The news: Unilever said its core business grew in Q3 as sales in North America rose for the fifth straight quarter, fueled by demand for new deodorants and beauty products.

• Turnover came to EUR 14.7 billion ($15.9 billion), down 3.5% from a year ago.
• Underlying sales, which exclude currency effects and acquired and discontinued operations, rose 3.9% overall, including a 5.5% gain in North America buoyed by strength in personal care and well-being brands.
• Underlying sales increased 1.1% in Europe and 6.8% in Asia-Pacific and Africa, aided by a rebound in Indonesia and modest growth in China. Macro pressures weighed on Latin America, where sales fell 2.5%.

The maker of Dove, Nutrafol, Vaseline, Hellmann’s, and other brands posted underlying sales growth across its business lines, with beauty and well-being up 5.1%, personal care rising 4.1%, home care up 3.1%, and foods and ice cream gaining 3.4% and 3.7%, respectively.

Market divide: While the US government shutdown has delayed the planned ice cream spinoff—still expected to occur this year—Unilever CEO Fernando Fernandez said the company has not seen any “significant impact” from the federal closure on consumer sentiment.

However, he noted a “clear bifurcation” in the US between households that own stocks and those that don’t. “I believe this explains broadly the resilience of our premium portfolio in the US,” he said.

Why it matters: That divide points to a broader polarization affecting global demand. Premium brands are being supported by more affluent consumers as value-focused shoppers pull back. Unilever is investing heavily on higher-end products and marketing, using creators to boost visibility for its beauty, well-being, and personal care lines.

Unilever’s focus reflects a wider industry trend: Companies are expanding their beauty, well-being, and personal care product offerings to meet demand for clean, natural, and sustainable goods and position themselves as lifestyle brands. Earlier this week, Lysol maker Reckitt Benckiser reported rising Q3 sales as consumers bought its self-care and germ-protection products.

Unilever will need to keep leaning into premium products and digital engagement to keep up with consumer changes in everyday wellness.

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