New York — This holiday season, gift-givers are looking beyond traditional perfumes and lotions, turning instead to a burgeoning category where beauty meets wellness. Retailers from Ulta Beauty to Target and Bath & Body Works are aggressively expanding shelf space for items like probiotic gummies, sleep-promoting essential oils, and superfood supplements, transforming health-focused products into desirable, giftable commodities.

The shift reflects a post-pandemic consumer priority on feeling good "from the inside out," according to Larissa Jensen of Circana. What were once purely functional drugstore items—teeth whiteners, vitamins, eye drops—are now getting a "glow-up" with attractive packaging and influencer backing, strategically placed in beauty aisles. This strategic pivot allows retailers to become one-stop shops for holistic self-care, especially during the critical November-December period, which accounts for about 25% of annual prestige beauty sales.

Retailers Double Down on "Beauty from Within"

Ulta Beauty is at the forefront, having grown its in-store wellness shops from a few feet to up to 45 feet of space in a third of its locations, now carrying about 100 wellness brands. "It’s the perfect combination of being able to give someone else the gift of relaxation... in a really elevated way," said Ulta's Laura Beres. The category resonates strongly with millennials and higher-income households, with gift sets from brands like Saje Natural Wellness and Lemme (by Kourtney Kardashian) gaining traction.

Similarly, Target sees cross-category strength in wellness, from workout wear to protein snacks, and is considering expanding its offerings further as its partnership with Ulta winds down next year. Even Best Buy and Kohl's are incorporating wellness through health-tracking wearables and recovery gear, indicating the category's wide retail appeal beyond traditional beauty channels.

The Holiday Appeal: Practical, Giftable Self-Care

The rise of wellness gifting is fueled by its perceived practicality and value. "It feels very giftable while also delivering a benefit that everyone can use," noted Amanda Kahn of Neom Wellbeing, a brand specializing in sleep-enhancing scents. In an inflationary environment, items that promise tangible benefits like stress relief, better sleep, or nutrition—such as Grüns superfood gummies at Target—strike a chord with cost-conscious consumers looking for meaningful presents.

This trend represents more than a seasonal fad; it's a fundamental expansion of the beauty industry's competitive ecosystem. As retailers successfully reframe supplements and aromatherapy as indulgent, gift-worthy luxuries, they are carving out a permanent, high-margin niche. The high-stakes race to own this "beauty-from-within" space is likely to intensify, making wellness a staple on future holiday wish lists and a year-round strategic growth area for retailers.