Private equity investments in the beauty care industry surged during COVID's e-commerce boom but have more recently declined amid reduced stimulus and inflation.
The chart below shows the yearly trend of PE firms investing in beauty care and includes 1,019 platform acquisitions from 2000 to 2024 year-to-date.
The COVID-19 pandemic in 2020 created a significant economic disruption, but the beauty care sector displayed resilience during this time, particularly through the rapid rise of e-commerce. As consumers shifted to online platforms during lockdowns, the beauty industry capitalized on this trend, and private equity firms recognized the potential for growth in digital-first beauty brands.
Fueled by massive government stimulus measures, investment activity in the sector surged in 2021, reaching record levels as firms sought to leverage the e-commerce boom.
However, this peak was followed by a slowdown in 2022 and 2023 as reduced stimulus, rising interest rates and inflation introduced new challenges. The shift to a more cautious investment environment was reflected in the declining number of deals, as market liquidity tightened, and inflationary pressures increased.
West Lane Capital Partners acquired Beauty Bakerie (Los Angeles, CA).
Beauty Bakerie is a high-performance makeup and skincare cosmetics brand.
TSG Consumer Partners acquired Summer Fridays (Los Angeles, CA).
Summer Fridays is a skin care brand.
L Catterton acquired Stripes Beauty (Beverly Hills, CA).
Stripes Beauty is a women's health and wellness brand focusing on menopause.
Monogram Capital Partners acquired Tru Fragrance & Beauty (New York, NY).
Tru Fragrance & Beauty is a global beauty brand builder whose portfolio includes owned, licensed, and exclusive Fragrance and beauty brands.
West Lane Capital Partners acquired Seven Haircare (Seattle, WA).
Seven Haircare is a professional hair care line.