The convergence of beauty, personal care, and wellness represents a consumer lifestyle shift reshaping the industry landscape and attracting M&A investors. Below, experts from Harris Williams discuss why companies at the intersection of these trends are capturing investor and strategic buyer attention, representative market segments and independent brands, and recent transactions exemplifying the opportunity.
Enduring Demand, Amplified
The health and beauty industry continues to see enduring consumer demand despite some macroeconomic uncertainty. While consumers are spending more thoughtfully and the price-value equation has gained importance, a wide range of product categories should show resilience, says Kelly McPhilliamy, a managing director.
“One of the biggest factors propelling the sector right now is that consumers are taking a more holistic view of beauty and personal care, as they are increasingly aware of the intrinsic connection between inner and outer health,” she says. “We see this as a permanent shift and long-term tailwind for the industry.” In fact, the combined US beauty and wellness market grew 5% in 2024 to reach $225 billion, with demand for wellness-beauty hybrid products growing faster than beauty or wellness alone.
Figure 1: Wellness and Beauty Market Grew 5% to Reach $225 Billion in 2024
Source: Circana OmniMarket Core Outlets, Annual 2024
BeautyTrends Total Measured Market, Annual 2024
Retail Tracking MULO + CHC Performance Summary 52WE 12/29/24
McPhilliamy adds that the sector’s steady and resilient growth is being amplified by innovative brands offering products with proven wellness benefits across multiple categories. “This dynamic is refocusing investor attention on areas like sun care, body care, personal hygiene, and fragrance-forward products, while putting a spotlight on expanding segments like beauty and wellness supplements, women’s health, and longevity-focused products. And those products are more than affordable luxuries—they are directly linked to consumer wellbeing.”
Figure 2: Representative Market Segments Benefitting from the Convergence of Beauty, Personal Care, and Wellness
Source: Harris Williams Health & Beauty Survey (2024). Rankings based on specific survey questions, such as “What do you prioritize for your skin health? Check all that apply.” Category preference by age cohort based on age group that selected the category in their response most often. Women’s Health age cohort based on average for all categories other than healthy aging and longevity. Men’s Grooming age cohort based on the most brand loyal responders.
Experts Agree
Recently, McPhilliamy discussed these shifting dynamics at Beauty Independent’s Dealmaker Summit on a panel alongside other experts, including leaders of two brands that exemplify the convergence of beauty and wellness.
Henry Davis is CEO of Sakara Life, a rapidly growing whole food nutrition company that helps its customers thrive and function at their best through nutrient-rich foods and supplements designed to improve microbiome and metabolic health. Founder and CEO Aaron Hefter leads Imarais Beauty, which offers clinically backed, plant-based superfood gummies that nourish hair, support anti-aging, enhance sexual wellness, and promote radiant skin. Hefter sees a major shift underway with younger consumers—and retailers are responding. “Gen Z and young Millennials are looking for new options. They are learning what’s popular on TikTok and Instagram as they take a more holistic approach to beauty.”
“When we launched Imarais Beauty four years ago, beauty retailers weren’t rushing to launch beauty supplements in a topical environment,” adds Hefter. “Today, wellness is transforming everything. All the major beauty retailers from Target to Ulta Beauty are adding wellness and ingestible beauty, and these products are living alongside beauty—not in the vitamins and supplements section. What initially looked to be an online play now seems to be turning into a mandate for 2025 to figure out how to build wellness in-store.”
McPhilliamy adds that strategic buyers are increasingly aware that consumers are redefining beauty and personal care: “In their first-quarter earnings call, L’Oreal highlighted a strategic focus on exploring new areas for expansion adjacent to the traditional beauty market such as longevity and beauty supplements that address skin and hair ageing.”
An Expanding Opportunity
As a result of these shifts, investors typically focused on the core consumer packaged goods sector now find themselves with a widening entry point into the health and beauty market. Ryan Budlong, a managing director, notes that lessons learned in other CPG categories will be valuable to investors looking to tap into the growth in beauty, personal care, and wellness: “Investors get excited about the opportunity to back growing and innovative brands in large and evolving spaces, and this area checks a lot of boxes.”
A sampling of recent M&A activity confirms this trend, including Harris Williams engagements. For example, Harris Williams advised Dude Wipes on its strategic growth investment from TSG Consumer. Dude Wipes is an innovative personal hygiene company recognised for its category-disrupting flushable wipes. “Dude has used clever marketing and their high-performance products to change consumer habits, and TSG will support the company on its next phase of growth,” says McPhilliamy.
Harris Williams also advised Tangle Teezer on its acquisition by BIC, a global leader in consumer goods. Based in London, Tangle Teezer is a premium hair care brand that pioneered an award-winning range of detangling brushes that allow consumers to better manage long-term hair health with less damage and breakage. “BIC’s portfolio of brands consists of trusted products that are easy and simple to use, and Tangle Teezer’s unique, patented range of brushes is a very complementary addition,” says Ed Arkus, a managing director.
The trend of burgeoning investment in brands at the convergence of beauty, personal care, and wellness has also led to several notable transactions in the broader M&A market such as Church & Dwight’s acquisition of premium hand sanitiser brand Touchland, L’Oreal’s purchase of science-backed professional skin care brand Medik8, and Unilever’s acquisitions of natural personal care brand Wild and men’s personal care and hygiene brand Dr. Squatch.
“The convergence of beauty, personal care, and wellness has widened the aperture for financial investors and strategic buyers alike,” says McPhilliamy. “Investing in wellness-infused, top-quality brands connected to consumer values and lifestyles is increasingly attractive.”
Conclusion
Demand for products that integrate beauty, personal care, and wellness is growing. Innovative brands that can align themselves with key consumer priorities and show real results stand to benefit, as do their investors.
“It’s an exciting time to be involved with such rapid evolution and so many M&A opportunities,” says McPhilliamy. “There are real wellness improvements to be unlocked by these innovative health and beauty products, as well as tangible value-creation opportunities for an expanding group of financial investors and strategic buyers.”
This article was first published at Harris Williams.
Read the WINTER ’25 issue of Retail Beauty below:
- Connect with us on LinkedIn
- For more news and updates, subscribe to our weekly newsletter
- Follow us on Instagram
- Like us on Facebook