Kao Corporation’s net sales grew 3.7% to ¥1,688.6bn ($10.96bn) on a like-for-like basis in 2025.
The owner of Bondi Sands and Molton Brown experienced a strong year on its home turf, Japan, but felt the impact of mixed consumer sentiment and competition in the US and Europe in some beauty categories.
Sales in its global consumer care business, which includes home care, hygiene, as well as beauty, grew 2.4% to ¥1,283bn in the year to 31 December despite price pressures.
“Globally, while an ongoing consumer orientation toward low prices was apparent, demand for products that offer practicality and high added value remain firm,” said Kao Corporation in a statement.
Within health beauty care, which includes skin care and body care brands such as Bioré and Jergens, as well as hair care lines John Frieda and Oribe, sales grew 2.1% to ¥432.9bn.
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Skin care sales increased in Japan, but declined in America, despite a ramped up roll-out of Bioré UV Aqua Rich sunscreen and strong performance of Jergens in the market, which it said was down to “aggressive competition”.
Hair care sales increased “substantially” with premium hair care brands Melt and The Answer contributing significantly to sales in Japan after launching in 2024.
Hair salon brand sales declined in America and Europe, apart from Oribe, which sold strongly primarily through ecommerce, and Goldwell was impacted by “worsening business sentiment” in the US and Europe, among other factors.
Sales in Kao Corporation’s cosmetics business division grew 7.2% to ¥261.6bn, with growth in Japan, which was driven by dermacare brand Curel, prestige skin care and make-up line Kanebo, Sofina skin care, and luxury brand Sensai.
Sales increased substantially in Asia and, in particular, China, driven by “expanded local production and enhanced competitiveness” as well as optimising distribution inventory.
Sensei and a stepped up the rollout of Curel were standouts in Europe, while in Thailand, efforts on Kanebo and Kate make-up brands “exceeded the plan”
In its forecast for 2026, Kao Corporation said it expects the business environment to remain uncertain due to currency movements and tariffs, ongoing geopolitical risks and “factors such as the difficulty in forecasting household purchasing power, consumer sentiment, and the demand outlook amid changing price trends in each country”.
However, the company expects 3.6% year-on-year growth across the business and sales of ¥1,750bn, or 3.2% on a like-for-like basis.
Kao Corporation plans to accelerate growth in its health beauty care business by promoting high-value-added products and by “making concentrated investments in strategic brands”.
A shake-up of its organisational structure that brings together operations in Japan, Asia, the Americas and Europe will also see it step up manufacturing to strengthen its global rollout of brands and products, as well as focus on marketing innovation through digital transformation to further global expansion.
Sales in this part of the business are expected to grow 6.3% to ¥461.5bn on a like-for-like basis.
Meanwhile, its cosmetics business is forecast to grow 3.9% to ¥271.5bn as it seeks to roll out key brands in each country.