According to data released by retailers Target and Walmart , American consumers are willing to spend more on health and beauty products. The retailers noted that "customers seem to be more confident in getting the products they need to feel better and look better."

Meanwhile, Walmart noted in its last quarter’s results that health and wellness items were the fastest-growing category outside of the grocery sector (groceries).

“We believe this shift indicates that budget-conscious shoppers are shifting their dollars toward health and beauty categories,” said John Rainey, Walmart’s chief financial officer (CFO). “This means that even in the face of macroeconomic pressures, the health and beauty category is showing signs of good sales, just like the lipstick effect.”

And U.S. supermarket chain Target said in a report to investors that growth in the health and beauty category was contrary to a general slowdown in sales, with U.S. sales falling 5.4% annually.

However, outside of U.S. supermarkets, Amazon also lived up to expectations, with sales in the health and beauty category accounting for 5.1% of total U.S. category sales, according to PYMNTS data. This is second only to Walmart, which has sales of 5.9%.

In addition, the report "Watching the Growth of Digital Payments: Navigating the New Wave of E-Commerce" shows that 39% of consumers said that spending on health and beauty products is very likely to increase in 2024. This forecast is good news for Target, Walmart and Amazon.

Editor ✎Estella/

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