In this article we take a look at the Top 10 Best Cosmetic Companies in the World. Click to skip ahead and jump to the Top 5 Best Cosmetic Companies in the World
Which are the top 10 best cosmetic companies in the world? The cosmetics industry, has had one of the worst years in terms of revenue in 2020. However, even with Covid-19 impacting the industry hard, the market has proved to be quite resilient. It is observed that the recovery rate might be faster than most other industries. This is because the forever evolving industries already had been going through some major trend adoption, that has only been fastened due to the Covid crisis. In recent times, it seems the beauty industry has been experiencing a makeover itself! With the emergence of social media influencers and a plethora of online makeup tutorials and review, there is a strong opinion formation that already had been in works in the consumer base. The gain in popularity of online retail has also been quite significant. While in-store sales are still popular, there is a huge consumer base that relies on customer reviews and opinion and is shifting to online purchases. The typically market of make-up products has experienced a slump which has been compensated with increase in demand in the skincare and hair-care segment, fueled by the self-care routines that’s trending amidst the stay-at-home and social distancing protocols. Sales of hair clippers have risen by a 166% in April as compared to 2019, according to Nielsen. This spike comes at around the same time when DIY haircut videos had just began to trend online.
Self-care routines have spurred a demand in categories of soothing oils, fragrances and luxury soaps. However, it might be too soon to deduct if these trends are likely to disappear once Covid is over. Since, the landscape of the beauty industry was already undergoing changes, these trends might just be the beginning of permanent change in consumer preference.
There is a undercurrent of buyer awakening in the beauty industry. Over the past few years buyers have become increasingly aware of the use of chemicals and toxins in cosmetics, which has sparked movements for more responsibly sourced, natural products. This popular sentiment was solidified with the FDA being granted powers to regulate ingredients in cosmetics products in 2017, and given birth to several niche brands.
The future of the beauty industry might be leaning towards more sustainable products, and some key players have also attempted to tap the market of greener products. Korean cosmetic company, Amorepacific, has entirely natural ingredient product lines in its Innisfree brand .
Even with all the transformations the industry has been undergoing, there is no denying that the beauty and cosmetics industry remains one of the high growth potential ones. L’Oreal, one of the top cosmetic companies, has estimated the market to be as huge as $260 billion, and noted an upward growth trend in the last five years, in its yearly Cosmetics Market Report.
The revenue in question is huge and brands are being built and broken by the second. The top players have been successful in building high-value brands and have earned consumer loyalty and trust, through which they have further strengthened their positions in the market. It is hard to dethrone them, but even so the cosmetics market is highly dynamic one. Advertising has always played a major role in garnering demand in the industry, and brands are also eager to explore and experiment in their marketing strategies. Along with the engagement and tie-ups with key influencers in the business, product placements in popular series and movies is also becoming a common practice. The traditional strong marketing tactics are slowly giving way to more subtle methods of gaining a following.
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Some of the most valuable brands in the industry are owned by USA’s Johnson’s & Johnson’s (NYSE:JNJ). According to Brand Finance’s Cosmetics 50 , 2019 report, Johnson’s is the most valued brand globally valued at $14,122 million. Other top cosmetics companies on our list also own some of the most valued brands in the industry.
To arrive at our list we have ranked the global key players according to the Annual Revenue, using Thomasnet.com as our source.
Let’s take a look at our list of the top cosmetic companies in the world now!
Annual Revenue – $5.5 billion
Amorepacific Group is one the biggest Korean cosmetics companies with popular brands like Innisfree, Laneige and Etude House. With Korean beauty becoming a popular trend, the company has been successfully created a worldwide presence.