The first quarter of 2024 has shown very encouraging signs for global performance in hair & beauty. This confirms the trend that has distinguished itself over the past few years. Some observers were showing caution following precipitous market growth leading into 2023 and were betting on more contained growth in 2024. After the first quarter, we can look at the situation with more optimism, as the main players lead a steady growth across global markets.

The data published by L’Oréal for the first quarter show global sales increased by Euro 11.24 billion which is equal to +8.3 % compared to the same period of 2023 (+9.4% like-for-like).

The company report calls these ‘stellar results’ and they enable L’Oréal to continue to outperform in an already dynamic global beauty market.
Particularly remarkable is the growth in Europe and the Emerging Markets.
Perpetrated growth in both, volume and value is derived from the continuous strive for innovation and the attention to trending issues like diversity and inclusion.
Commenting on the figures, Nicolas Hieronimus, CEO of L’Oréal, said:
“2024 is off to a very good start with like-for-like growth of +9.4%, perfectly illustrating the power of our unique model. We are a pure player in beauty, a category that has once again proven its relentless growth capacity. Our multipolar approach to beauty – from luxury to mass, professional to dermatological, in all channels, all price points, and all geographies – allows us to seize all growth opportunities and offset temporary points of softness.
… In an environment that continues to be marked by economic and geopolitical tensions, we are optimistic about the outlook for the beauty market and confident in our ability to keep outperforming it and to achieve another year of growth in sales and profit.”

Here is a summary of some of the other information from the recent L’Oréal report, which enlightens the global trends of different divisions and geographical regions.

Divisions
The company report underlines that the Professional Products Division achieved robust growth of +10.7% like-for-like and +8.7% reported.
This included a positive phasing impact ahead of the implementation of new IT systems in North America.
Professional Products advanced across all regions with outstanding performances in North America, the United Kingdom, mainland China, Brazil and GCC3 (Gulf Cooperation Countries).
The Division continued to pursue its winning omni-channel strategy: growing in salons, accelerating in e-commerce and deploying its brands in the selective channel.
By category, haircare remained particularly dynamic thanks to strong consumer appetite for premium products.

Among other Divisions outstanding was the start of the Consumer Products Division at +11.1% like-for-like and +9.2% reported. The volume growth remained positive and value growth (combining price and mix) was robust.
Smaller numbers for L’Oréal Luxe Division thatgrew +1.8% like-for-like and +2.2% reported.
Strong growth in Europe and North America was partly offset by the softness in North Asia. In this region, the Division was penalised by an unfavourable comparison base in Travel Retail and sluggish market growth in mainland China, where L’Oréal Luxe continued to grow ahead of the market.

Impressive growth reported by the Dermatological Beauty Division +21.9% like-for-like and +19.6% reported.
The Division maintained its strong momentum, advancing 1.6 times faster than its dynamic market, a clear vindication of its successful growth strategy.

Regions
Analysing the different regions the report outlines the performance of Europe where sales had a stellar start to the year with growth of +12.6% like-for-like and +12.2% reported. outperforming an already buoyant market.
Growth was broad-based by country with particularly remarkable performances in the Germany-Austria-Switzerland, Spain-Portugal, and UK-Ireland hubs.

Sales in North America saw robust growth of +12.3% like-for-like and +11.9% reported.
This included a significant positive phasing impact ahead of the implementation of new IT systems, which mostly benefited the Professional Products Division.
Amidst shifting market dynamics, growth remained robust, driven by strong online momentum, successful innovation, and a significant value contribution across all Divisions.
The Professional Products Division outperformed the market in haircare.

Sales in North Asia contracted -1.1% like-for-like and -3.9% reported.
While sequentially improving, Travel Retail continued to weigh on growth in the region.
In mainland China, where the beauty market remained sluggish, L’Oréal significantly outperformed at +6.2%. Japan and Hong Kong SAR both benefited from the resurgence of tourism, posting double-digit growth.

SAPMENA–SSA (South Asia Pacific, Middle East, North Africa, and Sub-Saharan Africa)
Sales in SAPMENA-SSA saw outstanding growth of +16.4% like-for-like and +14.4% reported.

In SAPMENA growth was broad-based with all categories and Divisions advancing strongly and with value and volume both contributing.
By country, the main growth contributors were the Australia-New Zealand and GCC3 clusters as well as South-East Asia.
Online remained particularly dynamic across the region, notably in South-East Asia.

SSA saw remarkable growth. All countries advanced in double digits. All categories contributed.

Sales in Latin America saw outstanding growth of +16.2% like-for-like and +18.7% reported.
Growth was driven by a positive contribution from both value and volume.
All the core categories advanced in double-digits, led by haircare thanks to the spectacular growth in Consumer Products – followed by skincare and makeup.
By country, Mexico and Brazil were the top two contributors, with Mexico showcasing exceptional growth exceeding +25%.
Sales progressed faster online than offline, driven primarily by online pure players.