In recent years, one question has started circulating more and more in the beauty and skincare world: Is Drunk Elephant going out of business? Once a breakout skincare success story beloved by influencers, celebrities, and beauty lovers alike, Drunk Elephant has recently faced notable sales declines and operational challenges. But does this mean the brand is shutting down entirely? In this article, we’ll explore the brand’s history, current state, challenges, customer viewpoints, and what the future might hold for a company that helped shape “clean beauty.”
A Little Background About Drunk Elephant
Drunk Elephant was founded in 2013 by Tiffany Masterson with a mission to create skincare that was both effective and free from the so‑called “suspicious six” ingredients — including fragrance, silicones, essential oils, chemical sunscreens, and drying alcohols — that the brand believed could irritate sensitive skin.
The brand quickly rose to fame thanks to its bright packaging, playful branding, and focus on clean, science‑backed formulas. During its first decade, Drunk Elephant became a cult favorite at prestige retailers like Sephora, garnering praise for products such as T.L.C. Framboos™ Glycolic Resurfacing Night Serum and Protini™ Polypeptide Cream.
In 2019, Japanese beauty giant Shiseido acquired Drunk Elephant for approximately $845 million, signaling huge confidence in the brand’s growth potential. At that time, Drunk Elephant’s global net sales were estimated at around $120 million — a remarkable achievement for a brand just a few years old.
Despite initial success and rapid growth, the brand’s momentum began to slow as competition increased and consumer trends shifted.
Is Drunk Elephant Going Out of Business?
No — as of early 2026, Drunk Elephant is not going out of business. The brand remains owned by Shiseido and continues to sell products globally across retail channels and online.
However, Drunk Elephant has been under strain due to significant sales declines and shifts in consumer perception. These issues have led to strategic reevaluations inside Shiseido, including downsizing, market exits in some regions, and efforts to reposition the brand for better performance in the future.
So while the brand is not closing its doors, its business performance has weakened considerably compared with its peak years — which has raised questions among fans and industry watchers about its long‑term health.
Current Status of the Brand
Drunk Elephant remains an active skincare brand under Shiseido’s portfolio, but its performance has been under pressure. In 2024, Shiseido reported that Drunk Elephant’s sales declined roughly 25% year‑over‑year, and by the first quarter of 2025, the brand’s sales slumped about 65% compared with the same period the previous year.
These declines have impacted Shiseido’s broader financial results, contributing to weaker quarterly and half‑year performances and prompting organizational changes at the executive level.
One notable regional change is that Drunk Elephant has withdrawn from the Japanese market altogether as of mid‑2025, ending sales across all sales channels there to refocus resources.
In response to this extended slump, Shiseido is planning a brand reset in 2026 with new campaigns and a redefined market position, aiming to re‑engage loyal customers and attract new ones with refreshed storytelling and product promotion.
Reasons Behind Recent Struggles
Several factors have contributed to Drunk Elephant’s recent struggles — and none are related to the brand going bankrupt, but all have impacted its market standing:
1. Identity Crisis and Audience Shift
One of the key setbacks came when Drunk Elephant’s social media popularity shifted toward younger consumers, especially Gen Z and “Sephora Kids” — a social phenomenon where unsupervised preteens flock to stores and engage with viral products. While early virality boosted short‑term awareness, it also alienated the brand’s core audience of millennials and Gen X customers who originally championed Drunk Elephant’s clean‑beauty mission.
2. Competitive Market Environment
The clean‑beauty and premium skincare market is now crowded with new entrants offering similar benefits and pricing, reducing Drunk Elephant’s uniqueness. Affordable alternatives and formulas from competitive brands have also attracted customers who once exclusively gravitated toward Drunk Elephant.
3. Supply and Marketing Challenges
Drunk Elephant experienced production and shipment delays in 2024, leading to stockouts of popular products. These gaps in availability harmed consumer loyalty and may have contributed to reduced repeat purchases.
4. Premium Pricing in a Tight Economy
With a premium price tag, Drunk Elephant products became less attractive to budget‑conscious consumers amid global economic pressures. Many shoppers opted for value‑driven alternatives or dupes that deliver comparable performance at a lower cost.
Legacy and Industry Impact
Despite its challenges, Drunk Elephant’s impact on the beauty industry is undeniable. In the early 2010s, the brand helped popularize the clean beauty movement, encouraging transparency around ingredients and influencing how consumers evaluate skincare.
For many customers, Drunk Elephant’s initial success introduced them to the idea that skincare could be both effective and gentle — spurring demand for more products without potentially irritating additives. This shift helped reshape product development strategies across the industry, with many brands now emphasizing simpler, skin‑friendly formulas.
Even as sales have softened, Drunk Elephant remains a recognizable name in prestige beauty, with many longtime users still loyal to core products that performed well during its peak — such as its moisturizers, serums, and exfoliants.
Alternatives to Drunk Elephant
For consumers looking to explore alternatives — whether because of budget, preference, or availability — there are several reputable skincare brands with similar benefits:
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The Ordinary – Known for straightforward, clinical formulas with transparent pricing.
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Byoma – A newer clean brand gaining traction for affordable yet effective products.
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Bubble Skincare – Focuses on targeted solutions with minimal ingredients and accessible pricing.
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Innbeauty Project – Popular with younger consumers for its affordable, ingredient‑forward serums and moisturizers.
Many of these alternatives offer comparable results at a lower price point or with a refreshed messaging strategy that resonates with newer generations of skincare buyers.
Reviews of Customers on Drunk Elephant
Customer opinions about Drunk Elephant today are mixed — reflecting both nostalgia and frustration:
Positive Reviews
Some longtime users continue to praise the brand for its high‑quality formulations and gentle approach to skin, noting that products like vitamins, moisturizers, and certain serums remain effective staples in their routines.
Critical Feedback
Others feel that the brand lost its way over recent years — citing premium pricing, long stockouts, and a marketing pivot that didn’t resonate with original loyal customers. Online comments from beauty communities express frustration about availability and shifting brand identity, with some users choosing to switch to alternatives entirely.
These mixed reviews highlight that while Drunk Elephant may still have dedicated fans, its ability to retain broad customer loyalty has been tested.
Drunk Elephant Future Prospects
The future for Drunk Elephant is not a guaranteed shutdown, but it is one of transition and reinvention. Shiseido has not announced plans to discontinue the brand; instead, it is investing in a strategic reset designed to give the brand a clearer identity, stronger messaging, and renewed consumer engagement in 2026 and beyond.
This repositioning effort includes shifting focus toward product strengths, brand storytelling, and potentially new hero launches that can reconnect with both legacy customers and new audiences. What’s clear is that the road ahead will require Drunk Elephant to balance its clean‑beauty heritage with contemporary skincare trends in a highly competitive market.
Conclusion
So, is Drunk Elephant going out of business? — No. The brand is still actively selling products and remains a part of Shiseido’s portfolio. However, it is undergoing a challenging period marked by declining sales, reputational shifts, increased competition, and strategic reevaluation.
Drunk Elephant’s legacy as a clean‑beauty pioneer remains significant, and with upcoming efforts to redefine its identity and market approach, it could well remain relevant in skincare for years to come — but only if it successfully rebuilds consumer trust and differentiates itself in a crowded industry.
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