How e.l.f. Cosmetics and Rhode are Redefining Beauty Growth

Introduction: Two Disruptors Shaping the Future of Beauty

In an industry long dominated by legacy giants, e.l.f. Cosmetics and Rhode are proving that bold innovation, cultural relevance, and smart execution can drive explosive growth. While e.l.f. has democratized high-quality makeup with ultra-affordable pricing and viral marketing, Rhode has mastered premium skincare through minimalist luxury and celebrity influence.

Together, they represent a new playbook for beauty success — one that blends accessibility, authenticity, and rapid scaling. Their recent strategic alliance is set to accelerate this momentum even further.

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e.l.f. Cosmetics: Making Premium Beauty Accessible

Founded in 2004, e.l.f. Cosmetics (short for “Eyes, Lips, Face”) disrupted the market by offering high-quality, cruelty-free products at drugstore prices — often under $10. Under CEO Tarang Amin, the brand shifted to a digital-first strategy that fueled consistent double-digit growth.

Key achievements include:

  • 28% net sales growth to $1.313 billion in Fiscal 2025
  • 25+ consecutive quarters of market share gains
  • Strong presence at Target, Ulta, Walmart, and international expansion
  • Viral TikTok campaigns and “dupe” culture that resonate with Gen Z

e.l.f. excels at fast product development, community engagement, and bold marketing — including memorable Super Bowl ads — turning customers into brand advocates.

Rhode: Hailey Bieber’s Skincare Phenomenon

Launched in 2022 by Hailey Bieber, Rhode took a different but equally effective route. The brand focuses on a tightly curated lineup of high-performance skincare essentials with a “less is more” philosophy and signature dewy “glazed donut” aesthetic.

Rhode’s rapid rise includes:

  • $212 million in net sales in its first full year of data
  • Record-breaking Sephora launch with millions in first-day sales
  • Exceptional earned media value driven by Bieber’s global influence
  • High customer loyalty and strong profit margins

The brand’s minimalist packaging, effective formulas, and strategic scarcity (drop culture) created massive hype and organic buzz.

The Power of Their Strategic Partnership

In May 2025, e.l.f. Beauty announced the acquisition of Rhode in a deal valued at up to $1 billion. This move perfectly complements the two brands:

  • e.l.f. brings scale, retail muscle, and operational expertise
  • Rhode adds prestige positioning, celebrity cachet, and skincare innovation
  • Combined, they create a diversified portfolio spanning affordable color cosmetics to premium skincare

This partnership allows both brands to accelerate growth while maintaining their unique identities and disruptive spirits.

What Sets Them Apart in a Crowded Market

  1. Cultural Fluency & Digital Mastery Both brands speak directly to younger consumers through social media, authenticity, and trend responsiveness.
  2. Product Focus & Innovation e.l.f. delivers value-driven “dupes” with quality twists. Rhode offers simple, effective routines that deliver visible results.
  3. Smart Business Models e.l.f. combines mass retail with e-commerce. Rhode proves celebrity-led brands can achieve strong margins with lean marketing.
  4. Consumer-Centric Approach Community feedback drives product development for both, building deep loyalty.

Impact on the Beauty Industry

e.l.f. and Rhode are challenging traditional beauty norms by proving that success comes from understanding consumers rather than just big budgets. Their growth rates far outpace the overall industry, forcing legacy brands to rethink strategies around affordability, transparency, and digital engagement.

Challenges and Future Outlook

Both brands face typical scaling hurdles — maintaining quality during rapid expansion, navigating competition, and evolving with consumer preferences. However, their combined strengths position them for continued leadership in a dynamic market.

As beauty becomes more inclusive, personalized, and digitally driven, e.l.f. and Rhode are well-placed to define the next era of growth.

Final Thoughts

e.l.f. Cosmetics and Rhode demonstrate that redefining beauty growth is possible through authenticity, innovation, and strategic vision. Whether through accessible glamour or refined skincare, they show that connecting genuinely with consumers remains the ultimate competitive advantage.

The future of beauty belongs to brands that move fast, stay relevant, and deliver real value — exactly what these two powerhouses continue to do.


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– The Empire Magazine
Crown For Global Insights