In 2023 the cosmetic industry will generate 800,000 million
- Isabel Gaspar
Estilistas, cuidados de las uñas, centros de bronceado, tratamientos estéticos para luchar contra el envejecimiento... En los últimos años todo lo relacionado con el cuidado personal y la imagen que proyectamos se ha disparado y los datos así lo demuestran. Según CB Insights, en 2023 la industria cosmética generará 800.000 millones de dólares, un 50% más que en 2017, cuando la facturación alcanzó los 530.000 millones. Esta evolución tiene dos principales catalizadores: el aumento de la esperanza de vida y las nuevas generaciones.
In this regard, if two decades ago we were expected to live globally 67.4 years on average, today this forecast already exceeds 72 years."The rapid aging of the population has led to a strong demand for products to prevent the passage of time, promoting the growth of the industry," Orbis Research consultant indicates.In fact, skin care has been and will be the most profitable business line of the sector, with a market share of more than 35%, according to the data collected statist.
On the other hand, the new generations and their way of consuming are assuming an unprecedented change in the industry.The access channels to these products have multiplied exponentially thanks to the Internet.Now, the clientele does not have to approach a store, but it has an infinite catalog at its disposal to click.Already in 2017 those known as millennials (born between 1980 and 2000) consumed 25% more cosmetics than two years before.It is not surprising this increase considering that they usually use 6 or more beauty products per day, according to NPD.
If millennials, which suppose more than 2.000 million people worldwide compared to 1.400 million of generation X (1965-1980) and 1.200 of the Baby Boomers (1945-1964), are a crucial growth engine, later generations are not far behind.Generation Z and generation T, are digital natives, so their consumption habits are very marked by this circumstance.
Para muestra un botón: el año pasado se vieron cada día más de un 1 millón de videos de belleza en YouTube, al tiempo que, como informa Ernst & Young, casi un 70% de las compras están influenciadas digitalmente.To this joins the fact that more and more men consume cosmetic.EY foresees a 6.4% growth between 2017 and 2021 in this segment.
"From the acquisition of Dollar Shave Club by Unilever in 2016, the mergers and acquisitions of personal care brands for men have shot. A finales de 2018, P&G compró Walker & Company Brands, en mayo de 2019 Edgewell adquirió Harry's Razor Company y, recientemente, SC Johnson compró la marca de cuidado de la piel para hombres Oar + Alps", argumentan desde CB Insights.
The big beneficiaries
How could it be otherwise, the main beneficiaries of these trends are industry companies.According to expert forecasts, the ten largest companies in the sector will win together almost 51.000 million dollars in 2021, 6% more than last year.
El S&P Global Luxury, compuesto por las 80 mayores empresas cotizadas cuyos negocios están relacionados con la producción o la distribución de bienes de lujo o que ofrecen servicios en este ámbito, incluye entre sus filas a cuatro firmas cosméticas.This is Estée Lauder, Shiseido, Amorepacific and Interparfums.Among them, the favorite of the experts is, without a doubt, the company founded by Josephine Esther Mentzer, better known as Estée Lauder, and her husband Joseph Lauder in 1946.
Influenced by her pharmaceutical uncle, Estée Lauder, who was in charge of creativity, products and sales, while her husband administered finances and operations, started her small business with four products that she started selling in the halls ofManhattan beauty.73 years later, Estee Lauder Companies is one of the largest conglomerates in the sector.
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Ok in bag more than 70.000 million dollars, earns more than 1.700 million and invoice almost 15.000 million in the more than 150 countries in which it is present.Among its more than twenty brands are some such as Bobbi Brown, M · A · C, Too Faced or Tom Ford Beauty.For Deborah Aitken and Maxime Boucher, analysts of the Bloomberg industry, the firm is confirming with its figures "the profitable improvements in the models of China, Asia and skin care.With almost 50% of income and more than 80% of benefits, skin care drives its success ".
The importance given by the North American group to this line of business has been demonstrated with its last purchase, the first one that makes K-Beauty (it is a general term for products for the care of the skin derived from South Korea).Thus, Estée Lauder has made the two thirds that he did not have of the firm Have and Be, owner of the Rigth Thing and DR.Jart+, and valued in 1.700 million dollars.The objective is to expand in Asia/Pacific, which currently accounts for 25% of its turnover, North America and the United Kingdom.
"We like Esee Lauder.In 2015, during the K-Beauty fashion apogee, while others cried out for taking advantage of this emerging trend, the firm decided first to acquire a minority investment in DR.Jart+, known as the "BB cream pioneer", but also appreciated for its innovative formulations.Four years later, while K-Beauty is not generating as much expectation as it had done at that time, we believe that Dr.Jart+ is one of the fastest growing skin care brands and attracts a wide range of consumers in Asia and the United States "indicate from Barclays.
For fiscal year 2020, which will be closed next August, estimates suggest that the American company would win about 2.200 million dollars, 22.3% more than in the previous period.
A month after 2019 is terminated, the firm rises more than 50%, which would be its best stock market since 2010.In fact, in September it marked historical maximums when reaching $ 207.03 per share.The analysts who follow it, which recommend in more than 60% buy their titles, believe that it still has a tour up to $ 208.18, of which it is more than 6%.
Another of the companies that have gone shopping to strengthen your business has been Shiseido.The Japanese brand announced in October that it was done with a hundred percent of the American company Drunk Elephant for 845 million dollars.To do this, he had to fight, precisely, with Estée Lauder.It is not surprising the fight for drunk elephant taking into account that its main audience is the millennial generation.
In addition to opening a window to this social group, Shiseido has bought the concept of "clean beauty", since Drunk Elephant is known for its formulas free of ingredients with bad reputation and for its sustainable philosophy.Hence, connect so well with this part of the population.This movement is part of the vision of its CEO, Masahiko Uotani, which arrived in 2014.Uotani, who is the first in his position that comes from outside the firm in his over 140 years, wants to turn Shiseido into a global brand.Therefore, he appointed five non -Japanese general directors."Investing in Shiseido lies in the creation of a new value of the brand under the strong leadership of Masahiko Uotani," they argue from JP Morgan.
If the forecasts hit, this year Shiseido will improve their benefit by 31%, up to 730 million dollars, a record figure."We believe that the long -term perspectives for the growth of benefits are brilliant thanks to the acceleration of strategic investments," they add from JP Morgan.According to EY data, both in 2017 and 2018 the activity in mergers and acquisitions in the field of cosmetics reached historical maximums."Despite an increasingly saturated market, beauty has proven to be a solid investment category thanks to its high margins, recurrent purchase patterns and general resistance to macroeconomic events such as recessions" explain from CB Insights.
For its part, the South Korean Aiempacific, a conglomerate of beauty and cosmetics, defends one of the highest gross margins in the sector.For 2019 it is expected to be 72.8%, that is, of every $ 100 entered, $ 72.8 would be gross benefit.Only South Korea represents more than 60% of its turnover.
In the case of the French Interparfums, one of the great multinational perfumery, although it has a sales recommendation, has in its favor the importance of this segment.According to Stanpa, National Association of Perfumery and Cosmetics, "Perfume consumption represents 20% of the total beauty industry".