The world of beauty in 2015

With growth at +3.9%(1), the worldwide cosmetics market was stronger in 2015. With an estimated total of 203 billion euros, it is expanding steadily, driven by demographic trends in the New Markets, new needs linked to urbanisation, and new consumer desires fuelled by social networks. In this supply-driven market, spurred by innovation, L’Oréal is maintaining its leadership.

Growth of the worldwide cosmetics market from 2006 to 2015(1)
(estimated annual growth rate, as %)

+4.9%
+5.0%
+2.9%
+1.0%
+4.2%
+4.6%
+4.6%
+3.8%
+3.6%
+3.9%

2006
2009
2012
2015

Main worldwide players(2)
(2015 sales, in billions of USD)

L’Oréal

29.94
Unilever

21.66(3)
Procter & Gamble

19.80(3)
Estée Lauder

10.95
Shiseido

7.37(3)

Breakdown of the worldwide cosmetics market

Breakdown of the worldwide cosmetics market(1)
(as %)

Geographic Zones

36.2% Asia, Pacific
24.0% North América
20.2% Western Europe
10.5% Latin America
6.0% Eastern Europe
3.0% Africa, Middle East

Product categories

36.1% Skincare
22.9% Haircare
17.3% Make-up
12.2% Fragrances
10.4% Hygiene products
1.1% Other(4)

Three major trends of the year

Three major trends underpinned the growth of the worldwide cosmetics market in 2015: the swift expansion of make-up driven by digital communications, the dynamism of high-end channels, and the rise of the middle classes in the New Markets, where more and more consumers are looking for innovative, high-quality products.

The year of make-up

Lip colour leads the way

Driven by the selfie generation, make-up was the most dynamic category in the cosmetics market for the third year running, and proved to be a growth driver both in mature markets, like the United States, and in the New Markets. The success of lip make-up was one of the 2015 highlights, with growth at +10% in the mass-market channel, and +16% in the selective channel(5).
Two thriving sectors

Luxury and dermocosmetics

Luxury remains the most dynamic sector at +5.7%(5), thanks in particular to e-commerce sales. It continues to drive the beauty market, representing roughly one-third of its growth and performing well in Western Europe, including Southern Europe. Dermocosmetics meanwhile continues to accelerate, driven by deep-rooted upward aspirations for both beauty and health in all parts of the world.
Contrasting trends in the New Markets

India, South Africa and Turkey are performing well

In 2015, the New Markets generated more than two-thirds of beauty market growth(5). Despite the slowdown in China and Brazil, some growth-relay countries are fulfilling their promise. Growth is double-digit in India, for example, where skincare is very dynamic. South Africa is recording substantial growth rates, particularly in the selective market. Turkey is amongst the most dynamic markets worldwide.

Beauty and digital

Digital communications represent a tremendous opportunity for the beauty market. They add new dimensions to the relationship between the brands and their consumers. Beauty, today, is synonymous with personalised products and services that enrich the consumer experience in all distribution sectors.