Beauty and Wellness Retail Categories Converge into One Consumer Budget
Consumers are increasingly viewing beauty, health, and wellness products as part of one unified category rather than separate ones. This shift is driven by a desire for holistic purchases that serve multiple purposes, leading to changes in how retailers approach product offerings and pricing strategies. According to an AlixPartners study conducted with CEW between May and June 2023, nearly all consumers surveyed now treat these categories as one budget item. Experts note this trend is creating new competition for companies trying to capture a larger share of consumer spending. However, there's a disconnect: while many consumers want traditional beauty brands to expand into wellness products, executives are often hesitant due to the long-term investment and uncertainty involved. Retailers like Walmart and Ulta Beauty are adapting by expanding product assortments that blend health and beauty offerings. For example, Procter & Gamble recently acquired Thorne for $3.8 billion as part of its strategy to grow in the wellness space.
Topics: beauty consumer spending health and wellness retailing