10.25.23
Kao is #13 on our Top Global Beauty Companies 2023 Report.
Below is a look at the company's 2023 highlights, recent acquisitions, best-selling brands and latest innovations.
Amid these circumstances, the Kao Group’s net sales increased 9.3% compared with the previous fiscal year to $11.8 billion. On a like-for-like basis, net sales increased 3.7%. The shares of net sales in FY2022 by business segment were 33.3% for Hygiene and Living Care, 23.8% for Health and Beauty Care, 3.6% for Life Care, 16.2% for Cosmetics and 23.1% for Chemical.
Since it was launched in 2021, Kao’s vision of “protecting future lives” and “sustainability as the only path” as outlined in its Midterm Plan 2025 (K25) has guided and accelerated its commitment to ESG management. K25 is designed to achieve two strategic objectives: first, to focus on Kao’s current business and implement structural reforms through “Reborn Kao” initiatives, and second, to establish new business fields and categories that align with Kao’s future strategy, referred to as “Another Kao” initiatives. What unites this parallel approach is a focus on unique, state-of-the-art technology to drive global expansion. Kao says it is committed to fostering growth in both approaches to achieve its vision.
In the past two years, through Reborn Kao and Another Kao, the company has built the foundation for globalization. It has appointed three executive officers in AEMEA (the Americas, Europe, the Middle East and Africa) and developed a structure for local business execution. Furthermore, the company claims it is ready for the expansion of its business in Brazil.
In March 2023, operations began at Kao’s newly-constructed next-gen warehouse capable of full automation. The Toyohashi Plant, which produces a wide variety of products, mainly skincare and hair care products, will be able to flexibly handle high-mix low-volume products, and Kao aims to build a sustainable supply chain with the Toyohashi Connected Flexible Factory, an integrated base for production and logistics that links efficient high-mix low-volume manufacturing with highly flexible distribution functions.
In April 2023, Kao launched a new dry shampoo called Space Shampoo Sheet. A light massage of the contoured sheet over the hair removes excess sebum and refreshes the scalp. The same sheets were used by Japan’s veteran astronaut Koichi Wakata when he lived on the International Space Station (ISS) on a five-month mission from October 6, 2022 to March 12, 2023.
In May 2023, Kao developed a product making partial use of recycled materials to produce the same type of packaging by recycling used refill packs, later used for Kao’s Attack ZERO. Kao says it is one of the first companies to use film-to-film recycling technology to transform used refill packs collected from the public and other sources into new refill packs.
Also in May, Kao released progress reports on its ESG (Environmental, Social, and Governance) strategy—the Kirei Lifestyle Plan.
In June 2023, Kao created a new Diversity, Equity and Inclusion Policy. Kao’s corporate philosophy, the Kao Way, upholds “walking the right path” (integrity) as one of its core values. Based on this idea, the company has been striving to protect human rights and honor the diversity of employees across all its business activities. Targets include a ratio of women in management equal to the ratio of women in the organization overall by 2030.
In August 2022, Kao and its wholly owned subsidiaries Kao Australia Pty. Limited and Kao USA Inc., signed an agreement to acquire the Bondi Sands brands via the acquisition of Bondi Sands, a renowned Australian sun product company that specializes in self-tanning, suncare, skincare and body products.
Read Next: Henkel is #14.
Below is a look at the company's 2023 highlights, recent acquisitions, best-selling brands and latest innovations.
Corporate Sales:
$11.8 billionBeauty Sales:
$4.7 billionKey Personnel:
- Yoshihiro Hasebe, president and chief executive officer
- Masakazu Negoro, senior managing executive officer
- Toru Nishiguchi, executive officer
- David J. Muenz, managing executive officer
- Osamu Shinobe, chairman of the board of directors
Major Products/Brands:
Bioré, Jergens, MyKirei, Success, Kao Sekken White, Asience, Blauné, Cape, Essential, Guhl, John Frieda, Liese, Merit, MyKirei, Rerise, Segreta, Goldwell, kms, Oribe, ClearClean, DeepClean, PureOra, athletia, est, Kenebo, Molton Brown, RMK, Sensai, Suqqu, Curél, Freeplus, KATE, Sofina iP, Unlics.New Products:
Bioré Nose Pack Sheet, Blaune Foam Hair Color, Curél skincare range, Space Shampoo Sheet, Jergens Natural Glow Tanning Moisturizers, MyKirei Onsen Therapy wellness collection, Oribe Body Wash & Créme Liter Refills, Oribe Bar Soap Collection, Unlics Impress Color Wear.Financial Summary:
The Kao Group’s key markets—the household and personal care products market and the cosmetics market—grew compared with the previous fiscal year, although the cosmetics market has not recovered to the pre-pandemic level of 2019.Amid these circumstances, the Kao Group’s net sales increased 9.3% compared with the previous fiscal year to $11.8 billion. On a like-for-like basis, net sales increased 3.7%. The shares of net sales in FY2022 by business segment were 33.3% for Hygiene and Living Care, 23.8% for Health and Beauty Care, 3.6% for Life Care, 16.2% for Cosmetics and 23.1% for Chemical.
Since it was launched in 2021, Kao’s vision of “protecting future lives” and “sustainability as the only path” as outlined in its Midterm Plan 2025 (K25) has guided and accelerated its commitment to ESG management. K25 is designed to achieve two strategic objectives: first, to focus on Kao’s current business and implement structural reforms through “Reborn Kao” initiatives, and second, to establish new business fields and categories that align with Kao’s future strategy, referred to as “Another Kao” initiatives. What unites this parallel approach is a focus on unique, state-of-the-art technology to drive global expansion. Kao says it is committed to fostering growth in both approaches to achieve its vision.
In the past two years, through Reborn Kao and Another Kao, the company has built the foundation for globalization. It has appointed three executive officers in AEMEA (the Americas, Europe, the Middle East and Africa) and developed a structure for local business execution. Furthermore, the company claims it is ready for the expansion of its business in Brazil.
2022/2023 Highlights:
In December 2022, Kao launched Unlics, a cosmetic brand for Gen Z men. Two products were released: Unlics Impress Color Wear, a clarifying makeup base, and Unlics Aqua Hug Water, a lotion. By launching a cosmetic brand that nourishes the aspiration for beauty in Gen Z men, Kao aims to realize “a society where everyone can seek and express beauty freely, regardless of gender.”In March 2023, operations began at Kao’s newly-constructed next-gen warehouse capable of full automation. The Toyohashi Plant, which produces a wide variety of products, mainly skincare and hair care products, will be able to flexibly handle high-mix low-volume products, and Kao aims to build a sustainable supply chain with the Toyohashi Connected Flexible Factory, an integrated base for production and logistics that links efficient high-mix low-volume manufacturing with highly flexible distribution functions.
In April 2023, Kao launched a new dry shampoo called Space Shampoo Sheet. A light massage of the contoured sheet over the hair removes excess sebum and refreshes the scalp. The same sheets were used by Japan’s veteran astronaut Koichi Wakata when he lived on the International Space Station (ISS) on a five-month mission from October 6, 2022 to March 12, 2023.
In May 2023, Kao developed a product making partial use of recycled materials to produce the same type of packaging by recycling used refill packs, later used for Kao’s Attack ZERO. Kao says it is one of the first companies to use film-to-film recycling technology to transform used refill packs collected from the public and other sources into new refill packs.
Also in May, Kao released progress reports on its ESG (Environmental, Social, and Governance) strategy—the Kirei Lifestyle Plan.
In June 2023, Kao created a new Diversity, Equity and Inclusion Policy. Kao’s corporate philosophy, the Kao Way, upholds “walking the right path” (integrity) as one of its core values. Based on this idea, the company has been striving to protect human rights and honor the diversity of employees across all its business activities. Targets include a ratio of women in management equal to the ratio of women in the organization overall by 2030.
In August 2022, Kao and its wholly owned subsidiaries Kao Australia Pty. Limited and Kao USA Inc., signed an agreement to acquire the Bondi Sands brands via the acquisition of Bondi Sands, a renowned Australian sun product company that specializes in self-tanning, suncare, skincare and body products.
Looking Ahead:
Kao’s net sales for the six months ended June 30, 2023 increased 0.6% year-over-year to $5.1 billion. Although the world has been returning to conditions prior to the Covid-19 pandemic, the business environment remained unclear due to geopolitical risk in Europe, a slowdown in the previously growing market of China, and persisting high costs due to inflation. Sales of skincare products increased while sales of hair care were basically unchanged and sales of cosmetics decreased 0.2%.Read Next: Henkel is #14.
