VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Wednesday, December 31, 2025
Unilever PLC
ULVR · London Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
Unilever PLC is a global consumer goods company organised around four Business Groups (Beauty & Wellbeing, Personal Care, Home Care and Foods) after demerging its Ice Cream business into The Magnum Ice Cream Company (TMICC) in December 2025. Its moats are primarily demand-side (trusted brands and habitual repeat purchase), reinforced by scale in marketing and R&D and broad customer-channel relationships that support distribution and execution. Competitive intensity is high, with retailer bargaining power and private-label and local-brand pressure as persistent headwinds.
Primary segment
Personal Care
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
4 segments · 8 tags
Updated 2025-12-30
Segments
Beauty & Wellbeing
Branded beauty, hair care, skin care, prestige beauty and wellbeing consumer products
Revenue
25.1%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Personal Care
Branded personal care and hygiene (deodorants, skin cleansing, oral care)
Revenue
25.9%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Home Care
Branded home care (laundry detergents, fabric enhancers, household cleaning and hygiene)
Revenue
23.4%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Foods
Branded foods (condiments, cooking aids, mini-meals) and foodservice ingredients (Unilever Food Solutions)
Revenue
25.5%
Structure
Competitive
Pricing
weak
Share
—
Peers
Moat Claims
Beauty & Wellbeing
Branded beauty, hair care, skin care, prestige beauty and wellbeing consumer products
Revenue share is pro-forma based on FY2024 Business Group turnover excluding demerged Ice Cream (turnover amounts: EUR 13.2bn Beauty & Wellbeing; EUR 13.6bn Personal Care; EUR 12.3bn Home Care; EUR 13.4bn Foods; EUR 8.3bn Ice Cream).
Brand Trust
Demand
Brand Trust
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Power-brand portfolio and strong category positions support repeat purchase and premiumisation in hair, skin, and wellbeing.
Erosion risks
- Premium beauty competition intensifies (incumbents and indie brands)
- Shifts in consumer preferences and influencer-driven fragmentation
- Private label trade-down during weak consumer demand
Leading indicators
- Turnover-weighted market share movement (rolling 12 months)
- Price/mix vs volume growth in the segment
- Share of sales from new innovations and premium lines
Counterarguments
- Switching costs are low for most beauty SKUs
- Digital-first challengers can scale faster than incumbents
Scale Economies Unit Cost
Supply
Scale Economies Unit Cost
Strength: 3/5 · Durability: medium · Confidence: 4/5 · 1 evidence
Scale in marketing and R&D supports a higher innovation cadence and amortises fixed costs across a large brand and market footprint.
Erosion risks
- Digital advertising reduces scale advantage vs smaller brands
- R&D productivity decline (innovation misses)
- Commodity and input inflation compresses margins
Leading indicators
- Brand investment levels vs peers
- Gross margin and savings delivery trend
- Innovation success rates (launch velocity, repeat rates)
Counterarguments
- Marketing effectiveness can be competed away by rivals
- Prestige beauty can be won by brand storytelling rather than scale
Personal Care
Branded personal care and hygiene (deodorants, skin cleansing, oral care)
Revenue share is pro-forma based on FY2024 turnover excluding demerged Ice Cream.
Brand Trust
Demand
Brand Trust
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Large portfolio of everyday-use personal care Power Brands with leading positions in key categories supports habitual repurchase.
Erosion risks
- Private label gains in deodorants and cleansing in trade-down cycles
- Regulatory restrictions on ingredients and claims
- Price wars led by major peers
Leading indicators
- Category share in deodorants and skin cleansing
- Net price/mix vs volume growth
- Retailer distribution and shelf share for Power Brands
Counterarguments
- Consumers can switch readily between brands on promotion
- Retailers can shift visibility toward private label
Distribution Control
Supply
Distribution Control
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Broad customer-channel coverage (from international key accounts to distributor-led traditional trade) supports route-to-market execution and availability.
Erosion risks
- Retail consolidation increases buyer power
- Shift to digital and social commerce changes execution requirements
- Disintermediation via DTC brands and marketplaces
Leading indicators
- Distribution coverage (numeric and weighted)
- On-shelf availability and out-of-stock rates
- E-commerce share and performance vs peers
Counterarguments
- Retailers can multi-source and delist underperforming SKUs quickly
- Marketplaces reduce the advantage of legacy shelf placement
Home Care
Branded home care (laundry detergents, fabric enhancers, household cleaning and hygiene)
Revenue share is pro-forma based on FY2024 turnover excluding demerged Ice Cream.
Brand Trust
Demand
Brand Trust
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Leading laundry and cleaning Power Brands support repeat purchase where performance perception matters (stain removal, hygiene, fragrance).
Erosion risks
- Category commoditisation and private label quality improvement
- Regulatory constraints on formulations (for example, chemicals, packaging)
- Disruption from new formats (sheets, concentrates)
Leading indicators
- Share trend in fabric cleaning and home hygiene
- Innovation adoption (new formats, fragrance platforms)
- Gross margin stability through commodity cycles
Counterarguments
- Performance claims can be matched by peers
- Shelf space and promotions are heavily retailer-controlled
Scale Economies Unit Cost
Supply
Scale Economies Unit Cost
Strength: 3/5 · Durability: medium · Confidence: 4/5 · 1 evidence
Large-scale manufacturing, sourcing, and logistics investments can reduce unit costs and improve service levels, supporting competitiveness in promotion-heavy categories.
Erosion risks
- Input-cost shocks outpace pricing actions
- Manufacturing scale advantages narrow via contract manufacturing
- Sustainability-driven packaging changes raise costs
Leading indicators
- Supply chain savings and service metrics
- Factory utilisation and productivity KPIs
- Relative price index vs peers
Counterarguments
- Scale does not guarantee superior innovation
- Peers with comparable scale can neutralize cost advantages
Foods
Branded foods (condiments, cooking aids, mini-meals) and foodservice ingredients (Unilever Food Solutions)
Revenue share is pro-forma based on FY2024 turnover excluding demerged Ice Cream.
Brand Trust
Demand
Brand Trust
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Global food Power Brands (notably Knorr and Hellmann's) create consumer pull; Unilever Food Solutions adds credibility and reach in foodservice.
Erosion risks
- Private label share gains in condiments and cooking aids
- Health and regulatory shifts (salt, sugar, additives) constrain formulations
- Commodity inflation (oils, eggs) compresses margins
Leading indicators
- Category share for Knorr and Hellmann's
- Foodservice recovery and Unilever Food Solutions growth
- Price/mix vs volume trend
Counterarguments
- Taste and value are easy to replicate with private label
- Retailer bargaining power is higher in foods than in beauty
Distribution Control
Supply
Distribution Control
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Broad customer relationships and distributor networks help maintain availability across modern retail, traditional trade, and foodservice channels.
Erosion risks
- E-commerce marketplaces reduce dependence on incumbent distribution
- Retailer consolidation increases delisting risk
- Foodservice channel volatility
Leading indicators
- On-shelf availability and service levels
- E-commerce search ranking and share of digital shelf
- Foodservice customer retention
Counterarguments
- Most competitors can access the same large retailers
- Distribution advantage is weaker in developed markets with centralized buying
Evidence
global leaders in Hair Care
Used to support brand-led leadership and positioning in core Beauty & Wellbeing categories.
The report highlights large brand and marketing investment and a large global R&D expert base as core capabilities.
leading category positions in Deodorants
Supports claim of leading positions in important Personal Care categories (helps brand pull at retail).
strong position in emerging markets
Supports scale and positioning (especially in emerging markets) for the Home Care business group.
largest and most profitable foods businesses
Supports the scale and positioning of the Foods business group and the role of Power Brands plus Unilever Food Solutions.
Risks & Indicators
Erosion risks
- Premium beauty competition intensifies (incumbents and indie brands)
- Shifts in consumer preferences and influencer-driven fragmentation
- Private label trade-down during weak consumer demand
- Digital advertising reduces scale advantage vs smaller brands
- R&D productivity decline (innovation misses)
- Commodity and input inflation compresses margins
Leading indicators
- Turnover-weighted market share movement (rolling 12 months)
- Price/mix vs volume growth in the segment
- Share of sales from new innovations and premium lines
- Brand investment levels vs peers
- Gross margin and savings delivery trend
- Innovation success rates (launch velocity, repeat rates)
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
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