New data shows beauty brands continue to outpace the broader consumer spending, even under economic pressure.
While discretionary spending has slowed across most consumer categories, beauty is proving its resilience—and the data backs it up.
An analysis from Capstone Partners revealed that the beauty sector continues to capture above-market sales growth despite broader spending pressure. Mass market beauty sales grew 4% year-over-year to $34.6 billion in the first half of 2025, even as prestige product growth decelerated to just 2% growth.
What’s driving this is the fact that consumers aren’t cutting back on beauty—they’re shifting toward high-efficacy products. The result: brands that balance quality, efficacy, and accessibility are winning.
At Fundamental Brands, we are curating our portfolio around this opportunity, scaling brands with strong fundamentals by providing the capital, distribution, and operational expertise they need to grow sustainably without compromising their authenticity or quality. To further fuel growth, we provide administrative support, taking the burden of running the business off the shoulders of our entrepreneurs, so they can focus on product and revenue.
With beauty M&A poised to accelerate in 2026, the window for strategic investment is wide open. Our offering is live now, giving you the chance to invest in a portfolio positioned at the intersection of consumer demand and market momentum.
How Our Monthly Royalty Distributions Work
As a holding company scaling brands across beauty, fragrance, personal care, and private label, we structure monthly distributions from royalties derived from our overall portfolio’s revenue—not profit. Here’s what that means for you:
- The amount is based on a capped amount of our top-line revenue performance (of all our portfolio companies).
- Targeting a minimum of 8% annualized and capped at 20% annualized, based on the amount of your investment, even if our revenues exceed the 20% threshold.
- Paid monthly, as long as there are revenues.
- Royalties begin one month after investment and are paid around the 15th of each month (due to holidays and weekends) via ACH to your checking account.
Interested in learning more about Fundamental Brands?
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