Beauty market in 2023 | L'Oréal Finance
The world of beauty in 2023
Continuing the trend from 2022, the beauty market proved extremely dynamic, with growth of +8%, fuelled by a combination of high valorisation in mature markets and remarkable gains in emerging markets, which are key growth drivers for the Group.
- +8% Global beauty market growth in 2023
€270 Bn Estimated market of more than €270 Bn
Estimated growth of the global beauty market 2000-2023
(in %)
Breakdown of the beauty market by region
(in %)
Breakdown of the beauty market by category
Main global players by sales
(in billions of USD)
Beauty: a resilient market with strong potential
The global cosmetics market has repeatedly demonstrated its robustness and remarkable resilience in the face of economic slowdowns and geopolitical upheaval. This offer-driven sector is constantly adapting to the new expectations of consumers, who are looking not only for quality, performance and innovation but also for meaning in what they buy.
The sector is increasingly omnichannel, with growing complementarity between different online and offline touchpoints. At the global level, 27% of all beauty products are sold online. The growth of e-commerce has made it possible to reach more consumers, well beyond the scope of traditional retail. E-commerce will be the distribution channel of the 21st century, with huge growth potential in many countries.
Rise in middle classes is driving growth
The beauty market is expected to include some 600 million more middle- and upper-middle-class consumers worldwide by 2030. Opportunities abound in SAPMENA-SSA, the world’s most densely populated region, home to more than 3.5 billion people in 2023. Countries such as Indonesia, Pakistan and Egypt have become new cultural influencers to watch on a regional level. China’s younger generations also embody huge consumer demand for increasingly sophisticated beauty products and services.
In mature markets, the “boomer” generation (around 20% of the population in North America and Europe) continues to thrive and support the upmarket shift.
600 million more potential consumers by 2030
Trends and opportunities
Towards holistic beauty
Ongoing expansion of the dermocosmetics market
Interest in dermocosmetics continues to surge, driven by two structural trends. The consumer quest for health and safety remains paramount, fuelled by the escalating prevalence of skin disorders, which affect more than one in four people worldwide. Factors such as an ageing, climate change (pollution, exposure to UV rays) and stress contribute to this trend. There is also a surge in aesthetic procedures, along with more extensive use of dermocosmetics prescribed by dermatologists.
The success of L’Oréal’s Dermatological Beauty Division is underpinned by its longstanding leadership in medical prescriptions and a complementary portfolio of brands that meet the full range of consumer expectations, ranging from skin conditions to aesthetics.
Growth of the dermocosmetics market compared with the global beauty market
(in %)
Beauty Tech delivers increasingly personalised solutions
Promoting more responsible beauty with refillable products
The popularity of refillable beauty products, which are more sustainable, continues to develop, particularly in the luxury sector. The expansion of these offerings in the fragrance category is part of this trend. There is also a demand for refills and refillable products in the makeup category. In 2023, L’Oréal significantly accelerated the rollout of its refillable model across all Luxe categories. In the fragrance category, all our major launches and blockbusters are now refillable.
