Health & beauty
Health and beauty is a roughly $580B global category covering skincare, makeup, fragrance, hair care, oral care, deodorants and the rapidly growing wellness and supplements segments. L'Oréal, Estée Lauder, P&G Beauty, Unilever and Shiseido control most of the mass and premium share globally; the DTC and indie tier has exploded with Glossier, Drunk Elephant (Shiseido), Rare Beauty, Fenty Beauty and e.l.f. Beauty leading recent disruption. K-beauty, J-beauty and the Korean wave have reshaped category dynamics with rapid product cycles and ingredient-led storytelling.
It spans skincare, makeup and cosmetics, fragrance, hair care, oral and personal care, men's grooming, wellness and supplements, and indie/clean beauty.
Revenue comes from mass retail and drugstore distribution, premium department-store and Sephora/Ulta distribution, DTC e-commerce and brand-owned stores, professional/prestige channels (salons and spas), travel retail (duty-free) and licensing of brand IP across categories.
Health & beauty is part of Consumer products.
$593B
Global market size
148
Public companies
Key VC investors
Key strategic buyers
How health & beauty companies monetize?
Health & beauty companies monetize through mass retail distribution, premium retail and Sephora/Ulta, and DTC e-commerce.
Mass retail distribution
Drugstores, mass merchants and supermarkets (Walgreens, CVS, Target and Walmart). The dominant channel for mass beauty.
Premium retail
Sephora (LVMH), Ulta Beauty (NASDAQ: ULTA), Boots, Sasa and department stores. Premium beauty's principal distribution.
DTC e-commerce
Brand-owned websites and direct social commerce. Glossier, Fenty, Drunk Elephant (Shiseido), Rare Beauty and Charlotte Tilbury lead modern DTC.
Professional / prestige
Salons, dermatologists, medical spas and aesthetic clinics. Important channel for hair care (L'Oréal Professional, Wella, Kerastase and Redken) and skincare prescriptions.
Travel retail (duty-free)
Duty-free at airports and travel terminals. Significant for premium fragrance and high-end skincare; Chinese travel retail (Hainan and Macau) anchored growth pre-2020 but slowed since.
Licensing
Designer brand fragrance licensed to manufacturers (Coty makes Gucci, Hugo Boss, Calvin Klein and Marc Jacobs fragrances). Stable royalty business.
Health & beauty valuations in May 2026
Public health & beauty comps trade at 1.7x EV/Revenue. Median revenue multiple across health & beauty M&A deals was 3.2x in the last 12 months. Median revenue multiple across health & beauty VC rounds was 4.3x in the last 12 months.
1.7x
Median EV/Revenue as of May 2026 for public health & beauty companies
7.2x
AbbVie is the highest valued public health & beauty company based on EV/Revenue (excluding outliers)
3.2x
Median EV/Revenue across health & beauty M&A deals in the last 12 months
4.3x
Median EV/Revenue across health & beauty VC rounds in the last 12 months
Health & beauty market segments
Health & beauty spans skincare, makeup and cosmetics, fragrance, hair care and indie clean beauty.
Skincare
Cleansers, moisturisers, serums, sunscreens and masks. La Roche-Posay (L'Oréal), CeraVe (L'Oréal), Olay (P&G), Estée Lauder, La Mer (Estée Lauder), SK-II (P&G) and The Ordinary (Estée Lauder) lead mass and premium.
Makeup and cosmetics
Foundation, concealer, lipstick, mascara and eyeshadow. L'Oréal Paris, Maybelline (L'Oréal), MAC, Bobbi Brown (Estée Lauder), Charlotte Tilbury, Fenty Beauty (LVMH/Rihanna), Rare Beauty (Selena Gomez) and e.l.f. Beauty lead.
Fragrance
Designer, niche and celebrity fragrances. Chanel, Dior (LVMH), YSL Beauty (L'Oréal), Tom Ford (Estée Lauder), Le Labo (Estée Lauder), Maison Margiela (L'Oréal) and Jo Malone (Estée Lauder) lead premium; Coty produces designer-licensed.
Hair care
Shampoo, conditioner, styling and treatment. P&G (Pantene, Head & Shoulders, Herbal Essences), L'Oréal (Garnier, L'Oréal Paris, Kérastase), Unilever (Dove, TRESemmé, Suave) and Henkel (Schwarzkopf, Syoss) lead mass; Olaplex (NASDAQ: OLPX) and K18 lead modern premium.
Oral and personal care
Toothpaste, deodorant, body wash, soap and shaving. P&G (Crest, Oral-B, Old Spice, Gillette), Unilever (Dove, Axe, Degree, Suave), Colgate-Palmolive (Colgate, Palmolive, Speed Stick) and Beiersdorf (Nivea) lead.
Men's grooming and shaving
Razors, beard care, men's skincare and grooming subscriptions. Gillette (P&G), Schick (Edgewell), Harry's, Dollar Shave Club (Unilever) and Beardbrand compete.
Indie and clean beauty
Modern brands with ingredient and ethics positioning. Drunk Elephant (Shiseido), Glossier, Rare Beauty, e.l.f. Beauty, Fenty (LVMH), Patrick Ta, Tower 28 and Saie compete.
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For bootstrapped and already-VC-backed entrepreneurs who are looking to raise late stage venture or growth capital.
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For category-leading technology companies who are exploring exit alternatives with either financial or strategic acquirers.
Key health & beauty KPIs to track
Net sales growth, gross margin, new product as % of sales, Sephora/Ulta ranking and China mix are the metrics investors track in health & beauty.
| KPI | Definition |
|---|---|
| Net sales growth | Top-line organic revenue growth. Beauty industry growing 5-7% globally; premium tier outpacing mass. |
| Like-for-like / comparable growth | Same-store/same-product growth excluding new launches. Cleaner read on underlying brand health. |
| Gross margin | Premium beauty 70-80%; mass beauty 55-65%; supplements/wellness vary widely. |
| EBITDA margin | L'Oréal, Estée Lauder 20-25%; mass-market 15-20%; DTC challengers vary. |
| New product as % of sales | Innovation index. Beauty majors target 20-30% of sales from products launched in last 3 years. |
| Sephora/Ulta ranking | Retail share rank within premium retailer; informs ranging decisions. |
| Social engagement / EMV | Earned Media Value and social engagement metrics. Critical for indie and Gen Z brand momentum. |
| China revenue and travel retail | Greater China and travel retail (Hainan and duty-free) revenue mix. Has materially affected category leaders since 2023 China slowdown. |
Main health & beauty players globally
The most active health & beauty companies and category leaders globally.
| Company | HQ | Overview |
|---|---|---|
L'Oréal loreal.com |  Clichy | Largest beauty company globally (Euronext: OR). Owns L'Oréal Paris, Lancôme, Maybelline, Kérastase, La Roche-Posay, CeraVe, Garnier and YSL Beauty (license). |
Estée Lauder Companies elcompanies.com |  New York | Premium beauty leader (NYSE: EL). Owns Estée Lauder, MAC, Clinique, La Mer, Bobbi Brown, Aveda, Jo Malone and Tom Ford Beauty. Significant slowdown in China and travel retail post-2023. |
Procter & Gamble Beauty us.pg.com | Cincinnati | P&G's beauty division (NYSE: PG). Owns Olay, SK-II, Pantene, Head & Shoulders and Herbal Essences. |
Unilever Beauty & Wellbeing unilever.com |  London | Unilever's premium beauty division (LSE: ULVR). Owns Dove, Sunsilk, Tresemmé, Liquid IV (wellness) and Living Proof. Beauty & Wellbeing was spun out structurally in 2023 restructure. |
Shiseido corp.shiseido.com |  Tokyo | Largest Japanese beauty company (TSE: 4911). Owns Shiseido, Clé de Peau Beauté, Nars, Drunk Elephant and SHISEIDO Professional. |
Coty coty.com | New York | Multi-category beauty company (NYSE: COTY). Designer fragrance licenses (Gucci, Burberry, Hugo Boss and Calvin Klein) plus Cover Girl, Sally Hansen and Rimmel. |
e.l.f. Beauty elfbeauty.com | Oakland | Affordable beauty leader (NYSE: ELF). Among the strongest beauty growth stories of the past three years; e.l.f. Cosmetics, e.l.f. SKIN, Naturium (acquired 2023) and Well People. |
Beiersdorf beiersdorf.com |  Hamburg | Major personal care company (XETRA: BEI). Owns Nivea, Eucerin, Aquaphor, La Prairie and Coppertone. |
Henkel henkel.com | Düsseldorf | German consumer goods (XETRA: HEN3). Beauty Care division owns Schwarzkopf, Syoss, Got2b and Dial. Henkel beauty under strategic review since 2024. |
Kao Corporation kao.com | Tokyo | Japanese consumer goods (TSE: 4452). Owns Bioré, Curél, John Frieda, Jergens, Molton Brown and KANEBO. |
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Key health & beauty market trends
The China slowdown, e.l.f. and indie momentum, and the K-beauty resurgence are reshaping health & beauty right now.
China slowdown reshaping premium
Greater China revenue collapse hit Estée Lauder, LVMH Beauty and Shiseido through 2023-24. Hainan travel retail and Tmall sales softness; recovery uneven.
e.l.f. Beauty and indie momentum
e.l.f. up over 300% on 2-year basis; Rare Beauty, Drunk Elephant, Glossier and Fenty Beauty taking share from incumbents.
K-beauty and J-beauty resurgence
Korean and Japanese beauty winning Gen Z share globally. Beauty of Joseon, Anua, Cosrx, Laneige and SK-II growing fast in US/EU; rapid ingredient-led innovation cycles.
GLP-1 implications for skincare
Ozempic facelift driving demand for sagging-skin treatments. Volume retouching procedures, injectables and skin tightening growing alongside; AbbVie (Allergan Botox/Juvederm) is the principal beneficiary.
Wellness convergence
Functional and ingestible beauty (collagen, magnesium, hydration and skin supplements) growing fast. AG1, Lemme, Vital Proteins (Nestlé) and Moon Juice compete.
AI in product personalisation
L'Oréal Beauty Genius, NYX Glamtech, Sephora Color IQ and Estée Lauder iMatch reshape product discovery and try-on. Generative AI for content creation embedded across major beauty marketing.
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