LIVE MARKETS-Beauty in 2026 looking attractive
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BEAUTY IN 2026 LOOKING ATTRACTIVE
Beauty revenues are forecast to grow 4.9% in 2026, accelerating from 2025’s modest pace, BofA analysts predict.
The Chinese market, the second largest at $63 billion, will be the biggest driver, expected to rise 8%, with international brands seeing regaining share. In Q3 international brands grew slightly faster than domestic peers, and added almost 10x more revenues.
In the U.S., after a weak 2025, growth has improved and will benefit from pricing actions, and innovation in hair, fragrance and luxe skincare.
Europe and emerging markets are set for steady but unspectacular gains. The luxe segment looks strongest, aided by China’s recovery, fragrance launches and skincare expansion, while mass remains challenged.
Cost savings of $1.7 billion will be reinvested in advertising and R&D, supporting margin expansion. Despite trading at 28 times expected 2026 earnings, beauty remains undervalued versus peers, BofA says.
Estee Lauder EL.N and L'Oreal OREP.PA are BofA's top picks in the space.
(Joice Alves)
EARLIER ON LIVE MARKETS:
STOXX SHAKES OFF EARLY WEAKNESS, AS UKRAINE TALKS DRIVE PRICE ACTION CLICK HERE
BEFORE THE BELL: EUROPE TRACKS LOWER, LED BY DEFENCE CLICK HERE
MARKETS IN GRINCH-Y MOOD BEFORE DATA DELUGE CLICK HERE
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