Rhode x e.l.f. Beauty: Inside the Skincare Industry’s Boldest Deal Yet
In a landmark moment for the beauty industry, e.l.f. Beauty, known for its affordable and cruelty-free cosmetics, has reportedly acquired Hailey Bieber’s skincare brand, Rhode, in what many are calling the skincare industry’s boldest deal yet . This move marks a significant shift in the dynamics of celebrity-led beauty brands and legacy drugstore giants. But what does Rhode x e.l.f. Beauty mean for the skincare market, the e-commerce landscape, and the next generation of beauty consumers?
In this article, we dive deep into the strategic value of the Rhode x e.l.f. Beauty acquisition, the rise of Gen Z skincare culture, and what the future holds for digitally native beauty brands.
Understanding the Players: e.l.f. Beauty and Rhode x
e.l.f. Beauty: The Disruptor Turned Powerhouse
Founded in 2004, e.l.f. Beauty (short for Eyes. Lips. Face.) has long been a disruptor in the beauty space, focusing on affordable luxury and cruelty-free formulas. It built a loyal following by leveraging early social media marketing and direct-to-consumer (DTC) strategies long before they became industry standard.
In recent years, e.l.f. Beauty has positioned itself as a leader in Gen Z and millennial beauty by offering accessible pricing without sacrificing quality. Their stock performance, brand loyalty, and community engagement have made it one of the fastest-growing names in beauty retail.
Rhode: The Cult-Favorite Skincare Brand
Launched in 2022 by Hailey Bieber, Rhode is a skincare line focused on minimalism, hydration, and “glazed donut” skin. Rhode quickly became a cult favorite thanks to Bieber’s influence and a tight range of products like the Peptide Glazing Fluid and Barrier Restore Cream.
Rhode’s aesthetics, clean ingredient formulas, and viral marketing catapulted it to fame among Gen Z consumers. The brand has consistently sold out of inventory, driven largely by social media buzz, influencer campaigns, and Hailey Bieber’s star power.
The Deal: Why Rhode x e.l.f. Beauty Makes Sense
This acquisition signals more than a financial move. It represents the convergence of celebrity-led influence with big-brand scalability. Here’s why this could be a game-changer for the beauty sector.
1. Gen Z Targeting
e.l.f. and Rhode both court a younger demographic obsessed with skincare routines, clean beauty, and minimalist packaging. This partnership allows e.l.f. Beauty to strengthen its foothold in the Gen Z skincare category while giving Rhode access to global manufacturing and distribution networks.
2. DTC and Retail Hybrid Model
Rhode has been primarily direct-to-consumer (DTC) through its website. e.l.f.’s strength in both retail partnerships (Target, Ulta) and e-commerce will allow Rhode to scale faster and diversify its sales channels.
3. Influencer Power Meets Supply Chain Muscle
Bieber’s cultural influence combined with e.l.f.’s infrastructure creates a powerful fusion. Rhode’s brand equity can now be backed by the resources and operational excellence that e.l.f. Beauty is known for.
4. Product Innovation Synergies
Both brands are known for product innovation. With e.l.f.’s in-house manufacturing capabilities and Rhode’s minimal-yet-potent formulations, the market could see a new era of accessible luxury skincare.
The Broader Impact on the Skincare Industry
Celebrity Brands Are Growing Up
Celebrity beauty brands have typically struggled to scale beyond hype. But this deal marks a new chapter, where influencer-led brands can evolve into mainstream powerhouses with the right corporate backing.
Retailers Need Freshness
Traditional skincare brands are struggling to capture younger consumers. With the Rhode acquisition, e.l.f. Beauty brings in cultural cachet that can revitalize in-store traffic and ecommerce engagement.
More Acquisitions Likely
Rhode x e.l.f. Beauty could spark a trend where big players scoop up smaller, viral DTC skincare brands. Expect more celebrity and indie brand acquisitions in the next few years.
What It Means for Hailey Bieber and the Rhode Brand
Hailey Bieber is likely to remain the face and creative force behind Rhode. The acquisition will allow her to focus more on branding and product development while e.l.f. manages backend operations like logistics, distribution, and retail expansion.
With e.l.f.’s resources, Rhode could:
- Expand into international markets
- Launch new product lines (perhaps makeup or SPF)
- Improve fulfillment and customer service
For Bieber, it solidifies her role as not just a celebrity endorser but a true beauty entrepreneur.
Financial Speculation and Market Value
While the exact deal value hasn’t been disclosed, industry analysts estimate it to be in the range of $300-$600 million based on Rhode’s explosive growth, social following, and revenue potential. The stock market responded positively to rumors of the deal, with e.l.f. shares seeing a slight uptick.
The acquisition is likely to boost e.l.f.’s revenue by at least 15-20% in the first year post-integration, assuming seamless execution and retail expansion.
What Consumers Can Expect
With this deal, beauty consumers will likely see Rhode products:
- On shelves at Target and Ulta
- In curated gift sets or collaborations
- In expanded skincare categories (cleansers, masks, etc.)
Pricing may remain accessible, but expect enhanced packaging, faster restocks, and broader availability.
Final Thoughts: A Skincare Merger That Redefines the Industry
The Rhode x e.l.f. Beauty partnership isn’t just about scale—it’s about redefining how skincare brands grow in the digital age. It bridges the gap between indie credibility and mass-market power, offering lessons for legacy brands and influencers alike.
As Gen Z continues to dominate beauty spending, this acquisition positions e.l.f. as a visionary leader, capable of blending influence, accessibility, and innovation into a winning formula.
If executed well, this deal could be remembered not just as the boldest move in skincare, but as the smartest.