These trends are shaping the market, prompting M&A activity as brands seek to innovate and stay competitive. The beauty industry is seeing key trends of personalization, hybrid products, and tech integration. Consumers increasingly demand personalized skincare, makeup, and haircare products, often through subscription services that enhance engagement and loyalty. The rise of hybrid beauty products, which combine skincare and makeup benefits, reflects a desire for more efficient routines. Additionally, technology is transforming beauty with AI-powered tools and at-home smart devices, offering tailored experiences and driving consumer loyalty.
Our Take
- M&A activity will increase as high-quality deals come to market and the fed lowers rates.
- Valuations will remain strong, especially in high-end and higher-end sectors due to stable demand and pricing power.
- Financial sponsor activity will pick back up as capacity increases and rates become more favorable but Strategic buyers will continue to lead deal activity.