Trump Tariff Policy Casts Shadow Over Global Market
In 2025, the global cosmetics industry faced ongoing challenges due to several external factors, but the most significant impact came from the Trump administration’s tariff policies. Markets in the US and Europe were hit hard by rising prices and supply chain disruptions, with consumer sentiment freezing due to fears of an economic slowdown.
“The increase in tariffs has significantly reduced global consumer spending power beyond just price burdens.”
Alongside a drop in US retail sales in February, major brands like Estée Lauder, Shiseido, and Coty couldn’t avoid deteriorating performances, and French cosmetics exports to the US were predicted to plummet. Consumers, in particular, started shifting towards local brands and value-for-money products, accelerating the changing consumption patterns.
‘Made in France’ Power, Exports Surpass EUR 20 Billion for Second Consecutive Year
In 2025, France solidified its position as a powerhouse in global cosmetics exports. Its total exports increased by 6.8% from the previous year, reaching EUR 22.5 billion. Although growth slightly slowed compared to the previous year, surpassing the EUR 20 billion mark for two consecutive years is significant.
“French cosmetics are a strategic export asset representing the national brand.”
The fragrance sector, in particular, saw its export value rise to EUR 8 billion, an increase of nearly EUR 1 billion from the previous year, while color cosmetics and skincare products continued to grow steadily. The US and EU regions remained the largest consumers, with global trust in ‘French quality’ unwavering.
Major M&A Shakeup, Kimberly-Clark’s Acquisition of Kenvue
In November 2025, news that Kimberly-Clark would acquire Kenvue for USD 48.7 billion shocked the entire industry. Kenvue, a healthcare brand spun off from Johnson & Johnson, possesses a wide range of commonly used products.
“The integration of these two iconic companies will significantly alter the global personal care market landscape.”
The unified company created through this merger is projected to generate an annual revenue of USD 32 billion and an adjusted operating profit of USD 7 billion. This is more than just a portfolio expansion; it’s the emergence of a mega platform blurring the lines between health and beauty.
Sale of Boots and Walgreens Parent Company to Private Equity
In March, Walgreens Boots Alliance (WBA) captured attention again as it was sold to private equity firm Sycamore Partners for up to USD 23.7 billion. Boots and Walgreens are veteran brands in the global drugstore industry, operating thousands of offline stores worldwide.
“The model combining convenience and health services is becoming a new investment trend.”
Shareholders received a premium of up to 63% per share in this transaction, and the merger of expertise from both sides is expected to enrich the choices in the pharmacy and healthcare market.
FDA Introduces Real-time Cosmetic Adverse Effect Platform
In September, the US FDA launched an open dashboard system allowing real-time access to information on cosmetic adverse effects. Now, anyone can check daily reports on issues related to shampoos, moisturizers, hair dyes, etc., through the portal.
“This system will elevate transparency and consumer-led cosmetic safety to new heights.”
This system aligns with the ‘2022 Cosmetic Regulation Modernization Act’ and includes consumer-reported information, strengthening the net of cosmetic safety.
L’Oréal’s Presence as Europe’s Top Innovative Company
The French L’Oréal group proudly ranked first in the ‘Most Innovative Companies in Europe’ list published for the first time by financial magazine Fortune. This is due to their leading role in integrating digital and beauty through AI-based customization technologies and skin analysis devices linked with life sciences.
“Technological innovation, beyond the beauty realm, supports a new paradigm of quality of life.”
L’Oréal has solidified its title as ‘Beauty Number One’, surpassing renowned global companies like Unilever and Rolls-Royce in significance.
SaSa Announces Full Withdrawal of Offline Stores in Mainland China
SaSa, Hong Kong’s largest cosmetics chain, announced it would completely withdraw its offline stores from mainland China by June 2025. All 27 stores closed in phases, with the remaining channels focusing heavily on online platforms.
“The shift in distribution strategy questions the future of the offline-centric industry.”
For SaSa, which achieved over 80% of its sales through e-commerce, this was a natural step, marking another example of accelerating digital transition in the cosmetics distribution channels.
Ulta Beauty Challenges Globally, Expands to Mexico and the Middle East
In 2025, Ulta Beauty, the largest cosmetics retail brand in the US, opened its first offline store outside the US. The first location was in Antara Fashion Hall in Mexico City, and it announced further expansions into Kuwait in the Middle East.
“Building locally-focused beauty platforms is becoming the new key to global retail.”
Plans to open nine more stores in Mexico by the end of the year were unveiled, along with ambitions to expand the retail network into Dubai, UAE, and Saudi Arabia.
UK Bans ‘Plastic Wipes’ from 2027
The UK government announced plans to ban the sale of wipes containing plastic components starting from spring 2027. Although wipes are classified as cosmetics, they have been blamed for plastic pollution and sewage blockages.
“It’s time for regulations amid environmental pollution costs driving even water bills up.”
This ban, driven by the reality of an average of 20 plastic wipes disposed of per 100 meters on UK beaches, means related companies will be given an 18-month grace period.
End of an Era with Departure of Roeder Family and Françoise Bettencourt
Symbolic figure Leonard A. Roeder, honorary chairman of Estée Lauder, passed away at 92, and his brother Ronald S. Roeder also stepped down from his directorial position of over 50 years. L’Oréal Group heiress Françoise Bettencourt Meyers also officially retired after the annual shareholders’ meeting.
“The departure of second-generation founders marks the end of an era.”
As key figures who led an era in the beauty industry, their departures leave a profound impression beyond mere management changes.
In this evolving cosmetics industry environment, strives to meet customer expectations through practical and reliable cosmetic services. Promising sustainable development, will continue to lead in providing better cosmetic experiences to our customers.
