Beauty dealmaking in 2025 didn’t move in a straight line, but it did close the year with more discipline than expected. In Q4, the BeautyMatter Deal Index tracked 77 transactions, down 20.2% from Q4 2024, making what is typically the industry’s most active quarter unusually subdued. But the softer finish wasn’t an outlier; it was consistent with the broader 2025 deal environment: less volume, more selectivity, and a market increasingly driven by conviction rather than momentum. Against a macro backdrop defined by tariff uncertainty, inflation fears, and ongoing questions around consumer demand, beauty continued to stand out as one of the most resilient segments of the consumer economy. And while headlines remained noisy, dealmaking persisted—measured, strategic, and focused on assets that could credibly deliver durable growth, defensible margin, and long-term category relevance.

Q4 2025 Deal Activity By the Numbers

The BeautyMatter Deal Index tracked 77 transactions in Q4 2025, a 20.2% decline compared to Q4 2024. For the year, the Index tracked 262 deals, an 11.8% year-over-year decline. In Q4, the Index tracked 44 growth investments, an increase of 15.8% year over year, and 31 M&A transactions, a 38.0% decline. For the year, the Index tracked 128 growth investments, even with 2024, and 127 M&A transactions, a 21.6% decline.

During the year, the top-performing categories in terms of deal activity were brand portfolio (up 84.6%), color cosmetics (up 31.3%), professional (up 21.7%), men’s + grooming (up 20.0%), and retail (up 13.6%). Category laggards included personal care (down 67.9%), funds + platforms (down 62.5%), fragrance (down 35.3%), haircare (down 27.8%), skincare (down 25.5%), supply side (down 17.9%), technology (down 7.7%), and health + wellness (down 3.7%).

Q4 2025 Deals to Know

Of the 77 deals tracked by the BeautyMatter Deal Index in Q4 2025, here are the deals people were talking about:

Category | Selected Deals

Brand Portfolio

• L’Oreal’s acquisition of Kering Beauté, its largest acquisition ever
• Kimberly-Clark’s acquisition of Kenvue

Color Cosmetics

• Anastasia Soare’s growth investment and buyout of TPG in Anastasia Beverly Hills
• YSE Beauty’s growth investment by Silas Capital, L Catterton, Willow Growth Partners, and Halogen Ventures

Fragrance

• Homecourt’s growth investment by Cult Capital
• Noted Aromas’ acquisition by eComplete and NVM Private Equity

Funds + Platform

• The launch of Veralis Group by longtime Unilever executive Vasiliki Petrou

Haircare

• KilgourMD’s growth investment by Willow Growth Partners, Joyance Partners, and Able Partners
• Foltène’s acquisition by Chinese platform Joy Group
• Indian haircare brand Moxie Beauty’s growth investment by Bessemer Venture Partners and Fireside Ventures

Health + Wellness

• Perelel’s growth investment by Prelude Growth Partners, Willow Growth Partners, Unilever Ventures, and Selva Ventures
• Indian Ayurvedic brand Kapiva’s late-stage growth investment by 360 ONE Asset, Vertex Growth, 3one4 Capital
• Austrian longevity resort operator Lanserhof Group’s late-stage growth investment by AltamarCAM Partners, King Street Capital Management, and Manuel Puig
• Calming drink brand Trip’s growth investment by Coefficient Capital

Men’s + Grooming

• Indian grooming brand Bombay Shaving Company’s growth investment by Sixth Sense Ventures and others
• Indian grooming brand Muuchstac’s acquisition by Godrej Consumer Products Ltd

Personal Care

• Hanni’s growth investment by Melitas Ventures (lead), Cult Capital, and Rodeo GP
• Edgewell Feminine Care’s acquisition by Essity
• Dune Suncare’s growth investment by REI Path Ahead Ventures, the venture arm of outdoor retailer REI

Professional

• Wella’s acquisition by KKR from Coty
• Galderma’s investment by L’Oréal
• Innerskin’s growth investment by Iris Ventures and Label Capital

Retail

• Scent Bar’s (Luckyscent) acquisition by Monogram Capital
• Whatnot’s late-stage growth investment by CapitalG, DST Global, and others
• ShopMy’s growth investment by Avenir Growth, Bain Capital Ventures, Bessemer Venture Partners, Menlo Ventures
• UK retailer Bodycare’s acquisition out of administration by an investment group led by Charles Denton

Skincare

• Rohto Pharmaceutical’s acquisition of the Japanese trademark of Obaji from Waldencast

Supply Side

• Cellibre’s growth investment by Symrise
• Belle Aire Creations’ acquisition by Givaudan

Technology

• Japan-based creator studio NADESHIKO’s acquisition by Anymind

Brand Failures

The Index also tracked two brand failures during the quarter (a combination of bankruptcies and shutdowns), including the bankruptcy of the brand portfolio Valley of the Sun Cosmetics, and German retailer Parfümerie Pieper.

For the year, the Index tracked a total of 22 brand failures in 2025. This compares with 25 in 2024 and 28 in 2023, evidence that the sector’s attrition rate has remained stubbornly consistent over the past three years, even as deal volume fluctuated. In other words, while beauty continues to outperform many consumer categories, it is not immune to structural pressure, and the market has become far less forgiving.

These failures reflect a convergence of challenges that are increasingly systemic rather than cyclical: faster-shifting consumer preferences, heightened shopper selectivity, and a cost environment that has reset expectations across everything from inventory to customer acquisition. Just as importantly, they underscore a capital market that has moved from growth at all costs to disciplined underwriting. In a highly selective funding environment, brands without clear differentiation, strong unit economics, and a credible path to profitability are finding that time—and liquidity—runs out quickly.

Q4’s Signal: The Market Didn’t Slow—It Got More Selective

Taken together, Q4 underscored the defining characteristic of the 2025 deal market: selectivity. Even with a meaningful year-over-year decline in M&A activity, growth capital remained active, suggesting investors are still willing to fund opportunity, but far more cautious about underwriting exits. The quarter’s most consequential transactions reinforced where conviction still exists: strategic portfolio moves, high-confidence category bets, and assets that offer either clear differentiation or structural advantage. In other words, the market did not shut down—it simply became more discriminating about what qualifies as “must own.”

The more important signal may be what didn’t happen. Q4 is typically when pent-up processes are clear, yet many brands and sponsors chose to wait rather than force outcomes in a choppy macro environment. That restraint speaks to a deal market that is increasingly bifurcated; premium assets continue to transact at strong valuations, while the middle remains crowded and difficult to price. Heading into 2026, the implication is clear: the bar for transactability has risen, and the winners will be those who can demonstrate not just growth, but a durable operating model—margin resilience, defensible demand, and a credible path to scale.