How health and wellness trends are redefining premium skincare supply chains

As consumers increasingly prioritize health and wellness, driving the global wellness market to 1.8 trillion USD annually, premium skincare supply chains are being pushed to adapt to meet growing demand for advanced skincare solutions and clinical-grade products. Skincare has overtaken cosmetics in growth, fuelled by a preference for active ingredients and tailored formulations, creating both challenges and opportunities for supply chain professionals in this evolving industry.

To stay competitive, companies must rethink their supply chain strategies, emphasizing flexibility, traceability, and a level of attention that traditional FMCG supply chains sometimes lack. In this article, we explore how the supply chain landscape is evolving to meet the needs of today’s wellness-conscious consumers.

The supply chain needs of premium and clinical skincare

The skincare market is projected to reach over 226 billion USD in revenue by 2029, fuelled by growing consumer interest in clinical-grade skincare products over “clean” formulations. Ingredients like ceramides, bio-retinol, and ectoin are increasingly in demand, as are clinical-grade products recommended by dermatologists. This shift comes with a new set of supply chain challenges, such as the need for temperature-controlled storage and enhanced security measures.

Due to the presence of active ingredients in premium skincare, these products often require precise storage conditions to maintain their efficacy. With higher price points and smaller product sizes, shrinkage and theft are significant risks and require secure warehousing and advanced tracking systems.

“While these risks are present across all supply chains, for high-value goods different things need to be emphasized in somewhat of a white glove service,” says Kevin Bennett, Vice President of Business Development at Maersk, “and when you consider that traditional supply chains work with pallets, while wellness and skincare have a lot of small SKUs, the question of efficient storage that also works well for order picking arises”.

What also makes these supply chains different are sales channels – offline sales will continue to dominate the beauty market in 2025 and beyond. Likewise, direct-to-consumer (DTC) channels are critical for premium brands, and balancing traditional retail with emerging platforms and social media presents a complex challenge.

"To scale efficiently, brands need integrated supply chains capable of serving multiple channels while maintaining exclusivity for key retailers. By centralizing operations under one warehouse management system, companies can streamline processes, reduce redundancy, and achieve end-to-end visibility across locations," adds Bennett.

Omnichannel fulfillment and growth of direct-to-consumer brands of any size

Next to balancing many channels, large beauty and personal care companies are having to balance independent supply chains for multiple brands that are, in the eyes of the consumer, independent of each other. “The main challenge we see companies facing here is managing multiple supply chains, instead of finding a way to drive one supply chain for all of these separate brands,” says Bennet.

Small and independent brands face their own set of challenges – especially if they are looking to grow and expand on the global level. These brands must navigate complex and timely logistics processes, including cross-border shipping and compliance with diverse regulations, while also offering shorter lead times to stay competitive in a market where they are competing with big name brands.

Additionally, managing a centralized view of inventory and tracking shipments across multiple regions can strain resources and hinder efficiency. To overcome these obstacles, smaller brands can partner with providers offering end-to-end visibility and integrated solutions, so they can scale efficiently while maintaining product quality and short lead times.

Going the extra mile

For premium brands, going the extra mile for improved consumer experience is no longer optional but expected. Personalisation in premium skincare and improved inventory management, largely driven by generative AI (GenAI), could add between 9 and 10 billion USD annually to the beauty industry. However, personalising premium products at scale, requires agile, data-driven supply chains capable of managing small-batch production and rapid customization.

Beyond the product itself, companies are focusing on creating elevated consumer experiences through thoughtful details such as premium packaging that ensures products arrive intact and in pristine condition, whether they are heading to retailers, or directly to consumers.

From the logistics perspective, this means offering flexible delivery options, from expedited home delivery for direct-to-consumer channels to specialized shipping solutions for premium retailers. By prioritizing these additional steps, brands not only meet rising consumer expectations but also strengthen their position in the market.

Even the largest companies are recognising that achieving supply chains that deliver value to both the business and the consumer requires close collaboration and strategic partnerships. With Maersk, businesses gain access to advanced technology solutions, including our global warehouse management system, which provides comprehensive visibility of inventory data across regions and plays a crucial role in managing complex supply chain operations. Coupled with our E-Delivery product, which connects businesses to an extensive multi-carrier network for last-mile deliveries, we can offer integrated solutions that drive growth, enhance efficiency, and elevate the consumer experience.