The COVID-19 outbreak has severely impacted the multi-billion-dollar cosmetics industry, causing thousands of closed stores and weak first and second-quarter sales.
However, the largest cosmetics companies and top beauty brands globally managed to increase their value despite the coronavirus crisis. According to data presented by BuyShares, the world’s five largest cosmetic brands hit over $40bn value in 2020, a $4bn increase year-on-year. With $11.7bn in brand value, L’Oréal ranked as the largest cosmetic brand globally.
L’Oréal Brand Value Jumped by $1.3bn in 2020
In 2019, the brand value of the French multinational cosmetic giant L’Oréal amounted to $10.38bn, revealed the Brand Finance 2020 annual report. In the last twelve months, this figure rose by $1.3bn, an 13% increase year-on-year.
The report revealed that L’Oréal`s brand value increase had been primarily boosted by steady growth in sales across key markets in the last decade, especially in Asia, where over 20% of net sales are concentrated. The North American market sales rose by nearly 20%, mostly driven by CeraVe, SkinCeuticals, La Roche-Posay, and Vichy, which all delivered double-digit growth. The Group has also benefited from its digital transformation strategy, especially in Eastern Europe, where online sales surged by 50%.
Gillette ranked as the second-largest cosmetic brand in 2020. Statistics show the value of the US brand, owned by the multinational corporation Procter & Gamble increased by 18% in the last four years, rising from $7.1bn in 2016 to $8.48bn in 2020.
With almost $7.4bn in brand value, NIVEA represents the third-largest cosmetic brand globally. In 2016, the German personal care brand vas valued at $6.1bn. In the next twelve months, this figure rose to nearly $6.7bn. After a slight drop in 2018, the NIVEA brand value jumped to $6.8bn last year and continued rising. Statistics indicate the value of brand owned by the Hamburg-based company Beiersdorf Global AG rose by almost 20% in the last four years.
Estée Lauder Brand Value Surged by 41% in Two Years
The Brand Finance data also revealed that the brand value of Estée Lauder, the fourth-largest cosmetic brand in the world, jumped by 27% in 2020, the most significant increase among the top five companies. In 2018, the US skincare brand was worth $4.4bn. Over the last two years, this figure surged by 41% to nearly $6.3bn in 2020.
Statistics show that 2019 has been the most successful year in Estée Lauder’s history, with the global net sales reaching almost $15bn, an 8.6% increase year-over-year. Although the US corporation reported a net loss of $6 million due to the COVID-19 outbreak, statistics show its online sales skyrocketed in the first half of 2020.
The value of the US skincare producer Clinique, the fifth-largest cosmetic brand in the world, jumped by 15.4% year-over-year to $6.22bn in 2020.
Analyzed by geography, the United States represents the leading region globally, with $59.5bn in the total value of the eighteen leading cosmetic brands and 42% market share in 2020. French cosmetic companies ranked second with $40.1bn brand value and 28.3% market share. Japan, Germany, and the United Kingdom follow, with $12.6bn, $9.5bn, and $8.5bn value, respectively.