Wellness Industry Expands With Procter & Gamble Acquisition of Thorne for $3.8 Billion

Consumer giant Proctor & Gamble has announced its acquisition of supplement maker Thorne for $3.8 billion. The Tide detergent company, which already owns dozens of household brands such as Tide, Olay, Pampers, and Crest, is making a push into the health and wellness market as the market continues to grow.¹

The global wellness economy reached a peak of $6.8 trillion and is expected to expand to $9.8 trillion by 2029— and consumer giants are taking notice. Reuters reports that top multinational consumer goods giants are competing for space in the lucrative vitamins, minerals, and supplements (VMS) sector. Since 2017, P&G competitor Nestle has acquired major wellness companies such as Vital Proteins, Garden of Life, Pure Encapsulations, and Orgain.¹

When wellness brands are acquired by larger corporations, the pursuit of higher profit margins can come at a cost. Critics argue that these acquisitions may lead to reformulated products, cheaper or lower-quality ingredients, the introduction of additional additives and less transparency about sourcing and manufacturing practices.

Earlier this year, Thorne CEO Colin Watts told CNBC that the wellness company had the potential to become a billion-dollar brand within the next few years. With the majority of Thorne’s customers under 40, the acquisition also underscores P&G’s strategy of investing in brands with strong appeal among younger consumers. The move comes as P&G reported weaker-than-expected revenue in its latest quarter, with its healthcare division emerging as the company’s weakest-performing segment.²

Thorne Built Brand Reputation Since 1984

Founded in 1984, Thorne has built a reputation among functional medicine practitioners, naturopathic doctors and conventional physicians, who frequently recommend its supplements. The company’s product range includes creatine, B vitamins, vitamin D, magnesium and multivitamins. In recent years, Thorne has also seen a significant shift toward direct-to-consumer sales, as growing public interest in health and wellness has driven consumers to take a more active role in researching and purchasing supplements themselves.

“Thorne has built a highly trusted brand at the forefront of personalized health,” said Paul Gama, P&G Chief Executive Officer of Health Care. “Together, we see an opportunity to bring Thorne’s science-backed wellness solutions to more consumers while continuing to build on the quality, credibility and innovation that have made the brand successful.”³

Recalls, Lawsuits, and Deceptive Business Practices Not Uncommon for P&G

In December 2021, P&G recalled 32 of their aerosol products including dry shampoo and Old Spice body sprays after detecting high levels of benzene, a human carcinogen. The recalls triggered class-action lawsuits amounting to $8 million in settlements. The consumer goods giant has also faced legal claims relating to false advertising about products being labeled as “natural”, “plant based” or “drug free”, as well as a recent “greenwashing” lawsuit for misleading environmental claims found on toilet paper packaging.^{4 5 6} The toilet paper lawsuit brought forth claims of fraudulent concealment and violation of consumer protection laws surrounding fraud, unfair competition and deceptive business practices.

“P&G puts emphatic effort into the packaging and online marketing of Charmin toilet paper, wasting no opportunity to fill this space with empty promises of its commitment to the protection of trees, restoration of habitats and alleged responsible forestry,” said attorney Steve Berman. “It’s worse enough to fail to meet those promises in the first place, but P&G has profited from them, raking in billions in revenue from consumers hoping to make planet-friendly purchases at the supermarket.”⁶

The lawsuit has not yet been settled.⁶

Legal battles involving industry giants—from consumer goods and pharmaceutical companies to major food corporations—are a recurring feature within the U.S. market, underscoring growing concerns about the concentration of corporate power, the outsized influence of a handful of dominant players, and the prioritization of profit over the wellbeing of people.

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