10.18.23
Beiersdorf is #7 on our Top Global Beauty Companies report.
All regions and brands contributed to the growth in the Consumer Business Segment. Beiersdorf gained market share on every continent, particularly with the NIVEA brand in Europe, with very strong development in Switzerland, the UK and Spain, and with the Derma business unit’s Eucerin and Aquaphor brands in the U.S., Mexico and Germany.
The rates of sales growth also trended upward in all regions, especially in the Americas and in Africa/Asia/Australia, where sales rose by double-digit percentages year on year. The company’s core brand NIVEA achieved strong growth rates overall, driven especially by the emerging markets region, the introduction of new products, and a strong performance by the basic range.
Derma, Healthcare and the La Prairie brand also contributed to strong growth figures and added to the business segment’s excellent performance. Positive growth also came from the Eucerin face category, mainly from the subcategories anti-pigment and acne, driven by the further expansion of the Thiamidol range. In addition, the sun category contributed to strong above-average growth, supported by the launch of Eucerin Sun in the U.S. and the success of new product launches such as Oil and Pigment Control Tinted. In Body Care, the Eucerin Urea range and Aquaphor recorded particularly strong sales growth. In general, the online sales channel was an important sales driver.
2022-2023 Highlights: In December 2022, Beiersdorf AG acquired a majority stake in S-Biomedic NV, Belgium, a life-science company and frontrunner in the field of skin microbiome research. Beiersdorf already invested in S-Biomedic in 2018 as part of its corporate venture capital activities. Following years of successful cooperation, the collaboration has now become even closer. S-Biomedic will continue to be managed as a standalone entity under Beiersdorf’s existing microbiome program and will complement the company’s own research activities in this field.
In January 2023, the company’s R&D department used its knowledge of the skin and research expertise to tailor a unique cosmetic sun protection product, specially made for a girl named Charlotte with a rare light disease called EPP. When Charlotte’s skin comes into direct contact with the visible, colored components of sunlight, a genetic defect causes neuropathic pain and triggers burns on the skin. To help her, Beiersdorf added special light-scattering pigments to the cosmetic sunscreen. This prevents the light from penetrating the skin, allowing the girl to be exposed to sunlight for a short period of time – enabling her to enjoy a better quality of life.
In May 2023, Beiersdorf started cosmetic production at its new plant in Leipzig-Seehausen. Deodorants, hair sprays and shaving foams sold under brand names NIVEA, 8x4 and Hidrofugal are now being produced there for the European market.
In June 2023, Beiersdorf shared its progress on the implementation of its ‘Climate Care’ mission on the product level. With its Care Beyond Skin Sustainability Agenda, the company aims to achieve a 30% absolute reduction of CO2 emissions across the entire value chain (scope 1, 2 and 3) by 2025 (vs. base year 2018). To achieve this, Beiersdorf is collaborating intensively with its suppliers and reworking products and assortments of its global brands – both on the formula and packaging level. Milestones toward this goal include the introduction of Nivea Sun and Nivea Lip Care to market with relevant improvements and a reduced CO2 footprint, and launching a refill jar for Eucerin’s Hyaluron-Filler range.
Also in June, Beiersdorf invested in Swiss startup DePoly SA, which has developed an innovative chemical recycling technology which, unlike mechanical processes, allows for the recycling of difficult recyclable consumer and industrial plastic waste streams, such as those containing mixed plastics, mixed colors, dirty plastic waste streams, as well as fabrics and fibers. The chemical recycling technology converts these waste streams into their main raw components. Proceeds from the financing round will allow DePoly to accelerate the scale-up and development of its depolymerization process and build a showcase plant that is scheduled to be operational in 2024.
Looking Ahead: In August, Beiersdorf reported a strong first half of 2023, with organic group sales rising 12.3% led by Nivea (+18.4%) and Derma brands Eucerin and Aquaphor. The luxury brand La Prairie recorded a 9.9% dip in sales in the first six months, primarily due to considerable disruption in Asian travel retail markets caused by “daigou” business, which is when shoppers purchase goods abroad on behalf of domestic customers, offering these customers tax and price advantages over domestic retailers.
Given the positive sales trend and above-market growth in the first half of the year, Beiersdorf slightly increased its sales forecast for 2023 as a whole. The company expects organic sales growth at Group level to be in the high single-digit to low double-digit range. In the Consumer business, Beiersdorf also expects organic sales growth in the high single-digit to low double-digit range. The company believes there is an opportunity to achieve growth at the upper end of this range if the luxury market conditions improve.
Corporate Sales:
$9.33 billionBeauty Sales:
$7.8 billionKey Personnel:
- Vincent Warnery, CEO
- Executive Board Members: Oswald Barckhahn, Europe, USA, Canada; Grita Loebsack, Nivea; Ramon A. Mirt, Emerging Markets; Patrick Rasquinet, Pharmacy & Selective
Major Products/Brands:
Nivea, Eucerin, La Prairie, Labello, Florena, 8x4, Atrix, Aquaphor, Hidrofugal, Gammon, SlekMaestro, Coppertone, Chantecaille.New Products:
Nivea Soft (new formula), Nivea Men Climate Care Moisturizer, Eucerin Sun line, Chantecaille Real Glow Cosmos Collection, La Prairie White Caviar collection, Coppertone Glow Protect & Tan Lotion, Coppertone Complete, Coppertone 4-in-1 Sunscreen (redesigned packaging).Comments:
Beiersdorf’s overall group sales climbed 15.4% in fiscal 2022 to $9.33 billion, while its skincare and body care-focused Consumer Business Segment generated strong sales revenue of $7.8 billion. This represents a nominal increase of 16.3% and an organic increase of 10.5%.All regions and brands contributed to the growth in the Consumer Business Segment. Beiersdorf gained market share on every continent, particularly with the NIVEA brand in Europe, with very strong development in Switzerland, the UK and Spain, and with the Derma business unit’s Eucerin and Aquaphor brands in the U.S., Mexico and Germany.
The rates of sales growth also trended upward in all regions, especially in the Americas and in Africa/Asia/Australia, where sales rose by double-digit percentages year on year. The company’s core brand NIVEA achieved strong growth rates overall, driven especially by the emerging markets region, the introduction of new products, and a strong performance by the basic range.
Derma, Healthcare and the La Prairie brand also contributed to strong growth figures and added to the business segment’s excellent performance. Positive growth also came from the Eucerin face category, mainly from the subcategories anti-pigment and acne, driven by the further expansion of the Thiamidol range. In addition, the sun category contributed to strong above-average growth, supported by the launch of Eucerin Sun in the U.S. and the success of new product launches such as Oil and Pigment Control Tinted. In Body Care, the Eucerin Urea range and Aquaphor recorded particularly strong sales growth. In general, the online sales channel was an important sales driver.
2022-2023 Highlights: In December 2022, Beiersdorf AG acquired a majority stake in S-Biomedic NV, Belgium, a life-science company and frontrunner in the field of skin microbiome research. Beiersdorf already invested in S-Biomedic in 2018 as part of its corporate venture capital activities. Following years of successful cooperation, the collaboration has now become even closer. S-Biomedic will continue to be managed as a standalone entity under Beiersdorf’s existing microbiome program and will complement the company’s own research activities in this field.
In January 2023, the company’s R&D department used its knowledge of the skin and research expertise to tailor a unique cosmetic sun protection product, specially made for a girl named Charlotte with a rare light disease called EPP. When Charlotte’s skin comes into direct contact with the visible, colored components of sunlight, a genetic defect causes neuropathic pain and triggers burns on the skin. To help her, Beiersdorf added special light-scattering pigments to the cosmetic sunscreen. This prevents the light from penetrating the skin, allowing the girl to be exposed to sunlight for a short period of time – enabling her to enjoy a better quality of life.
In May 2023, Beiersdorf started cosmetic production at its new plant in Leipzig-Seehausen. Deodorants, hair sprays and shaving foams sold under brand names NIVEA, 8x4 and Hidrofugal are now being produced there for the European market.
In June 2023, Beiersdorf shared its progress on the implementation of its ‘Climate Care’ mission on the product level. With its Care Beyond Skin Sustainability Agenda, the company aims to achieve a 30% absolute reduction of CO2 emissions across the entire value chain (scope 1, 2 and 3) by 2025 (vs. base year 2018). To achieve this, Beiersdorf is collaborating intensively with its suppliers and reworking products and assortments of its global brands – both on the formula and packaging level. Milestones toward this goal include the introduction of Nivea Sun and Nivea Lip Care to market with relevant improvements and a reduced CO2 footprint, and launching a refill jar for Eucerin’s Hyaluron-Filler range.
Also in June, Beiersdorf invested in Swiss startup DePoly SA, which has developed an innovative chemical recycling technology which, unlike mechanical processes, allows for the recycling of difficult recyclable consumer and industrial plastic waste streams, such as those containing mixed plastics, mixed colors, dirty plastic waste streams, as well as fabrics and fibers. The chemical recycling technology converts these waste streams into their main raw components. Proceeds from the financing round will allow DePoly to accelerate the scale-up and development of its depolymerization process and build a showcase plant that is scheduled to be operational in 2024.
Looking Ahead: In August, Beiersdorf reported a strong first half of 2023, with organic group sales rising 12.3% led by Nivea (+18.4%) and Derma brands Eucerin and Aquaphor. The luxury brand La Prairie recorded a 9.9% dip in sales in the first six months, primarily due to considerable disruption in Asian travel retail markets caused by “daigou” business, which is when shoppers purchase goods abroad on behalf of domestic customers, offering these customers tax and price advantages over domestic retailers.
Given the positive sales trend and above-market growth in the first half of the year, Beiersdorf slightly increased its sales forecast for 2023 as a whole. The company expects organic sales growth at Group level to be in the high single-digit to low double-digit range. In the Consumer business, Beiersdorf also expects organic sales growth in the high single-digit to low double-digit range. The company believes there is an opportunity to achieve growth at the upper end of this range if the luxury market conditions improve.