Editor’s Note
This article highlights L’Oréal’s position at the pinnacle of the latest Brand Finance Cosmetics 50 ranking, underscoring its sustained dominance in the global beauty industry.
Each year, the brand valuation consultancy Brand Finance analyzes 5,000 of the world’s largest cosmetics brands and publishes over 100 reports, ranking brands by their valuations across all sectors and countries. In this new report, L’Oréal unsurprisingly rises to the top spot.
Brand Finance, the brand valuation consultancy, recently published its Cosmetics 50 report, an annual ranking of the world’s most valuable cosmetics companies. In this new report, L’Oréal tops the list with a value up 7% to $12 billion. The beauty leader is followed by Estée Lauder and Nivea, which take the second and third spots on the podium respectively. This Top 3 remains unchanged from the previous year.
Estée Lauder shows a spectacular rise, moving from 5th to 2nd place on the podium in three years, reaching $7.2 billion.
Still in the luxury segment, the brands Guerlain (LVMH) and Lancôme (L’Oréal Luxe) enter the Top 10 of the Cosmetics 50 this year, with valuations of $6.3 billion and $5.2 billion respectively. After being outside the Top 10 in 2021, Lancôme made a strong comeback to seventh position. Meanwhile, Guerlain has seen a continuous decline in the ranking year after year, falling from 4th place in 2021 to 6th place this year.
commented Annie Brown, General Manager of Brand Finance.
According to her, the year 2022 saw a list of macro-economic and political events – such as Covid-related restrictions, the conflict in Ukraine, and social tensions arising from inflation – that could have destabilized the smooth operation of a cosmetics brand.
she explains.
1. L’Oréal
2. Estée Lauder
3. Nivea
4. Gillette
5. Dove
6. Guerlain
7. Lancôme
8. Clinique
9. Pantene
10. Garnier
L’Oréal, one of the world’s most popular and well-known cosmetics brands, operates in over 150 countries and has a global portfolio of over 30 brands. Following the appointment of Nicolas Hieronimus as new CEO in 2021, L’Oréal has also increased its efforts in digital transformation and sustainability.
Brand Finance concluded in its analysis that L’Oréal’s popularity had increased significantly thanks to the company’s increased online presence and its digital marketing strategies. Indeed, L’Oréal has leveraged its huge social media audience, counting over 10 million followers on Instagram and 438,000 on TikTok, by producing engaging content driven by popular influencers. This approach has strengthened brand awareness among young consumers.
Furthermore, L’Oréal boasts a constantly evolving range of innovative products. In 2023, the company presented two technology prototypes at CES 2023. The first, HAPTA, is a makeup applicator launched via Lancôme designed for people with limited hand and arm mobility. This beauty device includes an AI-managed motion stabilizer. The second, called L’Oréal Brow Magic, is an electronic eyebrow makeup applicator, developed with Prinker, an innovative company pioneering non-permanent tattoos – which allows users to get a customized look in seconds. Backed by the skin diagnostic technology Modiface – owned by L’Oréal – the customer can benefit from multiple recommendations, particularly regarding shading and filling. These innovations demonstrate L’Oréal’s commitment to research and development of new products to meet consumer needs.
According to Brand Finance’s study, sustainability and transparency play a crucial role in the reputation of cosmetics brands. The consultancy thus assesses and calculates for each brand the Sustainability Perceptions Value (SPV).
L’Oréal is once again at the top of the ranking, with an SPV of $1.24 billion.
The brand has been recognized by Ethisphere as one of the world’s most ethical companies for the 14th time. The measures taken by the French giant in favor of sustainable innovation include promoting eco-responsible formulas in its products, producing environmentally friendly packaging, and reducing waste and carbon emissions across all its operations.
It should be noted that the SPV table does not assess a brand’s performance in sustainable development, but rather indicates its value linked to the perception of sustainability.