As beauty spending slows down, wellness is heating up. In North America, consumers focused on nurturing the social, mental, and physical aspects of their health wield $1.1 trillion in purchasing power. What do these consumers want, and what are the trends shaping health and wellness purchasing behaviors? In a recent webinar, Circana investigated the growing wellness market and explored opportunities for brands and retailers to lean into well-being. Below are a few of the key takeaways from Circana’s exclusive webinar on global well-being insights.

Consumers are prioritizing self-care and well-being, with 78% actively practicing it.

Consumer focus on self-care and well-being has increased significantly since the pandemic. Seventy-eight percent of consumers actively practice self-care, and 65% of them make it a priority. This represents a major shift in consumer behavior and a substantial market opportunity for beauty brands. These health-conscious consumers have immense buying power: Circana quantifies it as $1.1 trillion in the US alone, with a 4% increase from the previous year. This data demonstrates the immense importance consumers are placing on their overall health and wellness and the significant purchasing power they have to back it up.

Beauty brands that can effectively cater to these health-conscious consumers and provide products and services that enhance their physical, mental, and emotional health will be well-positioned to capture a significant share of this growing market. Brands should consider how their offerings can align with consumers' evolving self-care priorities and leverage this trend to drive growth and brand loyalty.

Consumers are focused on improving physical and mental health, with a shift towards mental factors like work-life balance and a healthy home environment.

Consumers are taking a holistic approach to well-being. Consumers are now placing equal, if not greater, importance on their mental health.

"Although physical exercise is still number one, followed by food and beverage choices, we have seen a shift towards mental factors for things like work-life balance and healthy home environment, pointing towards a more harmonized way of embracing well-being,” says Sally Lyons Wyatt, Global Executive Vice President and Chief Advisor of Consumer Goods and Foodservice Insights at Circana.

Consumers are seeking products, services, and experiences that can support their mental and emotional well-being in addition to their physical appearance. Beauty brands should consider how they can leverage their expertise and offerings to address this holistic approach to well-being, whether through innovative product formulations, self-care rituals, or creating calming and restorative home environments. This can look like beauty brands branching out into household products like hand soap, dish soap, and multipurpose spray cleaners that help consumers recreate the feel of an exclusive spa or wellness club at home.

Skincare is a critical component of physical health, with consumers seeking doctor-recommended and dermatologist-approved products.

Skincare is a critical component of overall physical health and well-being. Consumers are increasingly seeking out skincare products that are not only effective but also align with their values and preferences for clean, natural, and multifunctional formulations.

Hygiene practices are really important, especially post-COVID. According to Kristin Hornberger, Executive Vice President and Practice Leader of Wellness and Homecare at Circana, body sprays, hand soaps, makeup, lip treatments, and facial mist sprays are all continuing to grow. Dermatologist-recommended products are continuing to show strong growth, both in mass and prestige retail markets. This indicates that consumers are placing a premium on products that are backed by medical expertise and can deliver tangible benefits for their skin and overall health.

To meet these evolving consumer needs, beauty brands need to clearly communicate the ingredients, sourcing, and efficacy of their products to build trust with health-conscious consumers. Customers will be looking for new formulations and product offerings that are developed in conjunction with experts that address specific skin health concerns and provide multifunctional benefits. Brands will also need to make sure their products are available through a variety of retail channels, including mass market and prestige outlets if they want to cater to diverse consumer preferences and budgets.

Retailers are offering tools, affordable prices, and medical assistance to help consumers with their well-being.

Retailers recognize the importance of making well-being accessible and approachable for consumers and are beginning to play a larger role in supporting consumers' well-being journeys. Retailers are assisting consumers with offers via their loyalty frequent shopper programs, offering in-store tools to help consumers identify healthier product options. Affordability is a major priority for select retailers, which is why you may see some reduce prices on select items or offer their own affordable brand options. By providing these types of tools, resources, and pricing options, retailers are helping to remove barriers and empower consumers to prioritize their health and wellness.

For beauty brands, this presents an opportunity to collaborate closely with retailers to ensure their products and services are easily discoverable. Brands should consider how they can work with retailers to offer educational resources, affordable options, and even in-store assistance to further support consumers on their holistic health journeys.

Fragrance is emerging as a key category for mood enhancement and self-care, with 80% of consumers using it to boost their mood. 

“Fragrance is the ultimate invisible accessory, with 8 in 10 consumers using it to enhance their mood,” says Hornberger.

Fragrance is performing well as a category around the world. Consumers see fragrance as a powerful tool for boosting emotional well-being. By leveraging fragrance's mood-enhancing properties, beauty brands can position their products as essential components of a self-care routine.

Fragrances that are specifically designed to support mental wellness, such as calming scents or aromatherapeutic blends, will do well. Brands that are able to educate consumers on the emotional benefits of fragrance and how it can be integrated into a broader self-care regimen will cultivate a community around the brand that’s anchored in mental health and well-being. To further bolster consumer confidence, brands can collaborate with mental health experts and influencers to authentically communicate the mental wellness benefits of fragrance. By embracing fragrance as a key driver of mental wellness and self-care, beauty brands can differentiate themselves in the crowded beauty market.

Community and social engagement play a vital role in consumers' self-care practices, with trends in sports, footwear, and volunteering.

Participation in team sports and activities like basketball, golf, and pickleball are on the rise, driving growth in related footwear and apparel categories. Brands can explore co-branding and collaborative opportunities to align with these social fitness trends.

Over 90% of consumers in the UK and Europe indicate that volunteering improves their mental, physical, and emotional well-being. Beauty brands can support and promote volunteer initiatives that allow consumers to give back to their communities.

By tapping into these community and social engagement trends, beauty brands can position themselves as partners in consumers' holistic well-being journeys. This could involve creating in-store experiences that foster social connections, developing product lines that support active lifestyles, or aligning with charitable causes that resonate with health-conscious consumers.