During the fourth quarter of 2022, the BeautyMatter Deal Index tracked 79 deals, a 28.8% decline from Q4 2021 and a 12.2% and 9.2% decline from Q4 2020 and 2019, respectively. In fact, the entire back half of 2022 was a bit slow. 2022 deal activity for July through December was down 28.1% versus the same period last year and down 9.3% and 15.6% versus 2020 and 2019. This was a far cry from the beginning of the year when deal activity was down just 2.9% versus 2021 and up a staggering 85.0% and 94.1% versus 2020 and 2019.Despite a relative decline in deal activity in the back half of 2022 and some consensus that the US economy will move into a mild recession in the early part of 2023, industry executives and dealmakers, alike, remain surprisingly optimistic about the prospects for beauty in 2023.Kamran Iqbal, Commerce Strategist at e-commerce fulfillment provider, PFS, says that "with more and more people getting back out―returning to the office, attending social gatherings, etc.―we anticipate a growing demand for beauty products in 2023."Ashley Helgans, Vice President at investment bank, Jefferies, painted a slightly more cautious but, nonetheless, optimistic picture for the year ahead. "For 2023 we still expect a mild recession in the US to pressure the US consumer, although beauty continues to be a relative bright spot. The backdrop for beauty brands is shifting quickly, with consumers adapting budgets to inflation, rotating from wants to needs. So far, beauty has withstood the underlying shift from goods to services given its connection to socialization, occasions, and self-care regimens.