Yahoo Finance 2023 Top 100: Why Procter & Gamble’s Beauty Business Grew Across the Board
Despite severe economic and geo-political headwinds, notably in China, Procter & Gamble’s beauty division accelerated across most brands and geographies.
P&G’s global hair care portfolio grew organic sales in the high single digits — the highest growth for the division since the pre-pandemic period — with all regions growing solidly with the exception of China. All global brands contributed to sales results, including high-single to double-digit growth from Pantene, Head & Shoulders, Herbal Essences and Aussie. Pantene remains the number-one selling hair care brand in the world and Head & Shoulders is the top-selling shampoo brand, both according to Euromonitor data.
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In North America specifically, all brands in P&G’s hair care portfolio grew sales in the year, including Pantene and Head & Shoulders. Native Hair Care and Mielle Organics were the two fastest-growing brands in the U.S. mass hair care market for calendar 2023.
The latter, a hair care and beauty brand for consumers with textured hair, was acquired by P&G Beauty in January last year. The brand makes hair care and skin care products that are sold at major mass retailers, including Walmart, Target and CVS. Its bestsellers include Rosemary Mint Scalp & Hair Strengthening Oil and Pomegranate & Honey Moisturizing and Detangling Shampoo.
Inclusive of previous acquisitions First Aid Beauty, Native, Tula, Farmacy and Ouai, P&G Beauty’s acquired brands, now collected in the Specialty Beauty division, continued to grow disproportionately, with a collective sales increase in 2023 of more than 70% year-on-year.
P&G’s personal care division, meanwhile, saw double-digit organic sales growth in 2023, fueled by Native’s continued strong growth, the introduction of premium body care ranges for brands like Olay, and sustainable innovations like nitrogen-propellant deodorant sprays.
Within P&G’s Skin Care division, Olay’s moderate sales growth resulted from a focus on ingredient-led innovations across markets, including the success of Regenerist Niacinamide and Peptide 24 Face Moisturizer. Olay Super Serum, launched in the U.S. during 2023, has already become the top-selling serum, according to Nielsen data.
High-end brand SK-II, traditionally stronger in China, was a weak point in the portfolio. Its sales declined across the back-half of 2023 due to ongoing geo-political headwinds, including impacts from the Fukushima wastewater release in Japan. Indeed, in its second quarter ended Dec. 31, SK-II’s sales slid by more than a third in Greater China, including in the domestic travel retail channel. Nevertheless, the company appeared confident that the trend would begin to improve in the back half of its 2024 fiscal year ending June.
In executive moves, Freddy Bharucha was elected president, North America Personal Care and Beauty Ecosystem, while Colin Walsh was named chief executive officer, P&G Specialty Beauty and Ouai.
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