WWD’s 2025 Top 100 Beauty Brands report identifies transformation as the defining trend shaping the global beauty industry this year, with the term and its synonyms emerging as a dominant theme across the ranking. A key manifestation of this shift is the wave of corporate restructurings reshaping many of the sector’s largest companies, according to insights from Ricardo Tomás.

Since the COVID-19 pandemic, beauty brands have faced a confluence of challenges that have forced widespread adaptation. These include intensified competition from agile digital-native brands and online sales platforms, which have disrupted traditional retail models and captured consumer attention with targeted, data-driven strategies. Shifting consumer tastes and mindsets have also played a role, with shoppers increasingly prioritizing authenticity, sustainability, and personalized experiences over conventional marketing-driven products. Additionally, many major beauty firms carry high debt levels accumulated during periods of rapid expansion or pandemic-related operational disruptions, while external economic pressures such as inflation and supply chain volatility have squeezed profit margins and operational flexibility.

These combined headwinds have pushed industry leaders to rethink their operational structures and strategic priorities. Restructurings are focused on streamlining operations, divesting non-core assets, doubling down on high-performing brands, and investing in digital capabilities to better engage consumers and optimize sales channels. The prevalence of transformation across the Top 100 underscores the beauty industry’s recognition that adaptability is critical to navigating ongoing uncertainties and maintaining a competitive edge in a rapidly evolving market.