The health and wellness ecommerce sector has seen remarkable growth in recent years, driven by increased consumer interest in maintaining a healthy lifestyle. It encompasses products and services that enhance personal health, such as dietary supplements, skincare, fitness equipment, and mental health resources. With consumers spending more on self-care, the global health and wellness market projects to reach $7 trillion by 2025, up from $4.3 trillion in 2020, growing at a compound annual growth rate (CAGR) of 5-10%, depending on the segment. Let’s take a closer look at how some health and wellness brands leverage innovative funding and growth strategies to scale in this booming sector.

Blume

Blume is a skincare brand founded by sisters Bunny and Taran with the mission to uplift women and girls through nurturing skincare products and education about puberty. The brand initially faced significant challenges like supply chain issues and managing inventory amid changing consumer preferences, especially during the COVID-19 pandemic.

To overcome these hurdles, Blume partners with Clearco to inject capital into their marketing initiatives. Clearco’s funding allowed Blume to invest in influencer marketing and paid social media ads, resulting in significant returns on investment (ROI). By 2023, the brand successfully expanded its retail footprint to include major outlets like Sephora and Indigo. The strategic use of non-dilutive capital from Clearco freed up cash flow and empowered Blume to continue its growth trajectory while maintaining focus on its core mission.

MenoLabs

Founded by Danielle and Vanessa, MenoLabs addresses the underserved women’s health niche focused on menopause. The brand’s products include doctor-formulated probiotics and supplements tailored to alleviate menopause symptoms. Noticing a significant gap in the market - over 6K women enter menopause daily in the U.S. alone - the founders focused on creating solutions that included products and educational resources to support their community.

In 2020, MenoLabs expanded its product range with the help of Clearco funding, launching new items like sleep aids, fiber supplements, and a menopause symptom-tracking app. The company’s growth strategy has centered around product innovation and leveraging ecommerce analytics to meet customer needs more effectively. This data-driven approach has positioned MenoLabs as a prominent player in a growing market segment projected to reach $22.7B by 2028, expanding at a CAGR of 7.4% from 2021.

HigherDOSE

HigherDOSE, a wellness brand founded by Katie Kaps, began as a physical location offering infrared sauna sessions in New York City. The popularity of these sessions, which drew high-profile clientele, led to a pivot toward direct-to-consumer (DTC) ecommerce with the introduction of portable infrared sauna blankets.

The brand’s shift to a DTC model was powered by Clearco funding, allowing HigherDOSE to invest in inventory and digital marketing. The sauna blanket saw a demand surge by 300% following targeted ad campaigns, prompting the addition of new products like infrared face masks. The continued use of capital top-ups has driven exponential growth for the company, with non-diluted funding providing the flexibility needed to scale rapidly.

Trends & Future Growth

The health and wellness ecommerce sector expects to maintain its upward trajectory, with an estimated 20% growth in online sales annually through 2026. Brands like Blume, MenoLabs, and HigherDOSE exemplify how these innovative financing solutions enable companies to adapt quickly to changing market conditions, expand product offerings, and scale operations without diluting equity.

Overall, the health and wellness industry continues to evolve as a crucial segment within ecommerce, driven by consumer demand for better health outcomes and self-care solutions. As brands innovate and diversify their product lines, the sector is expected to achieve unprecedented growth in the coming years thanks to companies like Clearco and their Invoice Funding product.