The news: Nearly all consumers consider beauty, health, and wellness a single category, according to CEW and AlixPartners survey data shared with CNBC.

• Almost 100% of respondents approach the three sectors as a single budget item, reflecting the blurred lines among the categories.
• The report found that “a consumer is just as likely to trade off a night cream for another night cream as a night cream for a personal trainer,” Lindy Firstenberg, co-lead of AlixPartners’ beauty, health, and wellness division, told CNBC. In other words, beauty products are competing with health and wellness for the same consumer dollars.

How we got here: The trend reflects changes in consumer behavior.

Consumers are more knowledgeable and hold products to higher standards. Shoppers are focused less on brand name and more on whether products deliver results, have expert backing, and are rooted in science. Quality, more than price, is the top factor driving beauty customers to try new brands or products, according to our Path to Purchase survey. Consumers’ growing savvy about what they put on their bodies is also driving greater curiosity about what they put in them, which is reshaping food consumption.

Shoppers are looking to optimize their spending and consumption. Products that fulfill multiple uses—such as underwear with skincare benefits or functional beverages that promise to help consumers meet their fiber or protein targets—are more likely to appeal to shoppers seeking the quickest and most cost-effective way to achieve their desired goal.

Recommendations for retailers:

Highlight health and wellness assortments alongside beauty products. Take advantage of the category synergies to encourage shoppers to build larger baskets.

Have knowledgeable employees on hand to answer shoppers’ questions and offer recommendations. While plenty of consumers are coming in armed with advice from Reddit or TikTok, dedicated experts can help establish retailers as a go-to destination for beauty, health, and wellness purchases.