The news: L’Oréal is doubling its stake in cosmetic injectables company Galderma to 20%, the company said, as it looks to expand in the fast-growing aesthetics market and support growth amid global headwinds.

The big picture: While some competitors retrench, L’Oréal is pursuing acquisitions in beauty categories with the strongest growth potential.

• The company’s largest deal so far this year, its €4 billion ($4.3 billion) purchase of Kering’s beauty business, will position it as one of the world’s top makers of luxury fragrances, a category that is a driving force behind beauty sales growth.
• L’Oréal also acquired luxury haircare brand Color Wow earlier this year, which will help strengthen its dominance in its second-fastest-growing segment after fragrance.
• Other notable recent acquisitions include a majority stake in premium skincare brand Medik8, as well as K-beauty brand Dr.G.
• The company is also preparing a bid for Armani Beauty, which, if successful, would give it a larger share of the luxury cosmetics market.

What it means: L’Oréal’s acquisition strategy could reshape the beauty industry—mainly at the expense of players like Coty and Shiseido, which are reorganizing their businesses amid slumping demand for their portfolios.

At the same time, the company’s moves reflect the shifts in consumer beauty spending. Resilient demand for self-care, wellness, and premium products is fueling growth in fragrances and haircare, while K-beauty is gaining traction as consumers search for affordable and effective skincare products.

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