Wellness-oriented food and beverage products are now a key beauty category, presenting another challenge for legacy beauty brands.

WHAT HAPPENED: Wellness-oriented or “functional” food and beverages are products that promote optimal health. According to Grand View Research, the category will reach $276 billion in global sales by 2025.

WHY IT MATTERS

Traditional beauty brands have yet to tap into the functional food and beverage space, despite the industry’s growth. The expansion of functional food and beverage products indicates consumers’ burgeoning interest in inside-out wellness—transformative skincare routines and the need for concrete results instead of cover-up cosmetics. Results-oriented products are contingent on long-term use, which positions brands to offer subscriptions that provide long-term revenue streams. In particular, lifestyle blogs turned beauty brands like Goop have the built-in following and credibility needed to convince customers to buy into these products. Traditional beauty brands like Chanel and Dior have yet to enter the ingestible wellness category—if and when they decide to enter, they may find the market oversaturated in light of the industry’s ongoing boom. Legacy beauty brands will need to find a way to elevate functional foods and beverages in order to attract their traditional clientele.