Top Companies Report

2. L’Oréal

August 11, 2011

The Body Shop rolled out Rainforest hair care this year.


Sales: $25.8 billion

Key Personnel:

Jean-Paul Agon, chairman and chief executive officer; Laurent Attal, executive vice president, research and innovation; Jean-Philippe Blanpain, managing director, operations; Nicolas Hieronimus, managing director, luxury products; Jean-Jacques Lebel, president, L’Oréal consumer products division, worldwide; Brigitte Liberman, worldwide president, L’Oréal active cosmetics division; Marc Menesguen, managing director, strategic marketing department; Christian Mulliez, executive vice president, administration and finance; Alexander Popoff, managing director, Latin America zone and Africa, Middle East zone; Sara Ravella, general manager, corporate communications and external affairs; Frederic Rozé, managing director, North America zone; Geoff Skingsley, executive vice president, human resources; An Verhulst-Santos, general manager, L’Oréal professional products division.

Major Products:

Hair care, skin care, sun care, color cosmetics, toiletries and fragrances sold under many brand names in different channels. Consumer—Garnier, L’Oréal Paris, Le Club des Créateurs, Maybelline, SoftSheen-Carson. Professional—L’Oréal Professional, Kerastase, Redken, Matrix, Mizano, Shu Uemura Art of Hair, Keraskin Esthetics. Luxury—Lancôme, Biotherm, Helena Rubenstein, Kiehl’s, Shu Uemura, Giorgio Armani, Ralph Lauren, Cacharel, Viktor & Rolf, Diesel, YSL Beauté. Active Cosmetics—Vichy, LaRoche-Posay, Innerve, SkinCeuticals, Sanoflore. Personal care—The Body Shop.

New Products:

Maybelline New York The Falsies mascara, L’Oréal Paris Matte Morphose and Youth Code, Garnier Pure Active Exfo-Brusher, L’Oréal Paris Volume Million Lashes; Professional—Matrix Socolor Dream Age, Kérastase Elixir Ultime, Redken Style Connection, L’Oréal Professionnel Fiberceutic; Luxury—Lancôme Hypnôse Precious Cells, Trésor in Love and Teint Miracle, Yves Saint Laurent Rouge Pur Couture and Belle D’Opium, Ralph Lauren Big Pony; Active—Vichy Normaderm Tri-Activ, La Roche-Posay Anthélios with Mexoplex, Innéov Hair Health DS, Skinceuticals Pigment Regulator and Sanoflore Nourishing Regenerating Honey Range; The Body Shop—Rainforest, Natrulift and Dreams Unlimited.


After a tumultuous couple of years, 2010 marked L’Oréal’s return to growth as consumers returned to cosmetics counters, beauty aisles and fragrance tables around the world. By division, consumer products accounted for 52.5% of sales, followed by luxury products (24.9%), professional products (15.0%) and active cosmetics (7.6%).

Consumer product sales rose 5.5% to more than $12.6 billion. The company credits the gain to the introduction of Youth Code, which marks a new era in mass market skin care, according to L’Oréal, and the successful debuts of Elséve in India, China and Southeast Asia. Professional products’ sales rose more than 4% to nearly $3.6 billion on the success of Matrix products in emerging markets and the continued expansion of Inoa hair colorants. Luxury product sales rose 7% to nearly $6 billion as Lancôme skin care posted double-digit gains and sales in Asia soared nearly 20%. Sales of active cosmetics rose 4.7% to more than $1.8 billion as Vichy posted an 18.4% gain in Latin America. Finally, The Body Shop posted sales in excess of $1 billion and received a boost from a 31% gain in e-commerce sales.

By business segment, skin care accounted for 27.2% of sales, followed by hair care (22.1%), makeup (21.2%), hair colorants (15.0%), perfumes (10.0%) and other (4.5%).

By region, Western Europe accounted for 39.6% of sales, followed by New Markets (36.8%, of which 47.9% came from Asia Pacific, 20.9% Eastern Europe, 22.8% Latin America and 8.4% Africa, Middle East) and North America, 23.6%. But like other companies, L’Oréal’s focus these days is on the developing world.

Earlier this year, chairman Jean-Paul Agon made it clear that L’Oréal’s future is solidly entrenched in emerging markets such as China, India and Brazil. According to L’Oréal’s estimates, by 2020, consumers in emerging markets will reach 2.7 billion with total spending power that is equivalent to current levels in the US. In contrast, L’Oréal’s 2010 sales were achieved with less than 15% of the planet’s global population. Therefore, in addition to the BRIMC (Brazil, Russia, India, Mexico and China) countries, the company has targeted 15 growth markets for its products: Poland, Ukraine, Argentina, Colombia, Indonesia, Thailand, Vietnam, Philippines, Turkey, Egypt, Saudi Arabia, Pakistan, Kazakhstan, South Africa and Nigeria. These new consumers are often urban and live in the megalopolises of the southern part of the world, such as Shanghai, New Delhi and Rio. Sales in emerging markets rose 11.3% last year. Taking a closer look at this dynamic segment, sales in Asia Pacific rose more than 11% to $4.2 billion as the company gained share in India, the Philippines, Indonesia, South Korea and Taiwan. Sales in Eastern Europe rose more than 8% on gains in Russia and Ukraine, where consumer demand for makeup, Garnier and all products within the luxury division were strong. Sales in Latin America jumped 17.5% to more than $2 billion as Brazil and Argentina posted good growth and Mexico posted gains as well. Finally, sales in Africa and the Middle East rose 4.1% to $741 million, helped along by gains in Lebanon and Morocco.

Last year, L’Oréal USA acquired Peel’s, C.B. Sullivan, Maly’s Midwest and Marshall salon services to expand its position in the US hair salon market.

For the first half of 2011, sales rose 5% to $13.3 billion. Professional product sales rose 4.2% to nearly $1.9 billion; consumer products sales rose 4.5% to $6.6 billion; luxury product sales were up 6.9% to about $2.9 billion; active cosmetics sales rose 4.9% to $1 billion; The Body Shop sales rose less than 1% to $446 million and sales of dermatology products jumped 13.6% to more than $400 million.

Related End-User Markets:

  • Erasa

    Erasa's New Evangelist(a)

    January 9, 2017
    Impressed by the performance of its hero SKU, supermodel Linda Evangelista joins the company in a hand's on role.

  • Discourse on Disclosure

    Discourse on Disclosure

    Tom Branna, Editorial Director||January 6, 2017
    Transparency impacts the cleaning industry.

  • The Top Stories of 2016

    The Top Stories of 2016

    December 26, 2016
    The companies and topics that grabbed headlines and your attention this year.

  • On the Edge

    On the Edge

    January 6, 2017
    Expanding beauty brands to watch in 2017

  • The World Comes to Orlando

    The World Comes to Orlando

    Tom Branna, Editorial Director||December 1, 2016
    More than 1,600 chemists traveled to Florida for the IFSCC Congress

  • The Plex Phenomenon

    The Plex Phenomenon

    Denise Costrini, Croda North America||December 1, 2016
    Croda details the hair-protecting qualities of bond multipliers and the company’s new bond-building formulation system.

  • New Hair Care Ingredients

    December 1, 2016
    Check out the latest releases from suppliers.

  • Hair & Now

    Hair & Now

    Melissa Meisel, Associate Editor ||December 1, 2016
    The shampoo and conditioner category is expanding with modern takes on these classic formulations.

  • Perform or Perish

    Perform or Perish

    Christine Esposito, Associate Editor||December 1, 2016
    Success in today’s skin care sector begins with active ingredients, formulated in products that address modern-day issues.

  • New and Noteworthy:  Fine Fragrance Roundup  for Fall 2016

    New and Noteworthy: Fine Fragrance Roundup for Fall 2016

    Melissa Meisel, Associate Editor||November 2, 2016
    Check out the latest launches in fragrance this season.

  • Soap Opera

    Soap Opera

    Christine Esposito, Associate Editor||November 2, 2016
    FDA’s recent antibacterial ruling has soap sector stakeholders scrambling to keep some ingredients in their formulation kit.

  • A-Okay!


    Imogen Matthews, For In-Cosmetics||November 2, 2016
    K-Beauty influences cosmetic development around the world.

  • Next Gen  Antiseptics

    Next Gen Antiseptics

    Emily Kalal and Katherine S. Maka, RITA Corporation||November 2, 2016
    RITA researchers detail the benefits of 0.75% chlorhexidine gluconate (CHG) antiseptic handwash

  • Change Is in the Air

    Change Is in the Air

    Doreen Wang, BrandZ ||October 3, 2016
    Technology is changing the personal care market

  • Skin Care of One’s Own

    Skin Care of One’s Own

    Christine Esposito, Associate Editor||October 3, 2016
    Nu Skin’s ageLOC Me—which melds the worlds of smart-phone technology, efficacious ingredients and personalization

  • Proof Positive

    Proof Positive

    Christine Esposito, Associate Editor||October 3, 2016
    Testing service providers enable companies to back up their claims and stay in compliance with regulations.

  • Back to School

    Back to School

    Tom Branna, Editorial Director||September 1, 2016
    It may be September, but class was in session this summer during the Private Label Manufacturers Association’s Executive Educ

  • How Green Is Your Surfactant?

    How Green Is Your Surfactant?

    Tom Branna, Editorial Director ||September 1, 2016
    Suppliers offer a range of solutions to help household and personal care product formulators develop formulas

  • What

    What's In Your Formula?

    Christine Esposito, Associate Editor||September 1, 2016
    A look at the ingredients beauty brands are using to fuel their formulations and capture consumers’ attention.

  • Works of Art

    Works of Art

    Tom Branna, Editorial Director||August 1, 2016
    These suppliers know that the container can be just as important as the juice to entice luxury shoppers.

  • Sustainability is Omnipresent

    Sustainability is Omnipresent

    Christine Esposito , Associate Editor||July 1, 2016
    Industry stakeholders convene in New York City for Organic Monitor’s annual event

  • Perceived Perfection

    Perceived Perfection

    Christine Esposito, Associate Editor||July 1, 2016
    From primers to pressed powders, facial cosmetics help create the illusion of a flawless complexion.

  • Preserve & Serve

    Preserve & Serve

    Melissa Meisel , Associate Editor||July 1, 2016
    Suppliers with innovative preservatives provide staying power for formulations.

  • Quaternized Guar Is a Natural Solution

    Quaternized Guar Is a Natural Solution

    Tom Schoenberg, Schoenberg Consulting||July 1, 2016
    The polymer has applications in a range of skin and hair care formulas that does not build up on hair with repeated use

  • Take Notice

    Take Notice

    Melissa Meisel , Associate Editor||June 1, 2016
    Packaging trends revolve around trendy artwork, eco-conscious materials—and portability is a plus too!

  • Virtual Reality

    Virtual Reality

    Christine Esposito, Associate Editor||June 1, 2016
    An update on nature-identical ingredients for cosmetics and personal care products.

  • Shiseido Advances in the US

    Shiseido Advances in the US

    Tom Branna, Editorial Director||June 1, 2016
    New facility in Windsor, NJ demonstrates its dedication to the US and other markets outside Japan.

  • Get Smart About Your Big Data

    Get Smart About Your Big Data

    Christine Esposito, Associate Editor||June 1, 2016
    Experts at the IRI Growth Summit explain how to make personal connections with customers.