Beauty, health, and wellness retail categories are converging as consumers increasingly view them as a single budget category rather than three separate ones. A study by AlixPartners found nearly 100% of consumers see these as one category, while 40% want traditional beauty companies to expand into health and wellness—though 42% of executives prefer staying in their lane. Major retailers like Ulta Beauty, Target, Sephora, and Walmart are responding by creating dedicated wellness sections and partnering across sectors.