Shiseido’s premium skincare brand Drunk Elephant will officially withdraw from the Japanese market on June 30, ending sales across all channels. Founded in 2012 in the U.S., Drunk Elephant became popular for its “clean beauty” positioning and was acquired by Shiseido in 2019 for $845 million. Despite initial global expansion, including recent moves into mainland China, the brand has struggled with declining performance, with global sales down 25% YoY in 2024 and plunging 65% YoY in Q1 2025. Poor results in key markets, including over 60% sales drops in the Americas and over 70% in EMEA, have weighed on Shiseido’s broader strategy, prompting the company to realign resources. Shiseido has prioritized strengthening core brands and focusing Drunk Elephant’s efforts on the U.S.