Unilever's Beauty & Wellness Portfolio Reports Double-Digit Growth
Unilever's beauty and well-being division posted double-digit growth in 2025, driven by strong performance from brands like Dove and Vaseline. This growth momentum could lead to increased production and a larger volume of surplus inventory available to off-price channels.
- The Beauty & Wellbeing division's 4.3% underlying sales growth in 2025 was balanced between a 2.2% increase in volume and a 2.1% increase from price. This volume growth indicates a larger quantity of products being manufactured and distributed. - Unilever's "Power Brands," which account for 78% of turnover, led this growth with a 4.3% increase in underlying sales, further fueling production increases for jejich top-selling items. - Within the prestige portfolio, makeup brand Hourglass and haircare line K18 both saw strong double-digit growth. Meanwhile, skincare brands Dermalogica and Paula's Choice returned to growth in the latter half of 2025. - The Health & Wellbeing sub-division, featuring brands like Liquid I.V., Nutrafol, and Olly, experienced double-digit growth, with Liquid I.V. becoming a $1 billion brand in 2025. - To further focus on high-growth areas, Unilever has been actively reshaping its portfolio, acquiring brands like men's grooming line Dr. Squatch while divesting underperforming assets like Kate Somerville. - Unilever's CEO, Fernando Fernandez, has outlined a strategy focused on building a portfolio with more Beauty, Wellbeing, and Personal Care, with a prioritization on premium segments and key markets like the US and India. - For 2026, Unilever anticipates underlying sales growth to be in the 4% to 6% range, suggesting that production volumes are expected to remain high. - The global off-price retail market is projected to grow, with the beauty category estimated to represent 8% to 10% of that and poised for acceleration as consumers actively seek out premium brands at value-driven retailers.
