Distributing beauty products around the globe doesn’t necessarily translate into sales. An understanding of regional habits and consumer concerns is mandatory. Skin issues, hair problems, dryness, moisture—all speak volumes when it comes to purchasing priorities, and a product that meets a woman’s needs in North America, for instance, could be useless to a customer in Africa.

In fact, L’Oréal, the No. 1 beauty company on our Top 20 list again this year, refers to a “new geography of cosmetics.” Predictions are for the beauty market to double in size in the next 10-15 years, with growth in all regions—and the profiles of consumers and their needs will also change. According to L’Oréal, more than half of these consumers will be located in tropical zones, with hot, humid climates; and by 2020, some 60% of the world’s population will live in major urban centers affected by pollution.
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Thus, as you read through this report, you’ll notice increased launches of products that calm frizzy hair, as well as skincare remedies, such as Estée Lauder’s Nutritious Rosy Prism collection, that are meant to combat the effects of pollution. Skin brightening/lightening products, too, continue to spread, especially throughout Asia.

As skincare still rules the beauty roost, every company on our list has something new to offer, and all are engaged in extensive R&D, looking for the most effective products, based on botanicals to stem cells.
 
Finding “white spaces” (as accomplished by Garnier and Shiseido) and meeting demand for value via multifunctional products, also remain priorities on R&D lists.

Emerging markets once again were ultimately responsible for boosting beauty sales across the globe. To keep pace, companies continued to weed their portfolios as they concentrated on key brands and product lines.

And of course, where would the beauty industry be without the jet propulsion growth in travel retail? From sales in airport shops to increased tourist spending, the booming category has taken some companies to new altitudes in revenues.

Regardless of the many challenges faced, and the ups and downs and flats recorded when compared to the previous year, the 20 beauty companies on this year’s list generated a grand cumulative total of $158.8 billion in global cosmetic sales.

Just a note on the compilation of this report: Companies were analyzed according to 2013 data. Beauty sales included only cosmetics, fragrance and personal care items when possible. Figures for companies outside the U.S. were based on the exchange rate for the fiscal year on the day it ended. Estimates are provided in cases where full disclosure was not available.