Though the beauty category may not be inflation-proof, L'Oréal had a great first half of the year as the return to in-person life continued.
Let’s look at L'Oréal’s makeup:
$21.71 billion: L'Oréal’s global net sales for H1 2022, a 20.9% increase year over year (YoY.) North American net sales totaled $5.50 billion, up 23.5% YoY. The company noted that although sales have returned to pre-pandemic levels, supply chain pressures continued to impact sales.
41.3%: The percentage of L'Oréal’s H1 sales from skincare products, the largest product category, followed by makeup (20.6%), haircare (15.1%), perfumes (10.4%), hair color (9.0%), and other (3.7%).
37.4%: The percentage of L'Oréal’s H1 business from its L'Oréal Luxe division, which features prestige brands such as Lancôme, Kiehl’s, and Giorgio Armani Beauty. Online sales of prestige beauty declined 14% YoY, per 1010data. Luckily, L'Oréal’s consumer product sales (L'Oréal Paris, Garnier, etc.) represent nearly the same amount as its prestige products at 37%.
$93.75 billion: Our forecast for retail sales of fragrance, cosmetic, and beauty products in 2022, a 9% increase YoY. Ecommerce sales of fragrance products will grow 23.4% this year, the fastest growing single category we measure. Ecommerce sales of cosmetic and beauty products will grow substantially at 19.4%.
50%: The percentage of US teens and adults who expect shopping or browsing for beauty products will be made better in a virtual/metaverse environment, per Vox and United Talent Agency. Asmita Dubey, chief digital and marketing officer at L'Oréal, told Glossy the future of beauty will be “physical, digital, and virtual” and that the company is “laying down strong foundations in Web3,” which includes metaverse ambitions.
Why we care: The beauty category (makeup, in particular) has gotten a lift from consumers’ desire to be out and about. As consumers watch their spending, they may switch from higher-end products to more affordable ones.
This was originally featured in in the Retail By the Numbers newsletter. For more retail insights, statistics, and trends, subscribe here.