Symrise bolsters beauty sector position with Ignite Venture Studio investment

12 Jan 2023 --- Symrise has invested in US incubator Ignite Venture Studio with participation in a series A funding round as part of a move to expand its beauty, health, wellness and personal care portfolio. The move aligns with Symrise’s targets to strengthen competencies in beauty and health market consumer trends.

“Consumer and market research shows that consumers are increasing their awareness for beauty, health and personal care products. They put more focus on gentle ingredients that care for them, the environment and society at the same time. Our own product development aims at exactly these areas,” Benedikt Wischer, strategy, PMO and M&A, cosmetic ingredients division at Symrise tells PersonalCareInsights.

“We are offering state-of-the-art research and products in that sector, e.g. cosmetic ingredients from renewable sources with minimal impact on the environment that at the same time contribute to the wellbeing of consumers.”

The investment follows the launch of the Beauty Activations platform by Symrise in May, designed to elevate product innovations for cosmetic brands.

By partnering with Symrise through the Beauty Activations platform, brands gain access to in-depth marketing insights, custom formulations, and an established portfolio of ingredients.

Personal care start-up ventures
The collaboration will focus on equity investment in B2C start-up ventures in the personal care sector. It will also aim to drive product innovations in fragrance and cosmetic ingredients while accessing disruptive trends in beauty, health and wellness.

“This product offering perfectly complements our areas of expertise. Very often, we can leverage insights and developments across business areas. This gives our customers extra value as they can easily collaborate with our other departments, such as fragrances. Customers can rely on all elements required for product development working in perfect harmony,” Wischer explains.

“With our investment and partnership with Ignite Venture Studio, we are expanding this approach as it allows us to translate latest consumer insights and new market trends into even more tailored solutions for our customers.”

Ignite Venture Studio invests in global start-up ventures associated with beauty, health and wellness. By investing in Ignite, Symrise will expand its specialization in this market environment.

“Our two companies are committed to delivering impactful product innovation to brands with a sustainable focus. The collaboration will allow us to translate consumer insights into tailored formulations that address the latest trends and evolving consumer needs,” says Josh Ghaim, managing director at Ignite Growth Brands.The partnership aims to drive product innovation in the beauty and personal care segment.

With this transaction, Symrise aims to establish a long-term partnership with Ignite Venture Studio. The move follows the joint investment in Ignite’s textured hair care brand, Sunday II Sunday brand, in 2021. 

“Our two companies are committed to delivering impactful product innovation to brands with a sustainable focus. The collaboration will allow us to translate consumer insights into tailored formulations that address the latest trends and evolving consumer needs,” says Josh Ghaim, managing director at Ignite Growth Brands.

Symrise’s participation in the Series A financing round of Ignite Venture Studio marks the next step in collaborating with new brands on their product development and also benefit from the ongoing market success of emerging indie-beauty brands. “It will offer consumers products that benefit their wellbeing, beauty and support sustainability aspects,” Wischer says.

Based on the ongoing success of Sunday II Sunday, Symrise aims to drive innovation in product development and learn from Ignite’s experience with consumer trends.

Developing personal care brands
Ignite Venture Studio has considerable experience in developing early-stage personal care brands or investing in those with high-growth potential.

The partnership will enable the development of customized fragrance and cosmetic solutions that are in line with the latest consumer trends.

In other news, Symrise recently introduced Hydrolite 6 green as the “first green 1,2-hexanediol” in the cosmetics market. The company is marketing the ingredient as “multifunctional and compatible with all skin types.”

The 1,2-hexanediol is a moisture-binding ingredient that has been scientifically proven as beneficial for the skin and hair, according to SpecialChem. It is used in a wide range of products all across the cosmetic industry, such as cleansing and bath products.

Meanwhile, Symrise’s Q3 sales report demonstrated growth across all divisions, bolstered by sales growth of active cosmetic ingredients. The company’s Scent and Care segment achieved organic growth of 6.4% in the first nine months of the year and 6.7% in the third quarter.

“As the beauty and personal care industry continues to evolve, we are constantly looking for opportunities to gain deeper market insights and to drive product innovation,” says Dr. Jörn Andreas, president of the cosmetic ingredients division at Symrise.

By Inga de Jong