L’Oréal Bounces Back: Strong Growth in North Asia Through 2025

• What’s Driving L'Oréal’s North Asia Comeback?
• How Does This Compare to Global Performance?
• Which Product Categories Led the Charge?
• What Challenges Remain?
• Expert Takeaways
• FAQs

L'Oréal, the global beauty giant, has marked a triumphant return to growth in North Asia over the past nine months, defying earlier market concerns. This resurgence highlights the region's enduring appetite for premium beauty products and the brand's strategic agility. Here's a DEEP dive into the numbers, trends, and what this means for investors.

What’s Driving L'Oréal’s North Asia Comeback?

After a rocky 2024, L'Oréal’s Q1-Q3 2025 performance in North Asia (primarily China, Japan, and South Korea) shows a 6.8% year-on-year sales increase, according to their latest earnings report. The rebound stems from three key factors: successful localization of product lines, a surge in e-commerce luxury beauty sales, and effective post-pandemic inventory management. Industry analysts at BTCC note that L'Oréal’s focus on "premiumization" – trading consumers up to higher-value products – has paid off particularly well in China’s tier-2 cities.

How Does This Compare to Global Performance?

While North Asia grew at 6.8%, L'Oréal’s global sales ROSE 4.3% during the same period. The region now accounts for 32% of total revenue, up from 29% in 2024. This outperformance is notable given the broader slowdown in Asia’s luxury sector. As TradingView data shows, L'Oréal shares have gained 14% since January, outpacing the Euro Stoxx 600 Personal Goods index (+9%).

Which Product Categories Led the Charge?

The growth wasn’t evenly distributed – skincare and dermatological cosmetics (think La Roche-Posay) grew 11%, while makeup lagged at +2%. Fragrances, surprisingly, jumped 8% in North Asia versus just 3% globally. This aligns with what I’ve observed in Seoul’s duty-free shops last August: consumers are prioritizing "skin health" over color cosmetics post-COVID.

What Challenges Remain?

Despite the good news, L'Oréal faces headwinds: rising competition from Asian brands like Shiseido and Amorepacific, plus China’s uneven economic recovery. The company also needs to navigate stricter sustainability regulations in Korea and Japan. As a longtime follower of the beauty sector, I’d argue their biggest test will be maintaining pricing power amid growing discounting trends.

Expert Takeaways

BTCC’s market strategist notes: "L'Oréal’s digital investments – especially livestream commerce and AI-powered skin diagnostics – are yielding ROI. Their ‘beauty tech’ approach could set a new industry standard." Meanwhile, TradingView charts suggest institutional investors are cautiously optimistic, with short interest declining since June.

This article does not constitute investment advice.

FAQs

How much did L'Oréal grow in North Asia?

L'Oréal achieved 6.8% sales growth in North Asia during the first nine months of 2025.

Which L'Oréal products sold best in Asia?

Skincare and dermatological lines grew 11%, while fragrances surprised with 8% growth.

Is L'Oréal stock a good buy now?

While the North Asia rebound is positive, investors should consider broader market conditions and valuation metrics before deciding.