Beauty Remains Inclusive

While some prefer DEI to die, the cosmetics industry remains committed to inclusivity. The Personal Care Products Council’s 2025 Beauty Collective Summit’s theme was “beauty is for all.” PCPC President and CEO Tom Myers underscored that statement in his opening address, noting that the US beauty industry employs 4.6 million, with women making up 80% of the workforce. Women also account for 50% of management and 33% are people of color. 

“We are not exclusive, we are inclusive,” noted Myers. “We have products that meet your needs and make you more beautiful. That is inspiring.”

Myers urged Summit attendees to work together, as the industry faces challenges such as tariff threats, inflation and mixed signals on where the economy is headed.

“If you thought 2024 was interesting…well, buckle up!” he added.

Uncertainty has stock markets in a freefall. President Trump didn’t assuage fears when he wouldn’t rule out a US recession, telling Fox News that the US will undergo a “period of transition” as his policies take effect.

Listen to the Leaders

Like C-suite executives in every industry, cosmetics industry leaders remain hopeful that tariffs will be short-lived. As Happi went to press, it was anyone’s guess how and when the trade war would end. On March 12, the Trump administration raised tariffs on global steel and aluminum imports to 25%. Long-time US trade partners immediately hit back. The imposed reciprocal tariffs on a wide range of US goods imported to Europe, such as boats, motorbikes and alcohol. Canada responded too, imposing a C$29.8 billion (about $20.5 billion of its own).

Sol de Janeiro CEO Wins Madam CJ Walker Award
Sol de Janeiro CEO and co-founder Heela Yang won the Madam CJ Walker Award for Excellence in DEI. The Award recognizes individuals in the beauty and personal care products industry committed to advancing DEI through strong leadership and sustained efforts.
Before starting Sol de Janeiro in 2015, Yang spent more than 12 years in the cosmetics industry with an extensive track record of success at leading global brands. Yang has led the brand to become a “category-leading global body care phenomenon”—and reportedly, Sephora’s biggest-ever seller in body care. Jane Rodriguez-Javier, director of global regulatory affairs at Sol de Janiero USA, accepted the award on behalf of Yang, who could not attend the Summit.

In an interview with Jenny B. Fine of Women’s Wear Daily, L’Oréal USA CEO David Greenberg said he hoped wiser minds would prevail—they didn’t. While President Donald J. Trump paused tariffs on Mexico, at press time, tariffs were going into effect in Canada.

“We have been there before with supply chain during the pandemic when costs went up,” recalled Greenberg. “You can’t pass all costs to the consumer unless they see all the value of the products they are buying.”

He noted that the consumer is feeling the burden of price increases, not to mention uncertainty about where trade talks are headed. 

Supply Chains and Tariffs

Greenberg noted that covid led L’Oréal to move much of its supply chain out of China and into Mexico and Canada.

“Most of our production is in the US, but Canada and Mexico still play a role.”

“We have many scenarios we’ve run and I hope we don’t have to use them,” he added.

Andrew Stanleick, president, skin health & beauty, North America and EMEA, Kenvue, called it a “topsy-turvy” environment that calls for unity.

“The industry has evolved. It’s not just large-cap companies. All of us are in this together. We are stronger together,” he said. “These are complex issues. Get involved.”

Emilie de Tramasure, general manager, fragrances & beauty, Chanel Inc., said every segment of her organization is impacted by all the uncertainty. 

“We want agreement on global pricing, so our regions don’t compete against one another,” she explained. “The materials we import are complex. It’s beyond the simple movement of goods.”

A Smaller FDA?

Fine predicted that the US Food and Drug Administration (FDA) would survive scrutiny from the newly-minted Department of Government Efficiency (DOGE). But cosmetics companies don’t only worry about Washington DC. There’s plenty of action at the state level, too. Stanleick called it a very dynamic environment.

“Kenvue is a science-led company. We are close to federal, state, local and global regulators. We listen, learn and advocate for change,” he said, noting that skin cancer rates are a concern. “Less than 70% of consumers use sunscreen. US consumers have less access to sunscreen filters than consumers in other parts of the world. That’s where PCPC and other partners can help advocate for change.”

Greenberg noted that there are UV filters well into the arduous FDA approval process. He asked if a smaller FDA could help the beauty industry. Greenberg called it an interesting question, but reminded attendees that the beauty industry is dedicated to protecting the consumer.

“For the most part, we test above FDA requirements, and most of us already operate at a very high standard—but some don’t. So, the FDA plays a critical role in maintaining standards that everyone must meet,” he explained. “We have always had a good dialogue with the FDA. We want to maintain that. A downsized FDA only makes it more difficult to collaborate and have a partnership. We have high standards, and a downsized FDA may make it difficult.”

Slow Growth

Turning to the business of beauty, Fine noted that sales growth has slowed in the past year—up just 3% in 2024. After several years of particularly strong gains, deceleration is to be expected, but there were some bright spots. Fragrance contributed 80% of gains last year, with both prestige and masstige channels posting gains. 

At the same time, Stanleick observed that the “skinification” of every category has fueled growth. 

The 2025 Legal & Regulatory Conference
The Personal Care Product Council’s (PCPC) 2025 Legal & Regulatory Conference is May 13-15 at the Ritz-Carlton, New Orleans. 
The conference features leading attorneys and regulatory experts who will provide in-depth insights and analysis on today’s critical issues in the personal care products industry.
According to PCPC, this three-day event brings together attorneys, scientists, and international and regulatory affairs professionals who want to navigate the current challenges facing the industry. PCPC is in the process of obtaining CLE credits for this event. 
To learn more about the conference or sponsorship opportunities mail events@personalcarecouncil.org

Stanleick also said drug and mass retailers around the world are losing beauty traffic to Sephora, Target, Ulta, med spas and Amazon, which has become the No. 1 channel for beauty. 

To get healthy, Greenberg prescribed more store closures—similar to Walgreens Boots Alliance’s acquisition by a PE firm. 

“For 25 years it was acknowledged that the US is “over-stored,” he observed. “It’s no surprise that drugstores are closing. It’s not a fatality, it’s an adjustment.”

All three executives agreed beauty faces many challenges, but they remain optimistic.