Key Trends and Opportunities in the Consumer Health Market for 2025

As 2025 approaches, the consumer health industry is anticipated to undergo significant changes, influenced by economic shifts, advanced technology and changing consumer preferences. This article explores key trends and opportunities expected in the upcoming year.

Why the Consumer Health Market is Changing in 2025?

Despite economic difficulties, the consumer health market has shown resilience, with certain categories such as digestive health and skincare have continued to thrive. Global economic conditions indicate stability, as inflation (which peaked in 2023) is now declining, this economic stability will influence consumer confidence and purchasing habits, with direct implications for the consumer health market.

Regionally, markets in Europe and America have shown stronger growth in OTC products compared to the global average. Meanwhile, the UK’s focus on sustainability is changing purchasing habits, creating opportunities for companies who prioritise ethical practices. For more on market trends, visit our Zenopa consumer health news page.

What are the Growth Opportunities in 2025?

1. E-commerce and Omnichannel

With 73% of consumers using multiple channels for health purchases, omnichannel experiences are a must. Companies like Boots in the UK have developed advanced e-commerce systems, making it easier for consumers to transition between online and in-store purchases.

Katie’s Insight: Investing in predictive analytics and personalisation tools can further refine these experiences, especially in markets like the US, where convenience often outweighs cost.

2. Digital Health and AI

AI and Digital Health have potential to transform this sector. AI in healthcare is expected to grow significantly, with a projected market value of $190.3 billion by 2025, growing at a CAGR of 42.1%. Companies like Babylon Health and Teladoc Health are already harnessing AI to provide personalised solutions, particularly in chronic disease management and preventive care. read our blog. 

3. Mergers and Acquisitions

Tactical acquisitions of brands with growth potential are rising, while large-scale M&A’s have halted. According to PwC’s 2023 Health Industry M&A Insights, the value of global mergers and acquisitions (M&A) in the healthcare sector exceeded $600 billion in 2022. For example, in 2023, Johnson & Johnson acquired Abiomed, enhancing its cardiovascular offerings. Similarly, GSK’s acquisition of Sierra Oncology aligns with its strategy to expand in specialised therapeutics.

4. Sustainability and Ethical Practices

A 2023 NielsenIQ report found that 73% of global consumers are willing to pay more for products that are sustainably sourced, and 81% consider sustainability to be important in their purchasing decisions. This growing customer desire for responsible products makes sustainability a core aspect of consumer health companies business strategies.

Katie’s Insight: Consumer demand for sustainable practices is now a baseline expectation. Companies that implement these values will gain loyalty, especially from younger demographics.

5. Rx-to-OTC Transitions and Innovation

The global Rx-to-OTC market is set to grow at a CAGR of 8.7%, driven by changes in drug formulation and accessibility. In 2023, Advil Dual Action transitioned successfully to OTC in the US, showcasing how regulatory control can unlock market opportunities.

How Companies Can Take Advantage of These Trends?

• Investment in research and development to meet unmet customer needs, particularly in OTC wellness categories.
• Use AI capabilities and digital health technologies to personalise and streamline consumer interactions.
• Focus on using ethical and sustainable practices, such as recyclable packaging and fairtrade sourcing.

Conclusion: Navigating the Future of Consumer Health

As 2025 draws nearer, the consumer health market is expected to grow through technological innovation, sustainability, and an understanding of consumer behaviours. By aligning with these trends, companies can stay competitive, foster loyalty, and drive long-term growth.

For further guidance on these opportunities or recruitment solutions to fill your expanding consumer health teams and drive innovation, get in contact with the Zenopa Consumer Health team today.