Joy Group acquires Italy's Foltene as part of expansion into hair, scalp health

China's leading beauty conglomerate Joy Group, or Shanghai Juyi Cosmetics Co Ltd, has recently completed the acquisition of Foltene, a dermatological hair care brand from Italy, in a bid to make further inroads into the accelerating hair and scalp health sector.

Foltene, with its pioneering innovation in hair and scalp health, including its two proprietary complexes — Tricosaccaride and Tricalgoxyl — has a core portfolio spanning anti-hair loss ampoules, gender-specific shampoos, eyebrow and eyelash serums, and nail repair essences. Foltene's products are sold in more than 30 countries and regions.

The acquisition covers its brand assets, global distribution network, supply chain system and research laboratory in Italy, signaling Joy Group's first full global takeover of a European beauty brand.

"As awareness of scalp and hair health continues to rise, we see immense growth opportunities ahead," said Allan Liu, chairman and CEO of Joy Group. "This acquisition enhances our footprint in the hair and scalp care sector and allows us to bring high-performance, science-backed solutions to more consumers."

According to market intelligence and research agency Mintel Group, the hair care product market in China grew by 3.5 percent year-on-year in 2024. As an essential category, it continues to show positive growth. Over the next four years, Mintel forecasts an average compound annual growth rate of 2.4 percent for this market, reaching 79.8 billion yuan ($11.2 billion) by 2029.

Daisy Tong, a senior analyst of beauty and personal care at Mintel China, said: "Currently, the hair care market is steadily growing, maintaining positive growth even amid a challenging consumer environment. At the same time, consumers' attention to scalp health and efficacy-driven care has significantly increased."

Hair care products are evolving from basic cleansing to a "skin carelike" direction, emphasizing more specialized functions such as balancing the scalp microbiome, repairing hair follicles and strengthening hair roots, said Tong.

Scalp health and efficacy-driven care have become new growth opportunities. Joy Group's entry into the hair care sector is based on its recognition of this structural upgrade trend. "By acquiring international brands, Joy Group can leverage mature technology and R&D resources to expand a second growth curve beyond color cosmetics, enhancing its multibrand and multicategory portfolio," said Tong.

Over the past two years, the Shanghai-based group has aggressively broadened its business through strategic partnerships and acquisitions. In 2024, it signed an exclusive long-term partnership with French pharmaceutical group Pierre Fabre, taking charge of all operations of the haircare brand Rene Furterer in China. With this acquisition, Mintel data show that the Joy Group ranked No 7 in the hair care market in 2024, with market shares growing from 0.8 percent in 2023 to 1.3 percent.

Under its management, Rene Furterer achieved double-digit growth in China, including a 72 percent surge in the second half of 2024. During the June 18 shopping festival this year, the brand's gross merchandise volume exceeded 180 million yuan, up 34 percent year-on-year.

The company has demonstrated robust momentum. Its annual revenue rose from 2.61 billion yuan in 2023, excluding Rene Furterer, to 3.5 billion yuan in 2024, marking a 36 percent year-on-year increase. Industry analysts project that, with the Foltene acquisition, the group's 2025 performance will exceed 4 billion yuan, putting it on par with several listed companies in China's beauty sector.

The launch of Rene Furterer's Amber Hair Care Oil marks the first new R&D achievement following the strategic partnership between Joy Group and Pierre Fabre Group. This collaboration deeply integrates Chinese market insights with Europe's cutting-edge scientific research capabilities, said Tong.

The addition of Foltene and Rene Furterer is expected to create synergies with the company's existing brands. The group's portfolio currently includes brands such as Judydoll, Joocyee and Biophyto Genesis, covering mass beauty to premium skin care segments.

In the cosmetics market, the group maintained its strong market share in 2024. According to Nint data, it ranked as the top domestic beauty company by sales on Tmall and Douyin in 2024. Its flagship brand, Judydoll, became the first under the group to surpass 2.5 billion yuan in retail sales, with brand revenue exceeding 2 billion yuan, up 23 percent year-on-year in 2024.

The group's international expansion has also gained momentum. The company has established subsidiaries in Singapore, Indonesia, Vietnam and the Middle East, with an overseas localization team of more than 200 people.

In 2024, its overseas business grew by over 400 percent year-on-year, with products from Judydoll and Joocyee now sold in more than 50 markets, including Southeast Asia, Japan, North America and the Middle East.