Beauty, Health and Wellness Converge Into 1 Budget Item as 42% of Executives Resist Expansion
Updated
Updated · CNBC · Sep 18
Beauty, Health and Wellness Converge Into 1 Budget Item as 42% of Executives Resist Expansion
3 articles · Updated · CNBC · Sep 18
Summary
Nearly 100% of 1,000 consumers in an AlixPartners-CEW survey said beauty, health and wellness now function as one budget line rather than three separate categories.
40% of consumers want traditional beauty brands to broaden their offerings, but 42% of executives said they prefer to stay in their lane, exposing a gap between demand for holistic products and corporate caution.
Retailers are already reorganizing around that shift: Ulta has added wellness boutiques, Target launched Beauty Studio on Sept. 10, Sephora expanded online wellness sections, and Walmart is remodeling stores to spotlight beauty and wellness together.
Science-backed shopping and social-media discovery are accelerating the blend, while deals such as Procter & Gamble's $3.8 billion Thorne acquisition show brands using M&A and partnerships to reach across categories.
The convergence is proving resilient despite economic pressure: Circana said beauty unit demand stayed positive in first-half 2026, with skincare revenue up 8% as consumers kept spending on whole-body wellness.