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25 May 2022
Skin screen
Beiersdorf AG (BEI:ETR), 0 | L'Oreal S.A. (OR:PAR), 0 | Unilever PLC (ULVR:LON), 3,812 | L'Oreal S.A. (0NZM:LON), 0
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Skin screen
Beiersdorf AG (BEI:ETR), 0 | L'Oreal S.A. (OR:PAR), 0 | Unilever PLC (ULVR:LON), 3,812 | L'Oreal S.A. (0NZM:LON), 0
- Published:
25 May 2022 -
Author:
Omanadze Mikheil MO | Stent Jeff JS | Karia Vyoma VK -
Pages:
48
Premium has been the major driver of skincare growth...
While the skincare category overall has been thriving in recent years, it is little secret that luxury skincare was materially outperforming: over the last 5 years, premium skincare has grown at a CAGR of +7.4% vs. mass at +4.1% (according to Euromonitor). This trend has become even more pronounced with ultra-premium offerings seemingly booming of late (e.g. L''Oreal with Lancome Absolue and Helena Rubinstein, and Estee Lauder with La Mer and its Genaissance collection).
... and hence, understandably, the major MandA focus
Premium outperformance explains why a lot of acquisitions by HPC majors have been focused on this space in recent years e.g. Unilever with multiple skincare acquisitions, including Kate Somerville, Dermalogica, Tatcha, and Paula''s Choice; Beiersdorf with Chantecaille; L''Oreal with Youth to the People and Takami; Colgate with Filorga; PandG with First Aid Beauty; L''Occitane with Elemis.
Investors have been questioning what else is there to acquire
With premium (and ultra-premium) skincare likely to remain an attractive category, we have increasingly been asked by investors what else could potentially be acquired in the premium skincare space.
We have come up with a list of 60 companies
We have screened more than 150 premium skincare brands - not a straightforward task as most of them are relatively small. We have come up with a list of 60 companies that could be attractive potential acquisition targets (for the likes of Beiersdorf, L''Oreal and Unilever) and provided as much information on them as we could find. The companies that stand out include Dr. Barbara Sturm, Augustinus Bader, Valmont, MBR, Erno Laszlo, Biologique Recherche, Tata Harper, and Derm Institute, among others. We have also included relevant social media data to help assess brand ''buzz''.