MAIN WORLDWIDE PLAYERS
2020 sales in billions of US $(1)
A solid market carried by major socio-demographic changes
Estimated at nearly €230 billion(2), the global cosmetics market has grown at a steady pace over the long term, driven by several fundamental trends:
- the first and probably most important factor is the insatiable desire for beauty across all countries and cultures: beauty is synonymous with well-being, pleasure, confidence and self-esteem, at every stage in life. This phenomenon was stronger in 2021 with a consolidation between health/well-being and beauty;
- secondly, global digitalisation, because beauty and digital are a perfect match. Discovering beauty and buying products online has never been simpler. Digital is a tremendous booster for the beauty market, a trend that intensified in 2021;
- thirdly, premiumisation: consumers are ready to pay more and trade up for products with new benefits, better performance and superior quality;
- finally, increased penetration of beauty all over the world. First, because of e-commerce, which is extending our reach far beyond the limits of traditional distribution, especially in emerging economies. Also because of the many areas that remain to be explored in terms of categories and countries. And finally, because there are always new consumer targets with the expansion of the middle classes related to urbanisation, an ageing population, male consumers, etc.
1.2.4. Meeting the global demand for beauty
With €32.28 billion in net sales and 85,412 employees in 2021, L’Oréal is the world leader in beauty.
Building on a long-term vision, with a clear strategy, L’Oréal continues its development by relying on its fundamental assets and transforming itself to respond to the new aspirations of consumers, employees and society. Because the beauty market is a growing market with a focus on the future, the Group is, now more than ever, in a position to seize all opportunities, strengthen its leadership and ensure tomorrow’s success.
Focus on a single, unique business: beauty, nothing but beauty and all beauty
For over a century, L’Oréal has carried out a single business: creating beauty. Cosmetics are rich in meaning. They allow each person to boost their self-confidence, express their personality and open up to others.
Focusing on a single business represents, more than ever, a major competitive advantage for L’Oréal. In effect, the Group boasts more than one hundred years of cosmetic expertise, talented specialists and an in-depth knowledge of consumers, built on a detailed knowledge of beauty cultures, needs, desires and aspirations in their infinite diversity. The digital revolution, in perfect alignment with “social beauty”, connected and shared, acts to speed up the development of the beauty market driven by economic, technological, demographic and sociological developments.
By focusing its energy on a single business, along with an obsession for seizing “what is new and fresh” ("Saisir ce qui commence"), L’Oréal is able to identify new consumer trends very quickly and respond rapidly.