Weight Loss Drugs Impacting Beauty Sales, L'Oreal CEO Says
The rise of GLP-1 medications is altering consumption patterns in the beauty and skincare market, according to the company's chief.
The widespread use of weight loss drugs like Ozempic and Wegovy is impacting sales in the beauty and skincare industries, L'Oreal CEO Nicolas Hieronimus stated. He described the phenomenon as "very important" for the company and noted its influence on beauty consumption.
L'Oreal, which owns brands including Maybelline and La Roche-Posay, reported a 7.7% increase in sales for the three months ending September, exceeding analyst expectations. The company is designing products to address specific side effects associated with rapid weight loss.
GLP-1 drugs, initially developed for diabetes treatment, have gained significant popularity for their appetite-suppressing qualities and subsequent weight loss effects. A common side effect for some individuals experiencing rapid weight loss is loose skin, particularly on the face.
Hieronimus indicated that L'Oreal's brands, such as SkinCeuticals and Kiehl's, have developed products intended to complement GLP-1 treatments and mitigate effects like skin sagging. The beauty giant has also increased its investment in the clinical aesthetics sector, raising its stake in dermatology firm Galderma to 20% last December.
Both L'Oreal and Galderma have reportedly been conducting clinical trials on products designed for users of GLP-1 medications concerned about skin laxity. Galderma offers aesthetic products like Sculptra, an injectable that stimulates collagen production, and Restylane, a dermal filler. A report released by Galderma last year highlighted concerns among weight loss medication users about changes in facial appearance, with a survey indicating that most users noticed such alterations.