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

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

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

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 glitter

Application of a L'Oréal Paris contouring technique with a brush

Make-up trends, NYX Professional Makeup @makeupbygriselda

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