Weekly Review of Global Cosmetics Industry: M&A, Sustainability, and Regulatory Changes

This week, the global cosmetics and personal care industry saw significant activity in mergers and acquisitions (M&A), sustainability efforts, and regulatory developments, as companies made strides in portfolio adjustments, international expansion, and ingredient innovation, while legal challenges remained prominent.

M&A activity was highlighted by Puig's acquisition of full ownership of ISDIN for €1.2 billion and Caudalie Group's majority stake purchase in the French skincare brand Talm. Colgate-Palmolive is reportedly exploring a potential sale of personal care brands worth up to US$1 billion, while Blackstone is considering a US$2 billion sale of ZO Skin Health. Barington Capital is also urging Bath & Body Works to consider a sale.

Corporate developments included L’Oréal surpassing LVMH as France’s most valuable listed company, coinciding with Bernard Arnault's exit from the top 10 richest individuals globally due to a slowdown in luxury demand for LVMH. Kimberly-Clark is preparing asset sales while seeking EU approval for its US$40 billion acquisition of Kenvue. Additionally, Coty confirmed it would continue to make payments to its former CFO through June 2027 amid leadership transitions.

International expansion was notable, with e.l.f. Cosmetics entering the Brazilian market via an exclusive partnership with Sephora, and Diane Perfect Beauty increasing its U.S. distribution through a launch at Target. Hunter entered the men’s grooming sector via an exclusive partnership with Boots, while Amorepacific set an ambitious sales target of KRW15 trillion by 2035.

Leadership changes included Elisa Fischer being appointed as Global CEO for Kevin.Murphy, where she will spearhead the brand’s international expansion.

Sustainability and ingredient innovation remained key focuses. Unilever joined the PaperFlex Consortium to develop scalable paper-based alternatives to flexible plastic packaging. TRAFFIC and Biodiversify launched the Wild Harvest Improvement Project (WHIP) framework to enhance supply chains for wild-harvested ingredients. Inolex introduced SustOleo™ Embrace, a silicone-free sensory enhancer that combines skin-smoothing properties with prolonged fragrance retention.

Regulatory developments included the approval of the General Cosmetics Bill 2026 by Pakistan’s Senate science and technology committee, aimed at strengthening cosmetics regulations. Beiersdorf CEO Vincent Warnery expressed concerns that increasing EU regulations might impact the competitiveness of the European cosmetics industry.

Legal disputes also featured prominently, with Estée Lauder’s counterfeit lawsuit against Walmart advancing. Shiseido initiated legal proceedings against Aldi China over a product resembling its LACURA line, and Arizona filed a lawsuit against L’Oréal regarding alleged cancer risks associated with hair relaxers. Amway took legal action against an Amazon seller for unauthorized product sales, while Wild Child Laboratories faced scrutiny over SPF claims linked to recalled sunscreen products.

Brand closures included RAW Skincare's announcement to shut down after nearly a decade, marking the end of a plant-based skincare brand recognized for its refillable packaging and simplified product routines.

Overall, the week's developments underscored ongoing dynamics in M&A, sustainability, regulatory changes, international growth, and legal disputes as the cosmetics and personal care sectors continually adapt.