By Zainab Shafiq 
L’Oréal, the world’s largest beauty conglomerate, is shifting its focus towards the United States, seeing it as a prime opportunity for future growth. As concerns mount over China’s unpredictable economic landscape, the company aims to expand its footprint in the U.S., particularly among emerging consumer demographics.
CEO Nicolas Hieronimus said the Chinese market was “unpredictable” during a recent earnings presentation, pointing to ongoing North Asia sales declines. L’Oréal’s quarterly sales in the region declined 3.6%, better than an earlier forecast of a 2.4% decline. Market growth in mainland China was down by about 4% in 2024, while the company’s Asian travel retail division declined 10%. China now accounts for 17% of L’Oréal’s total sales, a sharp decline from previous years.
Despite these setbacks, L’Oréal continues to maintain strong global momentum, reporting a 2.5% year-over-year increase in fourth-quarter revenue, bringing total sales to €11.08 billion ($11.49 billion). However, the U.S. market, which grew by 1.4%, saw its slowest quarterly increase in recent periods.
World’s Largest Beauty Conglomerate is Expanding in the U.S.: A Strategic Pivot
L’Oréal maintains a positive view of prospects in the United States, particularly through younger, more diverse consumers. According to Hieronimus, Latino and multiracial beauty preferences are gaining greater influence and will drive innovation within the company’s product lineup. What is more, relative affluence from U.S. consumers stands as a great opportunity for luxury brands of L’Oréal such as Lancôme and Kiehl’s.
Although L’Oréal’s overall full-year revenue rose 5.1% to €43.48 billion, the stock market reaction was less enthusiastic. Shares fell 3.5% on Friday, continuing a broader decline of more than 20% over the last year.
The company holds a cautious stand on global economic uncertainties, including potential U.S. trade policies and rising inflation concerns. L’Oréal’s strategic pivot thus indicates its clear bet on the United States as its next major growth driver, post the uncertain Chinese market dynamics.
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