Cosmetics market - L'Oréal Finance: Annual Report 2018
2018 Annual Report

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Cosmetics market

L'Oréal confirmed its position as cosmetics market leader once again this year .

  • The world of beauty in 2018
  • Focus on the skincare market

The world of beauty in 2018

The global cosmetics market continued to grow steadily, spurred on by the limitless diversity of consumer aspirations and by innovation. This constant growth can be explained by the very nature of the cosmetics sector, which addresses a need that has been around since the beginning of human history: the quest for beauty.

≃+5.5%

+5.5% growth in 2018

200

Estimated sales of more than 200 billion euros

Growth of the worldwide cosmetics market over 10 years

(in %)

2010200920112012201320142015201620172018

Main factors that contribute to the success of the cosmetics market

  • 1

    The continuous increase in online beauty spending

  • 2

    The expansion of social networks

  • 3

    Consumer interest in new, different and premium products

  • 4

    The acceleration of urbanisation worldwide

  • 5

    The increase in the number of senior citizens worldwide

  • 6

    The growth of the upper middle classes

Breakdown of the market by geographic Zone

(in %)

  • North America

    25%

  • Western Europe

    18%

  • Latin America

    9%

  • Eastern Europe

    6%

  • Africa, Middle East

    3%

  • Asia Pacific

    39%

Breakdown of the market by product category

(in %)

  • Skincare
    39 %
  • Hair care
    21 %
  • Makeup
    19 %
  • Fragrances
    11 %
  • Hygiene products
    10 %

Main worldwide players in sales (in billions of USD)

  • 29.4

  • Unilever  

    21.5

  • Estée Lauder 

    12.8

  • Procter & Gamble 

    12.4

  • Coty 

    9.2

  • Shiseido 

    8.8

Online sales

≃+25%

growth in worldwide online cosmetics sales

12.5%

share of e-commerce in the beauty market

Focus on the skincare market

The skincare market accelerated sharply in 2018, boosted by the expansion of the upper middle classes all over the world and especially in Asia, where consumers are both knowledgeable and enthusiastic about this category. 

≃40%

Nearly 40% of the beauty market

≃60%

Nearly 60% of worldwide cosmetics market growth

Skincare categories

  • Facial skincare

  • Face cleansers

  • Body care

  • Sun protection

Growth of the skincare market compared to the overall beauty market growth 

(in %)

  • Skincare market
  • Overall beauty market
~+9%
~+5.5%
+6%
+4.9%
+3.4%
+4%
+4.3%
+3.9%

The skincare market by geographic Zone

(in %)

  • North America

    20%

  • Western Europe

    15%

  • Latin America

    4%

  • Eastern Europe

    4%

  • Africa, Middle East

    2%

  • Asia Pacific

    55%

The Asia Pacific, North America and Latin America Zones are particularly dynamic in the skincare market. 

Asia Pacific

Asia Pacific features the highest demand for skincare, and particularly luxury products. The Zone accounted for over half of the skincare market in 2018.

  • N°1

    Lancôme No.1 selective skincare brand in China 

  • N°1

    L’Oréal Paris No.1 brand in skincare and facial cleansers in consumer products in Asia Pacific 

North America

North America is also an important market for skincare, particularly in the United States, which contributes significantly to growth in skincare in luxury, dermocosmetics and consumer products markets.

  •  

L'Oréal benefits from the strength and balance of its brand portfolio

Three Divisions cover the skincare market

Luxury skincare

Iconic brands with a strong offer in skincare

Dermocosmetics

Brands that partner with dermatologists for optimal skin health

Affordable skincare

Affordable premium brands with scientific and natural formulas

Discover also

Performance

L’Oréal in figures

Prospects

BY JEAN-PAUL AGON
Performance

Worldwide advances