The cosmetics sector is recovering

In 2020, the world's leading cosmetics group recorded a turnover that was down by -4.1% compared to 2019. But in 2021, L'Oréal achieved a historical year, with a record growth of 16.1%, twice the global growth of the beauty market. Its turnover of 32.28 billion euros represents a growth of 11.3% compared to 2019. Meanwhile, The Estée Lauder Companies Inc. announced in August net sales of $16.22 billion for its fiscal year ending June 30, 2021, up 13% from $14.29 billion the previous year. And for the period October to December 2021, the recorded growth was 14%, or $5.54 billion in sales.

For L'Oréal, North America is driving the largest increase, with a growth rate of 22.2%. Latin America and Asia also performed very well with growth rates of 20.6% and 17.6% respectively. These figures are largely due to e-commerce and the reopening of sales points. The "Active Cosmetics" division, which includes the La Roche-Posay, Vichy, SkinCeuticals and CeraVe brands, performed exceptionally well with 31.8% growth. This outperformance of the booming dermocosmetics market demonstrates that consumers are increasingly concerned about skincare, and by extension health. Nevertheless, with a growth of 20.9%, the L'Oréal Luxe division became the group's leading division.

As for the Estée Lauder Companies, the Americas also recorded the biggest rebounds with organic net sales growth of 19% compared to 2020. Skin care (+7%), fragrance (+30%) and hair care (+18%) all grew from pre-pandemic levels. However, the make-up category remains below 2019 levels.  Indeed, although make-up sales have increased by 12% since 2020, the wearing of masks and the lack of events prevent a full recovery of the sector.