10.17.24
Kao is #14 on our Top Global Beauty Companies 2024 Report.
Below is a look at the company's 2023 highlights, recent acquisitions, best-selling brands, and latest innovations.
#14 Kao
Chuo City, Tokyo, Japan
www.kao.com
In the Health & Beauty Care business, sales of skincare products increased, as mobility (specifically in Japan) helped boost the sales or UV care products, seasonal products, and a new makeup remover from Biore. Sales in the Americas also increased.
Hair care product sales also increased thanks to the performance of the products under the new and improved Essential brand, as well as the new Cape hair spray brand. Sales of Oribe brand products in high-end hair salons in the U.S. were strong, particularly through e-commerce.
Cosmetics sales decreased in Japan, although core net sales increased thanks to sales of brands like Kanebo prestige skincare and makeup and Kate makeup brands, which remained strong. Cosmetic sales also decreased in China. Despite a weak market in Europe, sales there increased due to steady performance by new products from Molton Brown and the successful renewal of promotions for new and existing products from the Sensai brand.
The following month, Kao announced a partnership with SCG Chemicals and Dow Thailand Group to develop packaging designed for recyclability. The partnership aims to provide consumers with more sustainable packaging options, with a focus on high-quality packaging that has a lower carbon footprint and is recyclable. Kao plans to use the new, sustainable packaging across a wide range of its product portfolio in Thailand in the near future.
Also in December 2023, Kao launched Molton Brown, its British luxury fragrance brand, in the Malaysia market, opening a Molton Brown flagship store in partnership with Valiram, Southeast Asia’s leading luxury and lifestyle group, in the Exchange TRX Mall, an upscale shopping center located in Kuala Lumpur’s international financial district. Following the expansion into Malaysia, Molton Brown plans to move into B-to-C businesses in Singapore, Thailand, and Hong Kong in 2024, and then to debut in Indonesia and Macau. The brand aims to position itself for further globalization by strengthening its business in Asia.
In July 2024, Kao announced it had reviewed the market from a global perspective and would initiate a reorganization of its three existing brand groups into newly established three newly titled groups: Global Leading Business Group, Prestige Business Group, and Masstige Business Group. The reorg, it said, was to cultivate a strong brand that can demonstrate its presence on a global scale.
Kao also expressed its aim to achieve plastic packaging net zero waste by 2040 and negative waste by 2050 for plastic containers used and discharged in its business activities to realize “resource circularity in society.” They’ll do this by first reducing the plastic packaging used in its business activities as much as possible and then by “recycling plastic waste generated in society to create useful products and services.”
Below is a look at the company's 2023 highlights, recent acquisitions, best-selling brands, and latest innovations.
#14 Kao
Chuo City, Tokyo, Japan
www.kao.com
Corporate Sales:
$10 billionBeauty Sales:
$4.5 billionKey Personnel:
- Yoshihiro Hasebe, President and Chief Executive Officer
- Masakazu Negoro, Chief Financial Officer
- Toru Nishiguchi, President, Consumer Products
- David J. Muenz, Senior Vice President, ESG
- Osamu Tabata, Senior Vice President, Supply Chain Management
- Kotaro Nuriya, President, Health and Beauty Care
- Yosuke Maezawa, President, Cosmetics and Kanebo Cosmetics
Major Products/Brands:
Prestige and Mass Skincare, Hair Care, Salon Care, and Cosmetics from brands including Bioré, Jergens, MyKirei, Success, Kao Sekken White, Blauné, Cape, Essential, Guhl, John Frieda, Liese, Melt, Merit, Rerise, Segreta, Success, Goldwell, KMS, Oribe, Curél, Est, Freeplus, Kanebo, Kate, Molton Brown, RMK, Sensai, Sofina iP, Suqqu, Unlics.New Products:
- Ban Body
- Bioré Guard Mos Block serum
- Biore UV Aqua Rich moisturizer
- Bondi Sands
- Designing Eyebrow 3D
- John Frieda Ultra Filler+ Thickening Spray
- KMS Consciousstyle Beach Style Cream
- Molton Brown Wild Mint & Lavadin
- Re/Cover Eczema Relief System
Comments:
Kao experienced a total, company-wide corporate sales dip of just 1.2% in 2023. The company’s Health & Beauty business unit posted sales of $2.7 billion (+6.3%) though sales in its Cosmetics unit dipped 5% to $1.7 billion. Regionally, Japan represented 64.6% of 2023 sales; followed by Asia (excluding Japan), 18.4%; the Americas, 10.4% and EMEA, 6.6%.In the Health & Beauty Care business, sales of skincare products increased, as mobility (specifically in Japan) helped boost the sales or UV care products, seasonal products, and a new makeup remover from Biore. Sales in the Americas also increased.
Hair care product sales also increased thanks to the performance of the products under the new and improved Essential brand, as well as the new Cape hair spray brand. Sales of Oribe brand products in high-end hair salons in the U.S. were strong, particularly through e-commerce.
Cosmetics sales decreased in Japan, although core net sales increased thanks to sales of brands like Kanebo prestige skincare and makeup and Kate makeup brands, which remained strong. Cosmetic sales also decreased in China. Despite a weak market in Europe, sales there increased due to steady performance by new products from Molton Brown and the successful renewal of promotions for new and existing products from the Sensai brand.
2023-2024 Highlights:
In November 2023, Kao completed its acquisition of Bondi Sands Australia Pty Ltd. and made it a consolidated subsidiary.The following month, Kao announced a partnership with SCG Chemicals and Dow Thailand Group to develop packaging designed for recyclability. The partnership aims to provide consumers with more sustainable packaging options, with a focus on high-quality packaging that has a lower carbon footprint and is recyclable. Kao plans to use the new, sustainable packaging across a wide range of its product portfolio in Thailand in the near future.
Also in December 2023, Kao launched Molton Brown, its British luxury fragrance brand, in the Malaysia market, opening a Molton Brown flagship store in partnership with Valiram, Southeast Asia’s leading luxury and lifestyle group, in the Exchange TRX Mall, an upscale shopping center located in Kuala Lumpur’s international financial district. Following the expansion into Malaysia, Molton Brown plans to move into B-to-C businesses in Singapore, Thailand, and Hong Kong in 2024, and then to debut in Indonesia and Macau. The brand aims to position itself for further globalization by strengthening its business in Asia.
In July 2024, Kao announced it had reviewed the market from a global perspective and would initiate a reorganization of its three existing brand groups into newly established three newly titled groups: Global Leading Business Group, Prestige Business Group, and Masstige Business Group. The reorg, it said, was to cultivate a strong brand that can demonstrate its presence on a global scale.
Looking Ahead:
In Q1 2024, corporate sales rose nearly 5.2% with Health & Beauty care sales increasing 9.1% and Cosmetics sales climbing 5.4%. For the full year, company executives expect corporate sales to grow 3.1% to $9.8 billion at current exchange rates.Kao also expressed its aim to achieve plastic packaging net zero waste by 2040 and negative waste by 2050 for plastic containers used and discharged in its business activities to realize “resource circularity in society.” They’ll do this by first reducing the plastic packaging used in its business activities as much as possible and then by “recycling plastic waste generated in society to create useful products and services.”
