Europe’s share of beauty M&A deals hits eight-year high of 47%, finds Kearney
Europe remains at the heart of beauty and personal care dealmaking, but record deal numbers tell only part of the story. Kearney’s latest annual report, 2026 M&A in beauty and personal care: volume over scale and value, finds that Europe accounted for 47% of global transactions in 2025, its highest share in eight years, and maintained that level in H1 2026.
The European lead comes amid a more cautious buying market. Many large corporate buyers remain busy reshaping their businesses and absorbing previous acquisitions. For brands hoping to sell, fast growth increasingly needs to be backed by profitability and a clear reason to join the buyer’s portfolio.
Europe anchors a widening geographical divide
Europe and North America remain the centres of beauty dealmaking, ranking first and second by transaction count throughout the report’s eight-year series. North America’s share recovered to 31% in H1 2026 after two years of decline.
Kearney expects Europe to remain the main source of acquisition opportunities, with the US a key market for premium beauty and celebrity-founded brands. Across Asia, however, markets are taking different paths.
Market | Share of M&A in 2025 | Share of M&A in H1 2026 |
Europe | 47% | 47% |
North America | 23% | 31% |
China | 10% | 2% |
Japan | 9% | 12% |
Figure 1. M&A activities by target geography in 2025 and H1 2026
The report attributes China’s decline mainly to fewer domestic and inbound deals. Chinese buyers’ overseas purchases remained limited, although the acquisition of French skincare brand PAYOT in 2025 shows that some continued to buy abroad.
With stronger near-term momentum in Japan and distinct opportunities in India and Korea, the findings challenge the idea of a single Asian growth story. Buyers should increasingly look at where opportunities are emerging country by country.
Record activity does not guarantee a big sale
Global beauty and personal care transactions reached a record 384 in 2025, up 8% from 355 in 2024. Yet median disclosed deal value fell from $26m to $22m. Buyers were still buying, but the typical disclosed purchase involved a smaller commitment.
For brands hoping for a large sale, record activity should not be mistaken for widespread appetite for bigger acquisitions. The report finds that many large beauty groups remain focused on restructuring and absorbing earlier purchases, limiting their capacity for new deals
Despite activity declining 11% in H1 2026 compared with a year earlier, this does not signal a lasting downturn but rather an uneven recovery where opportunities remain, while buyers are choosing carefully where to commit their money.
Smaller purchases set the pace for the next wave
Kearney expects smaller acquisitions and financial buyers to remain important while large beauty groups finish restructuring. Deals below $100m accounted for 86% of transactions with disclosed values in H1 2026, up from 77% in 2025. Financial-buyer activity rose 33% despite the wider slowdown.
What buyers want is changing too. Acquiring fast-growing brands to accelerate growth accounted for 30% of corporate transactions in 2024, falling to 16% in H1 2026. Buyers increasingly favour businesses that strengthen their existing operations overgrowth alone.
As restructuring progresses, Kearney expects more businesses to come up for sale, with opportunities likely to widen from 2027 onwards. Buyers learning how to combine and grow businesses through smaller purchases now will be better prepared when larger opportunities return.
Marie Droll, principal at Kearney, commented: “This year’s report reveals that while dealmaking activity has reached record levels, this does not necessarily mean an easier market for sellers. Buyers are becoming increasingly selective about both geography and the businesses they acquire.
“Europe and North America remain the centre of dealmaking, while China and Japan are moving in different directions: China is normalising after a wave of domestic consolidation, while Japan shows stronger near-term momentum. For brands seeking a buyer, growth needs to be backed by profitability and a clear fit with the buyer’s business.”
Fabian Lux, partner at Kearney, added: “These findings come as large beauty groups reshape their businesses and work through earlier acquisitions. Financial buyers are stepping into the gap, but this points to selective opportunities rather than a broad recovery.
“Our report suggests more businesses could come up for sale as restructuring progresses, with more opportunities as we head into 2027. Buyers using smaller acquisitions now to build integration and PE-like value creation capabilities will be prepared for the next cycle of increased M&A activity.”