
5. Coty $ 9.4 billion - Headquartered in New York and built its beauty business through acquisitions in recent years. In 2017, it had sales of $ 7.7 billion with a strong performance in fragrances, professional hair care and color cosmetics. The company has acquired a number of P & G brands and now has brands such as Adidas, Clairol, CoverGirl, David Beckham, Katy Perry, Max Factor, Rimmel, Sally Hansen and Wella. They also have luxury brands like Marc Jacobs, Calvin Klein, Chloé, Gucci, Hugo Boss and Philosophy. On the Consumer beauty side, net revenues totaled $4.2 billion, growing 15.7%, but declining 4% on a like-for-like basis. The 2016 completion of the P&G transaction, which included CoverGirl, Clairol and Wella, has helped Coty begin to stabilize its Consumer Beauty business; however, the company admitted that it’s clear that the recovery is taking longer than expected. Coty’s Professional Beauty unit delivered net revenues of $1.9 billion, an increase of 37.5% from $1.3 billion the prior year, with like-for-like growth of 1.7%, due to the solid collective performance of Wella and ghd hair brands and the mid-single digit growth of its OPI nail brand.
6. ShiseidoUS $8.9billions - JJapanese company, produces all kinds of personal care products, including skin care, fragrances, hair care, sun care, body care and makeup. Some of its popular brands include Shiseido, Za, Senka, Anessa, Sea Breeze, Nars and Bare Essentials. Shiseido enjoyed an 18.2% overall increase in net sales and a whopping 118.7% increase in operating income, thanks to factors including global growth in the company’s Prestige category, sales from brands added to the company fold in 2016 and doubled-down commitment to the company’s cost structure reform. Category-wise, prestige brands including Shiseido, Clé de Peau Beauté, bareMinerals and NARS, accounted for 42% of sales, while the company’s core cosmetics brands such as Elixir, Haku and Prior supplied 30%. Fragrances, like Dolce & Gabbana, Issey Miyake and Narciso Rodriguez represented 11% of sales; mid-priced personal care shampoos and body care brands were responsible for 9%; and professional products brought in 5% of sales. Shiseido has implemented VISION 2020, a three-year plan to help revitalize sales. For Japan and China, this means boosting the company's leading care and prestige brands, connecting with younger (and older) consumers, and driving e-commerce to increase sales by 4% a year. For the Americas, this will be achieved through balancing costs, boosting digital sales and promoting the growth of makeup brands to achieve a 2% increase in CAGR. In addition to VISION 2020, another step in the company's long-term growth plan is to become one of the top three companies in the world market for prestige cosmetics by 2030. Meanwhile, Shiseido is committed to helping "shape the future of sustainable packaging ", having joined the Sustainable Packaging Initiative for Cosmetics (SPICE), founded by L'Oréal and includes the products of Avon, Chanel, Clarins and Coty. 7. Beiersdorf $6.9 billion based in Germany company has a wide range of personal care products including skin care and body care brands. Some of the most important ones include Nivea, Eucerin, Labello, Florena and La Prairie. In terms of brand performance, Nivea sales have gained double-digit gains thanks to interest in Protect & Care, Black & White Deodorant, Active Clean and Crème Care, Milk, Pleasure and Nivea Men Crème, while interest in facial and the Eucerin brand helped boost organic growth to 3.4%. Last November, Beiersdorf's Eucerin brand made a foray into the acne treatment segment with the launch of the Dermopure campaign. Citing the statistic that 60% of the searches on YouTube are related to advice on the treatment and treatment of acne care. The campaign debuted in Germany first, with additional rollouts in several countries to follow. And finally, Beiersdorf put down new roots by building a new production facility in Nigeria, while also expanding production capabilities in Thailand and Brazil. The company also opened a new headquarters in Eimsbüttel.
8. LVMH US $6.7 bilhões - Moët Hennessy Louis Vuitton, world leader in luxury products, recorded another record year, an increase of 13% over the previous year. Even in an uncertain economy, one thing remains clear: luxury goods and prestige continue to capture consumer spending around the world. Supplier of wines, spirits, fashion, leather goods and, of course, cosmetics and fragrances, the last two categories responsible for $ 6.7 billion, 12% more than the previous year. A strong moment was registered at Parfums Christian Dior due to "successful product innovations," and growth at Sephora, which strengthens its all-digital and digital markets.
9. Johnson & Johnson US $6.1 bilhões - 9. Johnson & Johnson US $ 6.1 billion - Although primarily a pharmaceutical company, Johnson & Johnson continues to find new ways to grow its 124-year-old brand. This includes products for baby care, skin care and oral products. Its most famous brands include Johnson's Baby, Neutrogena, Aveeno and Listerine. The company’s beauty product segment was also strong, thanks to a reliable performance by J&J’s tried-and-true Neutrogena skincare label, as well as interest in new acquisitions Vogue International and Dr. Ci Labo. The company also acquired La Lumiére and NeoStrata brands. In January, Grupo Amorepacífico expanded its portfolio of brands in the US, adding Mamonde - a brand of skin care products and medium price makeup. Jessica Hanson, president and general manager, Amorepacific US Inc., who was appointed in October 2017, said they’d be simplifying multi-step routines and upgrading packaging to be more in line with prestige products.
10. Amorepacific $ 5.6 billion - Sales of South Korean beauty company, after growing for several consecutive years, fell 10% last year. Sales of Amorepacific dropped 9%; Innisfree, 16% and Etude, 18%. In response, the company looked toward other parts of the world for growth, including expansion of Etude in Kuwait and Dubai, Laneige in Australia, Mamonde in the U.S. (in Ulta), and Hera in Singapore. Amorepacific Group said it would focus on the development of innovative global products, presenting an enhanced customer experience, and improving its digital infrastructure to lay groundwork for sustainable growth. Jessica Hanson, president and general manager of the brand, said they’d be simplifying multi-step routines and upgrading packaging to be more in line with prestige products.In May, Amorepacific U.S. Inc. opened its first-ever global beauty pop-up shop on Bleecker Street in New York City. In June, Amorepacific Group officially entered the Middle East with its No.1 young makeup brand Etude House, and opened its first store in the Dubai Mall in March, then rapidly expanded to other locations. Sales of the "playful" brand reportedly rose 15%.
11. Kao $ 5.2 billion - headquartered in Japan, sells products in most categories of cosmetics including color cosmetics, skin care, facial and body cleansers and hair care. Popular brands of this company include Bioré, Jergens, John Frieda and Goldwell.The trend toward Asian skin care and beauty products in the Americas and Europe - especially those with natural ingredients - is a time Kao hopes to capitalize on. Already boasting a No. 1 share in North America with its Jergens brand lotions, Kao has its eye on positioning its Biore and John Frieda brands similarly. The company's global haircare presence was significantly bolstered with the acquisition of the Oribe Hair Care brand in late 2017. Last year the company also developed Smart Holder, which elevates the Raku-Raku Eco Pack Refill to a primary package. The refill is simply popped into the Smart Holder and the cap is swapped out with a pump for easy dispensing. The developments, according to Kao, are examples of how the company plans to innovate while reducing its environmental impact, with the goal of ultimately developing products and technologies with zero environmental impact.
12. Henkel $ 4.7 Billion - While overall corporate sales grew by 7%, beauty care sales increased just 0.8% to about $4.5 billion, with top brands Schwarzkpf, Dial and Syoss contributing 0.5% towards organic sales growth. North American sales dipped, as did performance in Western Europe. The impacting factors, according to the company, included weakened promotional activity, as well as price and trade pressures in concert with declining average prices. In an effort to ensure future progress, Henkel outlined a forward-looking plan called Henkel 2020+, devised to drive growth, accelerate digitalization, increase agility and fund growth for the next several years. One goal is to double digital sales to more than four billion euros by 2020. Growth will be driven by focusing on mature and emerging markets and by engaging with consumers. The company debuted SalonLab in January. Described as "a digital ecosystem for quantifying and customizing the hair care experience," SalonLab brings hair care to the digital age by creating personalized on-demand hair care products using technologies such as near-infrared hair diagnostics and augmented reality color consults.
13. Avon $ 4.2 billion - Now operating as a fully separate entity from New York-based New Avon LLC, UK-based Avon Products Inc. is finding its way at its headquarters in London. Overall, Avon Product’s 2017 net beauty sales grew a slim 1% to nearly $4.2 billion, led by skincare net sales of $1.62 billion (+1%), fragrance $1.55 billion (+3%) and color $977 million (-2%). While 2017 revenue was relatively unchanged compared to the prior-year period, partially benefiting from foreign exchange, the company’s constant revenue decreased 2%, which the company attributed to declines in Brazil, Russia and the United Kingdom, partially offset by growth in Argentina and South Africa, as well as to a 3% decline in Active Representatives. In June, the company announced that it was accelerating its "digital transformation" plans.The company invested in a new global sales organization to help further the optimized service experience of representatives. In August, Avon sold the last of its U.S. factories in Morton Grove, IL, to French pharmaceutical firm Fareva Group. And in September, Avon announced that it was further streamlining to make the company "fit for growth" by cutting 100 U.S. jobs and consolidating U.S. operations into its Suffern, NY facility, after selling its offices in Rye, NY. Jan Zijderveld, CEO since February, recently announced an Avon reboot with a growth plan called Open Up Avon. The strategy, dubbed "a cultural transformation," is focused on rebooting the company’s direct selling strategy, modernizing the brand, unlocking its digital and e-commerce capabilities, and driving a performance culture.
14. L Brands $ 4.2 billion - Bath & Body Works products, which span the Bath & Body Works, White Barn and C.O. Bigelow brand names, sells its products online and at more than 1,600 Bath & Body Works company-owned stores in the U.S. and Canada, as well as 185 stores in more than 30 other countries operating under franchise, license and wholesale arrangements.Bath & Body Works International partners opened 26 net new Bath & Body Works stores in 2017, bringing the total in the Middle East, Latin America, Southeast Asia and Europe to 185, with another 50 additional store openings in the works for 2018.
L Brands reported that its 2018 Q2 operating income was $228.1 million, compared to $300.9 million last year, and net income was $99.0 million compared to $138.9 million last year.
15. Mary Kay US $ 3.5 billion - an independent sales force spanning 40 countries, Mary Kay is home to a global portfolio of more than 1,400 patents for products, technologies and packaging designs. In September, Mary Kay expanded its Latin America presence by officially opening the doors to a new headquarters in Peru that encompasses the company’s operations for the entire country. Mary Kay made an initial investment of $9 million in the Peru-based subsidiary and the opening comes on the heels of its launch in neighboring Colombia in 2015. Mary Kay also continued to be a company that advocates for more than just a woman’s beauty. Throughout 2017, the company was involved in a variety of fundraising work that spanned domestic violence and sexual assault and tackled the issue of teen and young adult dating abuse. In May, Mary Kay launched TimeWise Miracle Set 3D, the company’s new skin regimen approach to treating premature skin aging that’s powered by exclusive, patent-pending technology. The $110 collection was five years in development and represents the largest product launch in the company’s history. In September, the company celebrated its 55th anniversary and simultaneously celebrated what would be the 100th anniversary of founder Mary Kay Ash. In celebration, the company partnered with the Museum at the Fashion Institute of Technology (MFIT) in New York to present their special exhibition, "Pink: The Story of a Punk, Pretty, Powerful Color", from September to January 5, 2019.
16. Chanel $ 3.2 billion - As a privately held company, notoriously tight-lipped Chanel isn’t required to make its annual earnings public. This year, for the first time in the luxury company’s 108 years, it did. In a June press release, the company released financial results for the year ending December 31, 2017: Corporate sales climbed 11.5% to $9.62 billion. Asia Pacific revenues climbed 16.5% to $3.7 billion, Europe increased 10.2% to $3.9 billion, and The Americas region rose 5.3 to $1.9 billon. While the company did not disclose the breakdown of gains across its fashion, cosmetic and jewelry categories, the successful launch of the brand’s latest signature fragrance, Gabrielle, no doubt added to the bottom line. In March, Chanel announced that it would expand its distribution into select Ulta stores with an abbreviated assortment of lipstick, blush, foundation, and skincare products. In June, the company sunk $81.5 million into the purchase of the 17-story Midtown East New York headquarters it’s leased since 1993. And in In September, Chanel also announced that it would launch its iconic Chanel No. 5 L’eau and eau de parfum in limited edition red glass and crystal bottles. How limited? Just 55 red Baccarat crystal bottles will be made for the 900ml parfum.
17. Colgate-Palmolive $ 2.9 Billion - Difficult macroeconomic conditions slowed Colgate-Palmolive’s category growth worldwide and made 2017 a challenging year. The company increased the amount it invested in advertising by 10.2% and the return was a 1.5% boost to the company’s annual net sales, with organic sales growing 1%. The company’s top net sales regions were Latin America (25%), North America (20%), Asia Pacific (18%), Europe (16%) and Africa/Eurasia (6%). By business segment, oral care contributed toward 48% of sales in 2017, followed by personal care (19%), home care (18%) and pet nutrition (15%). CEO Ian Cook said the company’s work in identifying trends is helping to better position its existing cadre of brands and products.
18. Natura & Co US $ 2.9 billion - In January, NaturaBrasil, launched its new Chronos skincare line in the U.S. market. Chronos is an #AgePositive skincare line that focuses on the needs of the skin at every life stage, and so "seeks to change the conversation surrounding age in the context of beauty. All packaging is made of 100% post-consumer recycled materials and is recyclable. All products are UEBT certified which assures that natural ingredients are sourced with respect for people and biodiversity. It attests compliance with the UEBT Ethical BioTrade Standard requiring the conservation of biodiversity in the sourcing area and support of provider communities through equitable prices and local projects. Late in January, NaturaBrasil opened its second U.S. boutique, this one at the Garden State Plaza Mall in Paramus, NJ. The first flagship store opened in 2017 on Elizabeth Street in Manhattan’s Nolita district. Both of these U.S. stores reflect the brand’s sustainability efforts and values with décor including locally sourced, repurposed items, reclaimed wood and live plants. In May, NaturaBrasil was named winner of Cosmetic Executive Women (CEW) Beauty Insider’s Excellence in Sustainability Award. It recognizes a beauty brand that seeks to reduce its environmental impact and has moved further toward the goal of sustainability in multiple facets of its business.
19. Revlon US $ 2.7 billion - Revlon’s consolidated 2017 net sales increased 15.4% to $2.7 billion, up from $2.3 billion in 2016. The company attributed the boost to the finalization of the 2016 Elizabeth Arden acquisition, which enjoyed sales of $952.5 million (an increase of 115.8% over 2016). The uptick was partially offset, however, by a $101.3 million (7.3%,) decrease in Consumer segment net sales, as well as a $44.3 million (9.3%) decrease in Professional segment net sales. Correlating sales slowdowns to changes in North American consumer shopping patterns for beauty products—more online shopping, less foot traffic in brick and mortar stores—the company said it planned to address the pace and impact of the evolving commercial landscape by shifting more of its brand marketing toward e-commerce and social media channels.
20. Kosé - $ 1.7 billion - Regionally, domestic sales in Japan, which accounted for roughly 25% of the company’s total sales, grew 8%, while international sales rose nearly 37% with solid growth in China and South Korea. tarte gave Kosé’s North American market sales a tidy, 38% boost, with the number of stores selling tarte increasing to 2,500. Kosé has a number of forward-looking objectives in place to promote future growth. For starters, its Fundamental Research Laboratory is scheduled for completion in 2019. When finished, it will consolidate Kosé’s three research areas to two locations in Oji. In addition to the new lab, the company has affirmed its commitment to new product innovation, paying particular attention to research and development efforts. For example, the company is currently studying induced pluripotent stem cells to learn if they have applications in anti-aging products. From a corporate vantage point, the company’s medium-term Management Plan 2019 is on track to achieve net sales of ¥310 billion, an operating income margin of 15%, ROA of 17% and ROE of 14% by growing existing businesses and developing new markets by following a plan that promotes flagship global brands.