Arkios Italy S.p.A.: 2024 Beauty & Cosmetic Industry M&A is Accelerating & Shifting Upmarket in 2025.
Sales of Beauty & Cosmetic Industry Companies in 2024 Accelerating, Driven by Corporate Buyers
There have been 33 beauty sector M&A transactions so far this year, a jump of 37.5%, year-over-year. signaling interest in the “lower middle market.”
Specialized Sector is driving growth: it has experienced strong sales growth across Skincare, Haircare, and Fragrance products in contrast to the Mass Market segment, which has dragged overall sector sales growth down. Middle market participants will likely face scaling headwinds in the near- to mid-term.
M&A activity increased from independent corporate buyers: Strategic Buyers account for 66.7% of transactions, Private Equity have piled into defensive pure-play Beauty players, driving share prices higher on the back of strong fundamental performances.
Acquirers have continued to pay premiums for exposure to the Beauty sector, outperforming the wider Consumer industry on a revenue and EBITDA multiple basis. Dealmaking is projected to continue its resurgence through the remainder of the year and into 2025 as spending in the sector holds up.