Cosmetics Market

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The world of beauty in 2020 Focus on the skincare market Focus on the digitalisation of beauty

L’Oréal confirmed its position as the global beauty leader once again this year. 

The world of beauty in 2020

In spite of an unprecedented crisis of supply in 2020, the global cosmetics market is a dynamic market which saw a significant recovery in the second half, driven by strong consumer demand. The long-term potential is driven, most notably, by the rise of the middle and upper income classes, as well as by the growing number of senior citizens and growing urban population on the lookout for products that meet their diverse aspirations.

  • ≈ -8%

    growth in 2020 

  • €200 Bn

    Estimated market of more than 200 billion euros 

Growth of the worldwide cosmetics market over 10 years  (in %)

Years

Growth of the worldwide cosmetics market over 10 years  (in %)
2011 4.6%
2012 4.6%
2013 3.8%
2014 3.6%
2015 3.9%
2016 4%
2017 4.9%
2018 5.5%
2019 5.5%
2020 -8%

Breakdown of the market by geographic zone  (in %)

  • 43%

    Asia Pacific

  • 24%

    North America

  • 16%

    Western Europe

  • 8%

    Latin America (Excluding Argentina)

  • 6%

    Eastern Europe

  • 3%

    Africa, Middle East

  • 43%
  • 24%
  • 16%
  • 8%
  • 6%
  • 3%

Breakdown of the market by business segment  (in %)

  • 42%
  • 22%
  • 16%
  • 10%
  • 10%

Main worldwide players in sales  (in billions of USD)

  • 33.43
  • 22.49
  • 15.90
  • 13.90
  • 10.09
  • 8.65

Main cosmetics market growth drivers

  • Categories

    Skincare, haircare

  • Business segment

    Dermocosmetics

  • Country

    Mainland China

  • Distribution channel

    E-commerce

Focus on the skincare market

  • 42%

    of the beauty market 

Growth of the skincare market compared with the global beauty market 

  • Skincare market
  • Global beauty market
Years Skincare market Global beauty market
2016 +3% +4.0%
2017 +6% +4.9%
2018 +9% +5.5%
2019 +8% +5.5%
2020 -3% -8%

Skincare categories

  • Facial skincare

  • Facial cleansers

  • Body care

  • Sun protection

L’Oréal benefits from the strength and balance of its brand portfolio, which covers the entire skincare market:

    Dermocosmetics

    brands that partner with dermatologists

    Luxury skincare

    iconic brands with a comprehensive skincare offering

    Affordable skincare

    affordable brands with scientific and natural formulas

The dermocosmetics market

  • 2020

    The only cosmetics market that recorded growth in 2020.

Growth of the dermocosmetics market compared with the global beauty market . 

  • Dermocosmetics market
  • Global beauty market
Years Dermocosmetics market Global beauty market
2016 +6% +4.0%
2017 +5% +4.9%
2018 +6% +5.5%
2019 +6% +5.5%
2020 +2% -8%

Focus on the digitalisation of beauty

  • ≈+40%

    global growth in online cosmetics sales 

  • ≈22%

    proportion of e-commerce in the beauty market compared with 14% in 2019 

Beauty Tech and new services

Virtual try-on

More and more consumers are using augmented reality when shopping. With this technology, customers can try on hair colour and makeup products realistically and in real time, or obtain a skin analysis and personalised skincare routine. Virtual try-ons are a key decision-making tool to assist with buying beauty products, especially makeup. The coronavirus crisis has acted as a catalyst in the adoption of augmented and virtual reality to facilitate the shopping experience: 20% of retailers in the United States now want to offer virtual try-ons, compared with 8% before the crisis .

The development of social commerce 

In the context of e-commerce growth, social commerce is booming. Social commerce enables consumers to interact with brands or purchase a product or service via non-traditional channels, online forums, or on social media. 

Social commerce already accounts for almost 12% of online sales in China  . A key social commerce tool in the beauty world is livestreaming , which has grown significantly with the Covid-19 crisis and the increase in online buying. It is also a generational development: according to Google, almost 70% of millennials  watched an online tutorial on YouTube  during the year.

Digital media

With the rise of social media and advanced data analysis, brands are able to deliver increasingly relevant and targeted messages to consumers. Global digital advertising spending is increasing year after year, accounting for a growing proportion of total media spending, estimated to average almost 54% worldwide in 2020 .

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