L'Oreal reports that the surge in GLP-1 weight loss drug use is affecting sales in beauty and skincare, prompting the company to develop products targeting side-effects of rapid weight loss.
The beauty conglomerate's CEO Nicolas Hieronimus told investors on Thursday that GLP-1 adoption "is having an impact on beauty consumption and skin care consumption in particular." L'Oreal's brands SkinCeuticals and Kiehl's have created products "designed to work alongside and complement GLP-1 and its side-effects on skin sagging" and related effects from rapid weight loss.
GLP-1 drugs, including Ozempic, Wegovy and Mounjaro, were originally developed to treat diabetes but gained popularity for weight suppression. Rapid weight loss from these medications can cause loose skin, particularly on the face, according to L'Oreal.
The company reported Q3 sales growth of 7.7%, exceeding analyst expectations. L'Oreal increased its stake in dermatology firm Galderma to 20 percent in December, positioning itself to capitalize on demand for aesthetic treatments among GLP-1 users.
Galderma, which owns injectables like Sculptra and Restylane, has tested products on GLP-1 users worried about loose skin in clinical trials, according to Reuters. Last year Galderma released a report on GLP-1 use and facial appearance changes. Its survey of weight loss medication users found the vast majority noticed changes to facial appearance after using these drugs.
L'Oreal's disclosure reflects a broader shift in the beauty industry responding to the rapid adoption of weight loss medications. The company characterizes GLP-1 use as "a very important phenomenon for us," signaling that the trend will shape product development and investment strategy going forward.