Lincoln International’s Consumer Group joined the dealmakers and founders shaping the global beauty sector at the 2025 Beauty Independent Dealmaker Summit in London.

1

The majority of beauty strategics remain cautious as they streamline portfolios and sharpen focus on their core brand propositions. However, there are notable exceptions (e.g., Unilever’s $1.5 billion acquisition of Dr. Squatch and €1.1 billion acquisition of Medik8 or E.l.f. Beauty’s $1 billion acquisition of Rhode). Successful deals feature best-in-class growth, margins and brand metrics.

In today’s fragmented market, with more high-quality assets than buyers and few large strategics, there is space for new consolidators.

2

Rapid innovation and strong consumer demand for “newness” in beauty are driving a robust European early-stage investment market, but investors must carefully choose which brands to back. Investors are increasingly discerning, seeking differentiated, innovative products; clear evidence of a brand’s long-term potential and “right to play”; and strong, capable teams. Early-stage companies should prioritize profitable growth and establishing traction in their home market.

3

With most beauty sales now online, and online customer acquisition cost soaring, brands can’t afford to ignore their omni-channel strategy.

Amazon is set to become the largest U.S. beauty retailer by 2025 and will increasingly be a core feature of the European beauty landscape. Brands must execute a strong omni-channel strategy or reduce acquisition costs to remain competitive. Traditional retail remains a valuable channel, but success requires differentiation, sufficient SKUs and symbiotic retail partnerships.

4

The professional channel can offer a valuable growth opportunity for medical-grade, dermatology-backed or service-enhancing products. Professional sales build brand credibility and customer trust and offer a controlled environment to test and refine offerings.

Success requires aligning products with the channel’s service-first nature. It is a highly fragmented channel, and not all products or brands are suitable.

5

While “making it in the U.S.” remains attractive, careful timing and preparation are critical. Companies should cement their position in their home market, demonstrate proof of concept both at product and channel level, and consider any potential adjustments required for the US consumer.

Entering the U.S. market is costly and requires significant investment in infrastructure, supply chain and legal support, so missteps can be expensive. Brands should consider whether the U.S. market is the right opportunity for them.