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Market Monitor: Personal Care
Making the right decisions for your business starts with having the most accurate and current information available. Our Personal Care Market Monitor keeps you up to date on the events, trends, and market forces that shape and guide the industry.
The Personal Care industry is witnessing a resurgence in mergers and acquisitions (“M&A”) activity after a slow 2023. This surge highlights the strategic use of M&A to drive growth and capitalize on market opportunities.
Beauty Sector Leads M&A Charge with Brand Portfolio Expansion
- Spiking Deal Volume: Q1 2024 saw a significant increase in Personal Care M&A deals compared to Q1 2023, with nearly double the transactions closed (14 vs. 7).
- Strategic Acquisitions for Brand Diversification: Beauty companies are actively utilizing M&A as a strategic tool to diversify their brand portfolios and expand into new product categories.
M&A Fuels Growth in the Vitamins & Supplements Market.
The global Vitamins, Minerals & Nutritional Supplements (VMS) sector boasts a promising future, with a projected CAGR of 9.1% from 2024 to 2030. This positive outlook is fueling M&A activity within this segment as well.
- Private Equity Investment in VMS Contract Manufacturers: Private equity groups are actively pursuing add-on acquisitions of contract manufacturers within the VMS space.
- Scaling Manufacturing Capacity through M&A: These deals are primarily driven by the need to increase production capacity and expand manufacturing capabilities across various VMS product formats.
Overall Optimism Creates Opportunities for Continued M&A Activity
- The positive M&A trends are further bolstered by continued optimism within the Personal Care industry. Contract manufacturers and packaging companies report stable to slightly increased volumes, indicating a healthy underlying demand for personal care products.
New Product Innovation Drives Packaging M&A Potential
- New product innovations and marketing campaigns are spurring additional designs, artwork, and packaging formats. This trend bodes well for both contract manufacturers and packaging materials companies, potentially leading to further M&A activity in these sectors.
For more information or questions, please contact our contributors:
Rich Anderson, Managing Director: randerson@
Andrew Suen, Managing Director: asuen@
Johnny Sherwood, Director: jsherwood@