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EMEA Thought Leadership
Developing IQVIA’s positions on key trends in the pharma and life sciences industries, with a focus on EMEA.
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Developing IQVIA’s positions on key trends in the pharma and life sciences industries, with a focus on EMEA.
Learn more -
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EMEA Thought Leadership
Developing IQVIA’s positions on key trends in the pharma and life sciences industries, with a focus on EMEA.
Learn more
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What to Look for in 2025: Key Trends and Opportunities in the Consumer Health Market
As 2025 fast approaches, the transformative trends and opportunities in the consumer health market for the year ahead are becoming clear. Take a whistle-stop tour around innovation, digital health integration, and sustainability and how your business can navigate economic shifts and leverage emerging technologies to thrive in an evolving landscape.
Oct 03, 2024
As we approach 2025, the consumer health market is poised for significant transformations driven by economic shifts, technological advancements, and evolving consumer behaviors. Let’s take a look at the key trends and opportunities that will shape the industry in the coming year.
The Current Landscape
Despite economic fluctuations, the market - encompassing Over-the-Counter (OTC) medications, Personal Care, Nutrition, and Patient Care - has demonstrated resilience, particularly in categories like digestive remedies and skin treatments.
Economic indicators suggest a period of cautious optimism. Global GDP growth is expected to stabilize from 2025 onwards, following a phase of hand-braked expansion. Inflation, which peaked in 2023, is on a downward trend, providing a more predictable environment for consumer spending. This economic backdrop is crucial as it influences consumer confidence and spending patterns, directly impacting the consumer health market.
Regionally, EMEA (Europe, the Middle East, and Africa) and LATAM (Latin America) have outpaced the global average in OTC market growth, while APAC (Asia-Pacific) has faced challenges due to economic issues in China. These regional variations highlight the importance of tailored strategies to capitalize on local market conditions.
Opportunities for Growth in 2025
- Innovation and Rx-to-OTC Switches Innovation remains the cornerstone of growth in the consumer health market. The trend towards Rx-to-OTC switches is seemingly heating up again as new avenues for expanding the consumer health universe emerge. But the same barriers remain, namely that the regulatory environment, while slowly changing, is still challenging. Companies that can navigate the regulatory landscape by utilizing innovative technologies to support consumers in safely and appropriately using new products could capture significant market share.
- Digital Health and AI Integration The integration of digital health and AI is set to revolutionize the consumer health sector. From digital therapeutics to AI-driven consumer insights, these technologies are transforming product development, marketing strategies, and consumer engagement. The ability to harness data and leverage AI for personalized health solutions will be a critical differentiator in the market.
- E-commerce and Omni-channel Experiences E-commerce continues to be a growth engine, with a noticeable shift towards quality over quantity. Consumers are increasingly seeking seamless omni-channel experiences that blend online and offline touchpoints. This trend underscores the need for companies to invest in robust e-commerce platforms and deliver personalized, convenient shopping experiences.
- Sustainability and Ethical Practices Sustainability has emerged as a core business strategy in the consumer health sector. Companies that prioritize eco-friendly practices and transparent supply chains are likely to gain consumer trust and loyalty. This shift towards sustainability is not just a trend but a fundamental change in how businesses operate, driven by consumer demand for ethical and responsible products.
- Strategic Mergers and Acquisitions While there has been a slowdown in large-scale mergers and acquisitions (M&A), tactical acquisitions focused on single brands with robust growth potential are on the rise. This strategic shift allows companies to enhance their market presence and drive value creation without the complexities of large-scale integrations.
Key Takeaways for Consumer Health Manufacturers
- Invest in Innovation: Continuous investment in research and development is crucial. Focus on developing innovative solutions that address unmet clinical needs and improve consumer health outcomes. Embrace Rx-to-OTC switches and leverage innovative technologies to stay ahead of the competition.
- Leverage Digital and AI Technologies: Integrate digital health solutions and AI into your business model. These technologies can enhance product development, streamline operations, and provide personalized consumer experiences. Investing in digital transformation will be key to maintaining a competitive edge.
- Prioritize Sustainability: Adopt sustainable practices across your supply chain and product offerings. Consumers are increasingly valuing eco-friendly and ethically produced products. Building a reputation for sustainability can enhance brand loyalty and attract a broader consumer base.
Conclusion
As we look ahead to 2025, the consumer health market is on the cusp of significant growth, driven by innovation, digital transformation, and a focus on sustainability. Companies that can adeptly navigate these trends and leverage emerging opportunities will be well-positioned to thrive in this evolving landscape.
For more insights on how to navigate the consumer health market and leverage growth opportunities, contact the IQVIA Consumer Health team today using the ‘Contact Us’ button on your screen.
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