L'Oreal Says Weight Loss Drugs Are Reshaping Beauty and Skin Care Sales
Sales rose 7.7% in the three months to September as the maker of Maybelline and La Roche-Posay designs products for loose skin
By AXY Business Desk ·
Key points
- L'Oreal said weight loss drugs known as GLP-1s are having an impact on beauty and skin care consumption.
- Sales in the three months to September rose 7.7%, above analyst expectations.
- SkinCeuticals and Kiehl's have products designed to work alongside GLP-1 use and its effects on skin sagging.
- L'Oreal increased its stake in Galderma to 20% last December, deepening its push into clinical aesthetics.
- Both companies have been testing products on GLP-1 users worried about loose skin in separate clinical trials, according to Reuters.
L'Oreal, the French beauty group that owns Maybelline and La Roche-Posay, said on Thursday that the rise of weight loss drugs is affecting sales of its beauty and skin care products. Its head, Nicolas Hieronimus, told an investor call that the use of GLP-1 medicines was "having an impact on beauty consumption and skin care consumption in particular." The same day, the company said its sales in the three months to September rose 7.7%, above analyst expectations.
The figures put a number on a trend that has been building for years. GLP-1 medicines are now one of the most talked-about groups of drugs in the world, and their reach has stretched well beyond diabetes wards and pharmacies. For a beauty company, the question is no longer only what shoppers want to put on their skin. It is also what has happened to their bodies, and what they now want their faces to look like.
Hieronimus said the beauty market was proving resilient in a challenging global context. He also described the use of GLP-1s as "a very important phenomenon for us." That phrase matters, because it tells investors the company sees the trend as a shift in demand it has to build around, not a passing fad.
How GLP-1 Medicines Moved From Diabetes Clinics to Beauty Counters
GLP-1 is short for glucagon-like peptide-1, a hormone the body makes after eating. It signals to the brain that the stomach is full and helps control blood sugar. Medicines in this class copy that hormone's effects, and they were first developed to treat type 2 diabetes.
The drugs that people now know best include Ozempic, Wegovy and Mounjaro. Doctors and patients noticed that they also caused significant weight loss, because they suppress appetite. That discovery changed their place in the public mind. A treatment for a long-term disease became a way for many people to lose a large amount of weight in a relatively short period.
That is where the beauty industry comes in. When someone loses a lot of weight quickly, their routine can change. They may buy different creams, serums or treatments than they did before, and they may start looking for solutions to changes they did not expect. L'Oreal's comments suggest it has noticed those shifts in its own sales.
Why Fast Weight Loss Can Leave Skin Looser
The source material is clear on one point that is easy to get wrong. The drugs do not cause loose skin directly. Rapid weight loss can, for some people, bring loose skin as a side effect, and that can include skin around the face.
The basic reason is that skin has to stretch to cover the body underneath. Over time it adjusts to a larger or smaller frame. When a lot of fat is lost in a short period, the skin may not tighten back quickly enough, and it can sag. For someone who has lost a lot of weight, this can be one of the most visible changes, and it can affect how they feel about their appearance each day.
That is the gap L'Oreal is now trying to fill. For many shoppers, the first step is an everyday product such as a moisturiser or serum. For people with more serious concerns, the next step can be a visit to a doctor or clinic, where treatments are given rather than bought off a shelf.
SkinCeuticals and Kiehl's Build Products for Sagging Skin
Hieronimus said that L'Oreal's brands SkinCeuticals and Kiehl's have products "that have been designed to work alongside and complement GLP-1 and its side effects on skin sagging." He also pointed to other effects linked to rapid weight loss, which suggests the company is treating the issue as more than one problem.
The two brands sit in different parts of the market. SkinCeuticals is known for skin care sold through dermatologists and skin specialists, which usually means higher prices and a more clinical image. Kiehl's is a name many shoppers know from mainstream skin care and cosmetics. Putting products aimed at GLP-1 users under both names shows how the group is spreading the idea across its portfolio, from specialist treatments to everyday routines.
The company did not say in the source material how much these products are selling, and it did not give separate sales figures for them. Its comments on Thursday focused on the wider pattern in demand. For now, the clearest signal is strategic: L'Oreal is designing products with GLP-1 users in mind and describing that work to investors as central to its business.
Galderma and the Push Into Doctor-Led Treatments
L'Oreal has also moved further into clinical aesthetics, the part of the industry that deals with treatments given by doctors and specialists. Last December, it increased its stake in dermatology firm Galderma to 20%. A stake of that size is a bigger step than a new product on a store shelf, because it links L'Oreal to treatments that are administered by medical professionals.
Galderma owns popular aesthetic products including Sculptra, an injectable aimed at stimulating collagen production, and Restylane, which is an injectable dermal filler. Collagen is the protein that gives skin much of its structure and firmness. A treatment that encourages the body to make more of it could help with the sagging that can follow fast weight loss, though whether it does so for a given patient depends on the individual.
The source material says that both companies have been testing products on GLP-1 users who are worried about loose skin, in separate clinical trials, according to Reuters. That detail is important. Clinical trials are the kind of testing that can show whether a product actually does what it claims, and they are where a beauty promise has to meet medical evidence.
The source also notes that Galderma released a report last year into the rise of GLP-1 use and related concerns about changes in facial appearance. That suggests the concern has been on the company's radar for some time, and that it sees facial changes as a real issue for patients, not only a marketing theme.
What the 7.7% Sales Rise Can and Cannot Tell Us
The 7.7% rise in sales in the three months to September was the headline number from Thursday's update, and it came in above analyst expectations, according to the source. For a company of L'Oreal's size, that is a strong quarter. It also gave executives a reason to sound confident when they described the beauty market as resilient.
A group-level figure does not explain where growth came from. Sales can rise because of price changes, new launches, stronger demand in particular regions, or a mix of all three. The company's comments link GLP-1 use to beauty and skin care consumption, but the reported total on its own does not show how much of the growth came from that trend. Readers should treat the link as the company's own assessment, not as a figure that has been separately measured.
Still, the tone of the call matters. Hieronimus did not present GLP-1 use as a side issue. By calling it an important phenomenon for the group, he signalled that it is already shaping choices about products and marketing.
Clinical Trials Will Decide Whether the Claims Hold
This part is AXY's own analysis, not a forecast from the company. The next test for L'Oreal is whether products built around GLP-1 side effects become a visible part of its sales, rather than a small line within a large catalogue. If they do, other beauty companies may follow with similar launches, and shoppers will see more products that name weight loss directly on the label.
The clinical trials are just as important. If the testing shows that skin-tightening products or injectables help GLP-1 users, that could push more of this market toward doctor-led care, where patients get a treatment plan rather than a cream. If the results are weaker than the marketing suggests, the gap between what is promised and what is proven could become a problem for regulators and for consumers who spend money in the hope of a visible change.
For ordinary shoppers, the effects are already visible in what brands are chasing. People who have lost weight quickly, or who are taking these drugs, may be looking for products that promise firmer skin. That demand gives beauty companies a reason to keep investing, and it gives customers a reason to ask what a product can and cannot realistically do.
The next results from L'Oreal and the updates from Galderma will show whether this has moved from a point made on an investor call to a steady part of how people spend on beauty and skin care. Readers should watch for whether the company begins to give more detail on how these products are performing, and whether the trial results are made public.
Questions and answers
Why are weight loss drugs affecting L'Oreal's beauty sales?
L'Oreal's head, Nicolas Hieronimus, said the use of GLP-1 medicines is having an impact on beauty and skin care consumption. Rapid weight loss can bring side effects such as loose skin, including around the face, and the company is designing products to address them.
Which L'Oreal brands are targeting GLP-1 users?
Hieronimus said SkinCeuticals and Kiehl's have products designed to work alongside GLP-1 use and its effects on skin sagging. L'Oreal also owns Maybelline and La Roche-Posay.
How did L'Oreal's sales perform?
L'Oreal said its sales in the three months to September rose 7.7%, above analyst expectations. The company announced the figure on Thursday.
What is L'Oreal's link to Galderma?
L'Oreal increased its stake in dermatology firm Galderma to 20% last December. Galderma owns aesthetic products including Sculptra and Restylane.
Topics: L'Oreal, GLP-1 drugs, Weight loss drugs, Skin care, Galderma, Nicolas Hieronimus, Beauty industry
Sources: BBC Business