Beauty and Personal Care 2025 Report

In 2025, 67 M&A transactions were announced or completed in the US Beauty and Personal Care space (down from 108 in 2024), reflecting a disciplined M&A environment impacted by macroeconomic headwinds like tariff volatility and higher interest rates. Heightened consumer scrutiny around formulations, product efficacy, and value proposition shaped purchasing habits, particularly within masstige and mass-market categories. These trends served as a key catalyst for M&A during the year, as strategic and financial acquirers pursued portfolio optimization, capability enhancement, and exposure to high-growth categories.

Strategic buyers outpaced private equity with strategics accounting for nearly 80% of activity. Buyer focus remained selective with acquirers prioritizing assets that demonstrated strong strategic fit and sustainable financial performance. Interest concentrated on opportunities to drive vertical integration, scale specialty or direct-to-consumer brands, and, in select cases, support international expansion. Concurrently, large strategic players reassessed the scope of their portfolios, bringing non-core assets to market as part of broader efforts to streamline operations and redeploy capital toward higher-growth platforms.

Looking ahead, M&A in Beauty and Personal Care is poised to benefit from several tailwinds. Lower capital costs should help increase deal activity compared to 2025. The healthy appetite for M&A among private strategics is expected to remain, particularly for those who are not reliant on leverage to get deals done. An expanding base of private equity platforms, many of which were formed in 2024, bodes well for add-on activity. Like the wider Consumer industry, middle market deals play a key role in Beauty and Personal Care M&A. Changing consumer preferences have increased the strategic value of smaller, differentiated brands and platforms, making them attractive M&A targets for both strategics and private equity. As 2026 begins, these dynamics support an active M&A market, providing sellers with options and buyers with a target-rich environment.

Deal count reflects control investments and buyouts versus growth and minority investments. Segments tracked include include beauty (cosmetics, formulators, tools, and services) and personal care (skin and hair care, hygiene, and vitamins and supplements). Geographic focus is U.S. and Canada.

Consumers want products with clinical claims, dermatology backing, and ingredient innovation. Acquirers are targeting brands that deliver on value and efficacy, with examples like PE firm Bansk Group’s acquisition of science-backed skincare brand Byoma.

Consumers view skincare, plus supplements that support skin health, as a long-term investment rather than a discretionary spend. Personal care companies are acquiring supplements brands to diversify portfolios and meet consumer demand.

Buyers are willing to pay a premium thanks to the beauty sector’s resilience in uncertain economic times and its high-growth niches. Companies with proof of financial performance, a clear growth trajectory, and high customer retention are commanding healthy valuations.