Global Overview 2022, Trends Shaping Consumer Health Market

Introduction to the Global Consumer Health Market

The global consumer health market is projected to grow at a CAGR of 7.2% from 2018 to 2022, and is expected to reach $1.6 trillion by 2022.

The global consumer health market is projected to grow at a CAGR of 7.2% from 2018-2022, and is expected to reach $1.6 trillion by 2022. Consumers are becoming more aware of the importance of healthy living and are taking steps towards adopting healthier lifestyles, which has led to an increase in demand for healthier food products as well as dietary supplements and functional foods that promote wellness.

The key trends shaping the consumer health market in 2022 to 2023 firstly are inflationary pressures then prevention rather than cure, growing demand for natural products, an increasing number of lifestyle diseases such as diabetes and obesity, aging population leading to a higher incidence of chronic diseases, rising awareness about benefits associated with probiotics and prebiotics among consumers globally, increasing adoption rates for wearable devices such as fitness trackers among consumers globally

6 Trends Shaping Consumer Health

Inflationary pressures and supply disruptions	In 2022, many healthcare companies were left scrambling to maintain supply of essentials ingredients and materials. This has led to severe shipping delays, which have had a knock-on effect on the price of goods. The increased costs have had a large impact on company budgets, meaning they are under considerable pressure to tighten their belts and consider how best spend their money. The industry will likely have to contend with similar dilemmas in 2023.
The results are in: e-commerce is here and only extending its dominance	Increasingly, consumers want solutions to a variety of issues and expect them to work across many applications up to products that supports their health journeys. Enterprising companies are tackling this problem head-on by taking a page from personalized nutrition and curating an fully-customizable off-the-shelf menu which caters to the needs of consumers.
The demand for mental health orientated products	The mental health of consumers is a topic that is at the forefront of every formulator’s mind in 2022. Consumers are demanding solutions for the long-ignored topics of mental health such as stress, anxiety, sleepnessness, and worry. The feedback of consumers is most likely to come via partnerships in order to maximize the benefits of pharmacological and behavioural approaches.
How will consumer health companies commercialise holistic health?	Increasingly, consumers want solutions to a variety of issues and expect them to work across many applications up to products that supports their health journeys. Enterprising companies are tackling this problem head-on by taking a page from personalized nutrition and curating an fully-customizable off-the-shelf menu which caters to the needs of consumers.
The urgency of coherent women’s health solutions	Recent political events have accelerated calls for more robust OTC women’s health solutions, which is a trend driven by organic consumer demand. More and more products that cover women’s health needs, available without a prescription in many markets
The wave of industry divestments is to continue	The year 2022 has been marked by companies splitting off into separate entities. An example is GlaxoSmithKline Plc’s divestment of its consumer health business to form a new company, Haleon Plc. Johnson & Johnson will be one of the first companies to separate pharmaceutical and consumer divisions.

Category to Only Grow Above Inflation – Sports Nutrition

In 2022, the majority of people had fears about the pandemic which has benefitted sports nutrition. As interest in diets and exercise continues, we expect strong growth in this category over the next 4 years. Even after stripping out inflation, real growth came in at 6%, with strong growth present in all geographic regions.

In 2022, the majority of people have had lingering fear about the pandemic which has benefitted sports nutrition. As interest in diets and exercise continues, we expect strong growth in this category over the next 4 years. Even after stripping out inflation, real growth came in at 6%, with strong growth present in all geographic regions.

The other areas in consumer healthcare are seeing a middle ground with low single-digit growth/low single-digit values decline by 2022. Over-the-counter drugs are the most pressured category in the market, as consumers have access to lower cost substitutes and are sometimes seeking to forgo treatment altogether. This behaviour is also apparent in vitamins and dietary supplements. At the same time, due to the waning popularity of vaccines which were popular during the pandemic and a rise in other products that cater to various lifestyles, the category is seeing a shift in consumer preferences. (including beauty, digestion, memory/cognition, and stress/relaxation).

The future for the global population is a mixed bag. There are strong expectations of future growth, but growth is expected to be softer in 2022 than it was during the peak of the pandemic.

Forecasts indicate Asian Economies are positioned for growth

China is projected to have the fastest absolute growth of the next five years. Sales in China are expected to more than double the average of all countries from 2022 – 2027, allowing it to maintain its position as second-highest sales in terms of total quantity.

Although China still growing the strongest, Vietnam, Hong Kong, Thailand, India, Indonesia and the Philippines have also been experiencing rapid growth with CGAR of 3.4% out pacing China, as people become acclimatized to living with COVID19

The U.S. is going to keep its leading position in the global consumer health industry as forecasted, though its predicted growth will subside to below Asia’s. Due to persistently poor preforming OTC marketplace and a The vitamins & supplements industry is still working through the unprecedented level of purchases during the COVID-19 period in various categories. As a result, Chinese consumer healthcare sales are expected to reach 2/3rds of US sales in 2027, up from 59% in 2022. Asia Pacific, as a whole, is expected to take 37% of all consumer health sales by 2027 compared to 28% in 2022.

Leading companies are making huge investments in the Asian marketplace. They’ve been investing in e-commerce and partnerships as well as developing distribution arrangements.

Consumer health in 2027: An industry hyperfocused on health journey of consumers

Underneath the headlines of COVID-19, the future of consumer health can be seen clearly: consumers’ increasingly vigorous demand for holistic health options, and the rise of products that straddle the line between nutrition and health. The integration of consumer health, digital tools, and personalised solutions; a broadened concept of health to include lifestyle considerations like mental health, sleep, and focus. These orientations are already apparent in 2022 and they will likely constitute the inspiration for industry growth across the forecast period.

These trends will help to sustain strong growth projections for vitamins and dietary supplements and sports nutrition in many of the leading consumer health countries, as these areas lend themselves most directly to innovations in these categories. Together, they will also help brands in these categories embed themselves in consumers’ health journeys in a manner that would have been previously impossible.

Though most of these factors suggest a future led by vitamins and dietary supplements, OTC drugs also have a role to play. It is especially important for companies to integrate nutritional education in their outreach efforts as governments extend their reach into this sector considered for Rx-to-OTC switch, In the future there will be a huge variety of approaches to how you interact with consumers at different stages of their lives. That said, over-the-counter medicine will sustain softer growth because leading brands are working to embrace consumer demand for uniqueness.

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