The news: Health and wellness spending is proving resilient as consumers prioritize the category, according to a YouGov report.
Behind the numbers: Health and wellness is emerging as one of the categories most immune to macroeconomic pressures, even as a majority of US adults engaging in wellness-related activities cite financial limitations. Just 16% say they can comfortably afford all or nearly all of the health and wellness products, activities, or services they would like, while 55% report difficulties affording some or all of those items, per YouGov.
Still, the prioritization of health and wellness could help brands and retailers drive sales. Rising use of GLP-1s, the “MAHA” movement, and social media content promoting the benefits of “proteinmaxxing,” peptides, and other wellness practices has made consumers more selective about the products they use.
Consumers are also willing to pay more for products they believe will deliver health and wellness benefits. Shoppers are more likely to trade up to premium fitness and wellness products or supplements and vitamins than trade down, according to a December report from The New Consumer and Coefficient Capital.
Implications for retail: More consumers are thinking about health and wellness as it relates to their entire lifestyle rather than as a discrete category. That is playing out most clearly in the beauty space, where nearly all shoppers consider health, beauty, and wellness to be a single block of spending, according to an AlixPartners survey.
As the lines blur, retailers need to think about how to adjust their assortments and in-store experiences to help shoppers consider health and wellness in every aspect of their lives. That could mean putting beauty and wellness products closer together, training staff to address customers’ questions, or highlighting specific health and wellness benefits such as GLP-1 friendly items.
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