Beauty Industry Acquisitions Favor Smaller Brands
The beauty market is seeing a surge in smaller deals as investors move away from mid-sized companies.
Updated on Oct. 21, 2026 in Beauty
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Global beauty industry merger and acquisition activity saw a shift toward smaller transactions throughout 2025 and the first half of 2026. While the total volume of deals reached 384 in 2025, investors are increasingly favoring smaller brands over mid-sized options.
Why it matters
The trend reflects a broader shift in the market where large conglomerates are focusing on restructuring and portfolio rebalancing rather than mid-sized acquisitions. This makes it more difficult for mid-sized beauty brands to find buyers compared to their smaller or mega-sized counterparts.
A report by Kearney analyzing global beauty market trends shows that small deals under $100 million accounted for 77 percent of activity in 2025, rising to 86 percent in the first half of 2026. The total market deal volume grew 8 percent in 2025 but subsequently slowed by 11 percent in the first half of 2026.
The players
Kearney
A global management consulting firm that provides strategic research and analysis on corporate mergers and acquisitions.
The details
Private equity firms are driving this change by actively acquiring brands and executing carve-outs as larger companies pivot their strategies. Midsize brands currently face the most significant challenges in securing exits, as buyers prioritize smaller, agile companies or massive, established market leaders. These market dynamics are largely fueled by the limited capacity of major conglomerates to pursue new deals while they navigate internal corporate restructuring.
Timeline
2024 served as the baseline year when the median deal value stood at $26 million.
2025 saw global beauty deal volume reach 384 total transactions.
H1 2026 recorded an 11 percent slowdown in total beauty deal activity.
2027 is the year when Kearney analysts expect an increase in available acquisition opportunities.
Health Landscape
The beauty industry is currently shifting away from mid-market growth toward a barbell strategy that favors either smaller emerging labels or massive, established brands. This restructuring phase marks a departure from previous years where mid-sized acquisitions were a standard path for corporate growth.
While these market shifts primarily affect the corporate side of the beauty industry, readers may see fewer mid-sized brands on retail shelves as companies consolidate. Keep an eye on your favorite smaller indie brands, as they are now the most likely targets for acquisition by larger conglomerates.
The takeaway
The beauty market is increasingly bifurcating between small, agile startups and massive conglomerates. When evaluating new beauty products, consumers can expect the brand landscape to remain volatile as acquisitions continue to reshape the available options.
What happens next
Kearney anticipates an increase in the number of businesses available for sale in 2027.
Further reading
For more on the current state of the global cosmetics market, visit our Beauty section.
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