Cosmetics and Beauty Stocks: What are the Top Market Players

Posted By Airah Lynn Balingit on August 2023

Cosmetics and Beauty Stocks: What are the Top Market Players

The cosmetics and beauty industry is a diverse and dynamic one, with many companies offering a variety of products and services, from makeup and skin care to fragrances and hair products. In this blog post, we will look at some of the largest and most influential cosmetics and beauty companies by market cap, as well as some of the fastest-growing and best-performing ones.

According to CompaniesMarketCap.com, the largest cosmetics and beauty company by market cap as of September 2022 is **L'Oréal**, with a market cap of $239.18 billion. L'Oréal is a French company that owns many well-known brands, such as Lancôme, Maybelline, Garnier, Kiehl's, and The Body Shop. L'Oréal has a global presence and a strong focus on innovation and sustainability.

The second-largest cosmetics and beauty company by market cap is **Estee Lauder**, with a market cap of $54.68 billion. Estee Lauder is an American company that also owns many popular brands, such as Clinique, MAC, Bobbi Brown, La Mer, and Jo Malone. Estee Lauder has been growing rapidly in recent years, especially in Asia-Pacific and online channels.

The third-largest cosmetics and beauty company by market cap is **Givaudan**, with a market cap of $29.44 billion. Givaudan is a Swiss company that specializes in fragrances and flavors. Givaudan supplies many of the leading cosmetics and beauty brands with its products, as well as other industries such as food and beverages.

Other notable cosmetics and beauty companies by market cap include **ULTA Beauty**, **Kaō**, **International Flavors & Fragrances**, **Shiseido**, **Coty**, **e.l.f. Cosmetics**, and **Amorepacific**.

When it comes to growth and performance, some of the top cosmetics stocks are:

- **Olaplex Holdings**, which has a 12-month trailing P/E ratio of 29.5 and a YOY revenue growth of 90.4% in Q2 2022.
- **e.l.f. Cosmetics**, which has a 12-month trailing P/E ratio of 54.8 and a YOY revenue growth of 50.4% in Q1 2022.
- **ULTA Beauty**, which has a 12-month trailing P/E ratio of 19.7 and a YOY revenue growth of 60.2% in Q2 2022.

These companies have been able to capitalize on the rising demand for premium hair-care products, affordable makeup products, and omnichannel beauty retailing, respectively.

The cosmetics and beauty industry is expected to grow at a compound annual growth rate (CAGR) of 5.9% from 2021 to 2027, reaching $463.5 billion by 2027, according to Allied Market Research. Some of the key drivers for this growth are the increasing awareness of personal grooming, the rising disposable income, the changing lifestyles, the growing e-commerce platforms, and the emerging trends such as natural and organic products, personalized products, and social media influence.

The cosmetics and beauty industry is also facing some challenges, such as the environmental impact of its products and packaging, the regulatory compliance issues, the competitive pressure from new entrants and substitutes, and the changing consumer preferences and expectations.

Therefore, investors who are interested in the cosmetics and beauty industry should look for companies that have a strong brand portfolio, a loyal customer base, a diversified geographic presence, a robust innovation pipeline, a sustainable business model, and a competitive edge in the market.