Top 10 Strong Global Beauty Brands To Consider This Year
The beauty industry is increasing at a rapid pace and as an outcome of that, the choices for the consumer have also increased. The United States is home to four among the ten biggest beauty brands in the world while France and Japan follow. With this respect, let us have a look at the top cosmetic brands in the world based on their market capitalization.
Top 10 Beauty Brands Based On Their Market Cap
According to reports, the value of the 50 best beauty brands decreased by 9% in 2021, declining from $137.5 billion in 2020 to $124.8 billion in 2021. To talk in particular, Color Cosmetics hit hard due to this global pandemic in 2020.
During the prevailing pandemic, retail trends shifted more towards e-commerce and this category found itself replaced with at-home skincare treatments. In fact, this section recorded an average decline of 15 per cent of their brand value. As per reports,
Below is the list of the top 10 beauty brands that survived despite this huge decline in this sector.
1. L’Oréal - $33.93 billion
French cosmetic companies L’Oréal attained $33.93 billion in their revenue in 2020 which was a 6.29% decrease from $36.21 million in 2019. The consumer product division of the company contributed roughly 41.8% of the revenues while the L’Oréal Luxe sector accounted for nearly 36.33% of their total sales. Roughly 22% of the revenue arrived from the Active Cosmetics and Professional Products businesses. So this is among the top makeup brands in India as well.
L’Oréal is the largest cosmetics group in the world with its presence in 150 nations. The company designs and develops cosmetic products on haircare, skincare, make-up, and perfumes. This was also among the top 10 cosmetic brands in the world 2020.
2. Unilever – $25.38 billion
The revenue of a British multinational consumer goods company declined by 2.4% year-on-year to $60.99 billion in 2020. The Beauty & Personal Care segment of the company recorded the highest revenues among its varied business units. The segment registered $25.38 billion in revenue, which is nearly 41.61 per cent of the total turnover. Roughly 20.71 per cent of Unilever’s turnover arrived from the Home Care segment, while the Foods & Refreshment business gave the remaining 37.67%. This is among the top 10 cosmetic brands in India as well.
With a functional footprint in over 190 nations, Unilever supplies products like food, soft drinks, confections, tea, ice cream, coffee, energy drinks, laundry, and household cleaning products, toothpaste, beauty, and personal care, and healthcare products.
3. P&G – $19.41 billion
The next top beauty brand 2021 is P&G. Procter & Gamble (P&G) witnessed a 4.8 per cent increase in net sales from $67.68 billion in 2019 to $70.95 billion in 2020, primarily driven by a 10% increase in net sales of its Health Care business. Mixed revenues from the Grooming and Beauty segments stood at $19.41 billion, a 1.72% year-on-year rise. The net sales of the Beauty segment increased 4% year-on-year to $13.35 billion, while the earnings from sales of Grooming segment products decreased by 2% to $6.06 billion. The Grooming and Beauty segments together offered 28% of the net sales of the company in 2020.
P&G functions via Fabric & Home Care, Health Care, Beauty, Grooming, along with Feminine & Family Care, Baby, segments. Big brands of the company include Ariel, Head & Shoulders, Old Spice, Pantene, Olay, Tide, Vicks, Safeguard, and Gain.
4. Estée Lauder – $14.29 billion
Temporary closures of the retail store because of the coronavirus pandemic activated a 4% year-on-year fall in net sales of Estée Lauder to $14.29 billion. It was partly offset by a rise in sales via online channels. The revenues of the company were also boosted by the net sales of cosmetics and perfumes maker Have Be, which was obtained by Estée Lauder in December 2019. The company applied digital strategies to develop sales by considering online customer demand during 2020’s second half, but it is still among the top 10 cosmetic brands in the world.
The portfolio of Estée Lauder includes over 25 brands that are available in 150 nations. The beauty brand has over 48,000 employees globally.
5. Shiseido – $8.73 billion
Shiseido is one of the oldest cosmetics entities around the globe. This Japanese multinational personal care company saw an 18.6% year-on-year decline in net sales to $8.73 billion. Its Japan Business sector accounted for 32.9% of the total sales while the China Business sector offered 25.9%, with the leftover revenues arriving from EMEA (10.3%), Americas (9.9%), Travel Retail (10.7%), Professional (1.4%), Asia Pacific (6.4%), and Other (2.8%) business.
This company has five brand categories, namely Prestige, Personal Care, Cosmetics, Fragrance, and Professional. It declared a plan in February 2021 to shift its Personal Care business to the latest formed company from 1 July 2021.
6. Beiersdorf – $6.91 billion
Beiersdorf is a German multinational personal care products company that reported $6.91 billion in revenue in 2020, which is a 9.1% decrease compared with 2019. This entity owns several brands such as La Prairie, Nivea, Eucerin, Labello, Gammon, Hidrofugal, Coppertone, Chaul, and Maestro in the consumer business sector. Its other business segment, tesa, is engaged in self-adhesive systems and solutions.
7. LVMH – $6.36 billion
LVMH is a luxury goods company that is based in France, reported $54.26 billion in revenue, a 17 per cent year-on-year decline from $65.23 billion in 2019. Its Cosmetics and Perfumes business accounted for 11.7 per cent of the overall sales revenues. Revenues from Cosmetics and Perfumes saw a 23% decrease to $6.36 billion while Jewelry and Watches, Selective Retailing, Wines & Spirits, Fashion & Leather Goods decreased by 24%, 31%, 5%, and 15% year-on-year, respectively.
LVMH is one of the largest luxury goods conglomerates in the world, and it owns various brands, including Givenchy, Louis Vuitton, Tag Heuer, Tiffany & Co., Bulgari, Acqua Di Parma, Marc Jacobs Beauty, and many more.
8. Kao – $5.17 billion
Japanese cosmetics and chemical company Kao’s sales revenues declined by 8% to $13.14 billion. Its Skin Care & Hair Care and Cosmetics businesses registered a combined revenue of $5.17 billion. Kao functions via two business segments, which are chemicals and consumer products. Divisions in consumer products have Human Health Care, Cosmetics, Skin Care & Hair Care, and Fabric and Home Care.
9. Coty – $4.71 billion
Cosmetic, skin, fragrance, body care, and hair brands entity Coty attained $4.71 billion in net revenues, a 25% year-on-year decline. It registered 49% from EMEA, 38% of the revenues from the Americas, and the remaining 12% from the Asia Pacific.
Headquartered in New York, US, Coty provides consumer brands like CoverGirl, Max Factor, Nautica, Adidas body care, and Rimmel. The entity has licensing agreements with luxury brands like Burberry, Chloé, Hugo Boss, Calvin Klein, Gucci, and Davidoff. Its commodities are available in over 150 nations.
10. Johnson & Johnson – $4.45 billion
The net sales of Johnson & Johnson stayed nearly flat at $82.58 billion in 2020. The Skin Health or Beauty segment of the company in the Consumer Health business received $4.45 billion, of which 52.8 per cent was contributed by the US market alone while the rest of the revenues came from the rest of the world. The segment witnessed a 3.1% year-on-year decrease over 2019. This is a popular beauty brand in India.
Johnson & Johnson was founded in 1886 and is a multinational company with over 130,000 employees. Its skincare brands have Neutrogena, NeoStrata, Aveeno, Dabao, and Dr.Ci: Labo; and haircare brands have Maui Moisture and OGX.
The Bottom Line
The pandemic had adverse effects on many industries and the beauty industry was no exception. The market giants decreased by a significant number as most of the consumers shifted from cosmetic to skincare products. The above is the list of the top 10 beauty brands based on their market cap across the globe. The market is led by L’Oréal and the rest follows. These figures may change from time to time and as per the demand created by the brand.