Health and personal care stores
Total Sector Spending
Overall spending trends across an industry sector
What's the story behind the data?
Health and beauty is necessity-driven, CVS/Walgreens-dominated, and remarkably resilient. The category shows consistent growth: January peaked at +12.3%, April hit +13.7%, July +11.4%, and September +9.1%. Only February dipped negative (-3.7%). Prescriptions, personal care essentials, and beauty products don’t get cut—consumers need medications, shampoo, toothpaste, and skincare regardless of economic conditions.
CVS rising to 44% share (from 41% in early 2024). Walgreens declining to 32% (from 34%). Ulta stable at 10-12%, Sephora volatile 7-10%, Rite Aid collapsing to near zero (bankruptcy). The shift: CVS gaining as Walgreens struggles with store closures and operational issues. Specialty beauty (Ulta, Sephora) holds niche but doesn’t threaten pharmacy duopoly. AOV tells the story: Sephora commands $70-90 (premium beauty), Ulta $55-70 (mass prestige), OptumRx/Express Scripts $30-50 (mail-order pharmacy), CVS/Walgreens/Rite Aid $22-38 (convenience store trips).
Gen X (+10.8%) and Boomers (+10.4%) drive spending—peak prescription years plus established beauty routines. Millennials strong at +9.2% (skincare obsessed). Gen Z at +8.2% entering beauty consumption. All income brackets positive: under $50K at +9.4%, high earners $150K+ at +8.5%. This universal growth proves category is non-discretionary.
Implications by Audience
FP&A / Strategy Teams
- Category resilience is structural — only February went negative (-3.7%), and even that recovered quickly. Prescriptions, personal care, and beauty spending hold regardless of economic conditions. Plan for consistent mid-to-high single-digit growth.
- CVS rising to 44% as Walgreens declines to 32% — CVS gaining 3+ points of share in 18 months while Walgreens loses ground. Store closures, pharmacy service issues, and operational struggles hurting Walgreens. CVS/Aetna integration and MinuteClinic differentiation create advantages.
- Gen X (+10.8%) and Boomers (+10.4%) are prescription-driven — peak medication years (ages 40-55 and 60+) drive pharmacy spending. As population ages, prescription volume grows. CVS/Walgreens positioned for demographic tailwinds.
- Specialty beauty (Ulta 10-12%, Sephora 7-10%) holds niche but doesn’t threaten pharmacy core — premium beauty is discretionary add-on. Ulta’s mass-prestige positioning and Sephora’s ultra-premium serve different needs than CVS/Walgreens convenience.
- All income brackets positive (+8.5% to +9.8%) — universal growth proves essentials (medications, toothpaste, shampoo) and affordable luxuries (skincare, makeup) span economic strata. Even high earners ($150K+ at +8.5%) sustain spending.
- Rite Aid bankruptcy cleared market — share collapsed to near zero. CVS and Walgreens absorbed Rite Aid customers, with CVS winning disproportionate share gain.
Marketing and Brand Teams
- Target Gen X (+10.8%) and Boomers (+10.4%) with health/wellness messaging — peak prescription years plus preventive care focus. Pharmacy loyalty programs, medication adherence tools, and health screenings drive frequency.
- Millennials (+9.2%) are skincare obsessed — ages 28-43 prioritize anti-aging, clean beauty, and routine complexity. Premium skincare at CVS/Walgreens captures this without specialty store visit. Ulta/Sephora own experiential discovery.
- Gen Z (+8.2%) entering beauty consumption — first major skincare purchases, makeup experimentation, and TikTok-influenced trends. Digital-first engagement and influencer partnerships matter more than traditional beauty counters.
- All income brackets spend—differentiate by format — under $50K (+9.4%) uses CVS/Walgreens for convenience and basics. High earners ($150K+ at +8.5%) shop Sephora/Ulta for premium but still use pharmacy for prescriptions and essentials.
- Pharmacy loyalty programs are defensive moats — CVS ExtraCare and Walgreens myWalgreens drive repeat trips. Auto-refill, medication synchronization, and rewards create sticky relationships.
Investors
- CVS rising to 44% share is market consolidation — gaining from Walgreens struggles and Rite Aid bankruptcy. Aetna integration (healthcare vertical) and MinuteClinic (primary care access) create differentiation beyond pharmacy.
- Walgreens declining to 32% signals operational issues — store closures, pharmacy staffing shortages, and service quality problems hurting share. VillageMD partnership (primary care) hasn’t offset pharmacy core erosion.
- Specialty beauty (Ulta, Sephora) defensible but niche — combined 20-22% share stable. Ulta’s mass-prestige ($55-70 AOV) and Sephora’s premium ($70-90 AOV) serve experiential beauty shopping. But 80% of category is pharmacy/convenience-driven.
- Aging demographics support pharmacy growth — Gen X (+10.8%) entering peak prescription years, Boomers (+10.4%) managing chronic conditions. Prescription volume grows with population age. CVS/Walgreens positioned for structural tailwind.
- Category recession-proof — universal positive growth across all income brackets proves necessity positioning. Defensive investment in uncertain economic times.
Policy Makers
- CVS/Walgreens duopoly raises access concerns — combined 76% share with Rite Aid gone. Pharmacy deserts in rural/underserved areas growing as Walgreens closes stores. Access to medications is healthcare infrastructure issue.
- Prescription drug costs drive category spending — Gen X and Boomer spending reflects medication expenses. Pricing policy and insurance coverage directly impact consumer spending in this category.
- Pharmacy staffing shortages affect service quality — Walgreens’ struggles partly driven by pharmacist shortages and burnout. Labor policy and pharmacy school pipeline affect industry health.
- Universal positive growth (+8.2% to +10.8%) — all generations and income brackets spending proves category is necessity, not discretionary. Healthcare costs are fixed expenses for American households.
Top Brands by Market Share
Leading brands ranked by market share within sector
Trends + Insights
- CVS rising to 44% as Walgreens declines to 32% CVS gained 3+ points of share in 18 months while Walgreens lost ground. Rite Aid bankruptcy cleared market—CVS captured more of those customers than Walgreens. CVS/Aetna vertical integration and MinuteClinic differentiation create advantages over Walgreens’ VillageMD.
Gen X (+10.8%) and Boomers (+10.4%) drive prescription spending Peak medication years. Ages 40-55 managing chronic conditions (hypertension, diabetes, cholesterol). Ages 60+ on multiple prescriptions. As population ages, pharmacy volume grows structurally. CVS/Walgreens positioned for demographic tailwind.
All income brackets positive—category is universal Under $50K at +9.4%, $100-125K at +9.8%, $150K+ at +8.5%. Medications, toothpaste, shampoo, and skincare span economic strata. Even luxury beauty (Sephora) saw growth. Category is necessity + affordable luxury.
Sephora’s $70-90 AOV vs. CVS $22-30 shows format bifurcation Premium experiential beauty (Sephora/Ulta) serves discovery and indulgence. Pharmacy convenience (CVS/Walgreens) serves prescriptions plus fill-in essentials. Customers shop both formats for different needs—not direct competition.
Millennials (+9.2%) are skincare obsessed Ages 28-43 driving premium skincare growth at CVS/Walgreens, Ulta, and Sephora. Anti-aging prevention, clean beauty, and routine complexity create basket expansion. They’re willing to spend $50-100+ per product for quality.
Rite Aid bankruptcy cleared pharmacy landscape Share collapsed to near zero by late 2024/early 2025. CVS and Walgreens absorbed customers, with CVS winning disproportionately. Two-player pharmacy market more consolidated than ever.
January (+12.3%) and April (+13.7%) peaks reflect seasonal patterns New Year’s resolutions (skincare, wellness) and spring refreshes (beauty, sunscreen) drive surges. Unlike discretionary categories, health/beauty doesn’t crater between peaks—baseline remains high.
Ulta’s 10-12% share stable as mass-prestige positioning $55-70 AOV captures customers trading up from CVS but not willing to pay Sephora’s $70-90. Prestige brands at accessible prices with experiential store format. Niche strategy works without threatening pharmacy core.
Gen Z (+8.2%) entering beauty spending First major skincare purchases, makeup experimentation, TikTok-influenced trends. Lower absolute spending than older cohorts but high growth rate. Future of beauty category depends on capturing Gen Z routines early.
Top Brands by AOV
Leading brands ranked by average order value within sector
This macro sector analysis provides detailed insights into economic trends and consumer behavior patterns. The visualizations below are derived from real-world transaction data and economic indicators.
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Sector Spending by Income Bracket
Industry sector spending patterns by household income level
Sector Spending by Generation
Industry sector spending patterns by generational cohort
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