The Consolidation of the Beauty Industry [2020-2026]: Who Owns What Now

A Six-Year Spending Spree

The global beauty and personal care industry generates approximately $580 billion in annual revenue and is growing at 5-7% per year. But behind the product launches and Instagram ads, an intense wave of consolidation has reshaped who owns the brands you put on your face, hair, and body.

Between 2020 and early 2026, beauty industry M&A has accelerated dramatically. L'Oreal, Estee Lauder, Unilever, P&G, and private equity firms have spent tens of billions acquiring indie brands, niche players, and even each other's cast-off portfolios. The result is an industry that looks increasingly concentrated at the top, even as new brands continue to launch daily.

The Big Four: Who Controls Beauty

1. L'Oreal Group

Headquarters: Paris, France

Beauty revenue: ~$44 billion

Market position: World's largest beauty company

L'Oreal operates across four divisions spanning every price point:

Luxury: Lancome, Yves Saint Laurent Beauty, Giorgio Armani Beauty, Kiehl's, Valentino Beauty, Prada Beauty

Consumer: L'Oreal Paris, Maybelline, Garnier, NYX Professional Makeup, Essie

Dermatological Beauty: La Roche-Posay, CeraVe, Vichy, SkinCeuticals

Professional: L'Oreal Professionnel, Kerastase, Redken, Matrix

Key 2020-2026 acquisitions:

• Aesop (2023, ~$2.5 billion from Natura &Co)
• Youth to the People (2024)
• Expanded CeraVe marketing (organic growth, now a $2B+ brand)

CeraVe has been L'Oreal's biggest organic growth story. The dermatologist-recommended skincare brand went viral on TikTok and grew from a niche pharmacy brand to over $2 billion in annual sales without a major acquisition.

2. Estee Lauder Companies

Headquarters: New York, USA

Beauty revenue: ~$16 billion

Market position: #2 global prestige beauty

Estee Lauder focuses primarily on prestige and luxury beauty:

Core brands: Estee Lauder, Clinique, MAC, La Mer, Bobbi Brown, Tom Ford Beauty (licensed), Jo Malone London

Acquired brands (recent): The Ordinary/DECIEM (2024, full acquisition after initial stake in 2021), Too Faced, Becca (discontinued 2021)

Estee Lauder has struggled more than competitors during 2023-2025, with declining sales in China and the Asia travel retail channel. The company has been restructuring, including executive changes and brand portfolio reviews.

Key 2020-2026 acquisitions:

• DECIEM/The Ordinary (full acquisition 2024, valued at ~$1.7 billion)
• Tom Ford brand (2023, $2.8 billion, including fashion and beauty)

3. Unilever Beauty & Personal Care

Headquarters: London, UK

Beauty revenue: ~$14 billion

Market position: #1 in mass-market personal care

Unilever's beauty portfolio focuses on mass-market personal care:

Major brands: Dove, Vaseline, TRESemme, AXE/Lynx, Degree/Rexona, Suave, St. Ives, Love Beauty and Planet, Hourglass

Key 2020-2026 moves:

• Acquired Hourglass cosmetics (premium prestige play)
• Acquired Paula's Choice skincare (2021, ~$2 billion)
• Launched "Prestige Beauty" division to compete with L'Oreal and Estee Lauder in premium segments
• Separating ice cream business (2025-2026) to focus more on beauty and personal care

4. Procter & Gamble Beauty

Headquarters: Cincinnati, USA

Beauty revenue: ~$16 billion

Market position: Strong in hair care and skincare

P&G's beauty portfolio:

Major brands: Olay, SK-II, Pantene, Head & Shoulders, Herbal Essences, Old Spice, Native

Key 2020-2026 moves:

• Continued premiumization of Olay (Regenerist, Super Serum lines)
• SK-II expansion in Asia
• Native brand expansion (body wash, toothpaste, sunscreen)
• Sold Clairol, Wella, CoverGirl, and Max Factor to Coty in 2016 (still impacting the competitive landscape)

The Indie Brand Gold Rush

The biggest story of 2020-2026 has been the explosion of indie beauty brands and the subsequent acquisition frenzy by major corporations:

Brands That Sold for Hundreds of Millions

The D2C-to-Corporate Pipeline

The pattern is now well-established:

1. Indie brand launches on Instagram/TikTok with authentic storytelling

2. Rapid growth through social media marketing and D2C distribution

3. Retail expansion into Sephora, Ulta, Target, or Walmart

4. Private equity investment provides growth capital and acquisition expertise

5. Strategic acquisition by L'Oreal, Estee Lauder, Unilever, or another major player

6. Integration into the corporate portfolio with expanded distribution

The Private Equity Factor

Private equity firms have become major players in beauty industry consolidation:

Key PE players in beauty:

• Advent International: Olaplex (later IPO'd)
• TPG: Anastasia Beverly Hills, Rodan + Fields
• General Atlantic: Morphe (struggled post-investment)
• KKR: Various beauty investments
• Carlyle Group: Various beauty investments

PE firms typically acquire indie brands, professionalize operations, grow them for 3-5 years, then sell to a strategic buyer or take the company public. This cycle has created a reliable "pipeline" of acquisition-ready beauty brands for the major players.

Category-Specific Consolidation

Skincare: The Hottest Segment

Skincare has seen the most acquisition activity because it offers higher margins, stronger consumer loyalty, and better growth rates than color cosmetics. The dermatological/clinical skincare segment (CeraVe, La Roche-Posay, The Ordinary, Paula's Choice) has been particularly hot.

Clean/Natural Beauty

Brands marketed as "clean," "natural," or "sustainable" command premium valuations. Drunk Elephant ($845M), Tatcha (~$500M), and Youth to the People all sold at multiples far above traditional beauty brands. Consumers' willingness to pay more for perceived clean products makes these brands attractive acquisition targets.

Fragrance: The Revival

Fragrance has been the fastest-growing beauty subcategory since 2022, driven by TikTok discovery, niche brand growth, and premiumization. Puig (Spain) acquired Charlotte Tilbury and expanded its fragrance portfolio. Estee Lauder's $2.8 billion Tom Ford acquisition was partly driven by the Tom Ford fragrance business.

What Consolidation Means for Consumers

More brands, fewer owners. The beauty aisle looks more diverse than ever, with dozens of brands claiming unique identities. But an increasing number are owned by the same handful of corporations.

The "indie" illusion. Many brands marketed as independent or founder-led are actually corporate-owned. The Ordinary feels indie, but it is Estee Lauder. Paula's Choice feels independent, but it is Unilever. Native feels like a startup, but it is P&G.

Prices may increase. Consolidation typically reduces competition and can lead to price increases over time, particularly in categories where a few companies control most of the shelf space.

Innovation may slow. While acquisitions bring indie brands' innovations to wider audiences, the corporate environment can slow the rapid experimentation that made those brands successful in the first place.

Frequently Asked Questions

Who is the biggest beauty company?

L'Oreal Group is the world's largest beauty company by revenue (~$44 billion). Estee Lauder and Unilever follow in the prestige and mass-market segments, respectively.

Why are so many indie beauty brands being acquired?

Indie brands are attractive targets because they offer authentic brand stories, loyal customer bases, social media-native marketing, and innovation that large corporations struggle to replicate internally. Acquisition is often faster and cheaper than building new brands from scratch.

Has beauty industry consolidation peaked?

Probably not. Industry analysts expect continued M&A activity through 2026-2027, driven by PE portfolio exits, the ongoing growth of the clean beauty segment, and major players' need to replenish growth through acquisitions.

Does it matter who owns my skincare brand?

Not immediately for product quality, as most acquirers maintain formulations after acquisition. Long-term, corporate ownership can affect ingredient sourcing, sustainability practices, pricing, and the brand's commitment to its founding values.

The Bottom Line

The beauty industry is consolidating faster than nearly any other consumer goods sector. L'Oreal, Estee Lauder, Unilever, and P&G control an ever-growing share of the brands you see at Sephora, Ulta, and your local drugstore. Understanding who owns what helps consumers see through the marketing and make informed choices about the brands they support.

Explore beauty brand ownership on WhoBrands or browse beauty brands.

Sources

1. L'Oreal. Annual Report 2025. 2. Estee Lauder Companies. Annual Report FY 2025. 3. Unilever. "Beauty & Personal Care Division." 2025. 4. Beauty Independent. "M&A Tracker." 2020-2026.

All brand ownership data verified through WhoBrands.com's research methodology. Last updated: January 28, 2026.