Three categories become one

Beauty, health and wellness are merging into a single retail category as consumers seek products that serve multiple purposes and fit one budget.

Survey shows consumer shift

A study by AlixPartners and CEW found that nearly 100% of consumers now view beauty, health and wellness as one budget item, up from three separate ones.

Consumers want more options

40% of consumers want traditional beauty companies to expand into health and wellness, but 42% of executives prefer staying focused on their core business.

The disconnect between sides

Executives fear the research, development and investment needed to expand categories won't pay off quickly enough, while consumers demand a broader product playbook.

“Consumers are asking for more; they're asking for different, they're asking for a new playbook, and executives are saying, 'No, that's way too scary.'”

The consumer PhD effect

Shoppers are becoming more educated about products and relying on science-backed claims and social media recommendations instead of brand marketing.

Gucci and Oura team up

In 2022, luxury brand Gucci partnered with wearable fitness tracker Oura to create a specially designed ring, blending fashion with health technology.

Procter and Gamble buys Thorne

Consumer packaged goods giant Procter and Gamble agreed to acquire supplements brand Thorne for 3.8 billion dollars to expand its health business.

Retailers create wellness shops

Ulta Beauty launched in-store wellness boutiques, Target opened its Beauty Studio, and Sephora added dedicated wellness sections to highlight these converging categories.

Walmart's blurred lines strategy

Walmart is remodeling stores to place beauty products in high-traffic areas, offering both entry-level and premium brands, and training staff in beauty and wellness expertise.

“Our customers today are thinking about solving problems across their health and wellness and beauty journeys more holistically than ever.”

Mini products drive discovery

Walmart found success with single-serve and mini products that let customers trial items before committing, reducing purchase hesitation.

Science-backed brands winning

Traditional skincare brands are struggling while efficacious, science-backed and doctor-endorsed products thrive as consumers prioritize results over heritage.

Beauty spending stays strong

Despite economic pressures, consumers cut spending on other categories before reducing beauty, health and wellness budgets, with skincare sales up 8% in early 2026.