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Up and Coming Independent Beauty Firms Snapped Up by Major Players, Business and Industry Trends Analysis

Top beauty firms such as Estee Lauder, L’Oreal and Coty are hunting for popular startups to acquire, in order to boost revenue and enhance customer perceptions of these well known, traditional brands.  For example, Estee Lauder paid about $1 billion for Canadian skincare and makeup firm DECIEM (the parent company of The Ordinary and Shiseido) in February 2021, after spending $1.45 billion for Too Faced, a hip cosmetics brand with products such as Better Than Sex mascara, Hangover primer and Born This Way foundation in 2016.  Also, in 2018, Procter & Gamble purchased First Aid Beauty for $250 million.  June 2019 saw the acquisition of Tatcha by Unilever for $500 million.  Meanwhile, S.C. Johnson & Son acquired three personal care brands in 2019, Coola, Sun Bum and Baby Bum.
The big beauty companies are well aware of the competition from the little guys.  Small brands are picking billions of dollars in annual revenues that otherwise would have gone to the major manufacturers.

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