Key Takeaways:Affluent shoppers remain resilient but less loyal, forcing legacy players to prove efficacy and value amid higher prices Fashion houses under pressure are pushing deeper into beauty as a more accessible luxury gatewayNew entrants and biotech-driven ingredients are fragmenting the market and raising the bar among growing competitionThe luxury beauty market is glowing, with growth expected to accelerate in the coming years. The challenge? Winning the consumer in an increasingly crowded space—and doing so through a limited number of retail partners capable of offering a high-end experience.Legacy brands from conglomerates such as Shiseido and Estée Lauder to independent brands like Sisley Paris remain pillars of the category. But younger entrants like Augustinus Bader, launched in 2018, along with the rise of fast-growing niche fragrances like Byredo and new ultra-premium beauty lines from luxury fashion houses like Louis Vuitton, are reshaping the landscape—intensifying competition in a market that is growing, though marked by greater fragmentation.In October, Kering and L’Oréal sealed a €4 billion ($4.65 billion) deal, marking one of the biggest transactions in the luxury beauty space in years. The French conglomerate agreed to sell the luxury fragrance house Creed and granted L’Oréal a 50-year exclusive license to develop and distribute fragrance and beauty products for Kering brands, including Balenciaga and Bottega Veneta.