The economic landscape in Q1 of 2022 has gotten so complex, it’s hard to make sense of it all. In the early days of 2022, headlines were dominated by record levels of inflation, persistent global supply chain issues, worker shortages, and a hawkish Federal Reserve looking to raise interest rates to reign in an overheated economy with a “soft landing.” If only it were that simple. By March, the focus shifted to Russia’s invasion of Ukraine and the global economic ripple effect it had on everything from energy prices to food shortages to the historic package of sanctions that have, effectively, extricated the Russian economy from that of the global economic order. Layer in the “zero COVID” lockdowns in China and their impact on global supply chains, and it’s enough to make one’s head spin. Such broad-spectrum, global volatility has historically been a formidable foe to deal activity, but for beauty and wellness dealmakers, the impact of the current economic situation has manifested itself in some unexpected ways, primarily because consumer sentiment and purchasing activity for beauty and personal care remains at record levels. According to Jungle Scout, a provider of e-commerce data, 72% of American consumers are spending less due to rising inflation and 34% are spending less online. However, 62% have a greater interest in self-care now versus pre-pandemic, and beauty and personal care is a category where consumers have indicated they are increasing spending.Overall, deal activity was up 2.9% during Q1 2022 versus Q1 2021. The BeautyMatter Deal Index tracked 106 deals during Q1 versus 103 deals last year.