We’re back with the first Quarterly Consumer Review of 2024. Throughout the past quarter, we’ve been avidly collecting compelling industry news in order to see which product categories are capturing consumer and investor attention in today’s unpredictable economic climate.
Despite investors maintaining the conservative approach that defined the fundraising landscape in
2023, several equity groups have doubled down on CPG, targeting innovative brands across food, beverage, personal care, and additional consumer verticals.
That said, smaller start-ups are still struggling to secure equity funding causing the gap between early-stage brands and major players in the market to widen. More than ever, CPG brands of all sizes are turning to non-dilutive working capital funding to fuel growth. Let’s dive in.
JANUARY – MARCH 2024
Quarterly Fundraising Index
In case you missed it, check out last year’s quarterly fundraising indexes here.
Consumer Product Trends
Beauty
Science-Backed Beauty | Proven ingredients & patented technologies
Gone are the days when consumers looked to celebrities and influencers to curate their beauty routines. We’re glad to share that consumers and investors alike have re-focused their dollars on ingredients and technology backed by medical professionals or clinical studies. This movement goes beyond just skincare as more and more makeup brands integrate proven skincare properties like SPF or niacinamide into cosmetic products.
Additional trends sweeping the beauty space include the rise in popularity of K-Beauty, and the continued success of fragrance brands. In the last quarter, K-Beauty brands innisfree and CosRX have achieved mainstream success in major beauty retailers while fragrance companies are still a major area of interest for instiutional investors and celebrity angels.
Science-backed beauty in the news…
- Ultra Violette secures $15MM investment from Aria Growth Partners
- Pillowtalk Derm (now Dr. Idriss), Prakti, and Sofie Pavitt Face are selected to participate in Beauty Independent and True Beauty Venture’s 6-month accelerator program
- The Rootist by Farmacy founder David Chung launched in Sephora
- Allies of Skin scores $20MM from Meaningful Partners to fund U.S. expansion
- Dr. Dennis Gross Skincare (DDG Skincare Holdings) is acquired by Shiseido Company
- Westman Atelier expands retail presence in Sephora
- The Outset launches in QVC
- Deinde, preventative skincare brand with patented Biotech, is launched from Debut (L’Oreal-backed incubator)
- Eighth Day names Savannah Sachs, formerly CEO of TULA skincare, as new CEO
- Curology launches non-RX products on Amazon
- RoC skincare is acquired by Bridgepoint from Gryphon Investors for $500MM
- Jupiter haircare secures $3MM in equity funding from Willow Growth Partners, Springdale Ventures, SWAT Equity
- Supergoop launches new collection of skin tints with SPF 50
- Glytone is acquired from Pierre Fabre Laboratories by New Jersey-based Clinical Skin
- CYKLAR is added to beauty accelerator, The Center, portfolio
- Dr. Idriss launches at 300 Sephora stores and re-brands from Pillowtalk Derm
- Naked Sundays debuts in the U.S. market at Target and Urban Outfitters
- Zitsticka enters CVS nationwide
- KraveBeauty expands to Southeast Asia with latest Sephora launch
Food & Beverage
Adaptogens & Functional Ingredients | Hydration, energy, and gut-health
Earlier in March, thousands of natural food & beverage companies lined the halls of Expo West revealing emerging trends like the use of adaptogens and sugar-free candy. Also, the functional beverage category is more competitive than ever, with hydration at the forefront.
Adaptogens in the news…
- Melting Forest debuts adaptogen gummies & drinks eCommerce store
- Spacegoods raises $3.1MM from Five Seasons Ventures
- heywell announces strategic funding round from Alethia
- Om Mushroom Superfood secures strategic growth investment from Meaningful Partners
- Magic Mind enters Sprouts Farmers Market nationwide
- Mud/Wtr announces national distribution at Target
- Kroma Wellness closes $5.2MM Series A round
- BEAM expands to RTD with new Greens On The Go collection
- Afterlife AG secures $1.135MM in equity funding from an undisclosed investor
Functional ingredients in the news…
- Snoop Dog launches Do It Fluid, a new line of THC and CBD beverages
- Michael B. Jordan debuts MOSS, a sea moss beverage brand
- Juvee is acquired by Sprecher Brewing Company
- Sanzo raises $5MM additional funding in January, and adds Steve Aoki and Simu Liu to cap table in March
- Bollygood, Indian-inspired sparkling beverage brand, enters The Fresh Market
- Culture Pop Soda raises $21MM from Enlightened Hospitality Investments
- ROAR Organic secures $10MM equity funding from Factory LLC
- Yerbae partners with three distributors in Pennsylvania
- Zoa Energy receives additional funding and marketing support from Molson Coors
- ALOHA is acquired by SEMCAP for $68MM
Wellness & Personal Care
Feminine Care | Nutritional supplements & grooming products
Feminine care and nutrition remains top of mind for equity providers, while A-Listers Lebron James and Dwayne “The Rock” Johnson make their respective debuts in men’s personal care.
Feminine care in the news…
- Rael expands into supplements, a new category for the period-care brand
- The Honey Pot is acquired by Company Diversified for $380MM
- Perelel Health closes $3MM Series A round led by Unilever Ventures, Willow Growth Partners, and Selva Ventures
- Chiyo secures $3MM in equity funding from Bread & Butter Ventures
- The Flex Co. secures multi-million dollar investment from Kate Upton and Justin Verlander
Fashion & Apparel
Footwear | Men’s formal and athletic shoes
We’ve had our eyes on DTC footwear brand, Allbirds, since its controversial IPO in 2021. While the company has faced a number of setbacks in the public market, investors and larger retailers are still bullish on the category.
Men’s footwear products in the news…
- Renegade Running receives investment from REI Path Ahead Ventures
- Sperry sells for $130MM to Authentic Brands Group from Wolverine Worldwide
- Lululemon enters the men’s footwear space, an entirely new category for the legacy athleisure brand
- Tod’s partners with L Catterton to take the company private
- Rebook partners with Shaquille O’Neal and Pepsi on limited edition sneaker collaboration
- Clarks collaborates with Zara
Fundraising Landscape
While some investors are maintaining a light-handed approach to CPG investing, some even pulling out of the industry altogether, other legacy funds are doubling down on innovation in a variety of consumer product categories. Similar to how beauty consumers are putting their trust in science, it seems many consumer-focused equity providers are also zeroing in on brands introducing new technologies and pushing their industries forward.
New consumer funds in the news…
- Forward Consumer Partners closes its debut fund at $425MM and will make majority investments in growing consumer brands
- Springdale Ventures closes $40MM for Fund II and will continue investing in early-stage consumer brands
- MPearlRock, an investment company created by Kroger and MidOcean Partners, debuts and will focus on emerging CPG brands
- Encore Consumer Capital raises $258MM for consumer-focused Fund IV
- Silas Capital closes $150MM for Fund II and will focus on high-growth consumer brands with revenues ranging from $5MM – $50MM
- Bluestein Ventures secures $45MM for Fund III and will invest in consumer brands and proprietary food tech
- Elevate Beauty Ventures, new investment vehicle by L Catterton, that will back early-stage beauty and wellness brands. The growth fund will write checks between $15MM – $125MM per deal
- The Equity Studio onboards supermodel Rosie Huntington-Whiteley to participate in beauty, wellness and lifestyle investments
- Monique Rodriguez, Mielle Organics Co-founder, announces plans to launch her own venture fund
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