Beauty and personal care players face a challenging environment of tighter consumer spending. Volume declines and softness were a recurring theme as companies grapple with rising costs and potential negative impact on volume. L’Oréal Groupe maintains its rank as the leading beauty and personal care player, while others witness share stagnation or declines. Large shifts in 2023 included Natura&Co’s sale of Aesop to L'Oréal Groupe and e.l.f. Beauty’s acquisition of Naturium.
This report comes in PPT.
Predictions in 2022 that premium players would be negatively affected by consumers’ increasing price sensitivity have come to fruition. With the exception of L’Oréal Groupe, the leading players experienced stagnation or reduced market share. Estée Lauder Cos Inc grappled with market share loss in key markets where premium took a hit, while Shiseido must act quickly following recent announcements of the company’s weakness in its home market Japan.
Aesop was L'Oréal Groupe’s largest acquisition to date. Aesop’s clean and conscious positioning has clear alignment, and lessons from Aesop’s plant-based and laboratory-made ingredients are likely to support other L’Oréal brands, as they move to a more transparent ingredient model. Natura&Co’s concerns continue with the potential sale of The Body Shop, which weakened in 2022 in its largest markets of the UK, Australia, Japan and the US.
Global inflation is still high in 2023. Volume declines and softness were a recurring theme among major players. Beauty and personal care players’ main challenge will be remaining price accessible to consumers amid increasing commodity price pressure and rising inflation, against a backdrop of new entrants in the mass and masstige segments offering value and efficacy at affordable prices.
A wave of new hybrid products is a result of consumers looking to purchase fewer, but more functional items suitable for daily use. Players are communicating efficacy through consumer education regarding ingredients. L’Oréal is expanding its capabilities in skin science through research and rebranding efforts, while Procter & Gamble’s Olay is capitalising on premiumisation through a proprietary serum.
This is the aggregation of baby and child-specific products, bath & shower, deodorants, hair care, colour cosmetics, men's grooming, oral hygiene, fragrances, skin care, depilatories and sun care. Black market sales and travel retail are excluded.
See All of Our DefinitionsIf you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!