The Top 20

Welcome to Beauty Packaging’s fifth annual ranking of the Top 20 Global Beauty Companies. Please look closely: While the listing at first appears to include just 16 spots, there are several ties. This in itself is indicative of today’s highly competitive global beauty market; many of these leaders are literally neck-in-neck—“beauty bunches” vying for dominance in key areas. The contenders themselves are headquartered throughout the world: Eight are U.S.-based, while a dozen call other countries home; almost a quarter follow the direct-seller route. The first portion of our list remains virtually unchanged from last year, while the second half shows more volatility. Natura and Chanel are newcomers; Alberto Culver has dropped off by a fraction, but with its recent purchase of Noxzema from P&G, it will most likely be back before too long.

While many of these Top 20 companies admit to the challenges of the past year, such as rising material costs, out-of-whack currency fluctuations and the economic downturn in Europe and North America, they have taken quick steps to implement corrective plans. Corporate restructuring has been a common attempt at a solution. In general, companies seem focused on strengthening and expanding existing brands and letting go of underachievers. Innovation was emphasized by almost all as a high priority for keeping pace and achieving continued success.

For the most part, the industry seems healthy, if, perhaps, a little less profit-heavy. Most of the companies listed in our Top 20 posted 2007 sales gains within their beauty and personal care divisions. All in all, the combined total amounts to a whopping $138.1 billion, a rise of almost $23 billion over last year’s figure.

While all of these Top 20 companies exhibit marked differences, one striking commonality stands out: From P&G and Avon in the U.S. to Natura in Brazil to Kao in Japan, all are focused on the promising fortunes of emerging markets—in particular, China.

Sustainability is another common issue among industry leaders, with many now filing annual sustainability reports. There’s no doubt that green is here to stay and many of those listed here, including Natura and Yves Rocher, have made major commitments in this area.

In compiling this report, companies were analyzed according to fiscal 2007 data (except as noted). Beauty sales included cosmetics, fragrance and personal care items; oral care and deodorant were excluded when possible. Figures for companies outside the U.S. were based on the exchange rate for the fiscal year; numbers were rounded to the nearest hundred million.