Sales in the “wellness economy” soared from 2015 to 2017 by 6.4 percent to $4.2 trillion, according to the Global Wellness Institute — which pegged revenues at $4.5 trillion in 2018. And it continues to grow.
The largest portion of the market is personal care and beauty (including antiaging products) with revenues estimated at more than $1.1 billion. Healthy eating, nutrition and weight loss is the next largest segment with more than $700 billion in sales followed by wellness tourism with $640 billion and then fitness and mind-body with nearly $600 billion in annual revenue.
And as the COVID-19 pandemic continues to impact regions all over the globe, there’s a renewed interest in wellness as well as clean beauty. Consumers are concerned about what goes in and on their bodies. It’s a consumer trend that has paralleled the growth and demand for organic and farm-to-table foods.
In a comprehensive consumer trend report last year from AlixPartners, analysts at the firm said in beauty and personal care, “almost three quarters [72 percent] of all respondents, regardless of age, said it was important to purchase healthy or clean products.”
“These demands, though, are differentiated by market and demographics and very sensitive to pricing,” the authors of the report noted. “Understanding the implications for the supply chain and how these products are brought to market is therefore essential to developing the right business strategy.”
In regard to how the current pandemic is impacting the consumer mind-set, Cindy Deily, vice president of merchandising, skin care and hair at Sephora, told WWD it has amplified demand for key products.
“Our Clean at Sephora category continues to do incredibly well,” Deily said. “Our clients have grown increasingly conscious of what they’re putting in and on their bodies — even more so as we now navigate a public health crisis — and they’re demanding high-performing, clean and safer beauty products.”
Deily said when the brand launched “Clean at Sephora in 2018, we pledged to continuously identify opportunities to grow and evolve the category, and while skincare has been a huge focus for us, we’ve recently focused our attention on growing our Clean Color offerings as well, with brands like Tower28, Ilia, RMS, Bite and Lawless Beauty.”
“Our aim in expanding our Clean assortment is to be more inclusive in our offerings across the spectrum of beauty categories, and to continue to serve as a trusted and transparent resource as clients navigate the category,” Deily added.
Gregg Renfrew, founder and chief officer of Beautycounter, also acknowledged the rising consumer awareness due to the pandemic.
“Consumers are increasingly aware of, and more conscious of, their health and safety right now, much due to COVID-19,” Renfrew told WWD. “Clean is now top of mind, along with protecting the health and safety of their families. They want to make sure whatever enters their home, their bodies, their communities is not going to adversely impact their health.”
“They will continue to seek out brands dedicated to transparency, and expect more of the brands they shop with,” Renfrew added. “Beautycounter has always led the clean beauty movement and we will continue to educate consumers on how and why making a switch to clean remains so important.”
Interested in learning more about wellness and other beauty trends? Attend Beauty Inc’s Wellness Virtual Conference on Wednesday, July 15, 2020.
Sponsors include Attentive and HatchBeauty Brands with support from WWD annual partners: Beauty Barrage; Dash Hudson; Facebook; First Insight; Klarna, and Lycra.