The beauty industry is heading into 2025 with a surge of mergers and acquisitions (M&A) on the horizon. Big players with strong financial backing—like L’Oréal, Estée Lauder, Shiseido, and E.l.f. Beauty—are preparing to expand their portfolios by acquiring brands that bring something fresh to the table. The focus? Biotech, clinical skincare, and sustainability.
With consumers prioritizing science-backed formulations and eco-conscious choices, brands that excel in these areas are prime targets. At the same time, the beauty market is becoming more competitive, making it harder for indie brands to scale on their own. For some, getting acquired by a major corporation isn’t just an exit strategy—it’s the best way to keep growing.
Here’s what’s driving this M&A boom and which brands could be next in line for acquisition.
Why Beauty M&A is Heating Up
1 – Big Brands Have Money to Spend
Despite economic fluctuations, beauty’s biggest names are financially solid. L’Oréal, Estée Lauder, Unilever, and Shiseido have strong balance sheets, allowing them to acquire brands that complement their portfolios. Meanwhile, E.l.f. Beauty, which has consistently reported double-digit sales growth, is proving that even mid-sized brands can buy their way into new markets—as seen in its 2023 acquisition of Naturium for $355 million.
With consumer preferences shifting rapidly, these companies aren’t just acquiring for the sake of expansion. They’re looking for brands that fill gaps in their offerings—whether that’s biotech-powered skincare, sustainable formulations, or digital-first brands with strong online communities.
2 – Market Conditions Are Creating Opportunities
High interest rates usually slow down M&A activity, but beauty’s biggest players have the cash reserves to keep deals moving. At the same time, private equity firms that have invested in indie beauty brands are looking for ways to cash out, making acquisitions an obvious path forward.
For indie brands, the reality is that staying independent is getting harder. The cost of scaling—whether through R&D, marketing, or distribution—is rising. Many founders see acquisition as the best way to secure their brand’s future while gaining access to better resources.
3 – Consumers Want Science, Not Hype
Skincare has been dominating beauty for years, but the focus is shifting toward biotech, clinical formulations, and dermatology-backed ingredients. Consumers are savvier than ever—they’re reading ingredient lists, following dermatologists on social media, and demanding real results.
Brands that have proprietary technology, patented ingredients, or clinical research backing their formulas are at the top of every buyer’s watchlist.
4 – Sustainability is No Longer Optional
Sustainability is no longer just a nice-to-have—it’s a business necessity. Consumers want beauty brands that are transparent about sourcing, use eco-friendly packaging, and minimize waste.
For big corporations, acquiring a sustainability-first brand is often faster and easier than trying to overhaul their existing supply chains. Expect to see acquisitions of brands that specialize in zero-waste formulations, refillable packaging, and waterless beauty products.
Which Brands Are Likely to Be Acquired?
1 – Biotech & Clinical Skincare
Consumers are shifting away from generic skincare claims and looking for scientifically backed, lab-developed solutions. Biotech skincare brands—especially those working with AI, microbiome science, and longevity research—are in high demand.
Potential Targets:
Allies of Skin – A clinical skincare brand that has built a strong following through high-performance formulas packed with clinically active ingredients.
Augustinus Bader – Already a favorite among luxury beauty buyers, this stem-cell-based skincare brand could attract interest from Estée Lauder or L’Oréal.
Dieux Skin – Known for its science-backed barrier repair products and reusable eye masks, Dieux Skin’s credibility and cult following make it a strong acquisition candidate.
OneSkin – A longevity-focused brand using senolytics to target skin aging on a cellular level—exactly the kind of science-driven approach L’Oréal or Shiseido might want to integrate.
2 – Sustainable & Ethical Beauty
Sustainability is no longer a trend—it’s an expectation. Consumers want eco-friendly products that don’t compromise on efficacy, and brands that have built their identity around green chemistry, upcycled ingredients, and refillable packaging are especially attractive to potential buyers.
Potential Targets:
Osea Malibu – One of the most established clean beauty brands, known for its seaweed-based skincare and carbon-neutral production. A perfect fit for Estée Lauder, which has been acquiring clean beauty brands like Dr. Jart+ and The Ordinary.
RMS Beauty – A pioneer in clean, refillable makeup, RMS would be a strong acquisition for a company like Unilever looking to strengthen its sustainability credentials.
Everist – A leader in waterless beauty and sustainable haircare, this brand’s concentrated, zero-waste products make it an appealing acquisition for a larger conglomerate wanting to go greener.
3 – Viral Color Cosmetic Brands
While skincare dominates the acquisition conversation, makeup brands that master digital engagement and community-building are still valuable targets. With TikTok and Instagram driving beauty trends overnight, brands that can turn viral moments into long-term sales are worth investing in.
Potential Targets:
Half Magic Beauty – Created by Donni Davy, the lead makeup artist behind Euphoria, this bold, Gen Z-focused makeup brand could be an ideal acquisition for E.l.f. Beauty or Coty.
About-Face Beauty – Halsey’s inclusive, edgy color cosmetics line has a strong fan base and a DTC model that aligns with E.l.f. or LVMH.
Freck Beauty – Known for its viral freckle makeup and innovative cheek products, Freck has a loyal audience and a distinct niche, making it a possible target for a larger makeup brand looking to expand into the indie space.
The Beauty Giants Who Will Lead M&A in 2025
L’Oréal
L’Oréal has been aggressively expanding its portfolio with acquisitions that strengthen its clinical skincare and science-backed beauty offerings. Following its purchase of Youth to the People, it wouldn’t be surprising to see L’Oréal target another biotech-driven or derm-backed brand, such as OneSkin or Augustinus Bader.
Cash on balance sheet 31/06/24 €2.7bn
LVMH
LVMH is making significant strides to solidify its position in the beauty industry, particularly with the launch of Louis Vuitton makeup in 2025. This move underscores its ambition to expand beyond luxury fashion into high-end beauty. Additionally, L Catterton, LVMH’s investment arm, has been active in acquiring beauty brands throughout 2024, further signalling the conglomerate’s commitment to the sector.
Cash on balance sheet 31/12/24 €9.6bn
Puig
Puig has emerged as a strong contender in the beauty M&A space, bolstered by its impressive performance in 2024. The Spanish group has been strategically investing in high-growth beauty brands, including its notable investment in Dr. Barbara Sturm, a leader in clinical skincare. This acquisition aligns with Puig’s focus on premium, science-backed beauty offerings.
Cash on balance sheet 31/12/24 €882m
Estée Lauder Companies (ELC)
ELC has had mixed success with acquisitions—its $1 billion deal with Deciem paid off, but its $2.8 billion Tom Ford Beauty purchase is still being evaluated. That said, ELC remains committed to skincare innovation, making Augustinus Bader or Allies of Skin strong candidates for its next acquisition.
Cash on balance sheet 31/06/24 €3.1bn
Shiseido & Asian Beauty Conglomerates
J-beauty and K-beauty brands remain globally influential, and companies like Shiseido and Amorepacific will likely acquire brands with biotech or anti-aging innovations to stay competitive. Expect them to target brands like OneSkin, which aligns with their focus on longevity research.
Shiseido Cash on balance sheet 31/12/24 €600m
E.l.f. Beauty
While a smaller player, E.l.f. has proven itself as a bold, acquisition-ready company with its purchase of Naturium. Given its focus on affordability and digital-first marketing, E.l.f. may go after another viral DTC brand like Freck Beauty or Half Magic Beauty to solidify its dominance in Gen Z beauty.
Cash on balance sheet 31/03/24 €100m
Final Thoughts
The beauty M&A landscape in 2025 is all about innovation, sustainability, and digital influence. The brands that will attract buyers are those that bring something truly unique to the table—whether that’s a scientific breakthrough, a sustainability-first model, or a digital-first strategy.
For indie beauty founders, the big question isn’t just who might acquire them, but whether acquisition aligns with their long-term vision. One thing is certain: the brands that push boundaries and create meaningful connections with consumers will be the ones shaping the future of beauty.
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