The global skincare market is experiencing exponential growth.
By 2031, the global cosmetics and skincare market is projected to reach $663 billion (€613 billion), with an annual growth rate of 5%, according to a report by market research firm Transparency Market Research.
This expansion is driven by increasing awareness of the importance of skincare and the rise of e-commerce. In the face of intense global competition and increasingly demanding consumers, companies in the sector are seeking to expand beyond their traditional markets. International expansion and market diversification have become essential strategic levers to ensure sustainable growth. However, this dynamic also presents significant challenges that companies must address to maximize their success.
Global challenges despite growth
Despite impressive overall growth, some major skincare companies are facing slowdowns in specific segments, due to rapidly evolving consumer behavior, environmental impacts, and the need to innovate to remain competitive.
The shift in consumer expectations is particularly striking. Consumers are increasingly seeking sustainable, ethical, and personalized products, forcing companies to rethink their supply chains and invest heavily in research and development. For instance, brands like The Ordinary stand out by offering transparent and minimalist formulations, catering to the growing demand for ingredient transparency.
Market entry strategies
Identifying and entering emerging markets is central to the expansion strategies of skincare companies. Countries such as China, India, and Brazil present significant opportunities due to their growing middle class, increasing interest in skincare products, and rapid adoption of new technologies.
For example, L’Oréal acquired the local brand Magic Holdings in China, while Unilever established a presence in India through the Lakmé brand. These strategic acquisitions help companies better understand local preferences while accelerating market penetration.
However, competition in these markets is fierce. Companies must therefore ensure they offer relevant differentiation to capture consumer interest. In China, for instance, e-commerce platforms like Tmall or JD.com, along with the influence of Key Opinion Leaders (KOLs), play an essential role.
Product adaptation and local approaches
Skincare needs vary by region. For example, the humid climates of Southeast Asia drive demand for lightweight, non-greasy products, while European markets often favor rich, hydrating formulas.
Moreover, cultural values influence product expectations. In Asia, the preference for natural and traditional ingredients aligns with a growing global demand for “clean” formulations. Brands must also adapt their packaging and branding—for instance, avoiding the number “4” in China due to its negative connotations.
Human resource challenges in international expansion
International expansion poses major human resource management challenges. Recruiting and retaining local talent while maintaining alignment with the company’s global culture is crucial.
Talent recruitment and retention
In some countries, specialized skincare talent is scarce, while other regions face a strong culture of high turnover. In India, for example, executives in niche sectors like skincare often change employers frequently in search of better opportunities, creating instability within local teams.
Recruitment agencies play a central role in these contexts. Contrary to a sometimes limited perception of their role, they not only find candidates but also advise companies on specific cultural and regulatory dynamics, helping to build cohesive and resilient teams.
Training and international mobility
To overcome these challenges, some companies invest in cross-cultural training and international mobility initiatives. Gradual local integration through the secondment of experienced executives to train local teams has proven effective. For example, L’Oréal has adopted this strategy in Asia, where international leaders train future local leaders while instilling the company’s core values.
Cultural diversity and local expectations
Cultural diversity within teams requires rethinking management styles and employee expectations. Cross-cultural training helps reduce these tensions and improve collaboration. Digital tools, such as global HR platforms, also help align local objectives with the company’s global strategic vision.
Innovation and Well-being
Finally, innovative HR initiatives such as flexible workweeks or specific well-being programs help retain talent in increasingly competitive environments. Some companies introduce locally adapted benefits, such as more generous family leave in countries where family support structures are limited.
International expansion and market diversification in skincare open up unprecedented opportunities. However, success requires the ability to meet strategic, cultural, and human challenges. By integrating local expertise, valuing talent, and adopting agile HR strategies, companies can not only enter these new markets but also thrive in them sustainably.