As consumers become more informed about the products they buy and seek more comprehensive solutions, a new retail category is emerging that combines beauty, health and wellness into a single market.
What were once viewed as three separate categories are increasingly converging as shoppers look for products that serve multiple purposes. This shift in consumer behavior is creating more competition among companies looking to capture a larger share of customer spending, according to industry experts.
A new study from consulting firm AlixPartners found that nearly 100% of surveyed consumers now view beauty, health and wellness as one combined budget category, rather than three separate areas of spending.
The survey, conducted jointly by CEW and AlixPartners between May and June, included 1,000 consumers aged 18 and older across genders, age groups, income levels and regions. It also surveyed 127 executives from the beauty, health and wellness industries.
“What we found in the data is a consumer is just as likely to trade off a night cream for another night cream as a night cream for a personal trainer,” said Lindy Firstenberg, co-lead of AlixPartners’ beauty, health and wellness practice. “Anything in beauty, health and wellness is within the consideration set.”
Consumers want brands to expand beyond traditional categories
As wellness becomes increasingly mainstream, 40% of consumers surveyed said they want traditional beauty companies to expand the range of products they offer.
However, the industry response remains divided. The AlixPartners study found that 42% of executives said they prefer their companies to remain focused on their existing categories.
“What that shows is a fundamental disconnect that 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,’” Firstenberg said.
She explained that companies may hesitate to make larger investments because new categories often require significant research, development and consumer analysis before generating measurable returns.
“They’re not willing to look outside of themselves in order to see that broader beauty, health and wellness bucket, which is the exact opposite of consumers,” Firstenberg said.
The trend is also being driven by what AlixPartners calls the “consumer PhD,” referring to shoppers who are becoming more knowledgeable about ingredients, science-backed products and the effectiveness of their purchases.
Consumers are increasingly turning to other shoppers, particularly through social media, for product recommendations and proof of results instead of relying only on traditional brand messaging.
Retailers adapt to the new wellness economy
Some companies are responding by partnering with brands outside their traditional categories to broaden their offerings.
In 2022, luxury fashion house Gucci partnered with wearable fitness tracker brand Oura to create a specially designed smart ring. More recently, consumer goods giant Procter & Gamble agreed to acquire supplement company Thorne for $3.8 billion as part of its expansion into health.
Other retailers are reorganizing their stores and digital platforms to bring beauty and wellness products together.
Ulta Beauty has introduced in-store wellness boutiques featuring categories such as supplements and skin and hair care products. Target launched its Target Beauty Studio after ending its previous shop-in-shop partnership with Ulta. Sephora has also created a dedicated wellness and skincare section on its website.
Walmart has been expanding its product assortment across beauty, health and wellness while offering both affordable options and premium brands, according to Silvia Kawas, who leads Walmart U.S. consumables.
“Our customers today are actually thinking about solving problems across their health and wellness and beauty journeys more holistically than ever, and so you’ll see a lot of blurring of the lines,” Kawas said.
As Walmart remodels stores, the retailer is placing beauty products in high-traffic areas and increasing access to knowledgeable associates who can assist customers. The company is also leveraging the expertise of its pharmacists to support wellness-related purchases.
“We have this unique advantage of being an omnichannel retailer that allows us to help service customers both from a store perspective through great assortments,” Kawas said. “We also are trusted for our everyday low price and consistency.”
She added that Walmart has seen customers experiment with different products before committing, making smaller trial-size and single-use products increasingly important.
“We’re very intentional about creating this exploration, discovery and navigation in-store and online that gives customers confidence in the solutions that they’re buying from Walmart,” Kawas said.
A changing landscape for beauty brands
While some retailers are adapting quickly, others may struggle to keep pace with changing consumer expectations, according to Pierre Dupreelle, global leader for beauty at Boston Consulting Group.
Dupreelle said the beauty and wellness industry is undergoing a major transformation, particularly as consumers increasingly focus on the connection between health and appearance, including the impact of GLP-1 medications.
“The brands that consumers are now favoring are extremely efficacious brands that are very focused on science, derm-backed, doctor-backed type of products,” Dupreelle said.
He added that more traditional skincare brands, even those positioned at premium price points, are facing challenges as consumers prioritize products with stronger scientific backing and measurable benefits.
Despite broader economic pressures, including higher fuel costs, inflation and global uncertainty, Dupreelle said consumers are more likely to reduce spending in other areas before cutting their beauty, health and wellness budgets.
According to an August report from market research firm Circana, demand in the beauty industry remained positive through the first half of 2026 despite consumers becoming more selective.
The report found that skincare revenue increased 8% during the first half of the year, supported by growing consumer interest in full-body wellness solutions.
For retailers like Walmart, the opportunity is centered on providing the right combination of products, prices and accessibility to keep customers returning.
“That’s the advantage, is affordability, access and flexibility to customize and personalize,” Kawas said. “The more we do that, the more repeat and loyalty we will get out of them because we’re consistent in our offering.”
