The Procter & Gamble Company (P&G) operates as a multinational consumer goods company.
The company focuses on providing trusted, branded products of superior quality, performance and value to improve the lives of consumers around the world. The company’s products are sold in about 180 countries. The company also sells direct to consumers. The company has on-the-ground operations in about 70 countries.
The company's organizational structure consists of Sector Business Units (SBUs), Enterprise M...
The Procter & Gamble Company (P&G) operates as a multinational consumer goods company.
The company focuses on providing trusted, branded products of superior quality, performance and value to improve the lives of consumers around the world. The company’s products are sold in about 180 countries. The company also sells direct to consumers. The company has on-the-ground operations in about 70 countries.
The company's organizational structure consists of Sector Business Units (SBUs), Enterprise Markets (EMs), Corporate Functions (CF), and Global Business Services (GBS).
Sector Business Units
The company's product categories are organized into five SBUs and five reportable segments (under U.S. GAAP): Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care. The SBUs are responsible for global brand strategy, product upgrades and innovation, marketing plans and supply chain. They have direct profit responsibility for markets (referred to as Focus Markets) representing the large majority of the company's sales and earnings and are also responsible for innovation plans, supply plans and operating frameworks to drive growth and value creation in the remaining markets (referred to as Enterprise Markets). Throughout the MD&A, the company references business results by region, which are consists of North America, Europe, Greater China, Latin America, the Asia Pacific and India, Middle East and Africa (IMEA).
Sector Business Units
Beauty: The company is a global market leader in the retail hair care market, with about 20% global market share, primarily behind its Head & Shoulders and Pantene brands. In personal care, the company holds the number two market share position with about 20% global market share, primarily behind its Old Spice, Safeguard, and Secret brands. In skin care, the Olay brand is one of the top facial skin care brands in the world, with about 5% global market share.
Grooming: The company is the global market leader in the grooming market, where it holds more than 45% share. The company’s global blades and razors market share is more than 60%, primarily behind its Gillette and Venus brands. The company's appliances, such as electric shavers and intense pulse light devices, are sold primarily under the Braun brand.
Health Care: In oral care, the company is a leader with nearly 30% global market share, primarily behind its Crest and Oral-B brands.
Fabric & Home Care: This segment consists of a variety of fabric care products, including laundry detergents, additives, and fabric enhancers, as well as home care products, such as dishwashing liquids and detergents, surface cleaners, and air fresheners. In fabric care, the company generally holds the number one or number two market share position.
Baby, Feminine & Family Care: The company is the global market leader in the feminine care category, with over 30% global market share. The company's family care business is predominantly a North American business, consists of primarily of the Bounty paper towel and Charmin toilet paper brands. North American market shares are over 40% for Bounty and over 25% for Charmin.
Enterprise Markets
Enterprise Markets are responsible for sales and profit delivery in specific countries, supported by SBU-agreed innovation and supply chain plans, along with scaled services like planning, distribution and customer management.
Global Business Services
Global Business Services provides scaled services in technology, process and data tools to enable the SBUs, the EMs and CF to better serve consumers and customers. The GBS organization is responsible for providing world-class services and solutions that drive value for P&G.
Strategic Focus
The company’s strategy is to deliver and sustain value creation through five integrated choices: a portfolio of daily-use products where performance drives brand choice; superiority across product, package, brand communication, retail execution and value; productivity; constructive disruption of the entire value chain; and a highly efficient and effective organization structure.
The company’s focused portfolio of businesses consists of product categories where P&G has strong brands and consumer-meaningful product technologies with typically leadership market positions.
Additionally, to further strengthen the company’s integrated strategy, it has declared four focus areas. These are leveraging environmental sustainability as an additional driver of superior performing products and packaging innovations, increasing digital acumen to drive consumer and customer preference, and enable rapid and efficient decision making, developing next-level supply chain capabilities to enable flexibility, agility, resilience and a new level of productivity and delivering a superior employee value equation for all employees inclusive of all genders, races, ethnicities, sexual orientations, ages and abilities to ensure the company continues to attract, retain and develop the best talent to better serve its increasingly diverse consumer base.
Glad Joint Venture Agreement
The company and The Clorox Company (Clorox) have jointly decided not to renew the Glad joint venture agreement. Under the terms of the agreement, Clorox will purchase the company’s minority interest in the venture at fair market value as of the agreement termination in January 2026.
Business Model
The company’s business model is focused on delivering sustainable value creation by driving balanced top- and bottom-line growth. The company creates, manufactures, markets and distributes a diversified portfolio of daily-use products to delight consumers with irresistible superiority across five key vectors - product performance, packaging, brand communication, retail execution and value. The company invests in research and development and consumer insights to invent new categories or products and innovate its existing products, ensuring they meet evolving consumer needs and preferences. The company leverages marketing strategies, including advertising, promotions and endorsements to drive brand awareness and loyalty among consumers. The company utilizes various distribution channels, including retail stores, e-commerce platforms and direct-to-consumer platforms to deliver its products. The company’s business model relies on continued productivity improvements to fuel investments in research and development and marketing and deliver value creation.
Key Customers
The company’s customers include mass merchandisers, e-commerce (including social commerce) channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores (including airport duty-free stores), high-frequency stores, pharmacies, electronics stores and professional channels. The company also sells direct to consumers.
Sales to Walmart Inc. and its affiliates represent approximately 16% of the company’s total sales in 2025. No other customer represents more than 10% of the company’s total sales. The company’s top ten customers accounted for 43% of its total net sales in 2025.
Government Regulation
The company is subject to a wide variety of laws and regulations across the countries in which it does business. In the United States, many of the company’s products and manufacturing operations are subject to one or more federal or state regulatory agencies, including the U.S. Food and Drug Administration (FDA), the Environmental Protection Agency (EPA), the Occupational Safety and Health Administration (OSHA), the Federal Trade Commission (FTC) and the Consumer Product Safety Commission (CPSC). The company is also subject to anti-corruption laws and regulations, such as the U.S. Foreign Corrupt Practices Act, and antitrust and competition laws and regulations that govern its dealings with suppliers, customers, competitors and government officials.
The company is also subject to expanding laws and regulations related to environmental protection and other sustainability-related matters, non-financial reporting and diligence, labor and employment, trade, taxation and privacy and data protection, including the European Union’s General Data Protection Regulation and similar regulations in states within the United States and in countries around the world.
Research and Development
The company’s research and development costs were charged to expense as incurred and were $2.1 billion for the year ended June 30, 2025.
History
The Procter & Gamble Company was founded in 1837. The company was incorporated in Ohio in 1905.