The survey analyzed spending and preferences around nutritional supplements and skincare products. It found that 80% of consumers across generations are highly engaged with both categories, spending on average over $100 per month. Key insights include: (1) Amazon is the most preferred channel for supplements and second most for skincare; (2) consumers spend significantly on the other category as well, showing crossover opportunities; (3) while spending increases with age for supplements, skincare spending is higher for millennials. The survey suggests opportunities around personalization and developing the convenience store channel.

1. Beauty, Health & Wellness Survey Analysis
Executive Insights
Top 8 Insights From the 2018 Beauty, Health &
Wellness Survey
Think nutritional supplements and skincare are of interest only
to consumers of a certain age? Think again. According to L.E.K.
Consulting’s third installment of a biennial survey of the healthy
living marketplace, this one focusing on nutrition and skincare,
some 80% of health and wellness (H&W) consumers across
generations — from millennials to baby boomers — are highly
engaged with both categories.
The survey captured insights from more than 1,600 respondents,
representing roughly 77% of the U.S. adult population who
identify with H&W themes, and generated eight key insights across
categories. Together these insights make clear that consumer
interest in nutritional supplements and skincare often lasts a
lifetime.
Top 8 Insights From the 2018 Beauty, Health & Wellness Survey was written by Alex Evans and Maria Steingoltz,
Managing Directors in L.E.K. Consulting’s Consumer Products practice. Alex is based in Los Angeles and Maria is
based in Chicago.
For more information, contact consumerproducts@lek.com.

2. Beauty, Health & Wellness Survey Analysis
Executive Insights
1. They have the spending to prove it
2018 Beauty, Health & Wellness Survey2
On average, consumers spend more
than $100 per month — totaling $1,300
a year — on nutritional supplements
such as vitamins, minerals, herbal and
sports nutrition products, and skincare
products such as creams, lotions and
sunscreens, with a particular emphasis on
semidiscretionary items.
Average annual spend per customer* based on last month’s spend1
0
200
400
800
1,000
1,200
$1,400
Body care and sunscreen
Nutritional supplements and skincare spend by customer type
Personal hand care
Facial skincare
Sports nutrition products
Vitamins, minerals or
herbal supplements
Skincare
Nutritional
supplements
1,278
253
156
216
188
465
Nutrition
customer
Skincare
customer
302
159
335
220
352
1,368
*Outliers beyond $1,000 in the past month were removed
Source: L.E.K. Beauty, Health & Wellness Consumer Survey (February 2018)

3. Beauty, Health & Wellness Survey Analysis
Executive Insights
2. Crossover spending is significant
2018 Beauty, Health & Wellness Survey3
Consumers who primarily shop in one
category also spend more than $450, on
average, in the other category each year.
Nutritional supplements brands, therefore,
don’t want to miss the opportunity
for so-called outer nutrition products,
while beauty brands need to capture
the opportunity for products focused on
“beauty from within.”
Average annual spend per customer* based on last month’s spend1
*Outliers beyond $1,000 in the past month were removed
Source: L.E.K. Beauty, Health & Wellness Consumer Survey (February 2018)
0
200
400
800
1,000
1,200
$1,400
Body care and sunscreen
Nutritional supplements and skincare spend by customer type
Personal hand care
Facial skincare
Sports nutrition products
Vitamins, minerals or
herbal supplements
Skincare
Nutritional
supplements
1,278
253
156
216
188
465
Nutrition
customer
Skincare
customer
335
220
352
1,368
302
159

4. Beauty, Health & Wellness Survey Analysis
Executive Insights
3. Certain generational differences exist
2018 Beauty, Health & Wellness Survey4
Unlike spending on nutritional
supplements, which generally increases
with age, skincare spending is much
higher for millennials than for either Gen
Xers or boomers.
Average annual spend per customer* based on last month’s spend1
*Among customers who have spent more than $0 in the past month in the broader category (nutritional supplements,
functional F&B or skincare)
Source: L.E.K. Beauty, Health & Wellness Consumer Survey (February 2018)
0
200
400
600
800
1,000
$1,200
0
300
600
900
$1,200
Nutritional supplements Skincare
Millennials
567
Gen Xers
677
Boomers Millennials
1,197
Gen Xers Boomers
Body care and sunscreen
Facial skincare
Personal hand careVitamins, minerals or
herbal supplements
Sports nutrition products
244
323
222
455
657
128
529
543
260
394
1,072
387
264
421
768
222
166
380

5. Beauty, Health & Wellness Survey Analysis
Executive Insights
Consumers typically purchase products
in both categories from mass merchants,
Amazon and drugstores — in that order.
The food, drug, mass merchandiser and
convenience stores (FDMC) channel wins
on convenience, while national specialty
channels deliver on quality and trust.
But Amazon has already established
itself as the No. 1 preferred channel for
nutritional supplements, which means
brands have an untapped opportunity
to grow their business with the online
retailer. Amazon Essentials is itself a highly
rated “enthusiast” brand in nutritional
supplements, one that our proprietary
Brand Growth Matrix suggests is also
poised for further growth.
Already the No. 2 preferred channel for
skincare, Amazon appears to also have
significant runway for additional growth
in that category (at the expense, of
course, of the FDMC channel). So, along
with specialty stores, skincare brands need
to invest there as well.
4. Amazon is a force to be reckoned with
Preferred channels by category2
2018 Beauty, Health & Wellness Survey
Note: Weighted based on stated spend
*”Other” for nutritional supplements includes workout facilities, convenience stores, nutrition box subscriptions and other, while “other” for skincare
includes convenience stores, personal care subscriptions and other
**.com of stores included in relevant category
Source: L.E.K. Beauty, Health & Wellness Consumer Survey (February 2018)
5
0
40
60
80
100%
20
10
30
50
70
90
%FDMC 33% 43%
Nutritional
supplements
Skincare
Other*
Healthy grocers
Department stores
Traditional grocers
Specialty nutrition/beauty
and personal care stores
Mass merchants/
warehouses
Amazon
Physicians
Independent distributors
Non-Amazon online**
Drugstores
(6)
Percentage
point change
(skincare vs.
nutrition)
(6)
N/A
0
(1)
(2)
(6)
N/A
0
+2
+8
10
4 2
1
4
6
4
14
15
22
25
4
7
4
4
6
16
23
28
2

6. Beauty, Health & Wellness Survey Analysis
Executive Insights
Millennials already lean heavily toward
Amazon for both nutritional supplements
and skincare, so in order to reach that
demographic, brands need to be great
on that channel. In fact, in nutritional
supplements, Amazon is the channel
of choice for both millennials and Gen
Xers. It has not, however, resonated with
boomers for either category — yet. In the
meantime, brands need to play broadly
across channels to reach boomers, via a
mix of FDMC, specialty stores and online.
5. To reach baby boomers, brands still need to be everywhere
2018 Beauty, Health & Wellness Survey6
Preferred channels for nutritional supplements purchases by consumer segment3
Note: Weighted based on stated spend
*”Other” includes workout facilities, convenience stores, nutrition box subscriptions and other
**.com of stores included in relevant category
Source: L.E.K. Beauty, Health & Wellness Consumer Survey (February 2018)
Millennials Gen Xers Boomers
Other*
Non-Amazon online**
Traditional grocers
Specialty nutrition stores
Amazon
Independent distributors
Healthy grocers
Drugstores
Mass merchants/warehouses
40
20
60
80
100%
0
6
8
5
17
23
34
2
3
2
2
13
5
4
7
3
17
20
29
1
17
5
4
6
17
13
30
6

7. Beauty, Health & Wellness Survey Analysis
Executive Insights
Skincare consumers, according to our
survey, appear more intentional (“first
destination”) than not with their channels
of choice. Nutritional supplements
consumers, meanwhile, appear to base
their choice of channels more on where
they already shop.
6. Channel selection also varies by category
2018 Beauty, Health & Wellness Survey7
Reasons for shopping channels4
Source: L.E.K. Beauty, Health & Wellness Consumer Survey (February 2018)
Nutritional supplements Skincare
I already
shop there
First
destination
Mass
merchant
Drugstore National
specialty
Traditional
grocery
Online
0
20
40
60%
Mass
merchant
Drugstore National
specialty
Traditional
grocery
Online
15
6
21
18
25
30
42
18
4
41
37
17
27
40
50
10
4
77
21

8. Beauty, Health & Wellness Survey Analysis
Executive Insights
7. The convenience store channel remains underdeveloped
2018 Beauty, Health & Wellness Survey8
In nutritional supplements, our Channel
Power Index rating (% shopped vs. %
preferred) for convenience stores suggests
it’s a strong impulse channel that may be
underdeveloped. The same dynamic likely
exists in skincare, too.
Channel Power Index5
Source: L.E.K. Beauty, Health & Wellness Consumer Survey (February 2018)
Ratio of percentage purchased in past month to percentage selected as preferred retailer
0 2 4 6 8 10 12%
Convenience store
“Nutrition box”
subscription
Gym or studio
Healthy grocer
Traditional grocer
Independent distributor
Local health food store
Non-Amazon online
Warehouse club
Drugstore
National specialty
nutrition store
Amazon
Mass merchant
11.5
4.3
4.8
5.9
3.7
3.4
3.4
3.5
3.1
3.0
1.8
1.9
2.1

9. Beauty, Health & Wellness Survey Analysis
Executive Insights
8. What cuts across both nutritional supplements and skincare is personalization
2018 Beauty, Health & Wellness Survey9
Personalization can take many forms. For
some, it means a selection of nutritional
supplements tailored to their individual
health needs. For others, it means a
custom skincare program augmented
by a beauty box delivery each month.
Boomers, according to our survey, are only
slightly less likely than either millennials
or Gen Xers to purchase a skincare or
personalized nutritional supplements
program. Both nutritional supplements
and skincare brands need to address
this large — and largely untapped
— personalization opportunity with
compelling, holistic solutions.
Whatever the form, based on stated
interest, the conservatively estimated
market potential for personalized
products tops $6 billion — $3.2 billion
for nutritional supplements and $3.1
billion for skincare. While some of
this would involve a shift in current
spending, consumers did suggest that
personalization would increase their
overall spend in the category, particularly
in nutritional supplements.
Source: L.E.K. Beauty, Health & Wellness Consumer Survey (February 2018)
Interest in a personalized nutrition program and skincare program6
0
100%
90
80
70
60
50
40
30
20
10
1 (Not interested at all)
3
5
7 (Very interested)
2
4
6
Nutritional
supplements
Skincare
Millennials Gen Xers Boomers
Nutritional
supplements
Skincare Nutritional
supplements
Skincare
2
38
20
23
10
3
3
39
19
19
10
5
4
5
36
19
24
8
5
3
5
31
22
21
11
4
5
8
21
13
16
14
7
7
23
25
16
13
15
7
11
13

10. Beauty, Health & Wellness Survey Analysis
Executive Insights
10
Endnotes
1
Survey question 6: In the past month, approximately how much have you spent on each of the following goods/services? (N=1,635)
2
Survey question 34: Which of the following type of retailer do you consider to be your preferred retailer type for purchasing nutritional supplements? (N=924)/Survey question 47: Which of the following type of retailer do you consider to
be your preferred retailer type for purchasing skincare products? (N=1,242)
3
Survey question 34: Which of the following type of retailer do you consider to be your preferred retailer type for purchasing nutritional supplements? (N=924)
4
Survey question 35: You indicated that you prefer to purchase your nutritional supplements from [X]. What are the top reasons you choose to purchase nutritional supplements from this type of retailer? (N=924)/Survey question 48: You
indicated that you prefer to purchase your skincare products from [X]. What are the top reasons that you choose to purchase facial skincare, personal hand care, body care or sunscreen from this type of retailer? (N=924)
5
Survey question 33: In the past month, which of the following retailers have you purchased nutritional supplements from? (N=924)/Survey question 34: Which of the following type of retailer do you consider to be your preferred retailer
type for purchasing nutritional supplements? (N=924)
6
Survey question 38: What is your interest in a personalized nutrition program providing nutrition recommendations specifically tailored for you as an individual? (N=924)/Survey question 51: What is your interest in a personalized skincare
program specifically customized for your skin type and needs? (N=1,242)
2018 Beauty, Health & Wellness Survey

11. Beauty, Health & Wellness Survey Analysis
Executive Insights
About L.E.K. Consulting
L.E.K. Consulting is a global management consulting firm that uses deep industry expertise and rigorous analysis to help business leaders achieve practical results with real
impact. We are uncompromising in our approach to helping clients consistently make better decisions, deliver improved business performance and create greater shareholder
returns. The firm advises and supports global companies that are leaders in their industries — including the largest private- and public-sector organizations, private equity firms,
and emerging entrepreneurial businesses. Founded in 1983, L.E.K. employs more than 1,200 professionals across the Americas, Asia-Pacific and Europe. For more information,
go to www.lek.com.
L.E.K. Consulting is a registered trademark of L.E.K. Consulting LLC. All other products and
brands mentioned in this document are properties of their respective owners.
© 2018 L.E.K. Consulting LLC
About the Authors
Alex Evans, CFA, is a Managing Director and Partner in L.E.K. Consulting’s
Los Angeles office. Alex focuses on consumer-facing sectors encompassing
both retail and media. He specializes in a diverse set of verticals including
health and wellness, direct selling, specialty retail, sports, television, film
and OTT/DTC digital services. Alex advises corporate and private equity
clients on a range of issues, including corporate strategy, new business
development, channel strategy, pricing/promotion strategy, international
expansion, organizational structure, profit improvement and M&A.
Maria Steingoltz is a Managing Director and Partner in L.E.K. Consulting’s
Chicago office. Maria is focused on the Retail and Consumer Products
practices, with a special focus on food and beverage as well as on beauty
and personal care. She advises clients on a range of strategic issues, including
growth strategy, new market entry, customer-centric strategy, pricing,
consumer segmentation and M&A.
11