1. L’ORÉAL

CLICHY, FRANCE

2022 BEAUTY SALES:

$40.31 BILLION

€38.26 BILLION

+18.5% vs. 2021

Main Brands: CONSUMER PRODUCTS: L’Oréal Paris, Garnier, Maybelline New York, NYX Professional Makeup, Stylenanda, Essie, Mixa. L’ORÉAL LUXE: Lancôme, Yves Saint Laurent, Giorgio Armani, Kiehl’s, Helena Rubinstein, Biotherm, Shu Uemura, IT Cosmetics, Ralph Lauren, Urban Decay, Mugler, Valentino, Viktor & Rolf, Maison Margiela, Azzaro, Takami, Prada, Diesel, Carita. PROFESSIONAL PRODUCTS: L’Oréal Professionnel, Redken, Kérastase, Matrix, Pureology. ACTIVE COSMETICS: La Roche-Posay, Vichy, SkinCeuticals, CeraVe, Skinbetter Science.

Key Financials:

Like-for-like sales: +10.9% vs. 2021

Operating profit: €7.46 billion, +21.0%

Net profit: €5.71 billion, + 24.1%

Sales by Division:

Professional Products: €4.48 billion, +18.3% (+10.1% like-for-like)

Consumer Products: €14.02 billion, +14.6% (+8.3% like-for-like)

L’Oréal Luxe: €14.64 billion, +18.6% (+10.2% like-for-like)

Active Cosmetics: €5.12 billion, +30.6% (+21.9% like-for-like)

Sales by geographic zone:

Europe: €11.44 billion, +12.3% (+11.6% like-for-like)

North America: €10.16 billion, +24.6% (+10.4% like-for-like)

North Asia: €11.32 billion, +14.8% (+6.6% like-for-like)

SAPMENA — SSA [South Asia Pacific, Middle East, North Africa — Sub-Saharan Africa]: €2.96 billion, +28.1% (+22% like-for-like)

Latin America: €2.38 billion, +34.1% (+18.6% like-for-like)

Biggest markets: The U.S., China and France.

Putting the unique nature of 2021 aside, 2022 saw L’Oréal register its best growth in “more than 20 years,” on a like-for-like basis and in three decades on a reported basis. Its revenues in the final three months of the year alone surpassed €10 billion, the first time ever it has seen such high sales in a single quarter.

“The L’Oréal engine is firing on all cylinders and these translate into an increase in our over-performance versus the market compared to the pre-COVID-19 period,” said chief executive officer Nicolas Hieronimus during the company’s year-end conference call in February.

Hieronimus said the group’s new geographical organization, put in place during the pandemic, has allowed it to enhance coherency in each region in terms of consumer profiles and market maturity, allowing it to maximize growth and control costs better.

Currency impacts had a major impact on the group’s reported numbers — more than 7%.

All its divisions grew well in like-for-like terms: 10.1% for Professional Products, 10.2% for L’Oréal Luxe despite the turbulence of the Chinese market, Active Cosmetics at +21.9% — the division has almost doubled its sales since 2019, according to L’Oréal — and 8.3% at Consumer Products, that division’s best growth rate in 20 years.

Even in mainland China, L’Oréal’s sales rose 5.5% in a declining market, boosted by double-digit growth in e-commerce and a strong performance on Singles’ Day, according to the company.

Consumer Products grew 8.3% on a global mass Beauty market that was up 6% for the year, according to L’Oréal. Average price increases accounted for a large part of that growth, but volumes were also up 2.6%. L’Oréal Paris — once again the world’s biggest beauty brand — gained 7% and Garnier was up 8%, thanks to its harnessing of green science and innovation. Maybelline and NYX Professional, driven by a rebound in makeup, gained 16% and 21% respectively. Hair care grew double digits for the division too, thanks to a premiumized offer, gaining twice as fast as the market, L’Oréal said.

For the Professional Products division, L’Oréal grew 10.1% on a market that it estimated at plus 5%. Kérastase surpassed €1 billion in sales for the first time, becoming the division’s second “billionaire brand.” The division saw sales up 32% in China, now its number-two country, and gained 50% in India. As the division continued to ramp up omnichannel and retail beyond its traditional salon focus, e-commerce and specialty retail represented 30% of its revenues.

L’Oréal Luxe reportedly outperformed the buoyant prestige beauty market as a whole for the 12th year running, finishing up 18.6% at reported rates and up 10.2% like-for-like on an overall market that gained 8%. Luxury skin care gained 7%, while the market was up 2%, thanks to gains in the ultra-high-end segment with Helena Rubinstein and Lancôme Absolue, as well as the addition of Takami and Youth to the People to the portfolio. In the fast-growing fragrance category, L’Oréal gained 23% on a market up 17%, despite supply chain challenges. Libre by Yves Saint Laurent consolidated its position, and was the number-three scent in Europe. Prada Paradoxe, introduced last fall, was the top women’s fragrance launch of the year, according to L’Oréal. In the artisanal category, Asia was a high point for Maison Margiela, with sales up 19%. In makeup, Saint Laurent and the revamped Urban Decay drove double-digit gains. In North Asia, the division saw sales up 8% on an overall luxury beauty market that declined 2%. It said it registered its highest ever market share on the Chinese local market, at 30%. The division also gained market share in Asian travel retail. In North America, it saw sales up 7%, slightly below the market, as it sought to revamp its business. Sellout there accelerated in the second half, L’Oréal said. Sales in Europe gained 16%, with double-digit growth seen in Germany, Spain, Italy and the U.K.

In October, L’Oréal said it was implementing a new fragrance branch inside L’Oréal Luxe encompassing Maison Margiela, Atelier Cologne, Viktor & Rolf, Azzaro, Diesel and Cacharel, with Sandrine Groslier — who joined the company with its purchase of the Clarins fragrance business in 2020 and had been global president of Mugler Azzaro Beauté and Fashion under L’Oréal — as its global president. The aim of the division is to enrich the group’s expertise and develop its mono-axis brands in line with the global explosion of the fragrance category, Groslier said at the time. Oversight of Mugler was handed over to Danièle Lahana-Aidenbau.

For the Active Cosmetics division — which was renamed L’Oréal Dermatological Beauty at the beginning of 2023 — L’Oréal said it grew 2.4 times faster than the market. La Roche-Posay was the world’s leading dermocosmetics brand, growing 23% and becoming the world’s sixth biggest skin care brand all segments combined. CeraVe gained 38% and was the number-two dermocosmetics brand worldwide and the number two across skin care in the U.S. Its growth was attributed in large part to its international expansion since it entered the L’Oréal fold. It continued to ramp up its presence in medical skin care with the acquisition of Skinbetter Science. The division grew three times faster than the market in the U.S. and six times faster in China, L’Oréal said. Its sales in emerging markets gained 26%.

Regionally, Europe was the biggest contributor to L’Oréal’s growth last year, with sales up 11.6% like-for-like. The company also reported a turnaround for its business in North America, which exceeded €10 billion in sales for the first time and saw like-for-like growth of 10.4%. In February 2022, David Greenberg was named chief executive officer of L’Oréal USA and president of the North America zone.

North Asia gained 6.6% like-for-like, thanks in part to double-digit gains in Japan and South Korea. In India, L’Oréal grew at twice the pace of the market overall.

Overall, brick-and-mortar returned to growth, gaining 11.7%, while e-commerce increased 8.9% and accounted for upwards of 28% of total sales.

On the sustainability front, L’Oréal said 97% of its new products and renovations are now eco-designed, with major advances in refillable solutions over the past year and three quarters of PET packaging now coming from recycled sources — 82% of its hair care bottles were made from recycled plastic last year. The company invested €22 million in ecosystem redevelopment and €30.8 million to support vulnerable women around the world in 2022.

2. UNILEVER

LONDON

2022 BEAUTY SALES:

$25.11 BILLION (EST.)

€23.83 BILLION (EST.)

+18.3% vs. 2021 (EST.)

MAIN BRANDS: AHC, Axe/ Lynx, Clear, Dollar Shave Club, Dove, Dove Men+Care, Lifebuoy, Love Beauty and Planet, Lux, Nexxus, Pond’s, Rexona/Sure/Degree, Schmidt’s Naturals, SheaMoisture, Simple, Skinsei, St. Ives, Suave, Sunsilk/Seda/Sedal, TIGI, TRESemmé, Vaseline, The Right To Shower. Unilever Prestige: Dermalogica, Garancia, Hourglass, Kate Somerville, Living Proof, Murad, Paula’s Choice, Ren Clean Skincare, Tatcha, Paula’s Choice.

KEY FINANCIALS:

Unilever Beauty & Wellbeing:

Sales: €12.3 billion, +20.8% VS. 2021 (underlying sales growth +7.8%)

Operating profit: €2.15 billion, +0.9%

Unilever Personal Care:

Sales: €13.6 billion, +15.9% (underlying sales growth +7.9%)

Operating profit: €2.26 billion, -3.1%

Total company revenues: €60.07 billion, +14.5%

Operating profit: €10.76 billion, +23.6%

Net profit: €8.27 billion, +24.9%

It was another turbulent year for Unilever. In September, Alan Jope announced that he would step down in 2023 after five years at the helm of the firm. The year also saw activist investor Nelson Peltz join Unilever’s board of directors after its botched attempt to take over GlaxoSmithKline’s consumer business.

Hein Schumacher will take over as Unilever’s new CEO this July. Currently CEO of Royal FrieslandCampina, an international dairy and nutrition business with €11 billion in annual turnover, he was named a non-executive director of Unilever last year.

Initiated under Jope, 2022 also saw Unilever implement its new structure aiming to make the business simpler and more category focused. Its Beauty & Personal Care activity was split in two, creating the Beauty & Wellbeing and Personal Care entities.

The company said the new structure is already reaping benefits, allowing bolder and more rapid decision-making and improved accountability.

Unilever is also seeking to double down on its high-performing beauty and wellness categories. In the latter, it snapped up a majority stake in Nutrafol, a high-end hair growth supplement brand. This February, it announced the sale of personal care and beauty brand Suave in North America to Yellow Wood Partners as it shifts toward what it views as strategic growth spaces.

In a context of inflation and supply chain woes, Unilever succeeded in weathering the storm and growing top line, in large part thanks to price increases and the premiumization of its offer, although in most categories, volumes declined. For the Beauty & Wellbeing activity, this was the case for both skin care and hair care. Acquisitions added 3.8 percentage points to sales for the division, meanwhile.

In hair care, Sunsilk and Nexxus drove gains. Latin America, India and Turkey grew for the category, offset by weaker business in Europe and China. Skin care was driven by South and Southeast Asia, helped by Lifebuoy and the rollout of Vaseline’s Gluta-Hya products. Vaseline was one of the fastest-growing brands in the portfolio, and was boosted by the slugging trend on social media, with Gen Z users praising its benefits on TikTok. The brand saw double-digit gains in the U.S. and strong growth in China, now its second market. AHC saw sales declines in North Asia.

Prestige Beauty continued to grow faster than the portfolio overall, with volume gains and double-digit sales growth, topping €1 billion in revenues, benefiting from growth in the premium segment, especially in skin care. Launch highlights included Living Proof Triple Bond Complex, Dermalogica Milkfoliant and Tatcha Indigo Overnight Repair Serum. The 2021 acquisition of Paula’s Choice and Hourglass’s continued expansion into China, as well as Living Proof, bolstered sales.

In Personal Care, volume declines were higher in skin cleansing, particularly impacted by cost inflation. Volumes in the category held up better in North America, Unilever said, supported by premium innovations like Dove Deep Moisture body wash with microbiome nutrient serum. Dove took its Real Beauty mission into the virtual world, creating an online coalition dubbed Real Virtual Beauty to encourage developers to create a healthier, more diverse representation of women and girls in games worldwide.

Deodorants did well, with volumes up and double-digit sales gains. Rexona — according to Nielsen data, the world’s number-one antiperspirant and deodorant brand with annual sales of more than €2 billion — relaunched its core range globally, with what it claims is its most effective deodorant yet. Sales of Dollar Shave Club fell, and the company registered an impairment charge of €192 million related to that business.

Among other activities, SheaMoisture ramped up its initiatives to create new opportunities helping Black entrepreneurs to thrive and published its inaugural impact report.

Clear, reportedly the world’s leading shampoo brand for men, introduced its first premium range targeting scalp health to prevent hair fall, initially in China.

Dove and Unilever’s other PETA-approved brands joined forces with The Body Shop and NGOs to launch #SaveCrueltyFreeCosmetics, backed by a European Citizens’ Initiative, a mechanism designed to help European people shape policy by calling on the European Commission to propose new laws, in this case to protect the EU’s ban on animal testing for cosmetics. Unilever was also a founding member of European cosmetics companies’ Cosmetics Europe Commitment for our Planet Initiative.

3. THE ESTÉE LAUDER COS.

NEW YORK

2022 BEAUTY SALES:

$16.4 BILLION (EST.)

-7.8% vs. 2021 (EST.)

MAIN BRANDS: Estée Lauder, Aramis, Clinique, Lab Series, Origins, MAC, La Mer, Bobbi Brown, Aveda, Jo Malone London, Bumble and bumble, Darphin Paris, Tom Ford Beauty, Smashbox, Aerin Beauty, Le Labo, Editions de Parfums Frédéric Malle, Glamglow, Killian Paris, Too Faced, Dr. Jart+, Deciem: The Ordinary, Niod.

KEY FINANCIALS:

Skin care: $8.76 billion (EST.), -14%; 54% of total sales

Makeup: $4.43 billion (EST.), -2%; 27% of total sales

Fragrance: $2.48 billion (EST.), +7%; 15% of total sales

Hair: $643 million (EST.), +6%; 4% of total sales

China and Tom Ford dominated the news when it came to the beauty giant for 2022. Rising COVID-19 cases in China continued to weigh on The Estée Lauder Cos. during the crucial holiday season, triggering declines on both the top and bottom line in its fiscal second quarter ended Dec. 31.

“All told, our return to growth has shifted to the fourth quarter,” said Fabrizio Freda, president and CEO in an earnings call. “We are encouraged by both our strong momentum in numerous markets globally and improving macro trends.”

The company cited the evolution of the COVID-19 environment, including restrictions in mainland China and the rising number of COVID-19 cases, as causes of stronger headwinds as the quarter progressed. As a result, tourism and product shipments to Hainan remained largely curtailed and traffic in brick-and-mortar in the rest of China was limited.

At the same time, the business was also negatively impacted by the strong U.S. dollar, along with inflationary pressures and recession concerns, which caused certain retailers in the U.S. to tighten inventory.

During the year, Lauder announced an agreement to acquire Tom Ford, marking the beauty giant’s first venture into the fashion world. The acquisition is Lauder’s largest to date, following the company’s agreement to pay $2.2 billion for a majority position in Deciem in 2021. As part of the deal, Ermenegildo Zegna Group and Marcolin SpA entered into long-term license agreements for Tom Ford fashion and Tom Ford eyewear, respectively. The deal valued the total enterprise of Tom Ford at $2.8 billion. The amount to be paid by Lauder for the acquisition is approximately $2.3 billion, net of a $250 million payment to Lauder at closing from Marcolin SpA. Funded through a combination of cash, debt and deferred payments, it is expected to close in the fiscal fourth quarter ending this June.

Freda has previously said that Tom Ford Beauty, of which it already held the license prior to the acquisition, is expected to achieve $1 billion in net sales annually over the next couple of years, “having promising profitable growth opportunities ahead.”

Staying in M&A, through its New Incubation Ventures arm, Lauder took a minority stake in Haeckels, owned by its founder Dom Bridges and angel investors, last February. It also made a long-term, global licensing agreement for Balmain Beauty, including collaboratively developing, producing and distributing luxury beauty products, the first of which are expected to launch in fall 2024.

Elsewhere in the business, Glamglow, the one-time hot indie skin care brand that Lauder acquired in 2014 for an undisclosed amount, is following in the footsteps of sister brand Smashbox and exiting the U.K. and Ireland. The company continued to wind down the Aramis & Designer Fragrances division.

Aveda, meanwhile, launched in mainland China and The Ordinary entered India.

Lauder opened a distribution center for its travel-retail business in Switzerland, as well as its first manufacturing facility in Asia Pacific and a China Innovation Labs in Shanghai as it positions to capture growth and accelerate locally relevant innovation.

There were also some changes to the executive structure. John Demsey, the executive group president who oversaw brands including MAC, Clinique, Too Faced, Glamglow, Smashbox and Tom Ford Beauty, was asked to leave the business after he posted a meme on Instagram that contained a racial slur and joke about COVID-19, while group president of international Cedric Prouvé retired in June. Peter Jueptner, previously in charge of EMEA business, replaced him. The group’s brands are now organized in two clusters led by executive group presidents Jane Hertzmark Hudis and Stéphane de La Faverie.

One person who doesn’t look likely to be going anywhere soon, however, is Freda. Despite speculation about who could lead The Estée Lauder Cos. next, Freda, who is 65, said he is “completely committed to continue leading this company for the foreseeable future.”

4. PROCTER & GAMBLE

CINCINNATI

2022 BEAUTY SALES:

$14.4 BILLION (EST).

-1.3% vs. 2021 (EST.)

MAIN BRANDS:

Aussie, Bevel, Farmacy, First Aid Beauty, Gillette (deodorants), Hair Food, Head & Shoulders, Herbal Essences, Ivory, Native, Olay, Old Spice, OUAI, Pantene, Rejoice, Safeguard, Secret, SK-II, Snowberry, The Art of Shaving, Tula, VS. 

KEY FINANCIALS:

Organic growth 2022: +2%

P&G Beauty delivered moderate organic sales growth despite the ongoing impacts of the COVID-19 pandemic in China across  the hair, skin and personal care categories. Overall beauty sales, however, declined 1% year-over-year, while currency fluctuations also weighed on the company.

Among the category mix, growth in P&G’s Hair Care portfolio was largely broad-based, although partially offset by a decline across P&G Hair Care’s China portfolio due to COVID-related headwinds. Pantene remained the number-one  selling hair care brand in the world, according to Euromonitor.

SK-II was challenged by lockdowns and travel restrictions within China, which severely hampered the brand’s duty-free business.

P&G’s personal care division, meanwhile, grew consistently with strong double-digits sales across the year, spanning Old Spice, Safeguard and Secret.

During 2022, P&G Beauty acquired three specialty brands. First, it doubled down on skin care with the acquisition of Farmacy Beauty. Then it entered the fast-growing prestige hair care market with an agreement to acquire Ouai, celebrity hairstylist Jen Atkin’s hair care and lifestyle brand. Lastly, it acquired Tula — a probiotic, superfoods-based skin care line founded by gastroenterologist Roshini Raj, Bobbi Brown cofounder Ken Landis and tech entrepreneur Dan Reich. 

In March 2022, it announced the formation of P&G Specialty Beauty, a new subdivision that includes these brands along with First Aid Beauty. Inclusive of previous acquisitions Native and Walker & Co, these acquired brands continue to grow disproportionately, with a collective sales increase of about 50% vs. year ago, according to P&G. 

Most recently, in 2023, P&G Beauty acquired Mielle Organics, a Black-founded textured hair care brand that is sold at major mass retailers, including Walmart, Target and CVS, for an undisclosed sum, with the founders stressing that the deal will increase availability of products, and that there are no plans to change formulas.

In 2022 executive moves, Chris Heiert was named senior vice president, specialty beauty, while Stephanie Headley was promoted to senior vice president, Global Olay.  

5. SHISEIDO

TOKYO

2022 BEAUTY SALES:

$8.19 BILLION (EST.)

¥1.07 TRILLION (EST.)

+5.7% vs. 2021 (EST.)

MAIN BRANDS: Shiseido, Clé de Peau Beauté, Nars, Drunk Elephant, Ipsa, The Ginza, Elixir, Anessa, Benefique, Haku, Prior, Maquillage, Aupres, Ulé, Sidekick, Inryu, Baum, Effectim, Gallinée. Fragrance: Narciso Rodriguez, Tory Burch, Issey Miyake, Zadig & Voltaire, Serge Lutens.

KEY FINANCIALS:

Constant-currency sales change: -3.9%

Like-for-like beauty sales growth: +0.9%

Operating profit: ¥46.6 billion, -53.7%

Net profit: ¥34.2 million, -27.1%

Sales by region:

Japan: ¥237.6 billion, -8.2% (+0.3% like-for-like)

China: ¥258.2 billion, -6% (-9.8%)

Rest of Asia Pacific: ¥68 billion, +7% (+13%)

The Americas: ¥137.9 billion, +13.6% (+8.8%)

EMEA: ¥128.4 billion, +9.8% (+4%)

Travel Retail: ¥163.7 billion, +35.7% (+14.2%)

Shiseido, Japan’s largest beauty company, celebrated its 150th anniversary in 2022 with an eye to the future. The year marked the second year of its three year “Win 2023 and Beyond” strategy, which was ideated to counteract the impact of COVID-19 at home and abroad. Under the strategy, Shiseido has executed a global transformation with an emphasis on profitability and cash flow, by focusing on “skin beauty,” and restructuring its portfolio. For 2022, which the company designated a “Back to Growth” year, the emphasis was on promoting global brands, accelerating the company’s digital transformation, and building new factories and logistics systems. The plan worked: Sales in the Asia Pacific region grew 10.7%, although sales in Japan increased a modest 1.3% and the business in China declined by 10.7%. However, sales in the Europe, Middle East and Africa region gained 10% and the Americas saw an increase of 7.7%. Travel retail bounced back with a 15.2% gain.

As part of the focus on skin beauty, Shiseido sold its Shiseido Professional brand, whose hair care, color, styling and perm products are sold primarily in Japan and Asia, to Henkel. Shiseido retains 20% of the shares of the company succeeding the assets related to its business in Japan, with the aim to support the further growth of the business.

Following the transfer of its personal care business to Fine Today in July 2021, Shiseido announced the transfer of its manufacturing business of personal care products conducted at the Kuku Factory in Japan and its Vietnam facility in August 2022. Through the transfer, Shiseido seeks to support Fine Today in building a management system that integrates manufacturing and sales, aiding the company’s sustainable growth.

In September 2022, the company acquired Gallinée, a London-based brand dedicated to caring for the skin’s microbiome. The range offers a patented complex of prebiotics, probiotics and postbiotics that nourish and strengthen the skin’s microbiome.

During the year, Shiseido launched three brands around its core business. Sidekick, a men’s skin care brand, launched in Japan and China, with the positioning of highlighting young men’s individuality and style.

Another brand that launched in Japan and China was Inryu, a three-sku line created to improve the overall health of the skin from the inside.

In Europe, Shiseido launched Ulé, the first skin care brand powered by vertical farming with a view to creating the future of botanical beauty. In France, Ulé cultivates plants from around the world on its Eco-Farm, which executives said enables it to maintain a short supply chain, lessen the environmental impact and retain maximum freshness and potency.

Shiseido also invested in strengthening its China business, and has been focusing on innovation with local partners. In August, it announced it is investing in Jiangsu Trautec Mecial Technology, a company dedicated to the development and production of recombinant collagen-based biomaterials. In collaboration with a local partner, Plug and Play China, Shiseido is looking for partners from Chinese startups to work on future innovations.

In January 2023, Shiseido announced a new management structure and succession plan. Masahiko Uotani became representative director, chairman and CEO of Shiseido Company Ltd., and Kentaro Fujiwara assumed the role of president and chief operating officer. Fujiwara was previously the CEO of Shiseido China, and it is expected that Uotani will pass the reins to him in the next two years.

On the sustainability front, Shiseido unveiled replaceable cosmetics packaging using a technology called LiquidForm, which realizes bottle molding and filling in a single step and reduces the use of plastic by 70% and CO2 emissions by 70%. To celebrate its 150th anniversary, Shiseido employees around the world held a day of service, Camellia Day, in which employees participated in social action programs to improve society and the environment.

6. LVMH MOËT HENNESSY LOUIS VUITTON

PARIS

2022 BEAUTY SALES:

$8.13 BILLION (EST.)

€7.72 BILLION (EST.)

+16.9% vs. 2021 (EST.)

Main Brands: Parfums Christian Dior, Guerlain, Parfums Givenchy, Parfums Kenzo, Fendi, Pucci, Acqua di Parma, Parfums Loewe, Benefit Cosmetics, Make Up For Ever, Fresh. Maison Francis Kurkdjian (majority stake).Officine Universelle Bully, Stella by Stella McCartney. Kendo Brands: Bite Beauty, KVD Vegan Beauty, Marc Jacobs Beauty, Ole Henriksen, Fenty Beauty by Rihanna. Bulgari. Louis Vuitton. Sephora.

Key Financials:

Organic sales growth: +10%

LVMH Perfumes and Cosmetics revenue by region:

France: 9%

Rest of Europe: 20%

U.S.: 19%

Japan: 5%;

Rest of Asia: 35%;

Other markets: 12%.

Perfumes and Cosmetics Division profit from recurring operations: €660 million, -3.5% vs. 2021.

Continuing success in fragrance and a rebound in makeup drove LVMH Moët Hennessy Louis Vuitton’s beauty business last year. Despite a significant sales increase overall, the ongoing impact of the pandemic in Asia weighed on business, particularly the skin care category. Asia outside Japan accounted for 35% of the beauty activity’s sales last year, compared with 42% a year earlier and 45% in 2020. The company said innovation played a key role in its brands’ advances in 2022.

Parfums Christian Dior grew strongly worldwide, reinforcing its position in Europe and with strong momentum in the U.S., Japan, South Korea, Southeast Asia and the Middle East, according to the company. Among the brand’s fragrances, Sauvage grew well — it was reportedly the world’s bestselling fragrance across categories. As the tide of popularity turned in favor of Johnny Depp, the scent’s face, following his highly media-covered defamation lawsuit against ex-wife Amber Heard, this provided a major boon to sales. J’adore benefited from the global launch of its Parfum d’Eau variant. Miss Dior did well and Dior Homme was boosted by the relaunch of Dior Homme Sport. High-end line Collection Privée also performed well, and added products by Francis Kurkdjian, the house’s new creative director of fragrances. In skin care, premium products including a new version of La Crème boosted sales. New lipsticks included a refillable version of Dior Addict and a new version of Forever liquid foundation. The brand also initiated a new sustainability roadmap for 2030, dubbed “Beauty as a Legacy,” with a broad range of targets including efforts to promote biodiversity and cut its greenhouse gas emissions by 46% by 2030.

Guerlain also did well in fragrances, especially in the high-end category with L’Art et la Matière and Aqua Allegoria. The label highlighted its sustainability commitments, with Angelina Jolie acting as the face of its “In the Name of Beauty” program.

Givenchy’s fragrance pillars, including L’Interdit and Irrésistible, also did well, and Gentleman introduced Réserve Privée, a collaboration with Glenmorangie whisky. Benefit enhanced its position in the brow category, where it is global market leader, with new products. Make Up For Ever was driven by an innovation program developed with its makeup artists. Kenzo Parfums grew thanks to L’Absolue, a new version of its pillar Flower by Kenzo scent. Maison Francis Kurkdjian saw strong gains in the U.S. and Europe and opened its first store in China. Acqua di Parma was driven by its Signatures of the Sun line, while Perfumes Loewe expanded internationally with a new point-of-sale concept, boosting sales. Fenty Beauty doubled revenues thanks to expanded distribution and launch activity, with Fenty Skin growing strongly in body care. Officine Universelle Buly, acquired by LVMH in 2021, expanded its footprint, especially in Japan, and profited from growing brand awareness in Paris.

In March this year, LVMH named Stéphane Rinderknech chairman and CEO of its Perfumes and Cosmetics division, overseeing all 15 of its brands, the first time in decades that the business unit has been managed under a single executive. Rinderknech, a former L’Oréal executive who was most recently ceo of L’Oréal USA and president of its North America zone, joined LVMH in 2022 to head its hotel and leisure activities. Reporting to him, Véronique Courtois takes up the reins at Parfums Christian Dior from Laurent Kleitman, who is leaving LVMH, and Gabrielle Saint-Genis Rodriguez takes over Courtois’ former role as the head of Guerlain. Courtois is the first female ceos for Parfums Christian Dior.

7. BEIERSDORF

HAMBURG, GERMANY

2022 BEAUTY SALES:

$7.24 BILLION (EST.)

€6.87 BILLION (EST.)

+16.4% vs. 2021 (EST.)

Main Brands: Nivea, Eucerin, La Prairie, Labello, 8×4, Hidrofugal, Florena, Atrix, Aquaphor, Maestro, Coppertone.

Key Financials:

Consumer Division sales: €7.1 billion, +16.3% VS. 2021 (organic sales growth: +10.5%)

Consumer Division EBIT excluding special factors: €880 million, +18.9%

Consumer Division sales by region:

Western Europe: €2.51 billion, +6.5% (+5.3% organic)

Eastern Europe: €599 million, +7.3% (+3.7%)

North America: €900 million, +39.3% (+17.6%)

Latin America: €941 million, +43.4% (+28.6%)

Africa/Asia/Australia: €2.19 billion, +14% (+10.2%).

Beiersdorf benefited from consumer interest in skin health, and netted a strong year. Core brand Nivea gained market share in all regions but especially Europe, notably in Switzerland, the U.K. and Spain. Its total sales grew 13% to €4.65 billion, and there were gains in both volume and price, driven by emerging markets, new products and a strong performance of its basics. All key categories gained, especially deodorants, sun care and body care.

The Derma brands, Eucerin and Aquaphor, beat the billion-euro sales barrier for the first time, netting revenues of €1.03 billion, up a massive 29.9% in reported terms and 23.9% on an organic basis. The brands did particularly well in the U.S., Mexico and Germany. Eucerin’s face care, especially anti-pigmentation and acne products, were strong performers. The brand’s sun care launched in the U.S., the world’s largest market for the category. Online was an important driver for the segment.

Sales in the prestige segment gained 9.3%, to €655 million, thanks largely to recovery in travel-retail and the uptick in brick-and-mortar in North America, although La Prairie’s China business suffered. The February 2022 acquisition of Chantecaille allowed the company to strengthen its presence in the selective channel, notably in the U.S., China and South Korea, it said.

Exchange rate impacts positively impacted sales for the Consumer division as a whole by 4.6 percentage points, while the Chantecaille acquisition added 1.2 points to growth.

Beiersdorf implemented a new operating model for Nivea, based on marketing successes within the Derma and Luxury categories, as well as Health Care, to develop fewer but more impactful campaigns to improve the consistency of messaging and brand identity for its mega-brand.

For the prestige portfolio, management changes followed the integration of Chantecaille. Philippe Lamy joined La Prairie Group as CEO in March last year, taking over from Patrick Rasquinet, who is now concentrating on broader responsibilities as executive board member for the Pharmacy and Selective Divisions, overseeing Eucerin, Hansaplast, La Prairie and Chantecaille. Emily Coleman, a 20-year L’Oréal veteran most recently senior vice president at Urban Decay, took over from Sylvie Chantecaille as CEO of the brand in September.

Product innovation included Nivea Radiant & Beauty, for consumers with melanin-rich skin. There were products developed especially for the Chinese and Asian markets, including Nivea Pro Sensitive Amino Acid face cleansing gel and the new Doukou body care range, as well as Eucerin Even Radiance. Beiersdorf also claimed it was the first skin care manufacturer to use ethanol made from recycled carbon dioxide, in the limited-edition Climate Care moisturizer under Nivea Men, which celebrated its centenary.

In December, the company announced it had acquired a majority stake in Belgium-based microbiome research specialist S-Biomedic, in which it had already invested in 2018.

8. CHANEL LTD.

LONDON

2022 BEAUTY SALES:

$7.05 BILLION (EST.)

€6.69 BILLION (EST.)

+10% vs. 2021 (EST.)

MAIN BRANDS: No.5, No.5 l’Eau, Gabrielle, Allure, Allure Sensuelle, Coco, Coco Mademoiselle, Coco Noir, Chance, Chance Eau Fraîche, Chance Eau Tendre, Chance Eau Vive, No.19, Cristalle, Allure Homme, Allure Homme Sport, Bleu de Chanel, Pour Monsieur, Antaeus, Egoiste, Les Exclusifs, Les Eaux de Chanel (fragrance). Sublimage, Le Lift, Hydra Beauty, Le Blanc, No.1 de Chanel (skin care, makeup, fragrance). Rouge Allure, Rouge Coco, Le Vernis, Inimitable, Le Volume, Dimensions, Les 4 Ombres, Ombre Première, Les Beiges, Vitalumière, Ultra Le Teint, Le Blanc, Sublimage, Joues Contrastes, Boy de Chanel, La Poudre Universelle (makeup).

KEY FINANCIALS:

Main markets: The U.S. China, Japan and France represented more than half of 2022 sales.

Fragrance and makeup were Chanel’s main contributors to sales growth in beauty last year, although skin care also reportedly gained well. Its travel-retail business recovered in Western regions, but continued to be impacted by pandemic restrictions on travel in Asia.

In fragrance, all of Chanel’s pillar scents returned to growth, with strong performances from Coco Mademoiselle, Chance and Bleu de Chanel. N°5, which performed particularly well in 2021, its centenary year, slowed somewhat.

Makeup grew, driven mainly by face and lip products, but remained below 2019 levels.

Skin care was boosted by the launch of new line N°1 de Chanel and by growth in Asia. No. 1, introduced in early 2022, is based on the camellia flower; it contains 97% natural ingredients and features eco-designed packaging. It is built around skin care, but also includes makeup products and a fragrance mist.

E-commerce sales grew worldwide, on both the brand’s own platforms and third-party sites. Retail expansion also continued, and Chanel opened more than 30 new boutiques, mainly in Asia.

In October, the house named a trio of global creative partners to steer the creation of its color cosmetics. Ammy Drammeh, Cécile Paravina and Valentina Li were named as the first artists to join the Cometes Collective, which is described by Chanel as “a group of emerging talents shaping the future of beauty” with a pluralistic vision focused on collaboration.

Other initiatives last year included an immersive exhibition dedicated to fragrances at the Grand Palais Ephémère in Paris, exploring their history through immersive installations and animations featuring scent pods and virtual reality.

9. NATURA & CO.

SÃO PAULO

2022 BEAUTY SALES:

$7.05 BILLION

R$36.35 BILLION

-9.5% vs. 2021

MAIN BRANDS: Natura (fragrance, makeup, skin, hair, sun and body care, toiletries). Aesop (skin, body and hair care, fragrance). The Body Shop. Avon (outside North America).

Key Financials:

Constant-currency growth VS. 2021: +0.4%

Natura & Co. Latin America net sales: R$22.03 billion, -1.7% (+6.3% at constant currency)

Avon International net sales: $R7.2 billion, -22.9% (-9.9%)

The Body Shop net sales: R$4.41 billion, -24.3% (-13.5%)

Aesop net sales: R$2.72 billion, +4.6% (+21%)

Gross profit: R$23.19 billion, -11%

Group consolidated net loss: R$2.86 billion, compared with net income of R$1.05 billion in 2021.

The challenges were both macroeconomic and structural for Brazil’s Natura & Co. in 2022. The weakness of the Brazilian real weighed heavily on its numbers, as did its ongoing integration of Avon and challenges at The Body Shop, impacted by changes in consumer behavior since the pandemic.

Mid-year, Natura decided to press reset, transitioning to a simpler holding company structure to improve accountability for its four brands, Natura, Avon, The Body Shop and Aesop, now organized into four business units. The firm hopes the reorganization will help it reassess its growth model to stabilize the business, with the aim of improving profitability and cash conversion, revising its cost structure and reviewing its global footprint.

Roberto Marquez, who had headed Natura & Co. for six years, stepped down as group CEO and executive chairman in June, at the time of the announcement, but remained on the company’s board to help the transition through year end. Natura & Co. eliminated the roles of sustainable growth officer and chief transformation officer. Fábio Barbosa, previously a non-executive director, stepped in as CEO.

This March, L’Oréal said it would acquire Aesop, which continue to outperform Natura’s portfolio as a whole. Natura had put the brand up for sale in order to finance the brand’s accelerated growth and provide value to the parent company and its stakeholders.

As to its performance, Natura & Co. said it saw improvement in constant-currency sales in the fourth quarter, and that it had made progress on the initiatives put in place.

The Natura brand saw strong momentum in the last three months of the year, especially in Brazil, driven by consultant productivity and strong performance at retail, with the brand expanding its brick-and-mortar footprint significantly through the year. It also saw gains in the rest of Latin America despite political and economic instability in the region, notably in Argentina, Chile and Peru.

Avon’s revenues in Brazil and Latin America declined for the year as a whole, but improved significantly in the fourth quarter as Natura continues to restructure the brand, moving away from non-core categories and homing in on beauty. The company said this strengthened its confidence in the potential for ongoing integration of that business in the region. Its plans for Avon include optimizing the brand’s international footprint to focus on profitable markets and reducing its cost structure.

Natura said it was “rightsizing” The Body Shop’s business, focusing on efficiencies and the brand’s core retail model in the face of challenging channel mix changes, notably in the U.K., its core market. It announced plans to shutter The Body Shop at Home in the U.S. and close its dedicated distribution center in the U.K., as well as restructure its global management, reducing leadership positions by 25% and global overhead staffing by 12%. The actions are intended to support margin expansion, cash generation and revenue stabilization for the long term.

Aesop continued to outperform. The brand leaned into fragrance and made its hotly anticipated entry into China in the fourth quarter, with two phys