Amazon brand aggregators, the companies that acquire and scale third-party seller businesses, are increasingly turning their attention to beauty and health products as a key area for future growth. The shift reflects both the resilience of these categories in consumer spending habits and the potential for strong margins in a market that continues to expand globally.
Over the past five years, aggregators such as Thrasio, Perch, and Berlin Brands Group have raised billions of dollars to acquire popular Amazon-native brands. Their model revolves around identifying successful third-party sellers, acquiring them, and then using capital and operational expertise to accelerate growth. While early activity focused heavily on categories like home goods, kitchenware, and pet supplies, aggregators are now prioritizing health and beauty as the next frontier.
The beauty and personal care market has proven remarkably durable despite economic fluctuations. According to data from Statista, the global beauty and personal care market was valued at more than $560 billion in 2023 and is projected to surpass $670 billion by 2027. Health products, particularly wellness supplements, vitamins, and skincare, have also seen robust demand as consumers continue to prioritize self-care and preventative health measures.
For aggregators, these categories present multiple advantages. Beauty and health products often generate higher repeat purchases compared with one-time items like home décor or kitchen appliances. This repeat purchase behavior creates stronger lifetime customer value, making it easier to justify acquisition costs. Additionally, the emotional connection consumers have with beauty and wellness products can foster brand loyalty, a critical factor in sustaining long-term growth.
Another key attraction is the potential for multi-channel expansion. Brands that establish credibility on Amazon can extend into direct-to-consumer channels, retail partnerships, or international markets more seamlessly when operating in health and beauty categories. Aggregators view this as a pathway to diversify revenue streams while reducing dependence on Amazon alone.
However, the categories also come with unique challenges. Regulatory compliance for health-related products can be complex, requiring adherence to Food and Drug Administration standards in the United States or equivalent authorities abroad. Missteps in labeling, ingredient sourcing, or health claims can lead to costly recalls or suspensions. Aggregators investing in these sectors must allocate resources to ensure rigorous compliance and quality control.
Competition is another concern. Beauty and health are already among the most competitive categories on Amazon, with multinational giants like L’Oréal, Procter & Gamble, and Unilever competing alongside smaller independent brands. Success often hinges on differentiating through product innovation, influencer marketing, and strong branding. Aggregators seeking to grow in this space must navigate crowded markets while identifying niche opportunities that resonate with consumers.
Despite the hurdles, momentum is building. Thrasio, one of the largest Amazon aggregators, has already acquired several skincare and wellness brands, signaling confidence in the sector’s long-term prospects. Perch has also emphasized health supplements as a core focus area, citing their strong growth potential and consumer loyalty. Berlin Brands Group, with its European footprint, has been targeting both beauty appliances and personal care products for cross-border scaling.
The pandemic accelerated consumer interest in health and wellness, and while spending has normalized in some discretionary categories, beauty and health products have retained steady demand. Online shopping habits developed during lockdowns have further entrenched Amazon as a primary channel for discovery and purchase, giving aggregators a fertile environment for acquisitions.
E-commerce infrastructure also supports this trend. Logistics, fulfillment, and subscription capabilities have advanced, making it easier to sustain recurring product shipments for beauty and wellness customers. Aggregators that invest in subscription models can capture stable revenue while reinforcing customer retention.
Investor sentiment around aggregators has cooled somewhat in recent years due to concerns about overvaluation and operational complexity. However, the pivot toward resilient, high-margin categories like beauty and health is seen as a recalibration of strategy. By focusing on markets with consistent demand and global scalability, aggregators aim to strengthen investor confidence and return to growth trajectories.
Looking forward, the success of aggregators in beauty and health will depend on their ability to balance scale with specialization. While financial backing and operational infrastructure provide a foundation, building enduring brands in these sectors requires nuanced marketing, cultural relevance, and consumer trust. Aggregators will need to evolve from purely financial acquirers into brand builders capable of competing with traditional industry leaders.
For Amazon itself, the growing presence of aggregator-backed beauty and health brands reinforces its role as a dominant retail platform for these categories. The marketplace benefits from increased product diversity and investment in brand development, while consumers gain more choices across price points and niches.
The entry of aggregators into beauty and health marks an important shift in the maturation of the Amazon ecosystem. After years of focusing on household goods and everyday essentials, the move toward lifestyle-oriented categories with strong global appeal suggests a new phase of competition and opportunity. Whether these firms can navigate regulatory hurdles, differentiate brands, and maintain profitability will be closely watched in the years ahead.