Important update: Stake UK will be closing down.
Read more here
When you invest, your capital is at risk.

Share

Smooth

Cleansers, moisturisers, serums, exfoliants, toners, hydrating masks, rejuvenating creams… skincare products are on the rise and making people into billionaires, but who are the industry’s biggest players?

The global skincare industry is a booming market, generating revenues of US$164b in 2022 and estimated to reach US$189b by 2025. This growth is being driven by a number of factors, such as an increasing focus on anti-ageing and preventative care, and the growing popularity of social media and influencer marketing

It’s not just influencers, though. Celebrities have also used their fame to leverage sales of their own cosmetic brands, raking in big bucks in the process. There’s no guarantee of success – Lady Gaga’s Haus Beauty didn’t fly when launched in 2019, and is currently undergoing a revamp – but it worked well for Jessica Alba’s Honest Company ($HNST), Kylie Jenner’s Kylie Cosmetics, of which Coty ($COTY) owns 51%, and perhaps most successfully of all, for Rihanna’s Fenty Beauty.

Co-owned by LVMH ($LVMUY), the venture made the singer a billionaire and is one of the reasons she hasn’t released an album in six years. The rumours about an upcoming new tour seem to have been dismissed, making some RiRi fans wish Fenty never came to be.

Many companies are bringing in top dollar in less glamorous areas of skincare. Johnson & Johnson’s ($JNJ) Neutrogena, for example, sold 18.44m acne treatment products in 2022 in the U.S. alone. One of the compounds most used in acne remedies, retinol (a form of vitamin A), is vital to the cosmetic industry. Its market is estimated to be worth US$1.38b, with BASF ($BASFY) being a leading player in its production. 

Interestingly, retinol is usually synthesised from beta-carotene and beta-ionone, which are abundant in carrots. That’s not to say you should go full Bugs Bunny in search of smoother skin: there are several adverse effects from excessive vitamin A consumption. But it’s kind of ironic that, while beauty creams fetch as much as US$380 for a small tub and become harder and harder to afford, you can find one of their most needed raw materials at the local grocery store for under one pound a kilo.

Top image: Unsplash


Related


Want more?

You know what to do

Insights, trends and company deep dives delivered straight to your inbox.


Stake logo


Stake is the trading name of Hellostake Limited, a company registered in England and Wales (Company no. 11676409). Hellostake Limited is authorised and regulated by the UK Financial Conduct Authority under the Firm Reference Number 830771. Registered address: 85 Great Portland Street, London, W1W 7LT, United Kingdom.

When you invest, your capital is at risk.

The value of your investments can go down as well as up and you may receive back less than your original investment. Any advice is of a general nature only. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate independent taxation and legal advice. The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone in any jurisdiction in which Stake is not regulated or able to market its services.

At Stake, we’re focused on giving you a better investing experience but we don’t take into account your personal objectives, circumstances or financial needs. Please view our Terms & Conditions, Privacy Policy and Disclaimers before deciding to use or invest on Stake. By using the Stake website or service in any way, you agree to our Privacy Policy and Terms & Conditions. All financial products involve risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Past performance of any product described on this website is not a reliable indication of future performance

Copyright © 2024 Stake. All rights reserved.