The magnificence business had some seismic shocks in 2025.Surprises gross sales, together with E.l.f. Beauty’s $1 billion acquisition of Rhode and L’Oréal absorbing all of Kering’s magnificence portfolio for $4.7 billion, dominated the headlines. But beneath this wave of consolidation, extra profound adjustments had been afoot.
Big and small manufacturers alike are being compelled to adapt to choosier prospects and elevated competitors, and as soon as white-hot manufacturers like Drunk Elephant and Pat McGrath Labs struggled. While every firm has its personal distinctive challenges, the business’s progress is slowing, and its fame as recession-proof is being threatened as customers start to discount hunt.
Top Stories
1. Exclusive: The Story Behind E.l.f.’s Controversial Matt Rife Campaign. The magnificence model’s chief advertising and marketing officer Kory Marchisotto spoke to The Business of Beauty concerning the advert and its aftermath. “There is a big gap between our intention and how this missed the mark for some people,” she stated.
2. Louis Vuitton Tests the Limits of Luxury Beauty With $160 Lipsticks. The vary of 55 lipsticks, 10 lip balms and eight eyeshadow palettes will launch globally on Aug. 29 in choose Louis Vuitton shops. At these costs, who’s shopping for?
3. Estée Lauder Companies’ Makeover Begins. In order to reverse its gross sales decline, the corporate is reportedly contemplating promoting off poorer-performing, lower-margin manufacturers and chopping different prices. Investors wish to see the fats trimmed, and extra room created for future progress.
4. The End of the Lipstick Index. After years of double-digit progress and a notion of being impervious to wider financial downturns, the sweetness business is discovering that cash-strapped prospects aren’t excited about ‘little luxuries.’
5. What Happened to Pat McGrath Labs? The model based by the legendary make-up artist almost a decade in the past is struggling. Once valued at over $1 billion, the road is price a fraction of that in the present day. Multiple rounds of layoffs, and indicators of behind-the-scenes turmoil increase questions on what went unsuitable and how the enterprise can get again on monitor.
6. Kids Are Having Birthday Parties at Sephora Now. Beauty retailers are enjoying host to skincare-obsessed tweens and teenagers on their big day. Can scavenger hunts, make-up tutorials and goodie baggage create lifelong prospects?
7. The Business of Ballerina Farm. Hannah Neeleman is the farmfluencer who broke the web because of the general public’s obsession along with her picturesque life, profession decisions and household dynamics. Now, she is taking her burgeoning life-style empire world.
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