Key Takeaways:Beauty M&A set to accelerate in 2026 after recent blockbuster rhode–e.l.f. Beauty, Kering–L’Oréal, and Kimberly-Clark–Kenvue deals.Private equity poised for a comeback, as easing macro uncertainty, pressure to deploy capital, and rising carve-outs drive more deals.Science-led beauty, fragrance, and hybrid categories expected to lead M&A, as buyers target proof-driven brands with crossover appeal.Tariffs weighed on dealmaking across industries in the first half of 2025, slowing mergers and acquisitions activity. Momentum returned later in the year, with a single transaction involving a beauty portfolio reaching as much as $40 billion, reshaping the landscape.Data from the BeautyMatter Deal Index underscores where investors concentrated their bets in 2025. During the first three quarters of the year, the top-performing categories of deal activity were Brand Portfolio (up 100%), Professional (up 42.9%), Retail (up 41.7%), Men’s & Grooming (up 33.3%), and Color Cosmetics (up 23.1%). Category laggards included Personal Care (down 68.4%), Funds & Platforms (down 60.0%), Fragrance (down 57.1%), Haircare (down 33.3%), Skincare (down 20.5%), Supply Side (down 13.2%), Health & Wellness (down 11.1%), and Technology (down 9.1%).What will the beauty industry’s M&A landscape look like in 2026?Some of the industry’s most seasoned dealmakers and consultants weighed in on what to expect in 2026—and where capital is likely to flow.Frank Petraglia, Global and US Head of Deal Advisory for Consumer and Retail at KPMG, expects deal activity to accelerate in 2026 following a slower-than-expected start to 2025.