The 2021-22 period was challenging for the world at large, fraught with complications ranging from the persistent pandemic to skyrocketing inflation and supply chain woes; the volatile geopolitical situation in Ukraine, regional energy shortages and China’s “zero-Covid policy”.
In the global beauty industry, on top of everything else, brands and suppliers have also been scrambling to comply with CSR guidelines and looming deadlines for sustainable packaging mandates.
On the plus side, the year-long “recovery phase” was a welcome respite from the most severe stretch of the Covid-19 lockdowns. Physical and travel retailers reopened, masks were removed, salons returned to business, and pent-up demand for items including makeup and lipstick triggered a welcome increase in consumer spending on cosmetics, both in-store and in-store. online. .
An enthusiasm for luxury is critical to success
Especially influential in 2021-22 sales for the top 20 global beauty companies in this year’s report appears to have been tremendous consumer enthusiasm for premium products and hero products, whether luxury or mass market. In 2021, L’Oréal Luxe outperformed the company’s Consumer Products division by a small margin.
Unilever CEO Alan Jope noted that Prestige achieved 14% growth in the second quarter, which he said was helped by the launch of Tatcha in the UK, the return of consumers to non-US channels. line and expansion of some of the division’s brands in China.
LVMH achieved record sales with the Sauvage de Dior fragrance, while the Estée Lauder Companies experienced strong growth thanks in part to flagship products La Mer, Clinique and M A C. And in Beiersdorf, Nivea posted organic sales growth of 5.5% in 2021, driven by the successful performance of the Nivea Luminous630 hero product range.
Our Top 20 also launched or announced a number of new products. Many of these were carefully developed to be cleanly formulated and sustainably packaged, like LVMH’s collaboration with Stella McCartney on a new D2C “clean beauty” skincare line. Colgate-Palmolive launched its revolutionary recyclable toothpaste tube on the US market. At L’Oréal, all Maybelline plastic packaging will now be made from 100% recycled plastic.
Online sales save the day
Online sales undoubtedly “saved the day” for The Top 20 as well, with a growing group of beauty consumers conveniently ordering favorites and new products from brands around the world. In 2021, Amorepacific Group focused on generating online sales and building strong brands, and as a result, it says it was able to “significantly increase the profitability of the business and strengthen its presence in the Korean and global markets.” Recently, the Korean beauty group bought the American luxury brand Tata Harper to help increase its presence in North America.
Looking to the future
In uncertain times, the leaders of some of the top 20 powerful brands had conflicting views on the current (and future) state of the industry.
In an interview with Reuters in May, L’Oréal CEO Nicolas Hieronymus said: “So far we don’t see any impact of inflation and price on consumer consumption of beauty products.” In another Reuters session in June at the Consumer Goods Forum Global Summit (CGFGS) conference, Hieronimus reiterated the theme, saying he “remained confident about the outlook for the beauty industry with consumers still wanting to indulge despite that the global economy becomes even more complicated. .”
Hieronimus told CGFGS: “Carpe Diem of the moment really trumps inflation.”
Meanwhile, a company statement issued by Bath & Body said: “Our data indicates that customers, particularly low-income customers, have become more cost-conscious and are limiting purchases and/or seeking sales products. lower price, since they are affected by the general inflationary environment”.
In July 2022, LVMH offered a “wait and see” approach in the second half of the year as the luxury company “assessed inflation issues, possible recession, supply chain disruptions, Chinese lockdowns and the war in Ukraine”.
Most recently (at press time), issuing its annual report in August, Estée Lauder Companies CEO Fabrizio Freda said: “We are very confident in the strength of our company and the vibrant opportunity for long-term growth. of prestige beauty, but recognize that the environment remains complex and uncertain at this time. For fiscal 2023, we expect to deliver strong organic sales growth, driven by our diversified growth drivers and exciting innovation, and seize the opportunity in this volatile year to continue to invest in our exciting future.”
data report
A note about compiling this report: The companies were analyzed based on 2021 data. But the annual report ranged between these leaders from 12-31-21 to 6-30-22.
Beauty product sales included only cosmetics, fragrances, and personal care items when possible. Figures for companies outside the US were based on the exchange rate for the fiscal year on the day it ended. Estimates are provided where full disclosure was not available.
Top 20 Global Beauty Product Companies: Annual Beauty Product Sales
1. L’Oreal $37 billion
2. Unilever $25 billion
3. The Estée Lauder Companies $17.7 billion
4. Procter & Gamble $14.4 billion
5. Shiseido $9 billion
6. Bath & Body Works $7.9 billion
7. Johnson & Johnson $7.7 billion
8. LVMH $7.5 billion
9. Natura & Co $7.1 billion
10. Beiersdorf $7 billion
11. Coty $5.3 billion
12. Kao $5 billion
13. LG $4.8 billion
14. Amorepacific $4.4 billion
15. Henkel $4 billion
16. Colgate-Palmolive $3.5 billion
17. Chanel $3.4 billion
18. Mary Kay $2.8 billion
19. Revlon $2.1 billion
20. Kose $2 billion (9-month fiscal year)
Source: news.google.com