Where Consumers Shop for Consumer Health

Delivery

This report comes in PPT.

Key Findings

Inflation impacts consumer health growth

Excluding inflation impact, consumer health value sales in constant currency fell in 2022. Players were hit owing to rising production costs including transportation and labour as well as supply chain constraints on raw materials.

Store-based retailing remains preferred channel

Consumers prefer store-based retailing, with pharmacy accounting for a 39% share of overall consumer health sales as it is associated with trust and offers customised recommendations. Convenience stores gained share post-pandemic as they are easily accessible.

Private label benefited in 2022

With high inflationary pressure in 2022, leading consumer health players faced tough competition from generics and private label. The sales from private label grew by 4.3% year-on-year in 2022, with North America leading regional sales.

Digitalisation goes beyond just e-commerce

E-commerce is on the rise and businesses have created innovative ways to engage with consumers to remain competitive. The use of social media and company apps to assist in product selection are used to connect with consumers.

Industry regulations limit growth potential of OTC

Vitamins and dietary supplements dominates e-commerce due to fewer regulations, while OTC sales are heavily regulated for consumer safety.

Consumers seek convenience but also value expert advice

Businesses adopt omnichannel strategy for e-commerce growth while meeting consumer demand for expert advice via online e-consultations and telehealth services.