US consumers merge beauty, health, and wellness budgets

A study by AlixPartners and CEW reveals that US consumers are increasingly merging beauty, health, and wellness into a single budget category. According to the research, consumers now weigh purchases across these sectors against one another; for example, a night cream may be compared to the cost of a personal trainer.

The findings indicate a shift toward products that address multiple needs, such as prevention, performance, and well-being. While 40 percent of consumers expressed a desire for traditional beauty brands to expand their product ranges to include these categories, 42 percent of industry managers prefer to remain focused on their core businesses.

Some companies are already responding to this convergence. Ulta has begun opening wellness boutiques, and Procter & Gamble recently acquired the supplement manufacturer Thorne for 3.8 billion dollars.