A new study from Kearney shows that while beauty deal activity accelerated in 2025, the median deal value declined versus the year prior.

Despite a flurry of beauty M&A activity in 2025 — a record 384 deals globally, to be specific — average deal value is on the decline.

Kearney’s newest report shows that while beauty deal volume grew 8 percent in 2025 versus the year prior, the median deal value declined to $22 million from $26 million.

The trend comes as midsize brands, defined by Kearney as those between $100 million and $1 billion, have struggled to sell, with buyers instead favoring smaller or mega brands. (A number of billion-plus-dollar deals made included L’Oréal’s acquisitions of both Kering Beauté and Medik8, and E.l.f. Beauty’s purchase of Rhode).

In 2025, small deals, or those below $100 million, made up 77 percent of activity. Medium deals declined to 17 percent, and large deals doubled versus the year prior to 6 percent.

While total beauty deal activity slowed by 11 percent during the first half of 2026, small transactions increased to 86 percent of disclosed deals during the period. Kearney reports that the growth of small deals “reflects appetite to experiment at low capital commitment while the mid- and large-cap tiers stay largely closed.”

As large beauty conglomerates continue to restructure and rebalance their portfolios, Kearney expects their capacity for new deals to be limited, though private equity is “filling the vacuum” with acquisitions and carve-outs.

“For brands seeking a buyer, growth needs to be backed by profitability and a clear fit with the buyer’s business,” Marie Droll, principal at Kearney, said in a statement.

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