APAC leads private equity investment in beauty, personal care industry

Asia-Pacific led private equity and venture capital investment in beauty and personal care producers in 2025, accounting for 74% of the global annual total funding of $2.03 billion.

Investment in the sector reached $1.5 billion across 45 deals in APAC, including Japan, according to S&P Global Market Intelligence data.

Investors have increasingly focused on Asia-Pacific due to significant innovation in the personal care and beauty sector, particularly in beauty products made in South Korea, known as K-beauty, according to Alexandre Terseleer, a partner in the private equity practice at consulting firm Kearney Inc.

"K-beauty is now graduating from a hot trend towards creating category killers and iconic brands that are here to stay," Terseleer said.

Private equity and venture capital investment in South Korea's beauty and personal care producers in 2025 reached $620.1 million, a 444.9% increase from $113.8 million in 2024. It is the second-largest Asia-Pacific market for personal care and beauty deals after Japan, which ranked first due to one large transaction.

Sector investment in India also increased, rising to $160.9 million in 2025 from $144.6 million in 2024.

"[Investments in Indian beauty and personal care producers] were pretty much nonexistent back in 2015, while more than 150 Indian beauty startups received international funding last year," said Terseleer. "India is also a core focus for the venture capital arms of all beauty conglomerates, including L'Oreal."

In China's beauty and personal care sector, private equity investment rose more than fourfold year over year to $66.5 million in 2025. In the domestic market, local brands are growing market share at about twice the rate of international brands, providing strong competition, Terseleer said.

In 2025, 57.37% of China's cosmetic market sales were from domestic brands, and more than 50 Chinese brands expanded overseas, according to a report from the country's Xinhua state news agency.

Global performance

Global deal value in the sector was only 0.5% lower than the 2024 figure, despite volume falling 39.5% to 98, the lowest annual total since at least 2021, according to Market Intelligence data.

The declining trend reflects corporate strategic buyers acquiring fewer but larger and more proven assets, said Jeremy Zucker, director for the consumer group at investment bank Harris Williams LLC.

"The beauty landscape has become crowded over the last five years, with a surge of new brands competing for the same shelf space and consumer attention, which has led to fewer breakaway brands," Zucker said in an interview.

"High-quality, scaled and defensible brands continue to trade at exceptional multiples."

Companies with products that have had effectiveness proven through clinical trials, or supported by scientific research and data, tend to achieve premium valuations and gain the preference of investors.

Strategic acquirers now typically look for beauty and personal care targets with about $100 million in annual sales, up from about $50 million previously, he added.

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Valuations

The median deal size of private equity and venture capital investment in beauty and personal care producers grew 50% year over year to $6 million, the highest in four years.

One factor that helps brands receive higher valuations is the viability of US expansion, given the market's "scale and channel maturity," Zucker said.

The US and Canada accounted for 17% of the deal value in 2025, amounting to $338.7 million across 33 deals, making North America the second-largest market for private equity investment in beauty and personal care producers behind Asia-Pacific.

Largest deals

The largest private equity deal globally involved Japan-headquartered cosmetics and perfume manufacturer Mandom Corp., which was acquired by CVC Capital Partners PLC for $651.5 million acquisition in a deal that closed in February.

Companies focused on areas such as skin care, hair care and wellness are attracting private equity investment and were among the larger investments in the sector in 2025.

Mandom, Starface World Inc. and Foxtale Consumer Private Ltd. are focused on skin care, while companies such as Science in Sport PLC, Perelel Inc. and True Medicine Inc. are focused on wellness.