L'Oréal (OR) Investor Update summary

Market context and growth drivers

• Luxury beauty has become the leading category in luxury personal goods, with a 6.3% CAGR over the past decade, driven by new customer penetration and growth across all age groups.

• The luxury personal goods market grew from €280bn in 2015 to €415bn in 2024, with luxury beauty sales reaching €81.5bn in 2024.

• Regional growth is led by North Asia, North America, and Europe, with emerging markets accelerating rapidly, though still a small share of the total.

• Fragrance and skincare are the most dynamic categories, with fragrance recently outpacing skincare, reflecting shifts in regional demand.

• Client base is diversified across generations, with Gen X and Boomers representing the largest shares.

Performance and market leadership

• Sales have more than doubled in 10 years, from €7.2bn in 2015 to €15.6bn in 2024, with a 9.3% CAGR, consistently outperforming the market for 14 consecutive years.

• Market share increased from 14% in 2015 to over 19% in 2024, now representing nearly one-fifth of the global luxury beauty market.

• Holds the position of worldwide leader in luxury beauty, significantly ahead of main competitors.

• Profitability stands at 22.3% before non-allocated items in 2024, significantly higher than key competitors.

• 2025 is projected as another year of outperformance.

Strategic advantages and innovation

• Access to advanced R&D and Beauty Tech ensures first access to breakthrough technologies in skincare, makeup, and fragrance.

• Beauty Tech innovations, such as advanced skin diagnostics and assistive devices, enhance customer experience and inclusivity.

• In-house production and a diverse, global talent pool support quality, flexibility, and operational excellence.