By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time.
Access your favorite topics in a personalized feed while you're on the go. download the app
Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview
As consumers, we like to think we're making a conscious decision when we buy from a certain brand, especially when it comes to something as personal as beauty products.
But 182 beauty companies fall under the massive umbrellas of seven huge manufacturers.
Inspired by a graphic that shows all the food brands owned by major corporations, INSIDER created one that illustrates all the major beauty brands and the parent companies they fall under.
This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now.
These seven megacompanies — Estée Lauder Companies, L'Oréal, Unilever, Procter & Gamble, Shiseido, Johnson & Johnson, and Coty — employ thousands of people around the world and make billions of dollars in revenue every year. They also control advertising and the way we all think about beauty.
Advertisement
Each conglomerate has more than just the subbrands we listed here, but for our purposes, we stuck with brands that are responsible for skin care (for both the body and face), hair care, perfume, and makeup. We did not include brands that only made products such as deodorant, toothpaste, suntan lotion, or baby lotion, but we did count the subbrands of relevant brands (i.e. Pantene and Pantene Pro-V).
What remains is a compelling look at who controls the beauty products we're buying, from fan favorites like CoverGirl to expensive and aspirational skin-care lines like La Mer.
Estée Lauder Companies.
Skye Gould/INSIDER
Estée Lauder Companies is responsible for 24 of the beauty brands on this list. Some of its holdings include makeup and fragrances by fashion brands Donna Karan, Michael Kors, Tom Ford, Tommy Hilfiger, and Tory Burch, each of which has its own cosmetics or toiletries line.
The company also has quite a few well-known beauty brands, including Aveda, Bobbi Brown, Clinique, La Mer, and MAC Cosmetics.
Advertisement
Estée Lauder made an estimated $11.3 billion in beauty sales in 2016, according to Beauty Packaging.
L'Oréal.
Skye Gould/INSIDER
L'Oréal has the most brands on this list, with a total of 39 beauty brands, including major staples like Lancôme, Maybelline, Urban Decay, Garnier, Essie, and The Body Shop.
It also has expensive skin-care and hair-care brands, including Pureology, La Roche-Posay, and SkinCeuticals.
Related stories
In made $27.6 billion in beauty annual sales in 2016, according to Beauty Packaging.
Advertisement
Unilever.
Skye Gould/INSIDER
Unilever has 38 beauty subbrands, and many of those, including Nexxus, Pond's, TIGI, Dove, Vaseline, and Lever 2000, are drugstore staples in the US.
Unilever also has quite a few brands that are popular outside the US, including Fair & Lovely, a "fairness cream" that's marketed in India as a skin-lightening lotion for women. It has received backlash for promoting one shade of skin as better than another.
Unilever made $58.2 billion in corporate sales in 2016, according to Beauty Packaging. $22.3 billion was from beauty sales.
Procter & Gamble.
Skye Gould/INSIDER
P&G's nine beauty brands include big-name brands Head & Shoulders, Herbal Essences, Olay, and Gillette.
Advertisement
The company made $76 billion from corporate sales in 2016, according to Beauty Packaging, $18 billion of which was from beauty sales. The corporation sold many of its beauty brands to Coty in October 2016.
Coty.
Skye Gould/INSIDER
Coty has become a leader in the beauty industry, with 33 total brands. It owns many big-name products, including OPI Products, Rimmel, and CoverGirl, and it's behind celebrity toiletries from Katy Perry, David Beckham, and Beyoncé, among others.
In 2016, Coty made $4.3 billion in beauty sales, according to Beauty Packaging. After its 2016 P&G acquisitions, we expect this number to rise dramatically.
Shiseido.
Skye Gould/INSIDER
Shiseido, which itself is a well-known skin-care brand, has about 30 other beauty brands underneath it. Some of those are also makeup brands, including BareMinerals, Nars Cosmetics, and Laura Mercier.
Advertisement
The vast majority are brands that might not be recognized in the US, including Japanese brands Majolica Majorca, Ettusais, Maquillage, and Aqualabel, which also markets products to "whiten" skin.
The Japanese corporation made $6.3 billion in beauty sales in 2016, according to Beauty Packaging.
Johnson & Johnson.
Skye Gould/INSIDER
The last major brand we included on this list is on the smaller side, but what it lacks in quantity it makes up for in name recognition.
Johnson & Johnson owns nine beauty brands, including Aveeno, Neutrogena, Clean & Clear, and RoC.
Advertisement
The company made $7.1 billion in beauty sales in 2016, according to Beauty Packaging.
The beauty industry is always evolving.
After taking a performance dip in 2020, beauty brands are finding new and innovative ways to connect with their customers. Beauty influencers and DTC brands are both influencing and adapting to buyer preferences.
Meanwhile, top industry players are expanding their product lines and web experiences to meet new demands.
So what does the beauty industry look like in 2024?
In this article, we’ll cover all of the most important beauty industry stats, from industry-wide trends to consumer behavior to the rise of eCommerce and new technologies.
Contents
Overall, the future looks bright for the beauty industry. Here are a few eye-opening statistics to get you started:
Keep reading to discover 35+ beauty industry stats.
Let’s begin with some industry-wide statistics:
The beauty industry took a hit during the pandemic, decreasing by 8% in 2020. But things are looking up and the overall beauty industry revenue is expected to surpass $120 billion by 2025.
L’Oréal remains the top player in the beauty industry, with around $15 billion more in sales than second-place Unilever. Rounding out the top 5 are Estée Lauder, P&G, and Shiseido.
Brand Beauty Sales L’Oréal $40.31 billion Unilever $25.11 billion Estée Lauder $16.4 billion P&G $14.4 billion Shiseido $8.19 billion LVMH $8.13 billion Beiersdorf $7.24 billion Chanel $7.05 billion Nature & Co $7.05 billion Coty $5.3 billionNorth Asia is the largest market for beauty and personal care products. In 2021, North Asia made up over one-third of the market. China has risen to become the industry leader in this region.
North America makes up around 26% of the market. While Europe makes up 22%.
The COVID-19 pandemic had an effect on nearly every global industry, and beauty was no exception. Consumers’ preference to shop for cosmetics in person contributed to the market’s 8% decline.
Lockdowns and remote work ushered in a change in personal care routines. While overall sales were down, 22% of women reported spending more time and money on skincare.
40% of facial skincare users reported using the products more often. Cleansers, moisturizers, exfoliators, and scrubs all saw increased usage. On average, women use 5 skincare products per day.
The British Beauty Council and Oxford Economics recently divided the beauty industry into 3 categories: personal care and maintenance, personal enhancement, and services. Within those categories are 15 sub-categories:
Self-care is a serious investment. Women in the US average just over $10 per day on beauty spending. Haircuts, makeup, and skincare are the top 3 spending categories, totaling $85 per month.
What about men? They spend nearly as much on their appearance. The same survey by Groupon and OnePoll found that American men spend an average of $2,928 per year across the same categories.
In 2023, the message is clear: men need to take care of their appearance too. The men’s personal care market is expected to see significant growth throughout the 2020s. According to Allied Market Research, this segment of the industry is projected to grow at an 8.6% CAGR between now and 2030.
Search volume for “Manscaped”, the DTC men’s grooming brand has exploded by 506% over the past 5 years.
Skincare represents a significant portion of the overall beauty market. Data indicates that the use of cleansers and other skincare products is on the rise:
The skincare market is vast and ever-growing. While it’s dominated by large companies (Estée Lauder reports $7.4 billion in annual sales), niche brands are finding plenty of eager consumers.
New skincare products are hitting the market every day, from organic anti-aging serums to gender-neutral foundations and concealers.
Skincare has more beauty industry market share than hair care (22%) and make-up (18%) combined. The Asia-Pacific region is currently the global leader, owning over 40% of the market.
Cleanser products have seen a resurgence since the onset of the COVID-19 pandemic. With more time at home, people are investing more in their skincare routines. Over one-third of cleanser users report using products multiple times per day.
Beauty, cosmetics, and personal care influencers have some of the largest followings on social media. Brands can leverage these influencers’ reach, but they must be thoughtful in doing so:
In an industry with so much capital, it’s only logical that beauty brands spend billions on advertising. Beauty advertising grows at a rate of 2.2% per year. The top advertising channel is still television, but digital advertising is gaining traction.
Beauty products may be slower than other categories at transitioning to online sales (many consumers still prefer to test and buy products in person), but as their target audience moves online, so do brands’ marketing efforts.
One-third of beauty product buyers interact with brands on social media. Marketing emails have seen success, with a solid 11.5% open rate. Finally, the average CPC for beauty and personal care ads is $1.68.
Google’s study found that YouTube was the number one source of beauty content among women aged 18-54. Watch times for “makeup transformation” videos more than doubles each year. Videos showcasing sustainable and eco-friendly products are trending in both uploads and views.
As a visual medium, Instagram is the perfect match for beauty brands to connect with their audiences. The interactive nature of Instagram plays a key role in building a trusting, loyal following. In fact, brands report that influencer marketing is more effective than direct mail.
Beauty influencers have tremendous reach. Dutch beauty influencer Nikkie de Jager has around 14 million YouTube subscribers. And makeup artist Huda Kattan has over 50 million Instagram followers.
Influencers play a critical role in social media marketing, but brands should tread these waters carefully. Consumers know that influencers are paid to promote, so likeability and trust are crucial. 42% of consumers say they’d buy a product promoted by an influencer, while 43% said they were unsure and 15% flat-out said “no”.
Influencer Susan Yara launched her own cosmetics brand Naturium. The brand gets over 110,000 monthly searches, up 7,500% from 5 years ago.
While established corporations lead the pack in global sales, up-and-coming brands are dominating social media. Kylie Jenner’s cosmetics brand has had a tidal wave of impact on Instagram, while her personal account has over 300 million followers.
The need to sample and try on beauty products makes generating online sales a challenge. But companies are finding new and exciting ways to give shoppers that “in-store” experience online:
As consumers explore more options for previewing products online, eCommerce sales are expected to climb in the coming years. By 2026, eCommerce beauty sales could reach $358.4 billion.
The pandemic racked an industry that’s heavily reliant on consumers’ ability to test and purchase products in person. The majority of shoppers across all demographics prefer to browse and shop in-store. According to McKinsey, the increase in online sales during the pandemic did not make up for the drop in sales at brick-and-mortar locations.
Cosmetics consumers are fickle. They want to see products in person before committing to a sale. 18% of consumers say they seek out guidance from in-store professionals, an experience that brands will need to replicate online if they want to stay competitive.
To bolster their online sales, brands are finding ways to give shoppers the “browsing” experience online. Virtual and augmented reality, color-picker apps, and online consultations are all strategies to help shoppers choose the best products.
Accenture’s study makes it clear: 3 out of 4 beauty customers respond well to personalized recommendations. Consumers are willing to shell out more cash for the extra attention, as another study by Forrester points out. They found that 78% of consumers will gladly pay more for a personalized shopping experience.
Across all industries, social proof is a powerful tool for wooing new customers. Beauty brands who host reviews on their own channels are winning loyalty from an audience that is 80% women.
Allowing users to upload their own content — including photos and videos — is another cost-effective means to increase brand loyalty.
For online customers missing in-store recommendations, virtual quizzes could fill that gap. Companies like Function of Beauty offer interactive quizzes for hair and skincare that allow users to order — and even name — their own customized products.
If shoppers can’t get to a store to try on makeup in person, augmented reality try-ons might be the next best thing. ModiFace has partnered with over 70 beauty brands to bring augmented reality to the masses.
Concerns over harmful chemicals, environmental responsibility, and animal cruelty have all shaped consumer habits in the beauty industry:
Clean beauty has been on the rise for over three decades. As with the clean food movement, consumers are becoming more aware (and concerned) about the products they put on their bodies.
“Paraben-free” is bandied about often enough that it’s become the “no MSG” of the 21st century. No scientific studies have linked parabens and cancer to date, but products without the common preservative are out-selling the competition.
Sustainability is a top priority for many of today’s consumers. 17.6% say they seek out brands that are environmentally friendly, and 15.8% prefer products that use recyclable packaging.
The pandemic has helped accelerate the growth of the organic skincare market. Health concerns combined with an increase in online shopping have steered more consumers toward brands that display “organic” or “natural” on their product labels. The market is still dominated by a handful of large companies, but eCommerce brands should be able to capitalize on this trend.
US-based brands looking to expand into the European market should be aware of the massive gulf between the two regions’ ingredient restrictions. The EU currently prohibits 1,680 ingredients from use in cosmetic products.
Haircare has always been a stable segment of the beauty industry, but recent trends in hair coloring point to even more growth potential:
Virtually all demographics use hair products, giving this category a sizeable moat despite global economic and health conditions. Haircare includes shampoo, conditioner, colorants, and hair oil.
After a rocky 2020, the hair care market is poised to surge. Some of the forces driving this trend are a demand for more organic and natural products, hair loss solutions, and dandruff-related products.
Wildly colored hair has entered the mainstream. Hairstylists need products to serve their clients, and consumers need products to manage their colored hair at home.
Searches for “color depositing conditioner” have gone up 96% over the past 5 years.
The future looks bright for the beauty industry.
Online experience innovations, new clean and organic product lines, and a willingness among consumers to buy premium products indicate growth opportunities across all categories.
Social media’s influence on the beauty industry and the shift from in-store to online shopping points to a potential explosion of DTC and eCommerce brands.
And while big brands like L’Oreal and Estee Lauder will still get the lion’s share of sales, there’s plenty of room at the table for up-and-comers able to get in front of the right audience.
If you enjoyed these stats, why not take a look at beauty industry trends and notable beauty startups.