L’Oréal: packaging and environmental strategies

As part of a partnership aimed at developing responsible packaging solutions, the French beauty giant L’Oréal and global cosmetics packaging leader Albéa have announced the development of the first paper-based cosmetic tube in which plastic is mostly replaced with a new bio-based and certified paper-like material.

The new solution is expected to be launched in the near future, with industrial production due to begin in 2020 the related environmental benefits will be assessed by applying a life cycle analysis which will take different criteria into account.
The project reflects L’Oréal’s commitment to reducing its environmental footprint that began in 2007 with the goal of cutting net emissions to zero by 2050. In 2018, for example, its industrial sites achieved a 77% reduction in CO2 emissions compared to 2005 (38 L’Oréal factories were carbon neutral by the end of 2018).

Economic results. L’Oréal’s first half of 2019 saw the best performance of the last ten years with like-for-like revenue of €14.8 billion (+7.3% on the first half of 2018). Growth concerns all the group’s divisions, particularly L’Oréal Luxe (+13.2% to€5.1 billion) and L’Oréal Active Cosmetics (+13.6% to€1.4 billion).
As for geographical areas, significant developments were observed in the Asia Pacific region, the group’s largest market (+24.3%). China is maintaining its growth rate, while India, Malaysia, Indonesia and Vietnam are seeing double-digit growth. Despite the market difficulties, sales are also rising in Western Europe, while North America continues to lose pace due to the slowdown of the make-up segment. E-commerce grew by 48.5% and accounts for 13.2% of total sales.