L'Oreal says weight loss drugs impact beauty sales
Beauty giant L'Oreal reports that the rise of GLP-1 weight loss drugs is affecting skincare sales, while posting a 7.7% sales growth in the third quarter.
Stock photo for illustration only, not from the actual event
- L'Oreal notes that the popularity of weight loss and anti-obesity medications is impacting beauty and skincare consumption.
- The company's sales for the three months leading up to September rose by 7.7%, beating analyst expectations.
- L'Oreal has increased its stake in dermatology firm Galderma to 20% to expand its clinical aesthetics presence.
The booming popularity of weight loss medications is creating unexpected ripples across the global beauty industry. Cosmetics giant L'Oreal has announced that the widespread use of these drugs has begun affecting its skincare and beauty product sales, as consumer habits shift in response to rapid weight loss.
During an investor call, company executives stated that the rise in medication usage is having a noticeable impact on beauty and skincare consumption. This announcement coincided with L'Oreal—owner of popular brands such as Maybelline and La Roche-Posay—reporting a 7.7% increase in sales for the three months ending in September, outperforming analyst projections.
The drugs in question, known as GLP-1 receptor agonists, were originally developed to treat diabetes—including medications like Ozempic, Wegovy, and Mounjaro. They gained massive popularity in recent years after being found to suppress appetite and lead to significant weight loss. While not a direct side effect of the drugs themselves, rapid weight loss can cause loose skin for some individuals, particularly around the facial area.
Stock photo for illustration only, not from the actual event
From a business perspective, this trend demonstrates how medical innovations can disrupt traditional consumer markets. Major beauty brands are compelled to adapt quickly, aligning their product portfolios with new health and wellness trends rather than treating them as isolated phenomena.
The convergence of pharmaceuticals and cosmetics highlighted by the GLP-1 trend illustrates a blurring line between medical weight management and traditional beauty care. As consumers increasingly turn to medications for body transformation, beauty corporations must pivot toward clinical aesthetics and dermatology to address specific side effects like facial volume loss and skin laxity.
To address these emerging market demands, L'Oreal has pushed deeper into the clinical aesthetic space by increasing its stake in dermatology firm Galderma to 20% last December. According to Reuters, both companies have conducted separate clinical trials testing products designed for GLP-1 users concerned about skin laxity.
Galderma manages several prominent aesthetic brands, including Sculptra, an injectable designed to stimulate collagen production, and Restylane, a dermal filler. Last year, the aesthetic firm published a report examining the rise of GLP-1 usage and related facial appearance concerns, with its own survey revealing that the vast majority of weight loss medication users noticed facial changes.
Source: BBC Business
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