The beauty industry achieved a remarkable milestone in 2024, surpassing $250 billion in sales for the first time, with total revenues hitting an impressive $252.09 billion. This achievement reflects a sense of speed and agility that characterized the year. However, the market is grappling with significant shifts due to an intricate interplay of geopolitical challenges, technological innovations, and an evolving consumer landscape that is more complex than ever. While sales figures indicate growth—up 2.8 percent from the previous year—the pace is slowing compared to 2023, when the gain was 5.3 percent. A notable factor contributing to this deceleration is the ongoing economic downturn in China, prompting many companies to rethink their strategies and focus on more promising product categories.
L’Oréal continues to reign as the formidable leader in the beauty market, commanding an 18.7 percent share of total Top 100 sales. This represents an increase from 14.7 percent in 2019, underscoring the brand’s resilience despite industry challenges. The top 10 global beauty firms collectively generated $147.49 billion, which constitutes a staggering 58.5 percent of the Top 100’s overall revenues. Interestingly, while most companies enjoyed a sales increase—73 percent reported growth—only 29 firms experienced double-digit gains, signaling a market shift toward less aggressive expansion. Conversely, 17 companies faced negative sales trends, with a handful experiencing declines exceeding 20 percent, highlighting the stark contrast in performance across the industry.
Amidst these challenges, there were also significant success stories. Spanish beauty powerhouse Puig made waves by entering the Top 10 for the first time, propelled by a surge in its fragrance and skincare sales. Meanwhile, L’Occitane saw a resurgence thanks to the viral success of its Sol de Janeiro brand, further solidifying its position in the market. Additionally, China’s Proya made history, becoming the first “C-beauty” company to reach the Top 30 in global beauty rankings, showcasing the rise of local brands on the world stage. The year also welcomed two new billionaire brands, E.l.f. Beauty and Cosnova, highlighting demand for affordable yet high-quality cosmetics, particularly in challenging economic climates.
The market also witnessed the emergence of new players and dynamic shifts among established brands. Notable newcomers included D&G Beauty, which saw significant sales growth after bringing its operations in-house, and Mao Geping Cosmetics, a rising star that went public in Hong Kong. Other companies like Shein’s Sheglam and AS Beauty, which rejuvenated the Laura Geller brand, have thrived, emphasizing the evolving nature of the beauty landscape. Despite the slowdown in some regions, the accessibility of affordable makeup continues to attract consumers looking for quality products without high price tags.
On the financial front, 2024 was a tumultuous year for beauty stocks, as reflected in the performance of 49 publicly listed companies surveyed. Only 15 saw their share prices rise, with Victoria’s Secret & Co. emerging as a notable gainer amidst a broader market recovery after its restructuring efforts. Conversely, several major players, including Estée Lauder and Shiseido, grappled with significant drops in their stock values, highlighting the volatility that can accompany shifts in consumer preferences and economic conditions.
Overall, the 2024 WWD Beauty Inc Top 100 report reflects a beauty industry at a crossroads, balancing thriving sales figures against a backdrop of uncertainty. The ability of companies to adapt to emerging challenges, invest in innovation, and navigate consumer expectations will determine their success in the months and years ahead. Moving forward, the focus will be on how brands can embrace speed and agility, leveraging new technologies and consumer insights to carve out their share in an increasingly competitive market landscape, while remaining attuned to the shifting dynamics that will indelibly shape the future of beauty.