We wanted to share a recent report from one of our venture capital managers, Coefficient Capital, as part of their ongoing Consumer Insight series.
Coefficient invests in early-stage consumer brands across sectors including food & beverage, pets, health & wellness, and beauty & personal care. We chose to partner with Coefficient because of their thematic, research-driven approach and the strong track record of their founding team, Franklin Isaacson and Andrew Goletka.
The founders bring deep relationships with major strategic buyers such as Mars, Unilever, and KraftHeinz, which allow them to:
- Identify the categories and trends most attractive to acquirers.
- Understand the metrics and milestones that matter most in acquisition discussions.
- Guide their portfolio companies toward well-positioned, strategic exits.
Previous successes include investments in Oatly (IPO), Nom Nom (acquired by Mars), and Just Spices (acquired by KraftHeinz).
A core part of Coefficient’s strategy is developing market insights through deep consumer research. Their latest report focuses on the beauty sector, offering a forward-looking view of where the industry is heading.
You can access the report here.
A few highlights from the report:
- Gen Z and Millennial consumers are the primary drivers of growth in beauty product purchases, indicating strong future demand.
- TikTok Shop has emerged as a powerful sales engine –achieving $2B in beauty sales in just a few years, a milestone that took Ulta over two decades to reach.
- Across all categories, TikTok Shop is already larger than Sephora and nearly on par with Ulta in total sales.
- Younger consumers are especially influenced by online reviews and gravitate toward brands that foster community and authenticity – reinforcing the importance of digital-first brand strategies.
We hope you find the report as insightful as we did, and we’re always available to discuss Coefficient or any of our private investments in more detail.
