2025 Universal Registration Document

1.3.3.4 Exploring new frontiers in beauty

L'Oréal is always attentive to consumers’ new beauty aspirations. To meet these aspirations, particularly in terms of holistic beauty, the Group has begun to invest in fast-growing markets that complement its core business.

The beauty supplements market is booming and represents an opportunity for L'Oréal. Its entry into the nutricosmetics market has already begun, with product launches including Bio Rewind by Skinbetter Science.

In line with its Beauty Tech strategy, L'Oréal is stepping up the design and deployment of smart beauty devices at the forefront of innovation.

These devices aim to provide an increasingly personalised and effective beauty of the future, with the AirLight Pro hairdryer a perfect example.

The aesthetics market holds a particular attraction for L'Oréal, especially the rapidly growing market for non-invasive procedures. These are gradually becoming mainstream, particularly among the younger generation.

The investment in Galderma's capital along with the scientific partnership and stakes in beauty clinics in China and North America are helping deepen L'Oréal's know-how in this new segment.

1.3.4 Strategic pillars accelerating growth

1.3.4.1 Research & Innovation (R&I): responsible, inclusive innovation, in complete safety

The beauty market is an offer-driven market boosted by innovation. L'Oréal's success is fed by its permanent obsession for innovation, which feeds into its performance in all its forms.

With more than 4,000 researchers and spending of approximately 3% of sales, L'Oréal has the top R&I force in the beauty industry. This is indisputably a competitive edge, with a level of expertise and a wealth of unique scientific and technical data. The fundamental values that inspire the Group's labs each day are the performance and absolute safety of ingredients, the superior quality of the products and the sincerity of their claims.

From upstream to downstream

Advanced Research teams create, develop and identify raw materials, drawing on the knowledge of skin and hair from around the world. The Application Domains teams develop formula architectures that improve the performance of active ingredients. The Development Laboratories create innovative formulas with a proven superiority for each brand. This innovation model is nurtured by a constant dialogue between the laboratories and marketing to respond to the expectations of consumers, supporting them with the latest scientific and technological breakthroughs.

Research facilities around the world

In order to adapt to consumer expectations worldwide, L'Oréal's Research teams work in seven regional research hubs(1) bringing together 22 beauty research centres and 13 assessment centres. R&I teams build on this rich seam of local scientific ecosystems to develop collaboration agreements and partnerships of excellence. The data generated enables researchers to develop new beauty products or experiences, that are in tune with market needs and local expectations.

R&I: A VAST ECOSYSTEM OPEN TO THE WORLD