Based on the article by Fernando Cabos, Partner at Albia IMAP, published in Industria Cosmética
The beauty sector is undergoing an unprecedented transformation. After years of steady expansion, the European cosmetics industry has consolidated itself as one of the most attractive markets for investors and companies seeking inorganic growth, innovation and international expansion. According to Fernando Cabos’ article (Industria Cosmética, Winter 2025), more than 650 M&A transactions have been completed in the sector over the past five years, reflecting exceptional dynamism within the Consumer Health M&A ecosystem.
A Market in Full Evolution Within the European M&A Landscape
As Cabos notes, the convergence of science, innovation, sustainability and technology is redefining strategic direction for cosmetics companies. Ingredient transparency, clinical backing and the rise of direct-to-consumer models are opening new opportunities for both traditional businesses and emerging digital platforms.
The competitive landscape is shifting rapidly: groups are expanding portfolios, accelerating geographic growth and acquiring differentiated capabilities through strategic acquisitions, partnerships and build-up models. This evolution reflects the natural trajectory of leading companies involved in M&A Spain and Europe.
Key Trends in Cosmetics M&A
Four major trends identified in the report are shaping the future of the sector:
1. Natural Cosmetics and Sustainability
Growing consumer demand for natural ingredients, responsible processes and scientific certifications is driving acquisitions of companies offering clean, safe and traceable products.
2. Transparency, Science and Clinical Evidence
Dermatological endorsement and clinical claims have become differentiating factors, encouraging the acquisition of laboratories, dermocosmetic firms and science-backed premium brands.
3. Direct-to-Consumer (D2C) Models
Digital-native brands—especially in facial care, beauty supplements and dermocosmetics—remain a strategic focus for cross-border transactions.
4. Sector Consolidation and Internationalisation
The cosmetics sector is moving toward greater concentration and international expansion, with M&A transactions aimed at increasing scale, productive capacity and global presence.
Europe: The Epicentre of Cosmetic M&A Activity
The most active regions in European cosmetic M&A—the United Kingdom (14.1%), Italy (13.5%) and France (13.4%)—represent 41% of all deals recorded in the chart on page 3 of the report. Spain ranks as the fifth most active country, with 10% of transactions between 2021 and 2025 YTD.
On the investor side, France and the United Kingdom lead acquisitions of European companies, followed by Italy and Germany. Spain stands out with 9.3%, consolidating its position as a relevant player within the European M&A ecosystem.
The Role of Private Equity in European Consumer Health
Private Equity has become a key catalyst for growth in the Consumer Health segment. Its involvement includes:
- Buy-outs of high-potential companies
- Build-up strategies over existing platforms
- Sector consolidation in dermocosmetics, personal care and aesthetic medicine
In Spain, funds such as Portobello, Nazca, Hyle and MCH continue to drive acquisitions that accelerate expansion, diversify portfolios and strengthen competitiveness in high-growth segments.
Spain: From Target Market to International Buyer
The article highlights a meaningful shift: Spain has evolved from being solely a destination market to becoming an active international buyer in strategic M&A processes.
Examples included in the report:
- Puig, leading cross-border acquisitions of premium brands
- Cantabria Labs, expanding with purchases in France and Italy
- Persán, increasing its presence through European acquisitions
- AC Marca, integrating dermatological laboratories abroad
Spain is strengthening its presence across Europe, the United States and Asia thanks to companies with a strong international reputation, significant investment in R&D and globally positioned brands.
Conclusion: Purpose-Driven M&A for Sustainable Growth
The European cosmetics industry is entering a phase where scientific innovation, international expansion, and technological integration are reshaping strategic decision-making.
M&A consolidates itself as a key tool to:
- Access new capabilities
- Incorporate differentiated innovation
- Build scale and competitiveness
- Enter strategic global markets
As Fernando Cabos notes, identifying game-changing companies will be essential to competing within an increasingly dynamic and demanding global landscape.
