Olaplex Sales Declined
Once one of the most celebrated brands in the beauty industry, Olaplex revolutionized haircare with technology designed to repair damaged hair at the molecular level. The company built a cult following among stylists, celebrities, and consumers, quickly becoming one of the most talked-about luxury hair brands in the world. But just a few years after its highly anticipated stock market debut in 2021, Olaplex experienced a dramatic collapse in market value. The company has lost roughly 95 percent of its valuation since going public, as a combination of rising competition, legal challenges, ingredient scrutiny, and changing consumer behavior slowed the brand’s momentum.
What Olaplex Is
Olaplex is a professional haircare company known for products that repair and protect hair damaged by chemical treatments such as bleaching, coloring, and heat styling. The brand’s formulas are designed to rebuild broken disulfide bonds inside the hair strand, which are often weakened or destroyed during chemical processes. The key ingredient used in the products is bis-aminopropyl diglycol dimaleate, a patented compound designed to reconnect these bonds and restore hair strength. This technology allowed stylists to perform more intense color treatments while reducing structural damage to the hair. The brand initially gained popularity in salons before expanding into retail products sold to consumers, including shampoos, conditioners, treatments, and styling products. Social media exposure and influencer endorsements helped the company grow rapidly throughout the late 2010s and into the early 2020s.
Who Founded Olaplex
Olaplex was founded in 2014 by Dean Christal, a beauty industry executive who helped commercialize the bond-repair technology that would become the company’s core product. The underlying chemistry behind Olaplex was created by two scientists from the University of California, Santa Barbara:
• Eric Pressly
• Craig Hawker
The scientists developed the molecular compound used to rebuild damaged hair bonds, which became the foundation of the brand’s salon treatment system.
A Massive Public Offering
Olaplex went public in September 2021, raising about $1.5 billion and reaching a peak valuation of roughly $15 billion. At the time, the company was seen as one of the most successful independent beauty brands in the world. Investors were drawn to the company’s strong margins, loyal customer base, and viral social media presence. For a period, the brand appeared unstoppable.
Lawsuits and Brand Backlash
The company’s reputation took a hit in 2023 when consumers filed lawsuits claiming Olaplex products caused hair loss, scalp irritation, and hair damage. The company denied the allegations and maintained that scientific testing confirmed its formulas were safe. Even so, the lawsuits sparked widespread discussion across social media and beauty communities. For a brand built heavily on consumer trust and professional endorsements, the controversy created lasting reputational damage.
Ingredient Controversy
Another challenge emerged when scrutiny focused on lilial, a fragrance ingredient previously used in some formulas that was banned in the European Union due to safety concerns. Although Olaplex removed the ingredient from its products, the controversy fueled criticism online and triggered investor lawsuits claiming the company failed to adequately disclose risks tied to the ingredient.
Competition Flooded the Market
When Olaplex first launched, its bond-building technology was largely unique. Over time, competitors began introducing similar “bond repair” products, significantly increasing competition in the category. Luxury brands, professional salon companies, and mass-market haircare lines all introduced their own bond-repair treatments. The rapid expansion of alternatives reduced Olaplex’s once-dominant position in the market.
Slowing Growth and Falling Value
As competition increased and consumer confidence wavered, sales growth slowed. At the same time, pandemic-era demand for at-home beauty treatments declined as people returned to salons and shifted spending habits. The result was a sharp drop in investor confidence. Over the following years, the company’s stock price declined dramatically, wiping out billions in market value and reducing the company’s valuation by roughly 95 percent from its peak.
The Bottom Line
Olaplex’s rise and fall illustrates how quickly a viral beauty brand can lose momentum in an intensely competitive industry. The company pioneered a groundbreaking hair repair technology and built a powerful global brand, but legal controversies, ingredient scrutiny, and a wave of competitors weakened its dominance. Despite the steep decline in valuation, the company continues to sell its products worldwide and remains recognizable in the professional haircare space. Whether it can rebuild its reputation and regain market share remains an open question in an industry that now offers many alternatives promising similar results.
