Luxury Consumers Want to See Health Benefits with Their Beauty Purchases

In the luxury market, separating health from beauty is becoming virtually impossible. The two areas have always enjoyed a great deal of overlap, but this trend is becoming even more obvious today. In fact, according to a recent report by the Global Wellness Institute, wellness is a highly-coveted category among affluent consumers, surpassing $2 trillion in spending in the US alone, and the trend is also very prominent in the beauty industry. 

Consumers are no longer content to adopt premium-priced products that merely offer the appearance of health; they want beauty solutions that actually provide real science-backed benefits. This shift is much more than just a fast-moving trend; it represents an evolution in consumer preferences. Luxury beauty no longer means just exclusivity, great packaging, or celebrity endorsements; instead, consumers are also seeking self-care that improves their physical health. 

The Rise of Wellness in Beauty

It’s predicted that the wellness industry will reach $9 trillion by 2028, a 7.3% increase from 2023. Specifically, the self-care and beauty market alone is set to surpass $1 trillion; discerning customers are the driving force of this trend – products that simply cover up blemishes and insecurities are old news, and demand is growing for products that go deeper than the skin’s surface, boosting inner wellness to support an enhanced appearance in new and exciting ways. 

We’ve seen L’Oréal partner with drone engineers to create an infrared hair dryer that turned heads at CES, and LMNT launched a handheld light pulse device to boost skin health. These are a far cry from the beauty technology of yesteryear, which primarily focused on looks alone as opposed to overall well-being. Now, an increasing number of beauty brands are looking outside the box, drawing from established wellness technologies such as light-based therapies and infrared saunas to create innovative solutions that merge science and self-care. This evolution showcases the growing consumer demand for products that go past the surface and support overall health and well-being – meshing beauty and wellness in ways we’re just now starting to see.

From serums packed with wellness-enhancing vitamins and minerals to stylish gym gear such as lymphatic onesies that work with our bodies to boost recovery through improved circulation, no area of beauty is immune from an increased focus on health. 

Why Wellness Resonates with Luxury Consumers

This big move toward health and well-being within the luxury space is driven largely by millennials and Gen Z populations. The values of both demographics are clear, and according to McKinsey’s 2024 Future of Wellness survey, they are purchasing more wellness products and services than previous generations. Their motivations for this are not only the obvious of improving appearance but also include achieving better health, enhancing nutrition, sleep, and mindfulness. 82% of US consumers, according to the survey, now consider wellness a top priority in their everyday lives

In recent years, consumers have been spending more time considering what’s important to them, and the beauty industry has seen shoppers develop a newfound appreciation for products that pull double duty, enhancing their appearance while optimizing their health. For example, a recent Vogue article emphasized that brands like Dyson have developed hair tools that not only style but also protect hair health, and companies such as CurrentBody are leading in red light therapy devices that work to improve skin. This ongoing trend further emphasizes the shift toward integrating wellness into everyday beauty routines.

Whether shopping for eye shadow or a rain poncho, consumers are diving deeply into functional ingredients. While some brands may be wary of this new, more inquisitive beauty buyer, it’s opened the door for innovative companies to make a splash with products that address both crucial needs. 

The Case for Health-Focused Luxury Beauty

The proof point is that health-focused premium beauty products are enjoying huge success right now, and the takeaway is clear: Wellness is already a powerful growth driver for the luxury market, with premium-priced products that offer health benefits emerging as best-sellers. Products that directly appeal to what consumers want — effective, multi-functional solutions — are proving that they’re worth a higher price. For example, Augustinus Bader’s The Rich Cream, at the high price of $305, has achieved a large following, including celebrities such as Victoria Beckham, due to its cellular-level skin rejuvenation properties, and Elemis’ Pro-Collagen Marine Cream, priced at $132 has grown in popularity due to its anti-aging benefits backed by clinical trials showing that it can reduce the appearance of wrinkles in as little as 14 days.

Brands that fully embrace this new shift are already finding that shoppers aren’t stingy with their wallets when a product does what it says it will and provides a proven health benefit. Looking good is one thing, but health is increasingly seen as the ultimate luxury.

What’s Next for Luxury Beauty?

As the lines between beauty and wellness continue to blur, the luxury market will likely see an increase in innovations that include ingredients that promote health — everything from adaptogens to infrared technology — and there are no signs of this trend slowing down. 

At the same time, brands are likely to begin exploring new partnerships with health experts and the scientific community to create and promote products that resonate with their target consumers. Skincare companies are increasingly turning to dermatologists, scientists, and medical professionals as the faces of their brands as a result of the increase in consumers’ preference for validated, science-backed solutions in their everyday beauty routines. Companies like SkinCeuticals and La Roche-Posay work closely with dermatologists to showcase credibility and trust in their products. Additionally, wellness technologies such as light therapy devices and infrared (IR) saunas are gaining traction as a result of endorsements from doctors and researchers emphasizing benefits for skin health, collagen production, and overall well-being.

Consumer demand is clear and brands that can provide health benefits coupled with improvements in appearance will have the fast track to winning the hearts and wallets of the new consumer. 

By Seth Casden, CEO of Hologenix