Beauty investors are looking for wellness deals.
Several of the beauty industry’s established investors have added wellness to their M&A checklists, targeting scalable businesses that fall in the health-beauty-wellness overlap. Interest from investors follows that of consumers, who are increasingly focused on experiences and self-care, and retailers, who have started to stock related items and services. Saks Fifth Avenue offers Face Gym, a facial workout, for example, Ulta Beauty sells Gua Sha crystals, meant to alleviate puffiness, and Sephora has a dedicated collagen offering.
According to the experts, the trend has been a long time coming.
Crushed Tonic’s collagen, biotin, probiotic and superfood blends are sold at Sephora.
The wellness M&A craze really started in food, which led to traditional snack companies gobbling up better-for-you options as consumers started reading nutrition labels closer. Then, M&A picked up in boutique fitness, where people were able to find workouts and communities that better fit their lifestyles and overall wellness goals, and investors wanted in. (L Catterton, an investor in StriVectin and Cover FX, invested in Pure Barre in 2015, and TPG Growth, a backer of Beautycounter and E.l.f. Beauty, invested in AKT earlier in 2018.)
These days, as wellness increasingly overlaps with beauty, investors are taking a