Sector Overview: Beauty Brands and Retailers — Global Companies are Innovating with Independent Brands to Expand Portfolios

Executive Summary

Each of our Sector Overview reports provides an essential briefing on a sector or market. This report reviews beauty brands and retailers.

• The $133-billion global skincare market is the largest beauty category, comprising 29% of the global market in 2018. The skincare category is expected to grow at a 5% compound annual growth rate (CAGR) until 2022. We expect beauty brands and retailers to launch even more new product formulations such as dermocosmetics and products containing CBD oil.
• L’Oréal is the global beauty brand leader with 9.7% of the beauty and personal skincare market – the largest of any brand. Procter & Gamble holds second position with 7.9%, and Unilever is third at 7.8%. The top three companies together hold 25.4% of global market share, and the top 10 companies collectively hold 44.9% of the global market.
• The two beauty categories expected to see the greatest global growth are color cosmetics, expected to grow at a CAGR of 6% to 2022, and baby and child-specific products, growing at a 7% CAGR to 2022.
• The demand for beauty products in China remains high. Alibaba’s Tmall is teaming up with retailers and brands to bring more beauty products onto its platform.
• The beauty landscape continues to evolve: Large companies are looking to bolster innovation from independent brands through accelerators, incubators, acquisitions, expanded platforms and technology adoption. Independent brands are moving from online to offline.