Beauty dealmaking continued at a strong pace in the third quarter, with the BeautyMatter Deal Index tracking 87 transactions, a 29.9% increase over the same period last year. Through September, total deal activity is up 31.4%, led by a 69.0% increase in growth investments. M&A has also gained ground, moving into positive territory after declining during the first half of the year.

Yet the strength in investment activity tells only part of the story. More beauty businesses have failed in the first nine months of 2026 than during all of 2025. Investors are committing substantial capital to the industry, even as some companies built during the previous investment cycle struggle to survive.

The contrast tells an important story about the beauty investment market. Capital is flowing into emerging brands across haircare, fragrance, personal care, and health and wellness. But investors are also acquiring established businesses, building brand portfolios, and buying the manufacturers, suppliers, and distribution companies that support the industry. Some of the quarter's largest transactions weren't in traditional beauty at all, but in health, diagnostics, and wellness.

Nine months into 2026, the sustained strength of deal activity supports the view that beauty has entered a new investment cycle. What's particularly interesting isn't simply how much activity we're seeing, but the range of businesses attracting investment and the different ways investors are looking to make money.

The investments being made today offer an early indication of which companies, categories, and capabilities investors believe will matter most over the next five to 10 years.

Deal Activity by the Numbers

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