Unilever, a $64 billion international consumer product goods giant, reported strong 4.4% underlying sales growth in the first quarter, with its Beauty and Wellbeing division leading the way with a 7.4% increase. CEO Hein Schumacher highlighted the performance of the company’s “power brands” such as Dove, Knorr, and Sunsilk, which accounted for 75% of company turnover and generated 6.1% growth. The Health and Wellbeing segment also saw double-digit growth, tapping into a massive $5.6 trillion market that is expected to reach $8.5 trillion by 2027.
Unilever sees a significant opportunity in the holistic approach to health and wellbeing as consumer trends shift towards preventative healthcare. Jostein Solhiem, CEO of the Health and Wellbeing division, is focused on providing proactive solutions for immunity and overall health. The company is positioning itself as a leader in promoting healthy lifestyles and a healthy planet, a mission that sets it apart from other CPG companies.
Unilever’s strategic shift towards health is evident in its plan to spin off its Ice Cream division into a separate company by the end of 2025. The company began its wellness journey in 2019 with the acquisition of Olly, a disruptor in the vitamin, minerals, and supplements (VMS) segment. Olly’s approach to product positioning and packaging aligned with the company’s growth action plan to enter new and attractive categories like health and wellbeing.
The success of Olly led Unilever to acquire Welly, a disruptor in the first aid bandage category, and other hero products in the Health and Wellbeing group like Nutrafol and Liquid I.V. These products offer multiplier health effects for consumers and have high repeat purchase rates, demonstrating their popularity in the market. Unilever is focused on expanding its portfolio of benefits-forward wellness brands to cater to the growing demand for health and wellness solutions.
With a focus on preserving health and wellness throughout a person’s lifetime, Unilever’s Health and Wellbeing division is targeting Millennials and GenZ consumers who are increasingly interested in solutions for both physical and mental health. The company is on the lookout for disruptor brands backed by strong science and a unique business model to add to its portfolio. By unlocking scale benefits and leveraging its size and reach, Unilever aims to accelerate the growth of its acquired brands and stay ahead in the health and wellbeing market.
Overall, Unilever’s focus on health and wellbeing aligns with broader cultural trends towards healthy lifestyles and preventative healthcare. The company’s unique position as a leader in promoting healthy people and a healthy planet sets it apart in the CPG industry. With a strong portfolio of wellness brands and a strategic approach to expanding its reach, Unilever is well-positioned to capitalize on the growing demand for health and wellness solutions in the market.
