Cosmetics Market

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

 

The world of beauty in 2021

In a complicated global context, the cosmetics market made a strong recovery in 2021, returning to 2019 levels. Consumer demand increased across the board, with the luxury and dermocosmetics segments enjoying particular success. The strong potential for growth in consumer demand is driven by the rise of the middle and upper income classes, as well as the growing number of senior citizens and an expanding urban population.

  • ≈ +8%  growth in 2021

  • €228 Bn  Estimated market of more than 228 billion euros

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

Years

Growth of the worldwide cosmetics market over 10 years(in %)
2012 4.6
2013 3.8
2014 3.6
2015 3.9
2016 4.0
2017 4.9
2018 5.5
2019 5.5
2020 -8.1
2021 8.2

Breakdown of the market by geographic Zone(in%)

  • 35.1%

    North Asia

  • 25.7%

    North America

  • 22.1%

    Europe

  • 9.2%

    SAPMENA – SSA

  • 7.9%

    Latin America

  • North Asia
    35.10%
  • North America
    25.70%
  • Europe
    22.10%
  • SAPMENA – SSA
    9.20%
  • Latin America
    7.90%

Breakdown of the market by business segment (in%)

  • Skincare
    41.80%
  • Haircare
    21.90%
  • Makeup
    15.70%
  • Fragrances
    10.70%
  • Hygiene products
    9.90%

Main worldwide players in sales(in billions of USD)

  • L’Oréal
    31.95
  • Unilever
    22.17
  • Estée Lauder
    14.20
  • Procter & Gamble
    14
  • Shiseido
    8.39
  • L Brands
    7.24

Main cosmetics market growth drivers

  • Categories

    skincare, haircare

  • Business segment

    luxury, dermocosmetics

  • Country

    United States and mainland China

  • Distribution channel

    e-commerce

Focus on the skincare market

41.8%  of the beauty market

Growth of the skincare market compared with the global beauty market

Years Skincare market Global beauty market
2017 6% 4.9%
2018 9% 5.5%
2019 8% 5.5%
2020 -3% -8%
2021 7.4% 8.2%

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

Focus on the dermocosmetics market

7.7%  of the beauty market

Growth of the Dermocosmetics Market compared with the Global Beauty Market(in %)

Years Dermocosmetics market Global beauty market
2017 5% 4.9%
2018 6% 5.5%
2019 6% 5.5%
2020 2% -8%
2021 12.8% 8.2%

Focus on the digitalisation of beauty

E-commerce in the beauty market

  • +16%  global growth in online cosmetics sales

  • ≈ 24.5%  proportion of e-commerce in the beauty market, compared with 22.8% in 2020

The phenomenon of mass social commerce adoption

In response to this massive social media trend, the main platforms have placed social commerce at the forefront of their marketing strategy. These platforms rely on new functionality to engage consumers and make it easier for them to buy with a single click. According to a study carried out in February 2021, 85% of large companies sell on social commerce platforms and 48% of social media users made a purchase through this channel between May 2020 and May 2021.

Gaming pushes the boundaries of beauty

Gaming is a place for social interaction that opens up new possibilities for users to express themselves in entirely new ways and transform their appearance or their avatar at will. Gaming is one of the fastest growing media sectors. A lot of beauty consumers like to integrate makeup in their streams or replicate the looks of their favourite characters in real-life, by choosing the brands they identify with the most. Immersive experiences in the metaverse provide a tremendous opportunity for beauty brands to strengthen their relationship with connected consumers.

 

 

The new creator economy

The creator economy is a business category made up of more than 50 million content creators, social media influencers, bloggers and vloggers who use software and financial tools to grow and monetise their business. The creator economy has become one of the fastest growing economies. From influencers to content creators, these solopreneurs set up businesses with employees and their own product lines, promote their services, and collaborate with companies, brands and social media platforms to create new features. Some influencers and content creators are picked up by brands based on their creative spirit and proximity to a target audience of potential buyers.

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