Celebrity beauty is back.

Elf Beauty last week agreed to buy Hailey Bieber’s Rhode, whose trademark look is its glossy, dewy skin, for $US1 billion ($1.5 billion).

The fast-growing US cosmetics company is paying a punchy price for its donut glaze. It must continue Rhode’s pace of expansion, against a difficult economic backdrop and waning enthusiasm for products fronted by famous faces, to prove that Bieber’s business isn’t just another influencer – or entertainer-led fad.

Hailey Bieber, 27, launched her Rhode beauty brand in 2022.Credit: Getty

A decade ago, Kardashian clan member Kylie Jenner and pop star Rihanna ushered in an era of celebrity-backed beauty. Amplified by social media, they connected with millions of mostly young customers. Rihanna, whose business is backed by LVMH Moet Hennessy Louis Vuitton, was also genuinely disruptive, debuting Fenty Beauty in 2017 with 40 different shades of foundation. A more diverse colour palette has now become the norm across the industry.

But as more and more household names as well as influencers and makeup artists joined them, shopper fatigue set in. As incomes were crimped by inflation, buyers became more discerning. They also turned to skincare, haircare and niche fragrance, rather than the colour cosmetics that had propelled early viral trends, such as using different shades of foundation to contour the face.

Consequently, the market has been upended. Even some of those that like Bieber struck gold began exploring exits last year. Yet, so far,........

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