World’s biggest cosmetics companies: Top five by revenue

 World’s biggest cosmetics companies: Top five  by revenue

1. L’Oréal – €27.99bn ($33.93bn)

French cosmetics company L’Oréal earned €27.99bn ($33.93bn) in revenues from group sales in 2020, a 6.29% decline from €29.87m ($36.21m) in year 2019. The company’s user Products division contributed approximately 41.8% of the revenues while its L’Oréal Luxe division accounted for 36.33% of the sales. Roughly 22% of the revenue came from the Professional Products and Active Cosmetics businesses.

The sharp decline in gains was triggered by the supply chain disruptions because of  the Covid-19 pandemic. The personal care giant was back on the growth track with a 4.8% like-for-like acceleration in sales in the fourth quarter of year 2020. The widespread closure of points-of-sale was offset by L’Oréal’s strong performance in digital and e-commerce platforms, with the e-commerce business witnessing a 62% improve in sales and accounting for 26.6% of the entire sales in 2020.

L’Oréal is the world’s largest cosmetics group with a presence in 150 nations. The company makes and develops cosmetic products across skincare, haircare, make-up and perfumes. It has 36 brands in its portfolio, containing L’Oréal Paris, Vichy, Garnier, Yves Saint Laurent Beauté, Giorgio Armani Beauty, Ralph Lauren, Maybelline New York, and Biotherm.

2. Unilever – €21.1bn ($25.38bn)

British multinational consumer goods company Unilever’s earnings fell 2.4% year-on-year to €50.7bn ($60.99bn) in 2020. The company’s Beauty & Personal Care segment registered the highest revenues among its different business units. The segment reported €21.1bn ($25.38bn) in revenue, which is roughly 41.61% of the total turnover. Roughly 20.71% of Unilever’s turnover came from the Home Care division, while the Foods & Refreshment business contributed the remaining 37.67%.

Strict lock downs in the India and the China impacted the market environment in the first half of 2020, however, the relaxation of Covid-19 lock downs and restrictions in the 2 nations lead the company to return to the growth path. The company is experiencing rising request  for the consumption of food products at home in the wake of the pandemic while the sale of beauty and personal care products, except hygiene products, was affected by the decreased focus on personal grooming.

With an operational footprint in more than 190 nations , Unilever supplies products like  food, confections, soft drinks, tea, ice cream, energy drinks, coffee, laundry and household cleaning products, beauty and personal care, toothpaste, and healthcare products.

3. P&G – $19.41bn

Procter & Gamble (P&G) saw a 4.8% improve in net sales from $67.68bn in 2019 to $70.95bn in 2020, especially driven by a 10% rise in net sales of its Health Care business. Combined earnings from Beauty and Grooming segments stood at $19.41bn, a 1.72% year-on-year increase. The Beauty segment’s net sales rose 4% year-on-year to $13.35bn, during earnings from sales of Grooming segment products fell by 2% to $6.06bn. The Beauty and Grooming segments together contributed to 28% of the company’s net sales in year 2020.

The North America region was the biggest market accounting for 47% of the revenue, followed by the Europe (22%), Asia Pacific (10%), Greater China (9%), Latin America (6%), and India, Middle East, and Africa (IMEA, 6%).

Procter & Gamble operates through Fabric & Home Care, Beauty, Health Care, Grooming, also  Baby, Feminine & Family Care segments. Major brands of the company contain Head & Shoulders, Ariel, Old Spice, Pantene, Safeguard, Olay, Tide, Vicks, and Gain.

4. Estée Lauder – $14.29bn

Temporary retail store closures because of  the coronavirus pandemic triggered a 4% year-on-year fall in Estée Lauder’s net sales to $14.29bn. It was partially offset by an improve in sales through online channels. The company’s revenues were even improved by net sales of perfumes and cosmetics maker Have&Be, which was acquired by Estée Lauder in December 2019. The company implemented digital strategies to improve sales by tapping online customer demand during the second half of 2020.

Estée Lauder’s skincare products category showed resilience, recording a 12.68% growth to achieve net sales of $7.38bn while its makeup, haircare, and fragrance categories decreased 18%, 12%, and 13%, respectively. Estée Lauder’s earnings in the Americas and the Europe, the Middle East & Africa decreased year-on-year by 20% and 3%, respectively. The Asia Pacific region, however, saw a 15% improve in net sales, with a particularly strong performance in Mainland China.

The company declared 1,500 to 2,000 job cuts or approximately 3% of its global workforce, affecting point of sale workers and associated support staff. It even determined to close approximately 10% to 15% of its freestanding stores across the world.

Estée Lauder’s portfolio contains more than 25 brands that are available in 150 countries. The beauty products firm has more than 48,000 employees worldwide.

5. Shiseido – JPY920.88bn ($8.73bn)

One of the oldest cosmetics companies in the world, Japanese multinational individual care company Shiseido witnessed an 18.6% year-on-year fall in net sales to JPY920 . 88bn ($8.73bn). Its Japan Business segment accounted for 32.9% of the total sales while the China Business contributed 25.9%, with the remaining revenues coming from Americas (9.9%), EMEA (10.3%), Travel Retail (10.7%), Asia Pacific (6.4%), Professional (1.4%) and Other (2.8%) business.

The company is investing in the premium skin beauty category and digital platforms to improve growth. Its net sales are projected to improve by 19% JPY1.1tn ($10.43bn) in 2021, primarily driven by a 33% growth in China and 27% growth in the Americas.

Shiseido has 5 brand categories, namely Prestige, Cosmetics, Personal Care, Fragrance, and Professional. It declared a plan in the February 2021 to transfer its Personal Care business to a newly formed company from 1 July 2021.