“One of the biggest factors propelling the [beauty M&A] sector right now is that consumers are taking a more holistic view of beauty and personal care, as they are increasingly aware of the intrinsic connection between inner and outer health,” says Kelly McPhilliamy, a managing director at Harris Williams, which recently advised Dude Wipes on its strategic growth investment from TSG Consumer. “We see this as a permanent shift and long-term tailwind for the industry.”
Among the brands epitomizing this trend are Tower 28, Necessaire, DedCool, Arey, One Skin, Moon Juice, Maude, Every Man Jack and Scotch Porter, according to the firm's new report on beauty M&A.
Here are 10 key takeaways for the industry:
1. Strategic Acquisitions Are on the Rise
Major players like L’Oreal, and Unilever are expanding their portfolios through acquisitions of innovative beauty and personal care brands, signaling strong interest in growth-driven M&A activity.
2. Wellness Is Driving Investment
The convergence of beauty, personal care, and wellness is reshaping the market, with brands that integrate wellness principles gaining significant traction among both consumers and investors.
3. Innovation Matters
Unique, science-backed, or patented products, such as Tangle Teezer’s detangling brushes, are highly attractive to strategic buyers for their distinct value propositions.
4. Consumer Values Are Key
Brands that align with consumer priorities—such as sustainability, natural ingredients, or long-term health benefits—are better positioned to secure investment.
5. Premium Brands Are Leading the Way
Acquisitions of high-end, niche brands (e.g., Medik8 or Touchland) show that investors are willing to pay a premium for quality and differentiated offerings.
6. Broader Buyer Interest
Both financial investors and strategic buyers are expanding their focus, seeking opportunities in wellness-infused beauty and personal care brands that connect with evolving consumer lifestyles.
7. M&A as a Growth Strategy
For beauty professionals, M&A remains a critical path for accelerating growth, expanding market reach, and enhancing product portfolios.
8. Market Demand for Results-Driven Products
Consumers are increasingly demanding products that deliver measurable results, which drives investment interest in brands that can demonstrate efficacy.
9. Cross-Sector Interest
The overlap between beauty, personal care, wellness, and even hygiene creates more opportunities for partnerships and acquisitions across these sectors.
10. Global Growth Opportunities
As a global trend, the demand for innovative, wellness-integrated beauty brands offers professionals opportunities to tap into new markets, leveraging M&A as a tool for expansion.
