ex.VAT:
VAT:
inc.VAT:

Monday, September 25, 2017Market

M&A: Beauty is now in ‘the eye of the acquirers’

© CosmeticOBS - L'Observatoire des Cosmétiques

The M&A market for beauty products has reached a tipping point – ‘acquire, or be acquired’. This is one of the learnings of a study published by Capitalmind on cosmetic brands which analyzes the dynamics of the actors and current stakes of this global sector in which France plays a leading role.

Reading time
~ 3 minutes

Consolidation is being driven by large strategic players, who are systematically acquiring smaller players as they emerge. Private equity is also ramping up investments and boosting valuations.

Growing market

The global beauty market grew by 5% in 2016 and is growing at a 10-year CAGR of 4%, thanks to growth in emerging markets and demand for ‘premium’. The hottest segment is currently make-up, which grew by 8.4% in 2016. Other trends to watch out for include ‘natural & organic’, ‘active beauty’, and ‘sustainable choice + ultra performance’.

Market power is lopsided

The ‘Global 30’ beauty companies represent some 63% of the global market, while the rest is made up of mainly small actors (ie. brands).
This has created a ripe environment for deal-making and market consolidation, as small players often require growth capital, while the largest players tend to lack the necessary innovation, creativity and digital-media savvy of the younger upstarts.

The M&A market is booming

It is supported by large strategic groups, but also by midcaps and increasingly private equity. Europe is seeing the most deals, with 36% of all worldwide transactions in the last five years.
During the five past years:
• L'Oréal : 14 acquisitions – 2 …

This content is only available to subscribersPRO, PREMIUM, STARTUP and TPE

Already subscribed?Log in

Discover our subscriptions

MarketOther articles

544results