Personal Care Products & Services - Coverage Report Q1 2019

Q1 2019

The Personal Care Products & Service industry has seen significant shifts in consumer preferences, in tandem with the entire Consumer Products market. Companies that have leveraged these shifts by providing consumers with personalized experiences and natural & organic options have not only driven strong sales but have also attracted strategic and private equity interest in the merger & acquisition (M&A) market.

Revenues in the US Cosmetic and Beauty Products market increased by approximately 3.9% in 2018, reaching $51.6 billion, according to IBISWorld.1 Macroeconomic tailwinds such as disposable income growth as well as robust consumer confidence levels have supported public company sales growth.

In 2018, 116 transactions were announced or completed, declining from 2017’s above-average levels. Despite this, M&A activity is expected to remain healthy as leading industry operators target established brands that support the shift in consumption trends. Most notably in 2018, Procter & Gamble (NYSE:PG) acquired three Personal Care Product companies including Merck’s (NYSE:MRK) Consumer Health Business (March, $4.2 billion). In addition, New World Natural Brands acquired two natural product brands and Johnson & Johnson (NYSE:JNJ) acquired the natural products provider, Zarbee’s (July, undisclosed).

Key Contacts

David Bench

Managing Director

Tracy Patch

Director