Pure beauty players pulled further ahead of conglomerates in 2026 through dermocosmetics, fragrance licensing and sun care innovation, while exposure to commoditised personal care, affordability pressure and private label encroachment challenged the conglomerates. As licensing and acquisitions reshape portfolios, the structural gap between pure beauty players and conglomerates is widening into 2027.
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Key Findings
L’Oréal extends lead, as dermocosmetics and fragrance licensing drive share gains
L’Oréal Groupe retained its global leadership position and expanded its market share to 11.9% in 2025, up from 10.2% in 2020 – the largest share gain among the top 10 beauty players. Dermocosmetics brands La Roche-Posay and CeraVe grew strongly, and 50-year licences for luxury fragrance brands have further extended its portfolio into 2026 and 2027.
Conglomerates lose ground as commoditised personal care drags growth
Procter & Gamble, Unilever and Kenvue were negatively impacted by personal care categories and inflationary pressure. The growth of private label is most noticeable in personal care categories, with growth across regions, particularly in Western Europe. Private label penetration is growing in Latin America and Asia Pacific, although its share remains low.
Portfolio reshaping accelerates through M&A and licensing
Beauty players across the price spectrum are moving to reduce single-category dependence and access new growth engines. L’Oréal’s multi-tier portfolio insulates it from single-brand risk, whilst Estée Lauder is leveraging fragrances to diversify beyond its skin care anchors. Puig’s ISDIN acquisition is transforming it into a dermocosmetics contender, while e.l.f. Beauty is using acquisitions to break free of its dependence on colour cosmetics.
Fragrances remains the standout performer, with high growth in mass but premium fragrances leading innovation
Fragrances was the fastest growing category globally in 2026, with growth estimated at 9%, fuelled by Gen Z adoption, scent layering, body mists and premium momentum in the Middle East and China. Licensing deals have proven particularly successful, with Tom Ford and Jo Malone London reaching billion-dollar brand status.
Skinification is redefining hair care and sun care as competitors strengthen presence across categories
Sun care grew by 7% globally in 2026, propelled by surging company investment in UV protection technologies. Hair care grew by 6%, driven by launches that contain skin care ingredients. Players such as Kolmar Korea and Coola are introducing products that address scalp health and offer sunscreen benefits, underlying the growth of longevity-linked ingredients and greater consumer awareness of UV damage to the skin and scalp.
Key findings
The beauty and personal care industry accelerates in 2026
Our expert’s view of competitor strategies in beauty and personal care
Top companies in beauty and personal care
E-commerce closes gap on specialists as value channels surge
The beauty and personal care industry accelerates in 2026
Top five trends in beauty and personal care in 2026
Top five trends uncovered
Pure beauty specialists outpace diversified conglomerates into 2027
L’Oréal Groupe gained share over 2020-2025, despite increasing fragmentation
Dermocosmetics and fragrance fuel share gains
Diversification beyond home markets sets the leaders apart into 2027
Fragrance expansion and portfolio reshaping redefine company strength
Puig and e.l.f. Beauty bet on acquisitions to break single-category dependence
US and China lead beauty e-commerce as TikTok Shop disrupts and C-beauty scales up
Dermocosmetics, fragrance and K-beauty converge to redefine beauty’s growth agenda
Scalp health fuels premiumisation as skinification extends beyond hair care
Sun care surges as innovation and private label reshape the category
US-based longevity hair care brand Vegamour launches Scalp Clarifying Treatment
Kolmar Korea and K-beauty lead sun care format innovation with scalp UV protection
Dermocosmetics, fragrances, K-beauty reshape beauty’s competitive landscape
Opportunities for growth
Questions we are asking
Beauty and Personal Care
This is the aggregation of baby and child-specific products, bath & shower, colour cosmetics, deodorants, depilatories, fragrances, hair care, men's grooming, oral care, skin care and sun care. Black market sales and travel retail are excluded.
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