May in review: Tariff tensions, FDA panel favors talc ban, Unilever to close REN

Last month in major industry news, ongoing global trade tensions caused beauty companies’ earnings and stocks to fall. US President Donald Trump’s initial threat to impose 50% tariffs on EU imports impacted L’Oréal and LVMH stocks, while Revolution Beauty revealed a drop in revenue amid US trade tensions with China.

Meanwhile, Unilever announced it will close its skin care brand REN, and Drunk Elephant’s earnings took a significant hit, which an Innova Market Insights analyst told us could be attributed to its recent shift in consumer base. 

Experts favored banning talc in the US at a panel hosted by the FDA. The European Commission revealed it will ban a wide range of cosmetic ingredients deemed unsafe. 

We look back at the biggest stories from May.

Unilever to shut down REN Clean Skincare amid market challenges

Unilever said it will close its skin care brand REN, citing “a combination of internal factors, compounded by market challenges in recent years” as the reason. The FMCG giant said the brand is unable to sustain success in the long term.

Appearance over health: Gen Z prioritizes tanning despite sun care surge

Bodyotics’ holding company, eBrands, told us there is a move toward biodegradable and reusable formats for period products.The American Academy of Dermatology found that almost all Americans believe sun protection is important. However, Gen Z still prefers to achieve a tan despite its harm to the skin. The US-wide report found that while over 90% of Americans thought sun protection was essential, the number of people who got tanned or darker skin in 2024 was up from previous years. 

Revolution Beauty hopes for recovery from tariff relief after 26% sales plunge

Revolution Beauty’s annual revenue dropped 26%, but it hoped that newly reduced US tariffs on Chinese imports would ease pressure on its margins. Following the financial announcement, the UK-based beauty brand’s share price fell approximately 40%, hitting a record low.

Counterfeit cosmetics: OECD finds China leads market with unexpected flows in Morocco

The OECD found that cosmetics from China dominate counterfeit trade, with a high influx to the EU and Morocco. Personal Care Insights spoke to two OECD representatives about the dangers of counterfeit cosmetics and what could explain the spike in activity in Morocco.

Drunk Elephant sales drop after “Sephora kids” tarnished brand reputation

Drunk Elephant’s sales dropped 65% year-over-year in the first quarter of 2025. Through social media, Drunk Elephant gained popularity among Gen Z and Gen Alpha consumers, but struggled to retain its original Millennial and Gen X audience. Personal Care Insights spoke with an industry analyst from Innova Market Insights about how the company’s viral “Sephora kids” moment backfired in the long term.

US FDA panel recommends banning talc powder amid rising health fears

The US FDA invited experts to discuss the dangers of talc in cosmetics, and the international panel unanimously favored a ban. Concerns have arisen that talc from personal care products can travel through the body, stay in tissue, and cause serious health effects. Personal Care Insights attended the panel and broke down the current sentiment and fears of using talc in cosmetics. The founder and CEO of Mitra Bio explained how the company supports beauty brands in obtaining insights into the efficacy of their skin care treatments.

“Dermatology deserts”: Billions lack access to crucial skin care

An ongoing study from the Skin Observatory revealed that at least one billion people lack access to essential skin care treatments, and two billion people with skin disease need urgent care. We spoke to the study leader about how the personal care industry should address the “global skin care crisis.”

EU bans and restricts dozens of dangerous cosmetic ingredients

The European Commission banned and restricted a wide range of cosmetic ingredients deemed unsafe, including commonly used substances like sodium perborate, silver, and hexylsalicylate. The changes were part of the newly proposed Omnibus Act VIII, which updates the EU Cosmetics Regulation. This impacts the formulation, labeling, and marketability of personal care products across the EU.

EU-US trade tensions: Beauty giant stocks jolt amid tariff uncertainty

US President Donald Trump’s initial threat to impose 50% tariffs on EU imports sent L’Oréal and LVMH stocks falling, but a last-minute delay offered temporary relief. The transatlantic trade tensions threaten EU personal care exports worth billions. The French Cosmetic Industry Association called for a swift, balanced agreement.

Cosmetics Europe calls for amendment to EU wastewater directive after “blatant miscalculation”

Cosmetics Europe called for a reassessment of the Urban Wastewater Treatment Directive after evidence suggested that the cosmetics industry’s contribution was overestimated by at least 15 times. The association urged lawmakers to adopt a substance-based and sector-neutral EPR model.