Okay, let’s talk about the current state of the beauty industry. Have you noticed some of your favorite Black-owned beauty brands are just… disappearing? One minute you’re stocking up on your perfect foundation shade or skincare, and the next, your favorite brand is gone. I’m sure you’ve heard about Ami Colé shutting down, Beauty Bakerie quietly closing, Coloured Raine saying goodbye, and even newer brands like Ceylon and The Established going under after a strong start. So, what is really happening, besties? Hint: It’s way messier than just business as usual.
Launching a beauty brand is not just about creating pretty packaging or effective products (though that is a plus). There is a massive amount of money that goes into development, marketing, inventory, and packaging. If a cosmetics company is lucky enough to get their products on the shelves at Sephora or Ulta, congrats to them, but they’re not quite on Easy Street just yet. The selected brands are still responsible for funding their testers, displays, and promotions. Oh, and they must hit aggressive sales targets or risk losing their spot. It’s a hustle!
Now, here’s the tea. Black founders face major roadblocks when it comes to funding. According to McKinsey, among 213 venture-capital-backed U.S. beauty brands, just 9% of early-stage and only 4% of late-stage investments went to Black brands. Even if their product is amazing and they’ve built a strong community that loves them, securing the capital to scale is tough. Take Ami Colé, for example. Although praised for their highly inclusive complexion products, they will close shop in 2025, as growth through raising funds proved unsustainable. What about our friends at Beauty Bakerie? After almost 10 years of selling beauty products themed after confectionery treats, they had to shut down due to financial and operational pressures. Coloured Raine, a cult favorite for bold makeup lovers, officially closed in 2024 due to inadequate funding and logistics issues.
More recently, Ceylon Beauty, the skincare brand for men of color backed by Glossier’s incubator and selling in 700 stores, had to fold. After working hard to get product distribution, Ceylon just could not secure the millions of dollars they needed to keep it going. Same story for The Established, another Glossier-backed brand that closed after struggling to land investors.
The beauty market today is basically a space where huge conglomerates and influencer lines are recognized most. Indie Black brands are trying to be seen, but breaking through feels impossible, especially with limited resources. And let’s not forget about the burnout associated with being a beauty entrepreneur. Founders juggling product launches, social media, influencer marketing, shipping, and customer service is a lot. Sometimes shutting down is the only option. Although the owners may put up a good fight, these closures can be inevitable, despite how strong and resilient they are.
The need for Black beauty products has not dissipated, so it’s our job as consumers to show the brands that genuinely see us love. Shop smart and hype up the smaller brands still grinding. It’s time for the beauty VCs to finally invest in Black brands that do the work. Black beauty is not just a trend. It is culture, innovation, and power all wrapped into one. It’s up to us to keep it going, besties.
XOXO,
Your Beauty Bestie
