The consumer health and wellness market has experienced significant growth, with the United States alone estimated to have reached a market value of $480 billion. Consumers are increasingly prioritizing their well-being and seeking effective, science-backed solutions. A recent survey conducted by McKinsey across China, the United Kingdom, and the United States revealed that consumers demand data-driven, science-backed health and wellness solutions.
This expectation holds across various age groups, with Gen Z and millennial consumers leading the way in purchasing wellness products and services. Consumers focus on several wellness dimensions, including health, sleep, nutrition, fitness, appearance, and mindfulness. Companies need to stay informed about the emerging trends shaping the consumer health and wellness space to meet these evolving demands.
1. Health at Home
- COVID-19 pandemic normalized the use of at-home testing kits.
- Consumer interest is growing in at-home tests for:
- Vitamin and mineral deficiencies (26% of US consumers)
- Cold and flu symptoms (24% of US consumers)
- Cholesterol levels (23% of US consumers)
- At-home tests offer:
- Convenience over doctor's office visits
- Quick results
- Frequent testing ability
- In China, 35% of consumers have replaced some doctor's appointments with at-home tests.
- Hesitancy factors include:
- Preference for in-person doctor consultations in the US and UK
- Lack of perceived need
- Cost implications
- Concerns about test accuracy in China (30% of consumers)
Company Strategy Implications:
- Determining the right price-value balance for at-home kits
- Creating consumer feedback loops to inform intervention effectiveness
- Assisting consumers in understanding test results using generative AI or telehealth services integration for competitive advantage
2. A new era for biomonitoring and wearables
- Approximately 50% of surveyed consumers have previously purchased a fitness wearable.
- Popular wearable devices are advancing into new biomonitoring capabilities, such as:
- Wearable biometric rings that monitor sleep quality
- Continuous glucose monitors for blood sugar insights
- Around one-third of wearable users are utilizing their devices more frequently than the previous year.
- Over 75% of respondents are open to the idea of using a wearable device in the future.
- Continued growth in wearable device usage is anticipated, especially as they begin tracking more health indicators.
Company Strategy Implications:
- Opportunity exists to expand wearables in untapped areas like nutrition, weight management, and mindfulness.
- Companies can explore partnerships to leverage wearable data for actionable health insights, promoting behavioral changes in consumers.
- An example would be using cortisol level monitoring to suggest wellness and mindfulness products or activities.
- Protecting data privacy is essential, as roughly 30% of consumers in China, UK, and US prefer exclusive access to their data from wearable devices.
- Data insight clarity and minimal need for manual input are important for user experience. Data needs to be transparently collected, and insights should be easy-to-understand and relevant to individual health goals.
- Businesses aiming to penetrate the wearable market must balance innovation with user-friendliness and privacy to succeed.
3. Personalization’s gen AI boost
- About 20% of US consumers and 33% of US millennials show a preference for personalized products and services.
- There is a noted decline in interest for personalized wellness products, which may be attributed to selective consumer habits.
- Technological advancements and the availability of first-party data are enhancing personalization:
- Around 20% of consumers in the UK and US, and 30% in China seek products and services that incorporate biometric data into personalization.
- Generative AI (gen AI) has potential in further refining personalization, particularly with wearables and apps:
- Examples include wearables that use gen AI for crafting individualized workout plans based on fitness data.
Company Strategy Implications:
- Software-based health and wellness service providers have a strategic position to integrate gen AI into their personalization features.
- Companies across various industries could benefit from forming partnerships with entities that leverage gen AI for developing tailored wellness recommendations.
4. Clinical over Clean
- Last year marked the beginning of a significant consumer shift from clean/natural wellness products towards ones with clinically proven ingredients.
- Currently, roughly 50% of UK and US consumers consider clinical effectiveness a major consideration for purchase.
- Only about 20% of these consumers place a similar level of importance on clean or natural ingredients.
- This preference is more evident within the market segments of over-the-counter medications and vitamins/supplements.
- Chinese consumers show an equal overall preference for both clinical and clean products but with category-specific preferences:
- Digestive medications, topical treatments, and eye care products are favored for their clinical efficacy.
- Supplements, superfoods, and personal-care products are chosen for having natural and clean ingredients.
Company Strategy Implications:
- Brands can capitalize on this trend by focusing on and promoting products that already have clinically proven benefits.
- Some companies may need to alter product formulas or strategies to align with the increasing consumer demand for clinical effectiveness.
- Wellness brands rooted in clean or natural ingredients might not shift entirely but can validate their positioning with third-party certifications.
- Strategies to boost a product's clinical credibility include:
- Incorporating clinically tested ingredients.
- Investing in third-party research studies.
- Securing endorsements from healthcare providers and scientists.
- Creating medical advisory boards for product development insights.
4. The rise of the doctor recommendation
- The rise of influencer marketing has introduced varied and sometimes questionable sources of wellness information.
- Consumers are seeking to avoid "healthwashing" and are once again valuing healthcare provider recommendations.
- Physician endorsements rank as the third most influential factor for US consumers' health and wellness purchases.
- Doctor recommendations hold the most sway in areas concerning mindfulness, sleep, and overall health. This includes products like vitamins, over-the-counter medications, and personal/home care items.
Implications for Wellness Brands:
- It's critical for wellness brands to identify the right messages and messengers that will resonate with their target consumers.
- For products related to mindfulness, companies may benefit from primarily using doctor recommendations combined with social media advertising.
- Fitness product companies might be more successful leveraging recommendations from friends, family, and endorsements from fitness professionals like personal trainers.
7 Areas for Consumer Health and Wellness Growth
According to the survey, 58% of US respondents prioritized wellness more now than a year ago. This trend is consistent with earlier research, indicating a growing interest in personal well-being. Consumers are proactively taking care of their health and seeking innovative solutions.
A majority of 58% of respondents from the United States have reported that they are now placing a higher priority on their wellness compared to a year ago. This finding aligns with previous research, consistently showing a growing interest in personal well-being.
1. Women's Health
Historically, women's health has been underserved and underfunded. However, there is a growing demand for women's health products across various care needs. Menstrual care and sexual health products are among the most commonly purchased, but consumers are also spending significantly on menopause and pregnancy-related products.
Digital tools, such as wearable devices that track physiological signals, are gaining popularity in the women's health landscape. However, there is still unmet demand in this space, particularly in addressing menopause needs. Companies can expand their product and service offerings in menstrual and intimate care, fertility support, pregnancy and motherhood products, and women-focused healthcare centers.
2. Healthy Aging
The desire for healthy aging and longevity is on the rise, fueled by advancements in preventive medicine, health technology, and research on anti-aging products. Consumers across the United Kingdom, the United States, and China purchase more products and services in this category, regardless of age.
Companies should adopt a holistic approach that encompasses mental health and social factors to succeed in the healthy aging market. Instead of emphasizing the aging process, companies should focus on addressing the specific needs of aging consumers, such as fitness and nutrition. By anticipating these needs, companies can provide tailored solutions and tap into the growing global focus on healthy aging.
3. Weight Management
Weight management remains a top concern for consumers, especially in the United States, where nearly one in three adults struggles with obesity. While exercise is the most commonly reported weight management intervention, there is a growing interest in prescription medication, such as glucagon-like peptide-1 (GLP-1) drugs. Companies need to monitor the impact of the GLP-1 weight loss trend on the consumer health and wellness market. As more data emerges on adoption rates and effectiveness, companies can adjust their strategies and offerings accordingly.
4. In-Person Fitness
Fitness has transformed from a casual interest to a core consumer priority. Around 50% of US gym-goers consider fitness a core part of their identity. This trend is even more pronounced among younger consumers, with 56% of Gen Z consumers in the US considering fitness a "very high priority."
Consumers expect to spend more on in-person fitness classes and personal training, indicating a continued interest in traditional fitness experiences. To retain customers in the face of increasing competition, fitness businesses must provide exceptional facilities, convenient locations and hours, loyalty programs, and personalized services such as nutritional coaching and tailored workout plans.
5. Gut Health
Gut health is gaining increasing importance among consumers, with more than 80% considering it an essential aspect of overall well-being. Probiotic supplements are popular in China and the United States, while UK consumers prefer probiotic-rich foods like kimchi, kombucha, or yogurt. There is a significant demand for more products in the gut health market, particularly at-home microbiome testing and personalized nutrition. Companies that can meet this demand by offering innovative solutions will find opportunities for growth and success.
6. Sexual Health
The cultural conversation around sexuality and improvements in sexual education has led to increased demand for sexual health products. US consumers, in particular, have reported spending more on sexual health products such as personal lubricants, contraceptives, and adult toys.
As retailers across various industries start to stock sexual-health brands and products, disruptor brands can reach new audiences and increase their market share. This trend opens doors for marketing and distribution partnerships between disruptor brands and traditional retailers.
7. Sleep
Despite being a top priority for consumers, sleep remains an area with unmet needs. Consumers desire additional sleep and mindfulness products and services, particularly those addressing cognitive functioning, stress, and anxiety management.
Improving sleep presents challenges due to many factors that can affect it. Companies can leverage consumer data to develop personalized solutions that address specific pain points, such as inducing sleep, minimizing interruptions, easing wakefulness, and improving sleep quality. By delivering accessible and science-backed products and services, companies can empower consumers to take control of their sleep health.
Conclusion
The consumer health and wellness market is experiencing rapid growth, with consumers demanding science-backed solutions across various dimensions of wellness. By understanding the emerging trends and investing in areas such as women's health, healthy aging, weight management, in-person fitness, gut health, sexual health, and sleep, companies can meet consumer expectations and drive innovation in the industry.
