After the reorganization, Goop, played by Gwyneth Paltrow, is stepping on the gas pedal to beauty.
On Sunday, Goop will launch its first retinol product, the 3x Regenerating Retinol Serum. It will retail for $150 on Goop’s website and Goop Store.
The product’s name comes from its 3x Retinol Complex, a proprietary cocktail of Granactive Retinoid, Encapsulated Retinal, and Encapsulated Retinol. These include a combination of ceramide NPs, benthic peptides, and beetroot, adzuki bean, and licorice extracts.
Goop recently restructured its business to focus on three growth pillars: fashion, beauty, and food. The move resulted in the company laying off 18 percent of its then-216 employees.
Now, the company is “back in growth mode,” Paltrow said.
“After COVID-19, we spent a lot of time dodging bullets, treading water, and being as agile as possible,” Paltrow said. “Last year, we started seeing strong growth again in our beauty business, and that continues this year.”
The brand’s fashion brand G.label has grown 51% since the beginning of the year, and beauty grew 40% last year. The company announced last month that its overall revenue is also expected to increase in 2024.
Paltrow said Goop, which she founded as a newsletter in 2008, has not been immune to broader changes in the landscape in recent years. “In 2020, 2021, 2022, Silicon Valley banks collapsed. It was a really tough year for us founders,” she said. “For the first time in years, I feel very energized for business.”
Paltrow recently closed a $15 million funding round for Goop Kitchen, a food business currently only available in Los Angeles. “We’re getting back to real tack, and it’s working really well,” she said.
As far as beauty is concerned, the expansion of all categories is aimed at incrementally reaching Goop’s broader ethos, and Paltrow said she sees a wide range of opportunities. “There are trending articles, ingestibles, and overall health articles. These all contribute greatly to beauty, and our idea of beauty is to be the best you can be.” she said. “They really accept the ‘you’ part of me.”
Skincare is also important to the business, she said, as evidenced by “all the attention and money we’ve put into clinical trials.” For example, the brand’s new 3x Retinol Regenerating Serum boasts clinical trials showing that 100% of subjects saw a reduction in deep wrinkles and facial pores, as well as improved hydration.
“We just launch products that are really dreamy,” Paltrow says. “We evaluate the market and think about where the gaps are. But we only make things that we’re crazy about and can’t find. Sometimes it takes a very long time. It can take a long time and require multiple iterations.”
Goop has also dabbled in makeup, launching mascara and bronzing gel earlier this year.
Paltrow believes expanding into retinol is a gamble. “The clinical results behind retinol are very convincing. It obviously works very well and I’m impatient,” she said of her own standards. “For a long time, there hasn’t been a clean retinol on the market. We wanted to try a version that didn’t leave the skin extremely red or irritated.”
