L'Oreal says weight loss drugs are affecting beauty and skin care sales
L'Oreal chief executive Nicolas Hieronimus says the spread of GLP-1 weight loss drugs is influencing beauty spending, skin care in particular. The company's sales rose 7.7% in the three months to September.
The world's largest beauty company, France's L'Oreal, said on Thursday that the growing use of weight loss drugs is affecting sales of beauty and skin care products. The group is responding by developing products aimed at specific side effects of rapid weight loss.
Chief executive Nicolas Hieronimus told an investor call that the beauty market was proving resilient in a difficult global environment, but that the use of GLP-1 drugs was "a very important phenomenon for us". He said it was having an impact on beauty consumption, and on skin care in particular.
L'Oreal also owns brands such as Maybelline and La Roche-Posay. Its sales in the three months to September rose 7.7%, ahead of analyst expectations.
What GLP-1 drugs are
GLP-1 drugs such as Ozempic, Wegovy and Mounjaro were first developed to treat diabetes. They were later found to cause significant weight loss by suppressing appetite, and their use has boomed in recent years. The drugs do not directly cause skin problems, but rapid weight loss can leave some people with loose skin, including on the face.
Products and partnerships
Hieronimus said the group's SkinCeuticals and Kiehl's brands have products designed to work alongside GLP-1 drugs and address skin sagging and other effects linked to rapid weight loss.
L'Oreal has also moved further into clinical aesthetics, raising its stake in dermatology company Galderma to 20% last December. According to Reuters, both companies have been testing products in separate clinical trials on GLP-1 users concerned about loose skin.
Galderma owns Sculptra, an injectable intended to stimulate collagen production, and Restylane, an injectable dermal filler. Last year it published a report on the rise of GLP-1 use and related concerns about changes to facial appearance. In its own survey of people taking weight loss medication, the great majority said they had noticed changes to their face.
