Welcome back to the GIL Weekly, our regular digest of the most important developments in the global beauty industry for wholesale buyers, retailers, and distribution professionals. This edition covers the pivotal events of late March through early April 2026 - a period that delivered headline M&A completions, major industry financial results, the continuing effects of US tariff policy on global sourcing, and a record-breaking quarter for Korean beauty exports.
We begin with the story that dominated industry conversation heading into April: the formal completion of L'Oreal's acquisition of Kering Beaute.
On 31 March 2026, L'Oreal and Kering jointly announced the completion of what is now the largest acquisition in L'Oreal's history - the EUR 4 billion purchase of Kering Beaute. The deal, originally announced in October 2025 and subject to regulatory review through early 2026, creates a seismic shift in the luxury beauty landscape.
The transaction includes full ownership of the House of Creed - one of the world's most prestigious niche fragrance brands, which Kering itself acquired in 2023 for EUR 3.5 billion - alongside 50-year exclusive licences to create, develop, and distribute fragrance and beauty products under the Bottega Veneta and Balenciaga labels. A future exclusive licence for Gucci is also secured under the agreement once the current Coty deal expires. L'Oreal and Kering are additionally exploring a joint venture in the wellness and longevity space.
For the luxury fragrance and beauty wholesale segment, the implications are significant. L'Oreal's distribution muscle - the company reported sales of EUR 44.05 billion in 2025 across all channels and geographies - will be brought to bear on these previously underexploited luxury house fragrances. Regional distributors and authorised retailers should expect accelerated global expansion of Creed, Bottega Veneta, and Balenciaga beauty lines in the years ahead.
Kering CEO Luca de Meo stated that the partnership would open "a new phase of acceleration" for the brands by leveraging L'Oreal's unmatched beauty expertise - and the market responded positively, viewing the deal as strategically sound for both parties given Kering's need to stabilise its balance sheet following a 13% revenue decline in full-year 2025.
Announced on 26 March 2026, Henkel's acquisition of Olaplex in an all-cash deal of USD 1.4 billion represents one of the most closely watched transactions in professional haircare in years. At USD 2.06 per share - a 55% premium to Olaplex's prior closing price - Henkel is making a clear statement about its ambitions in the premium hair segment.
The deal adds Olaplex's bond-building technology and science-first brand positioning to a Henkel hair portfolio that already includes Schwarzkopf and Not Your Mother's. Analysts have described the acquisition as a "turnaround" play - the revenue multiple of 3.3x is well below historical industry peaks, reflecting Olaplex's recent period of sales softness. Under CEO Amanda Baldwin's leadership, the brand has been stabilising after a difficult 2023-2024 cycle, and Henkel's global distribution infrastructure should provide meaningful acceleration.
The transaction is expected to close in the second half of 2026. For wholesale buyers stocking professional and prestige haircare, the deal underscores the category's continued appeal to strategic acquirers - and Olaplex's status as one of the most recognisable brands in the premium haircare segment worldwide.
The impact of US tariff policy on global beauty supply chains remained a dominant theme in late March and early April 2026. The tariff environment has created both challenges and strategic opportunities across the industry:
A 15% tariff on imports from South Korea and the end of the de minimis exemption for shipments under USD 800 have created meaningful headwinds for Korean beauty brands selling direct-to-consumer in the US market. For large Korean brands with professional operations, the tariff is described as "endurable" - particularly those with high-margin business models and the flexibility to absorb or share increased costs. Smaller indie brands and niche direct-to-consumer players are under greater pressure.
However, the response from major Korean brands has been largely optimistic and strategic. Brands including TIRTIR, d'Alba, Torriden, and Beauty of Joseon are actively pursuing physical retail distribution deals with Sephora, Ulta Beauty, Costco, and Target - building resilient multi-channel US presences that are less dependent on cross-border DTC sales. The structural demand for K-beauty in the US remains exceptionally strong.
For French luxury beauty - which includes major categories such as prestige skincare, fragrance, and makeup - the tariff impact has been substantial. Industry body FEBEA estimated a potential revenue loss of EUR 620 million for French beauty exports as a result of US tariff actions. With the French beauty sector reporting EUR 35.6 billion in sales in 2024 and employing 300,000 workers directly and indirectly, the stakes are high for brands and distributors whose US exposure is significant.
The key strategic insight for wholesale buyers is this: tariff-driven friction in US-bound imports creates opportunities in alternative markets - particularly Hong Kong, Southeast Asia, the Middle East, and emerging European markets - where demand for authentic, authorised beauty products is growing and tariff barriers are lower.
Despite the tariff headwinds in the US, the broader picture for Korean beauty exports in Q1 2026 was nothing short of extraordinary. South Korea's cosmetics exports reached a record USD 3.1 billion in the first quarter of 2026 - the highest quarterly total ever recorded - representing 19% year-on-year growth.
Key highlights from the data:
- The United States became the largest K-beauty export market, with shipments up 40.9% to USD 620 million - approximately 20% of total quarterly exports
- China exports declined 9.6% to USD 470 million, reflecting ongoing geopolitical and competitive pressures
- Japan grew 7.4% to USD 290 million
- Skincare remained the dominant category at USD 2.43 billion - representing nearly 80% of total exports
- South Korea's Ministry of Food and Drug Safety announced plans to expand regulatory cooperation globally, including a new international summit and stronger ties with Brazil, the Middle East, and Latin America
This data underscores why building a strong Korean skincare wholesale assortment is not merely a trend play but a structural business decision for serious beauty retailers. Korean beauty is now a permanent, high-growth pillar of the global beauty market - not a passing wave.
The Estee Lauder Companies (ELC) entered 2026 in the midst of what it describes as "the biggest operational, leadership, and cultural transformation in its history" under CEO Stephane de La Faverie. In its most recent quarterly results reported in February 2026, the company delivered:
- Net sales of USD 4.23 billion for Q2 FY2026, up 6% year-on-year
- Organic net sales growth of 4%
- Adjusted operating margin expansion of 290 basis points to 14.4%
- Raised full-year FY2026 guidance for sales growth of 3-5%
The results were driven by strong performance from La Mer, strong double-digit growth in Mainland China, and the benefit of the company's Profit Recovery and Growth Plan (PRGP). However, the company also acknowledged a USD 100 million tariff impact on annual profit in the second half - a headwind that it is working to offset through operational efficiencies.
For beauty wholesale distributors, ELC's improving financial health is a positive signal for the prestige skincare segment broadly. Brands like Estee Lauder, La Mer, Clinique, and The Ordinary - which occupy different tiers of the market - are showing renewed commercial momentum that tends to translate into stronger consumer demand and retailer restocking.
Spanish beauty and fashion group Puig reported its full-year 2025 results in February 2026, posting net revenues of EUR 5.04 billion - a like-for-like increase of 7.8%, which the company noted was ahead of the premium beauty market. Net profit grew 13.7% to EUR 617 million.
Growth was led by the Fragrance and Fashion segment (EUR 3.65 billion) and the Makeup segment (+10.7% to EUR 844 million), with Skincare also growing 7.3% to EUR 551 million. Puig, whose portfolio includes Carolina Herrera, Rabanne, Jean Paul Gaultier, Charlotte Tilbury, and other premium houses, entered 2026 with confidence, projecting revenue growth to outperform the premium beauty market again and maintaining stable margins despite a "more demanding cost environment."
CEO Marc Puig noted that the company is positioned to offset tariffs and foreign exchange headwinds "with operational efficiencies and a favorable product mix" - a sentiment echoed across the premium segment as brands adapt to the new tariff reality.
Beyond the headline Henkel-Olaplex and L'Oreal-Kering deals, late March 2026 saw a wave of additional M&A and investment activity across the beauty sector:
Advent International acquired a majority stake in Salt & Stone, the Los Angeles-based body care brand which generated USD 165 million in revenue in 2025. The deal signals continued private equity appetite for clean, DTC-first beauty brands with Sephora distribution.
Vacation, the sunscreen brand known for its nostalgic marketing, secured a minority investment from VMG Partners on top of existing backing from True Beauty Ventures - with estimated net sales of USD 60-75 million in 2025.
KYT Group acquired professional skincare brand Glo Skin Beauty, expanding the group's dermatology-adjacent portfolio.
The level of deal activity reflects the beauty industry's continued appeal to investors: it is a category with structural demographic tailwinds, high repeat purchase rates, strong brand loyalty, and proven ability to scale globally through digital channels.
The beauty industry's pace of change - driven by M&A consolidation, tariff-driven supply chain shifts, record K-beauty export growth, and the relentless emergence of new brands and categories - makes the role of a trusted global beauty wholesale partner more valuable than ever.
At Gifts Industries Limited, we track these developments closely so that our retail and distribution partners don't have to. With over 200 brands in our catalogue spanning Korean, Japanese, and international beauty, we provide fast, reliable access to the products your customers are looking for - whether it's the latest K-beauty sensation, a trusted J-beauty staple, or a global prestige brand.
Our Hong Kong base gives us a uniquely strategic position: close to the source markets of Asia's most important beauty innovations, with established logistics routes to markets across Asia, the Middle East, Europe, and beyond. In an era where tariffs and supply chain disruptions are reshaping global beauty distribution, that position matters more than ever.
To discuss your wholesale sourcing needs or explore our current catalogue, contact us today.
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