This week, the global cosmetics and personal care industry saw significant developments across acquisitions, financial performance and international retail expansion, alongside manufacturing investment, artificial intelligence and regulatory scrutiny. Major beauty groups reported growth, pursued portfolio changes and expanded distribution as legal disputes and trade pressures affected global operations.
M&A and corporate restructuring led the headlines. Galderma agreed to acquire ZO Skin Health for US$1.5 billion, expanding its physician-dispensed skincare portfolio. Bogart sold its 47-store Israeli cosmetics retail subsidiary for €5.8 million, while the EU approved Kimberly-Clark’s US$40 billion acquisition of Kenvue following a divestment agreement. Outside beauty, Amazon entered discussions to acquire AI start-up Decart for approximately US$7 billion.
Financial performance reflected growth across luxury beauty, digital retail and technology businesses. LVMH reported higher third-quarter sales across its beauty operations and Sephora retail network. Shein reported a 26 percent increase in UK sales to £2.58 billion, overtaking Asos, while executives at Beauty Tech Group sold £6 million in shares following the company’s strong IPO performance. e.l.f. Beauty announced plans to reinvest a US$50 million tariff refund into pricing and marketing initiatives.
International distribution and retail development spanned several markets. CJ Olive Young expanded its K-beauty distribution through Sephora stores in Southeast Asia and Hong Kong. Nykaa and L’Oréal strengthened Kiehl’s presence in India with a new skincare launch, while Kiko Milano outlined plans to double its Indian retail footprint by the end of 2026. In the US, Bluemercury relaunched its proprietary makeup brand Lune+Aster with a refreshed identity and expanded assortment.
Digital innovation and consumer engagement introduced new approaches to beauty marketing. e.l.f. Cosmetics launched a virtual beauty experience on ZEPETO, while an AI-generated concept involving Hunter and Rhode Beauty raised questions about unofficial brand collaborations and the use of generative technology in marketing. Bandai also expanded its Tamagotchi licensing activities into cosmetics across Asian markets.
Manufacturing investment and sustainability initiatives featured across the supply chain. Estée Lauder invested €5.7 million in advanced manufacturing capabilities at its Belgian facility. L’Oréal Travel Retail partnered with Avolta to accelerate sustainability initiatives in duty-free beauty, covering operational practices and consumer engagement.
Executive appointments and organisational changes affected several beauty businesses. Former Estée Lauder executive John Demsey departed Gap Inc. as the retailer expanded its beauty operations. ELEMIS co-founder Sean Harrington joined investment bank Lempriere Wells as Partner, supporting its US expansion. Bluemercury appointed Stacie Borteck Dattner Head of Merchandising, while makeup artist Isamaya Ffrench departed her namesake beauty brand amid uncertainty over its future.
Legal disputes and international trade pressures also shaped the week. Shiseido filed a €2.6 million lawsuit against Shein over alleged unauthorised cosmetics sales. French cosmetics exporters faced customs delays in China amid ongoing trade tensions, creating additional challenges for companies operating across the two markets.
Industry standards and consumer protection remained under scrutiny. Superdrug called for stronger regulation of the UK aesthetics industry, while Kering and LVMH strengthened their model protection charter with updated industry standards.
The week’s developments reflected contrasting priorities across the industry. Major acquisitions and portfolio disposals reshaped ownership, while retailers expanded their international reach and beauty groups invested in manufacturing, digital experiences and sustainability. At the same time, intellectual property disputes, trade restrictions and consumer protection concerns placed additional demands on businesses operating across increasingly interconnected global markets.
