Last year, the beauty, health, and wellness market continued its strong performance, even as financial uncertainty grew and consumer confidence started to trend downward. Though consumers are being more choiceful about which categories to spend on across the store as they shop, they still continue to prioritize these three markets. This consumer is also increasingly more digital, with 42% of all sales happening via ecommerce, and online sales growth is vastly outpacing that of in-store.
The six key innovation themes that are shaping the industry now and beyond include:
Viral on Social: Social media platforms like TikTok have become major drivers of product discovery and sales, with health and beauty products often becoming instant hits through viral marketing.
Wellness Focused: There is growing consumer interest in wellness products, with the market valued at $162.3 billion. This includes significant contributions from supplements, personal health, and fragrance oils, reflecting a preference for alternative medicines and herbal supplements.
Trusted Advisor: Leveraging well-known public figures to promote brands or products has a substantial financial impact. Celebrity endorsements and recommendations by professionals like gynecologists are driving growth in the beauty sector.
Personalization and Inclusivity: Consumers are increasingly seeking products tailored to their individual needs. There is significant growth in categories like acne skin, dandruff-prone hair, sensitive skin, and curly hair.
Luxury for All: Despite financial challenges, consumers continue to seek luxury experiences. This has led to growth in affordable products that duplicate the luxury experience.
K-Beauty: Korean beauty products have seen an 87% increase in U.S. dollar sales over the past decade. K-Beauty is known for its high quality ingredients, affordable pricing, and effective formulations.
These themes collectively illustrate the dynamic and evolving landscape of the beauty, health, and wellness industry, driven by innovation and changing consumer preferences.
Download the full “2025 Beauty, Health, and Wellness Innovation Report” by NielsenIQ to learn more.
