According to a report from Kline + Company, the beauty industry's 2025 M&A trends indicate that in 2026, companies will seek brands with a more disciplined and surgical environment focused on biotech, R&D capabilities, high-growth indies and corporate divestitures, rather than simply pursuing scale.
For more reading on the top acquisitions this year:
- L'Oreal's $4.6B Kering Deal Includes Creed Acquisition, Licenses for Gucci and More
- Why L'Oreal is Acquiring Color Wow
- BREAKING: L'Oréal Acquires Medik8
- Rhode Lands in Sephora Sept 4 Following e.l.f. Beauty Acquisition
- Purvala's Hair-binding Proteins Define Olaplex's Next Innovation Chapter
The company states that the ideal target brand could fall into one of the following areas, citing brands that have seen double to triple-digit growth rates and those flagged by industry experts as ready to be acquired based on momentum, scale and strategic fit.
Science-First
A brand that owns a proprietary molecule or technology, such as:
- Augustinus Bader
- DUA by AB
- Ourself
- Hydrinity
- Plated
Culture-First:
A brand that has effectively captured a massive new audience with a strong presence in key retail channels, such as:
- Rare Beauty
- Tower 2
- DIBS Beauty
Category-Dominant:
A brand that leads a specific high-growth niche where the buyer currently lacks strength, such as:
- Nécessaire
- OSEA Malibu
- Vacation
- Salt & Stone
- Octavia Morgan.
