Where Consumers Shop for Consumer Health

Delivery

This report comes in PPT.

Key Findings

The pandemic has had a profound impact on consumer health behaviour

Excluding the impact of inflation, global consumer health sales grew by 2% in 2023. In the post-pandemic era, consumers have abandoned the COVID-19 behaviours of stockpiling medicines and immune-boosting vitamins. Some impacts of COVID-19 persist, however, such as heightened health consciousness, increased reliance on e-commerce, and cautious spending due to the global economic downturn, influencing consumer health purchases.

Retail e-commerce is cutting into the dominance of offline channels

The share of consumer health sales through retail offline channels continues to drop, reaching 79% in 2023, as retail e-commerce continues to gain popularity. E-commerce will further expand its market position, driven by offline retailers moving online, the growth of digital-native health brands, and the increasing influence of social media in the consumer health market.

Offline retailers seek growth through diversified business models and geographic expansion

Pharmacies have maintained their leading position in offline retail. Besides adopting digitalisation strategies, offline pharmacies are diversifying their business models and enhancing the value of their private label products. Meanwhile, the market share of direct sellers continues to decline amid various challenges, prompting leading players to seek change by enhancing consumer education and developing new products.

E-commerce retailers show no signs of slowing down their expansion in consumer health

E-commerce saw robust growth in 2023, with a 14% increase in sales. The wide variety of products available and the channel’s convenience have made consumers increasingly dependent on e-commerce. The broader adoption of health data tracking and online consultations, along with growing trust in generative AI information, will further shift the consumer journey for purchasing health products.