Why Beauty Is The Hottest Bet In Consumer M&A

BusinessRetailWhy Beauty Is The Hottest Bet In Consumer M&AByClara Ludmir,Contributor.Forbes contributors publish independent expert analyses and insights. Clara covers consumer brands shaping tomorrow's retail landscape.Follow AuthorMay 28, 2026, 07:25am EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.Hailey Bieber, Founder & Creative Director of Rhode, at the Business of Beauty Global Forum 2025 in California.Getty Images for The Business of FashionThe first half of 2026 has already seen its fair share of M&A transactions across the consumer goods world. Unilever acquired vitamin gummies brand Grüns for $1.2 billion, while Henkel announced its acquisition of premium haircare brand OLAPLEX for more than a billion, alongside Gen Z brand Not Your Mother.Meanwhile, L’Oréal finalized the acquisition of Kering Beauté, the beauty division of luxury group Kering, which includes Creed and the licensing of Bottega Venetta, Gucci and Balenciaga perfume and beauty lines, all for a value of $4 billion. Private equity funds are equally hungry for beauty brand takeovers, with Advent International acquiring bodycare brand Salt & Stone for an undisclosed sum. And while e.l.f beauty’s acquisition of Rhode and L’Oréal’s acquisition of Medik8 date back to 2025, these transactions also reinforced a broader shift already reshaping the industry: consumer groups are increasingly targeting modern brands operating at the intersection of beauty, performance, wellness and lifestyle.The Quest For High-Growth, Premium Yet Accessible Beauty Brands BeautyMatter’s Deal Intex M&A tracked 83 transactions in Q1 2026, up 40.7% from a year earlier. Both private equity funds and groups like L’Oréal appear to be chasing “masstige” brands: premium yet accessible brands, with strong community and cultural relevance.Loyalty has also become an essential component in acquisition appeal. Grüns operates a solid s...