The multi-billion-dollar beauty industry is known to remain stable even in times of economic turmoil. Although consumers appear to be more price-conscious during an economic slump, they usually do not mind splurging on their favourite beauty products.
Therefore, beauty businesses, especially established businesses, continue to grow in today’s volatile economic environment. Thus, franchise opportunities in the beauty and wellness industry can prove to be a relatively safe bet that offers higher ROIs as well.
10 Biggest Cosmetic Companies In The World
- Estee Lauder
- Proctor & Gamble
- Amorepacific Group
- Johnson & Johnson
Here are ten cosmetics companies that are making groundbreaking progress and growing rapidly:
Eugène Schueller founded L’Oreal in the early 1900s to sell his hair dye formula. Today, being one of the biggest cosmetics companies in the world, L’Oreal can be found everywhere, from hair salons, supermarkets, pharmacies to beauty outlets. L’Oreal boasts of an impressive portfolio of brands from all over the globe, including fan-favourites likes L’Oreal Paris, Essie and Matrix.
Apart from that, many major luxury beauty brands, like Lancôme, Clarisonic, Yves Saint Laurent and Shu Uemura, are also sold by this cosmetics giant. Due to its constant product innovation and CSR programs, the company has managed to leave a lasting impression on the beauty industry and achieved sales of over $ 29.79 billion last year.
- Estee Lauder
Bobbi Brown, Clinique, M.A.C. Cosmetics, Smashbox, Tom Ford, Glam Glow, Jo Malone London and many other premium beauty brands are manufactured and marketed by Estee Lauder. Started in 1946 in New York by Estee Lauder and her husband, the company used to sell just four products. Fast forward to 2019, and the company offers multiple products in every single cosmetics product category ranging from skincare, makeup, fragrance and hair care.
The company has evolved over the years and reached a net worth of $14.86 billion and operates in over 150 countries. Ever since its global expansion, the company has stayed focussed on creativity, innovation and CSR programs.
Founded in 1872 in Tokyo, Shiseido is one of the oldest cosmetics companies in the world. The brand started selling outside of Japan by offering its products in the Taiwanese market. It later expanded its operations to Singapore, Hong Kong, Hawaii, America and then finally the rest of the world.
The company today owns many brands, such as Shiseido, Za, Senka, Anessa, Sea Breeze, Nars, and Bare Essentials. The company made over $10.08 billion in net sales last year alone; apart from catering to the premium consumer category, the company also offers fragrances, personal care and health care products.
Although Coty didn’t start primarily as a beauty brand, it has managed to become one of the biggest cosmetics companies in the world through acquisitions. Following the mission to make beauty brands inclusive and diverse for everyone, Coty caters to three different divisions: luxury, consumer beauty and professional brands.
The company’s portfolio includes renowned brands such as Marc Jacobs, Chloé, Tiffany & Co, Max Factor, Rimmel, Sassoon Professional and, most recently acquired, Kylie Cosmetics. The company is actively involved in a long-term partnership with Global Citizen to eradicate gender, sexuality, ethnicity or disability-based discrimination. The company reported net revenues of $8,648.5 Million for FY19.
Unilever has been the top manufacturers and suppliers of consumer goods for years, but it has carved its name in the beauty segment too. The company is co-headquartered in the UK and Netherlands and operates in almost 200 countries across the globe. The company boasts of best-selling product ranges in every category, be it skincare, haircare or personal grooming.
With the inception of Unilever Cosmetics International in 2017, Unilever has grown exponentially by acquiring brands such as Axe, Dove, Pond’s, TRESemmé, Sunsilk and Aviance. In the financial year 2018, Unilever earned a net income of approximately €9.808 billion.
- Procter & Gamble
P&G owns some of the biggest brands that offer products in the daily-use categories such as Gillette, Braun, Ivory, Olay, Herbal Essences and Pantene. The company claims that it focuses on delivering the highest-quality products in all price ranges.The company had to sell off a couple of brands to Coty to rationalise its own product mix.
Located in Ohio, USA, the company is over 180 years old and ever since its inception, the brand has focused on forward-thinking to create innovative and revolutionary products. As per the brand’s annual report, its operating income was around $5.5 Billion in the last year.
Started in 1880 as a small pharmacy, Beiersdorf has now become synonymous with quality skincare across the globe. With the tagline “skincare is everything to us,” the company has strongly and successfully managed brands like Nivea, Eucerin, La Prairie, Labello, 8X4, among others.
The company has made a name by creating products that are in sync with international trends and have a regional understanding of consumers. Since the company specialises in skincare, it ensures to carry out comprehensive dermatological research while creating its products. The company now aims to grow rapidly, create consumer value and ensure sustainable profitability. In the year 2018, the company achieved sales growth of over 5%.
- Amorepacific Group
With an aim to create “a more beautiful world,” Amorepacific Group brings Asian beauty secrets to the rest of the world. Asian beauty ingredients, rituals and products are taking the world by storm and the company stays committed to technological innovation while honouring its legacy.
Korea’s number one beauty company owns many prominent beauty brands that specialise in Asian beauty products in categories such as beauty care, perfumes, medical beauty, haircare, bodycare, etc. Apart from their home brand, Amorepacific, the company owns Sulwhasoo, Laneige, Etude House, Innisfree, Happy Bath, Goutal Paris, et al.
A significant player in the perfumes, make-up and skincare markets, Moët Hennessy – Louis Vuitton or LVM owns over 75 stalwarts brands of the beauty industry. The company’s constant quest for excellence, creativity, innovation and an eye for detail make it stand out with its exclusive premium range of brands.
The company has had a dream run ever since its creation in 1987; it earned over 46.8 billion euros in revenue in 2018. Fenty Beauty by Rihanna, Kat Von D Beauty, Make Up For Ever, Benefit Cosmetics, Guerlain and Acqua di Parma – all operate under LVMH.
- Johnson & Johnson
Touted as one of the most successful and valuable cosmetic brands in the world, Johnson & Johnson earned a net income of over $15.29 billion in 2018. Even though Johnson & Johnson’s namesake babycare brand has been experiencing a lot of criticism lately, the company has still managed to grow.
Although majorly viewed as a pharmaceutical company, Johnson & Johnson also owns many consumer goods brands, including cosmetic brands. Neutrogena, Aveeno, Neostrata, Exuviance and Clean and Clear belong to Johnson & Johnson’s portfolio.
Drivers such as the increased disposable income of consumers and a growing desire to spend on the vanity are making these companies achieve unparalleled success. Consumers are enjoying the inclusivity and innovation offered by these brands, and the unique marketing strategies are further fuelling the growth. These companies are planning to stay true to product innovation to sustain their loyal customer base and attract new ones. To know more about business opportunities in the beauty and wellness franchise industry, get in touch by filling out this form.