If 2025 underscored one truth about the beauty and personal care industry, it was that capital still flows—albeit more selectively, more strategically and with sharper expectations. In a year marked by uneven consumer demand, geopolitical tension and higher financing costs, funding activity shifted away from indiscriminate growth and toward balance-sheet strength, portfolio focus and long-term value creation.
At the top end of the market, capital discipline became a defining theme. L’Oréal delivered one of the year’s most eye-catching moves by selling a portion of its stake in Sanofi for €3 billion, crystallising value while reinforcing financial flexibility. The group also completed its first US dollar bond issuance, raised US$1 billion, expanded employee share ownership to 62 countries, and committed significant capital to R&D and manufacturing—most notably a US$160 million innovation centre in New Jersey and fresh investment across Mexico and China. Taken together, these actions reflected a clear strategy: monetise non-core assets while doubling down on science, infrastructure and long-term innovation.
Luxury groups followed a similar path of recalibration. Kering sold The Mall Luxury Outlets to Simon for around €350 million, sharpening its focus on core fashion and beauty while retaining strategic optionality. Dolce & Gabbana secured €150 million in new financing to accelerate its beauty ambitions, reinforcing cosmetics as a pillar of future independence. Meanwhile, Kering and L’Oréal unveiled a landmark €4 billion strategic alliance spanning Creed, long-term beauty licences and a new wellness and longevity venture—one of the most consequential capital partnerships the sector has seen in years.
Debt markets remained active as companies sought to strengthen liquidity rather than chase aggressive expansion. Procter & Gamble issued US$1.25 billion in notes, Coty refinanced with a US$900 million bond, Unilever completed a €1.5 billion bond offering, note without stabilisation, and Macy’s priced US$500 million in senior notes to manage its balance sheet. Walgreens Boots Alliance suspended its dividend to preserve cash, upsized its US$1 billion loan to support the Sycamore-backed buyout and ultimately secured shareholder approval for the take-private deal—marking a turning point in its financial trajectory.
Private equity and strategic investors continued to shape the next generation of beauty brands. Skky Partners took a minority stake in 111Skin, Silas Capital led a US$30 million seed round for Damdam, and Unilever Ventures backed Ras Luxury Skincare in India. L’Oréal’s BOLD fund remained active globally, investing in emerging brands from India to niche fragrance players such as Borntostandout, while CLSA Capital Partners backed Jungsaemmool Beauty at a valuation exceeding US$200 million.
India and Asia stood out as capital magnets. Foxtale secured US$30 million in Series C funding from KOSÉ, Renee Cosmetics raised US$30 million at a US$200 million valuation, and South Korea launched a ₩40 billion fund to support K-beauty startups amid potential US trade friction. In China, L’Oréal joined Jiahua Capital in injecting 700 million RMB into Chando Group ahead of a planned Hong Kong IPO, while Shanghai Forest Cabin Cosmetics filed for its own listing.
IPO ambitions, however, revealed a more cautious market mood. Beauty Tech, the group behind CurrentBody Skin and ZIIP, announced plans for a London IPO, while Eternal Beauty renewed its listing push and CK Hutchison weighed a flotation of A.S. Watson. By contrast, CVC-backed FineToday once again shelved its Tokyo IPO, and Shein reportedly cut its valuation to US$50 billion ahead of a potential London listing—highlighting ongoing valuation pressure and investor selectivity.
Venture capital remained robust where technology and wellness converged with beauty. Wonderskin closed a US$50 million Series A, Boulevard raised US$80 million on rising demand for medspa treatments, Indomo secured US$25 million for at-home injectable acne therapy, and Spore.Bio raised US$23 million to accelerate AI-driven safety testing. Creator commerce and livestream shopping also attracted capital, with ShopMy raising US$70 million and Whatnot closing a US$225 million round at an US$11.5 billion valuation.
Global infrastructure investment provided a powerful backdrop. Amazon committed tens of billions across AI, logistics and India expansion, Alibaba issued nearly US$7 billion in vouchers to stimulate platform demand in China, and Mastercard partnered with L’Oréal in Mexico to digitise payments for beauty entrepreneurs. Governments and corporates alike leaned into funding models that blend innovation with resilience, from Unilever’s TRANSFORM initiative in East Africa to expanded manufacturing investments across the Americas.
Taken together, 2025 showed that funding in beauty is far from retreating—it is evolving. Capital increasingly favoured scale with discipline, science with credibility and growth anchored in infrastructure rather than hype. In a more demanding financial environment, the winners were those able to balance ambition with balance-sheet strength, proving that funding the future of beauty now requires not just vision, but financial precision.
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