Exclusive extracts from this 69-page-long report:
- Who are the key players?
Western and Japanese groups dominate the global market. However, leaders are very different in terms of size or profile, comprising everything from diversified consumer goods conglomerates, to large-scale cosmetics or perfumes specialists or small, highly-specialised niche players. Because of the prevalence of smaller, independent brands and niche segments, market concentration remains relatively low. [...]
Groups analysed in this report include: L'Oréal, Unilever, Estée Lauder, Shiseido, Coty, Beiersdorf, LVMH, Kao, Avon, and Puig.
- What are the players' strategies?
With competition driven by key markets' maturity, fast-changing consumer trends, a race for emerging markets, and the disruptive impact of smaller, innovative players, beauty care companies are accelerating external growth initiatives to retain their market share and capture new opportunities. M&A activity in the industry has accelerated in recent years, reaching a new record of more than 100 deals in 2017, many of which were high-profile transactions by leading players. Unilever, for instance, has been particularly active in specialist acquisitions in recent years, mainly focusing on niche players such as Dermalogica (dermocosmetics) or premium cosmetics brands such as REN Skincare and Hourglass. […]
- What are the players' key growth and profitability drivers?
Leading players' profitability remained fairly flat in recent years, averaging 14% between 2013 and 2017. Profitability in the beauty care market is generally high, boosted by the high margins commanded by premium products. Among leading operators, multinationals such as Unilever, L'Oréal and Estée Lauder reported the strongest profit margins, supported by sound sales of their premium and luxury brands. [...]