Special Report: The Trajectory of Wellness and Style

A sense of style and personal wellness are essential to consumers and feed the growth of the licensing industry. Valued at more than one-third of the licensing industry combined, fashion, homewares, beauty and wellness comprise a massive chunk of licensed consumer product sales. License Global has broken down the value of each vertical and the latest trends to look for to ensure its continued growth.

The Latest in Wellness

The global wellness market was valued at $6.26 trillion in 2023, according to Statista, and Licensing International names it a profitable business in licensing, making up 4% of global licensing sales revenue. Wellness means different things to different people, leading to many different product options, from supplements and gym gear to oral care and shoe insoles.

Well-being is at the top of mind for today’s consumers, leading to the continued growth of this vertical. Psychologists with The American Psychological Association say there is mounting evidence that our society is experiencing the psychological impacts of “a collective trauma” from the COVID-19 pandemic and other world events since.

“The COVID-19 pandemic created a collective experience among Americans,” says Arthur C. Evans Jr., PhD, chief executive officer, The American Psychological Association. “While the early-pandemic lockdowns may seem like the distant past, the aftermath remains.”

Workplace stress also ranked high, with 77% of those surveyed saying work has caused them significant stress. Other notable stressors include money and relationships.

Stress is causing a profound desire for relief among consumers, with the APA finding that 24% of adults rate their stress levels as an eight out of 10 or higher.

The growth of the wellness industry is clear because of this increased distress. The Global Wellness Institute (GWI), a research and wellness industry nonprofit, says the sector will continue to grow exponentially, reaching $7.4 trillion in 2025 and $8.5 trillion in 2027, almost double the size of 2020 numbers. The nonprofit sees steep growth in mental wellness, physical activity, spas and wellness tourism.

As for trends in the wellness space, wellness apps aiming to help consumers work out more, eat healthier or deal with day-to-day stress have taken off. Headspace, Calm, Exhale, Fitness+, Feel Better and more have resulted in billions in revenue. Market.us says The Global Mental Health Apps Market alone is expected to be worth around $23.8 billion by 2032, up from $5.2 billion in 2022. Licensed deals are plentiful in this space for both children and adults. Sesame Workshop teamed with Headspace to create wellness podcasts for children, and “PAW Patrol” partnered with Calm for similar content. The company also linked with Harry Styles for sleep and wellness content, and brands like Nike have teamed up with fitness apps to help consumers create healthier habits.

Another major player in the wellness space is supplements, and many of these also have licensing angles. The classic “Flintstones” vitamins for kids, introduced in 1968 and still going strong, caused other vitamin companies to follow suit with licensed deals. Popular children’s properties like “Trolls,” The Smurfs and more are on vitamin shelves at drugstores. Licensed protein powders and pre-workout supplements are huge with adults, with brands like Ghost, My Protein and G Fuel leading the charge. Food and beverage collabs for protein powders, like Ghost’s Cinnabon, Nutter Butter and Oreo flavors, are popular. Energy drinks from G Fuel boast IP collabs from Tetris, Sonic the Hedgehog and “Dragonball Z,” among others.

Marvel x MyProtein partnership

A Sense of Style

Multiple licensing verticals make up a consumer’s sense of style in apparel, footwear and accessories, as well as home goods, beauty and more.

According to Licensing International, fashion brands made up 8.7% of the licensed consumer product landscape as a licensor in 2022. As a licensee, fashion made up 27% of sales, with 14% for apparel, 10% for accessories and 3% for footwear.

What makes a sense of style varies from person to person and their general taste, but as younger consumers solidify their sense of style, they’re accessing different tools to find what works for them and make them feel most confident. CivicScience data shows social media is the most popular place for fashion inspiration among younger adults, with 42% of Gen Z getting fashion inspiration from social, up six percentage points from 2022. Over one-third of Gen Z uses TV/movies and friends/family for inspiration. Magazines and fashion websites/blogs are losing popularity as a place for style inspiration. 37% of the general population follows fashion trends, up from 36% in 2022 and 34% in 2021. This figure is bigger among Gen Z, at 68%.

The Rolling Stones Skechers

CivicScience surveyed consumers for the most significant trends in fashion, with casual sneakers coming in on top with 64% favorability. Next up was denim on denim at 42%, wide-leg jeans at 33% and Y2K fashion at 27%. As a result of their popularity, casual sneakers have seen multiple licensed partnerships in recent months, such as Skechers x The Rolling Stones and Corona Extra x HEYDUDE for adults and Ground Up x “Sesame Street” for kids.

A big trend in accessories is the integration of technology into wearable items. Smart glasses, smart watches and more have infiltrated the fashion space as not only technological advancements but also fashion statements. Licensed smart watch straps, glasses cases and more help consumers express themselves through their sense of style.

As Licensing International data confirmed above, apparel licensing is still going strong, particularly with sports licensors. Magic Light Pictures and Team GB’s apparel line, Crunchyroll’s “HAIKYU!! The Dumpster Battle” sports-themed rollout and PacSun’s Olympic and Paralympic collections are some recent examples of this trend.

PacSun x Olympics/Paralympics collection

The Best of Both Worlds: Beauty and Home Goods in Wellness and Style

The Mintel Global Beauty Trends Report notes the importance of beauty as a form of self-expression and style, with 62% of people considering beauty products as vital tools for expressing individuality. CivicScience data reveals 40% of the U.S. population uses beauty as a form of self-care and wellness, and the Mintel Global Beauty Trends Report says 57% view cosmetics as essential for maintaining a sense of well-being.

With consumers using the beauty industry to care for and express themselves, beauty is an important building block of both the wellness industry and verticals that aid in expressing sense of style, such as fashion.

Statista projects the beauty and personal care market worldwide will generate revenue of $646.20 billion in 2024, with an expected compound annual growth rate of 3.33%.

Despite the global recession, the beauty and personal care market in the U.S. continues to grow, with Statista noting a strong focus on organic and natural products.

The biggest trends in the beauty space relate to the wellness and style spaces, respectively: a focus on skincare and loud, eye-catching makeup and nails with holographic or multichromatic accents.

According to Statista, the skincare market is set to hit $187.68 billion by 2026, making up 27% of the beauty and personal care industry. Pub Med found 71% of consumers from 18 countries reported having sensitive skin. At the same time, TikTok data suggests consumers searched for skincare tips for a more “intuitive” routine or a routine catered to their skin’s specific needs. Other data from the social media giant suggests consumers are interested in adult acne treatments and skincare made for people with darker skin tones.

Skincare and licensing go hand in hand, with celebrities cashing in on consumer demand. Hailey Bieber’s Rhode line, Kylie Jenner’s Kylie Skin, Kim Kardashian’s SKKN, Rihanna’s Fenty Skin and Miranda Kerr’s KORA Organics are just a few lines created by celebrities for their fans. Skincare boasting licensed IPs is also popular. Bubble Skincare just launched an “Inside Out 2” line of products and Rude Cosmetics recently released a makeup and skincare line inspired by Popeye’s Olive Oyl. Even in products with self-care in mind, consumers are searching for comfort and relatability through their favorite celebrities and IPs.

In juxtaposition to the “clean girl” skincare space is bold, intergalactic products that express a futuristic individuality. Full of glitters and shifting pigments, this trend focuses on newer makeup technology, resulting in makeup perfect for photos and videos. Licensed products are also big in this space, with collaborations upping the ante for the trend. One such example is Mooncat Nail Polish x The Powerpuff Girls, a collab complete with six nail polishes with shifting metallic flakes and holographic glitter. In the face makeup space, collabs like Glamlite’s collaboration with “Rick and Morty,” with iridescent highlighters and lip glosses, lead the space.

Mooncat’s “The Powerpuff Girls” collection

Like beauty, home goods cross over into wellness and style. Décor has many different options, from art to furniture to tchotchkes, that show off a consumer’s personal taste. Architectural Digest data found that industrial design is the most popular interior design style in the U.S., followed by the “maximalist” style, the second most popular style. Other popular styles include cottagecore, French country and shabby chic.

Whether for style or wellness, housewares make up 3% of the global licensing business, according to Licensing International. Statista found the revenue in the Home Décor market segment worldwide amounts to $133.60 billion. This market is projected to experience steady growth, with an annual increase of 3.89%.

Licensed home goods continue to add to this growth, with the continuation of long-standing licensed lines like Joanna Gaines’ Magnolia and Beautiful by Drew Barrymore. Other celebrities, including Dolly Parton have also recently joined the home décor ranks. IP-centric home gear is a continuing business for children and adults, with companies like Box Lunch and Pottery Barn leading the charge in giving IP fans the home décor they crave.

Décor that aids in spiritual or mental health practices, such as aromatherapy candles or diffusers, serves dual functions as decoration and a self-care tool. Licensing is popular here, as well, such as Kacey Musgraves’ continued candle collaboration with Boy Smells, influencer, Jackie Aina’s, FRVR MOOD collaborating with Crown Royale and Homesick Candles’ multiple licenses, including DC Comics, Barbie, Elf and Star Wars.

Homesick “Elf” candle collection

A Positive Outlook

With the continued creation of these products, the licensing industry can take the verticals’ trajectory for growth and use it to their advantage. By staying up to date with and following the trends in each respective industry, licensing professionals can capitalize while consumers benefit.

This story was taken from the August 2024 issue of License Global. Read the full issue here ...