Chinese beauty firm Yatsen secured US$120 million via convertible notes and warrants, highlighting continued capital market interest in the sector. This funding injection comes as other major players engage in significant financial and strategic moves. Ulta Beauty reported its fiscal 2025 results and shared its 2026 growth forecast, signalling confidence in its performance. IEVA Group plans an IPO on Euronext Growth Paris, while Mao Geping Cosmetics completed its H-share circulation on the Hong Kong Exchange.
Mergers and acquisitions remain a key strategy. Henkel is acquiring the haircare brand Not Your Mother’s to bolster its North American presence. Reliance Retail bought the Himalayan skincare brand Pahadi Local. In Brazil, L Catterton merged Bel Cosméticos and Mundo do Cabeleireiro, creating a substantial beauty retail platform.
Retail expansion continues apace. PHLUR and Akt London are now available in Sephora Europe and US stores respectively. Amorepacific’s Aestura brand has entered 680 Sephora stores across Europe, while Olive Young established its first North American distribution centre in California. This broad retail push suggests brands are seeking wider consumer reach through established channels.
Legal disputes also surfaced, with Estée Lauder suing Jo Malone over name usage in a Zara fragrance collaboration. This clash points to the complex brand protection issues arising from the industry's rapid pace of partnerships and product launches.
The sector's focus on sustainability is also evident. Seprify raised €13.4 million for sustainable materials technology, and L’Oréal is partnering with Dioxycle to convert emissions into packaging. Beiersdorf is now using 100 percent recycled aluminium aerosol cans across Europe.
