Cosmetics market

The world of beauty
in 2016

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    Cosmetics market remains buoyant

    Cosmetics market
    remains buoyant

    The worldwide cosmetics market, estimated at a total of 205 billion euros, was stronger in 2016, with growth of +4.0%(1). In this supply-driven market, spurred by innovation, quality and perceived results, L'Oréal strengthened its leadership(2).

    Growth of the worldwide cosmetics market over ten years(3)

    Breakdown of the market by geographic Zone(1)

    • 36.9% Asia, Pacific
    • 24.8% North America
    • 19.3% Western Europe
    • 10.2% Latin America
    • 6.0% Eastern Europe
    • 2.9% Africa, Middle East

    Breakdown of the market by product category(1)

    • 36.3% Skincare
    • 22.9% Haircare
    • 18.2% Make-up
    • 12.0% Fragrances
    • 10.5% Hygiene products

    Main worldwide players in sales
    (in billions of USD)(4)

    • L’Oréal 28.02
    • Unilever 20.47(5)
    • Procter & Gamble 17.60(6)
    • Estée Lauder 11.10
    • Shiseido 7.11(5)

    Acceleration
    of online sales

    Acceleration
    of online sales
    • +20.7%growth in worldwide
      online sales(1)
    • 11%share of selective cosmetics market
      E-commerce(1)
    Boom in make-up market

    Boom in make-up market

    For the fourth consecutive year, the make-up category drove cosmetics market growth worldwide. The reasons behind this swift expansion across all regions and beauty sectors are analysed in detail below.
    Record growth(1) +8.4%

    In all geographic Zones, the make-up market is growing faster than the cosmetics market(1)

    • x2North
      America
    • x2New
      Markets
    • x6Western
      Europe

    Make-up is the most dynamic category in all sectors(7)

    • Luxury
    • Mass-market
    • Professional
    Lipstick hits the headlines

    Lipstick hits
    the headlines

    A star segment
    +13.6%
    growth(1)
    1.5
    billion
    lip make-up products sold per year(8)

    Powerful growth potential

    Penetration rates still relatively modest in some geographical areas
    • United States
      68%
    • China
      28%
    • France
      60%
    • Brazil
      50%
    % of women who use at least one lip make-up product per year(9)

    A lipstick for each country

    • In the United States

      American women are amongst the top lip product users, ranging from coloured lip balm to lip gloss and liquid lipstick(10).
    • In China

      Chinese women are amongst those with the strongest preference for natural colours, such as beige and pinkish beige, and appreciate discreet make-up(11).
    • In France

      Young women in France use more lip gloss and pale, transparent colours, compared to their elders(12).
    • In Brazil

      Brazilian women use lip products frequently. Young women prefer discreet products; their elders appreciate softness and moisture(13).
    New generations reinvent make-up

    New generations reinvent make-up

    The make-up boom is driven by the selfie generation, and the fast-growing use of social media, which focuses on appearance, self-expression and presentation. The new generations are reinventing uses, giving trends their own spin, and creating buzz for new looks.

    Who are the new make-up consumer generations?

    Millennials
    Born between 1980 and 2000
    Generation Z
    Born between 1995 and 2010
    1980
    1990
    2000
    2010

    New generations have a significant beauty spending budget(14)

    Beauty spending by generation
    • Average spending
      in United States

      • $37
        Per
        capita
      • $28
        14-18
        year-
        olds
      • $49
        19-24
        year-
        olds
    • Average spending
      in China

      • $77
        Per
        capita
      • $71
        14-18
        year-
        olds
      • $85
        19-24
        year-
        olds
    • Average spending
      in France

      • $35
        Per
        capita
      • $28
        14-18
        year-
        olds
      • $42
        19-24
        year-
        olds

    The new generations set and follow the trends

    Make-up trends, NYX Professional Make-up @staceyanudari
    Close-up on an eye with the Maybelline New York makeup eyelid of different shades of glitterApplication of a L'Oréal Paris contouring technique with a brushMake-up trends, NYX Professional Makeup @makeupbygriseldaMatte lip makeup, Maybelline New York
    The L'Oréal business model

    L’Oréal is ideally placed to seize the potential of the make-up market

    Thanks to its unique palette of complementary brands across all beauty sectors, from luxury to mass-market, L’Oréal is well-equipped to identify and respond to all make-up desires everywhere in the world, and to seize the opportunities of this fast-growing category.
    • The two top worldwide make-up brands
    • The highest growth in the market
    • Emblematic signatures with complementary positioning in the Luxury sector
    • A specialist nail care
      and varnish brand
    • A newcomer to the portfolio: a skincare make-up brand developed with plastic surgeons
    • L'Oréal - ParisL'Oréal - Paris
    • Maybelline New YorkMaybelline New York
    • NYXNYX
    • EssieEssie
    • IT CosmeticsIT Cosmetics
    • Lancôme ParisLancôme Paris
    • Yves Saint LaurentYves Saint Laurent
    • Giorgio ArmaniGiorgio Armani
    • Urban DecayUrban Decay
    • Shu UemuraShu Uemura
    (1) Source: L'Oréal 2016 estimates of the worldwide cosmetics market in net manufacturer prices. Excluding soaps, oral hygiene, razors and blades. Excluding currency effects.
    (2) Source: WWD, "Beauty’s Top 100", April 2016.
    (3) Source: L'Oréal estimates of the worldwide cosmetics market in net manufacturer prices. Excluding soaps, oral hygiene, razors and blades. Excluding currency effects.
    (4) Source: WWD, "Beauty’s Top 100", April 2016. Based on 2015 sales.
    (5) WWD estimates of cosmetics sales.
    (6) WWD estimates of cosmetics sales. Before the disposal of 43 brands to Coty.
    (7) Excluding dermocosmetics. Source: L'Oréal 2016 estimates of the worldwide cosmetics market in net manufacturer prices. Excluding soaps, oral hygiene, razors and blades. Excluding currency effects.
    (8) Source: Euromonitor, 2015 data.
    (9) Source: Women aged between 15 and 75 in the United States and Europe, between 15 and 80 in Japan, between 15 and 65 in Russia, Brazil and China, and between 15 and 55 in India, Beauty Track, 2012-2013.
    (10) Source: Women aged between 15 and 65, Beauty Track, 2012-2013.
    (11) Source: Women aged between 15 and 40, U&A qualitative study, 2014.
    (12) Sources: Women aged between 15 and 65, Beauty Track, 2012-2013. Women between 15 and 75, U&A qualitative study, 2014.
    (13) Source: BeautyTrack
    (14) Source: Ipsos, 2015 qualitative study, "Only include the beauty products you buy with your own money and not products bought for you by other people".