Beauty & Wellness Market Update: M&A Activity Continues at Fervent Pace

Beauty & Wellness M&A Surges, High Volume Expected to Continue 

Capstone Partners released its October 2021 Beauty & Wellness Industry Update, reporting that M&A transaction activity in the Beauty & Wellness industry has continued at a fervent pace through year-to-date (YTD) 2021 with 75 deals announced or completed, marking a 56% year-over-year (YOY) increase. Notably, the sector’s YOY volume gains have outpaced the broader Consumer industry, which is on pace for a historic year in dealmaking.

A new generation of consumers has drastically reshaped the industry landscape, with mission-driven brands offering sustainable, personalized, and cruelty-free products experiencing heightened demand. Emerging, independent, and often digitally-native brands have garnered healthy buyer interest through YTD as strategics look to expand product offerings to cater to Millennials and Generation Z, while private equity bolsters sector portfolios through add-on acquisitions.

Also included in this report:

• Key drivers behind the robust level of M&A volume through YTD
• Commentary on the prevalence of contract manufacturers and the healthy buyer interest the subsegment has received
• How public companies have altered inorganic and organic growth initiatives to capitalize on consumer trends