Beauty, fashion, and wellness brands are powerful drivers of the global economy, setting trends that shape market dynamics and consumer behavior. In 2025, investor interest in these sectors soared, with beauty deals making headlines and consumer demand for innovative products and services pushing the boundaries of product development and digital and in-person experiences.
Our team at J.P. Morgan recently gathered with industry leaders in Los Angeles to discuss the trends shaping the future of beauty, wellness and fashion. Here are some lessons learned throughout their entrepreneurial journeys, along with key insights on what they believe will propel the segment through the end of the year and into 2026.
Innovating with Personal Experience and Expertise
These categories are uniquely dynamic, adapting and transforming in real-time as consumer preferences shift. This can often be seen first on social media, where discovery is immediate and trends can go viral overnight.
Many of the founders we work with have connected directly with consumers and drive long-term growth by taking a personal approach to their products. Siffat Haider, co-founder of Los Angeles-based wellness company, Arrae explained, “I am our consumer. If you are solving for your own issues, it lights a fire under you. We feel the same frustrations as our customers and that’s how we decide to launch products.”
Celebrity hairstylist turned entrepreneur, Chris McMillan founded his eponymous haircare line, Chris McMillan, by translating his professional experience into consumer-friendly products. “We all have that one drawer with all of our beauty products and tools,” he said. “I am giving consumers the products that I reach for most often from my drawer.”
Innovation isn’t just about new products – it’s about solving real problems. Casey Sarai, co-founder and CEO of Manhattan Beach-based CAKES Body shared, “We set out to solve a problem we were personally experiencing. Since launching CAKES, we have created, and led, a whole new category of undergarments that complement how women are dressing today.”
Success across beauty, wellness and fashion – both with consumers and investors – is increasingly about targeted, segmented launches and products that solve specific needs for a well-defined audience.
Showing Up Online and IRL
Brands that build authentic relationships with their communities stand out in a saturated market. Social and creator-forward brands have the ability to drive loyalty, trust, and revenue by listening to feedback and adapting in real time. As Sarah Cheung, founder of SACHEU Beauty, put it, “product is what gets people interested in your brand, but you need them to tell their friends about it to really spark interest. My advice is to be in constant conversation and be a brand that listens—you can’t forget the social part of social media.”
Molly Sims, founder of YSE Beauty, understands this acutely. She launched her brand after realizing that the type of woman she hears from the most online wasn’t being catered to in the marketplace. “I know my girl; I know my woman. I am really proud that we’ve taken the steps to meet her where she is and deliver the products she’s been searching for.”
Virality can be a powerful tool, but it’s not a sustainable strategy on its own. As Sarai observed, “Virality alone is not a sustainable path to growth. However, virality is one of the most powerful tools to create and share brand-defining moments with millions of people…for free.” Cheung, whose brand has thrived online, noted, “People call us a TikTok viral brand but it’s been over three years with continuous growth. Social is just one part of the marketing flywheel.”
Sarai emphasized, “The brands that are winning today are the ones who can effectively tell their story on social media and also make their social community feel a part of what they’re doing in the real world.”
To build lasting growth, brands need to connect with customers beyond digital platforms. Younger consumers in particular, are eager to experience in-person shopping and pop-up experiences to engage directly with brands and have a more tactile shopping experience. McMillan shared, “I love visiting stores and engaging with people. I can learn what the consumer is looking for in the hair space immediately by going into stores. You can’t substitute that in-person interaction.”
Appealing to Potential Investors
Amid rapid product innovation and rising consumer interest, investors are actively seeking out the next big brand in beauty and fashion. Private equity interest is especially strong, but in the current market, investors are looking for more than just consumer buzz. Profitability is essential.
L’AGENCE CEO, Jonny Saven, advised, “Find your path to profitability. The earlier you can find it, the earlier you’ll free up cash flow and open your eyes to what you can achieve.”
Investors are looking for brands that combine long-term growth potential with healthy, sustainable margins. Leadership transitions and a complex macro environment are resetting strategic priorities for many companies, but the opportunity for brands that can capture mindshare and market share is immense.
One company that really personifies that duality is rhode, who we worked with earlier this year on their sale to e.l.f. Beauty. rhode captured the attention of consumers around the world and knew they needed support to continue to scale. CEO, Nick Vlahos, explained “there were avenues we could have taken on our own but we knew that to reach our goals, having a strong, trusted partner would help us continue to meet demand without losing the product quality and authentic brand identity that our consumers know and love.”
Major deals have set the tone for this year, and there is a massive opportunity for innovative companies to grow rapidly and take advantage of private equity dry powder to race ahead of the competition in 2026. To be successful and capture the attention of both consumers and investors, brands must know their audience, develop unique products that deliver on unmet needs—both online and in real life—and strike while the iron is hot.
Fei-Fei Zhang is Head of Beauty for North America at J.P. Morgan. The insights above are drawn from the firm’s recent Beyond the Palette event in Los Angeles.
