L'Oreal Links Weight Loss Drugs to Beauty and Skin Care Sales

The growing use of GLP-1 weight loss medications is influencing consumer demand in the beauty industry, according to L'Oreal, which is developing skin care products to address changes associated with rapid weight loss. Chief Executive Nicolas Hieronimus said the trend is affecting beauty purchases, particularly skin care, as the company adapts its products to meet changing consumer needs.

L'Oreal reported a 7.7% increase in sales for the three months through September, exceeding analyst expectations, according to the company's Thursday announcement. Hieronimus described the beauty market as resilient despite a challenging global economic environment.

During an investor call, Hieronimus characterized the growing use of GLP-1 medications as "a very important phenomenon for us".

He also identified a specific effect on the company's market, saying the increased use of these medications was "having an impact on beauty consumption and skin care consumption in particular".

GLP-1 medications have gained popularity in recent years after drugs developed to treat diabetes, including Ozempic, Wegovy and Mounjaro, were found to produce significant weight loss by suppressing appetite. Rapid weight loss can sometimes leave people with loose skin, including around the face, although this effect is not directly caused by the medications themselves.

L'Oreal owns several beauty brands, including Maybelline and La Roche-Posay. Its SkinCeuticals and Kiehl's brands have developed products intended to address skin changes associated with GLP-1 use and rapid weight loss, Hieronimus said.

He explained that the products from those brands "have been designed to work alongside and complement GLP-1 and its side effects on skin sagging" and other effects related to rapid weight loss.

The company has also expanded its presence in clinical aesthetics through its investment in Galderma, a dermatology company. L'Oreal increased its stake in Galderma to 20% last December, according to the source report.

Reuters reported that L'Oreal and Galderma have separately tested products on GLP-1 users concerned about loose skin in clinical trials. Galderma's aesthetic product portfolio includes Sculptra, an injectable treatment designed to stimulate collagen production, and Restylane, an injectable dermal filler.

Galderma also examined the broader implications of GLP-1 use in a report released last year. The report addressed concerns about changes in facial appearance among people using weight loss medications.

According to the company's survey of weight loss medication users, the vast majority of respondents had noticed changes in their facial appearance after taking the drugs.