Beauty market

L’Occitane targets young consumers after latest clean beauty acquisition

The company announced that it had acquired a majority stake in the Australian luxury brand on March 24. It was launched in 2008 by brothers Jeremy and Keston Muijs.

Grown Alchemist is best known for its holistic approach to beauty, with topical cosmeceuticals and nutricosmetics. It also emphasizes sustainable sourcing and minimalist design.

“The acquisition of Grown Alchemist is in line with the L’Occitane group’s objective to build a leading portfolio of high-end beauty brands“, said André Hoffmann, vice-president and general manager of the L’Occitane group.

The addition of Grown Alchemist would strengthen the company’s position in the clean beauty market, which is expected to grow at a CAGR of 12% and be worth $1.16 billion by 2027, according to data from Brandessence Research.

According to Nielsen IQ, growth in clean and sustainable products has outpaced the total beauty category in each of the past four years, especially during peak times of the pandemic.

By investing in clean beauty, the group would be able to better reach young people who are the main consumers of clean beauty.

“With its unique brand identity, its product range extending to nutricosmetics, body and hair care, and its strong appeal to millennials and Gen-Z, it is complementary to our product portfolio. The brand is also in synergy with the Group in its entrepreneurial management team and its support for sustainable sourcing, respect for natural biodiversity and waste reduction. said Hoffman.

This follows the acquisition of Sol de Janeiro by L’Occitane. The American beauty brand is the maker of the Brazilian cult cream Bum Bum, which is very popular with millennials and Generation Z.

Currently, Grown Alchemist is available at retail in over thirty countries in Asia, Europe, and North America. The group believes there is still room for the brand’s international growth.

In 2020, the brand unveiled a flagship store in Melbourne and is now gearing up to expand globally to fuel its growth with a large-scale omnichannel presence.

Hoffman said CosmeticDesign-Asiathat the company was not yet able to share expansion plans for Grown Alchemist.

“We are still early in the acquisition process, and many decisions still need to be made. That said, true to our guiding principles, the group will support and share expertise with Grown Alchemist to expand its reach, while providing the co-founders with the autonomy to lead and drive the business.

Following this acquisition, Grown Alchemist will become a non-wholly owned subsidiary of the group, with the two co-founders remaining on board in their roles and retaining shares in the company.

This is L’Occitane’s third acquisition in three years. The company acquired US firm Limelife in 2018. A year later, it acquired British premium skincare brand Elemis for US$900 million – its largest acquisition – and acquired a majority stake in Sol de Janeiro last year.