Consumer commitment to self-care has skyrocketed over the past decade, and the effects of the COVID-19 pandemic further accelerated this shift. In fact, today, almost 70% of Americans prioritize taking action to support their health and wellness at least several days per wek.

Mindy Albuck

One of the largest historic drivers behind increased reliance on self-care is the rising cost of health care across the United States. According to KFF analysis of National Health Expenditure (NHE) data, health spending has increased over 31-fold in the past 40 years on a per capita basis, from $353 per person in 1970 to a whopping $11,582 in 2019.

Across CPG retail in 2020, health care’s sales growth of 16% outpaced that of the entire store. As consumer interest in health and wellness continues to rise, retailers and manufacturers have a huge opportunity to effectively position self-care products, including not only vitamins, supplements and over-the-counter medications but also food, beverage, home care and personal care products to shoppers.

Consumer Health and Wellness Needs are ­Multidimensional

Today’s consumers have varied and complex self-care needs that directly impact their purchasing decisions and the products they choose to use to address these needs. Many of today’s consumers have wellness goals that are largely focused on prevention and proactivity, and span not only physical health but also mental health. Some of the top health and wellness goals consumers are working to address include improving physical fitness and strength, weight management, strengthening the immune system, increasing energy, improving sleep, and reducing anxiety or stress.

Lynne Gillis

As consumers work to improve their mental, physical and emotional well-being, they have become increasingly open to trying new and innovative products. Many seek highly individualized solutions.

A Holistic Health Approach

Consumers desire self-care solutions that provide an overall, holistic foundation for wellness, extending far beyond traditional over-the-counter products. Preventative health care is top of mind for many consumers, especially post-pandemic. Many trends that were on the rise before the pandemic are expected to continue to grow. The mind-body connection, in particular, is extremely significant, and nearly all consumers agree that mental health is just as important as physical health.

In 2020, several key themes emerged and were strengthened throughout the year. The connection between hygiene and health was amplified, with tried-and-true products winning this category. Personal cleansing and hand sanitizer dollar sales rose 13% in 2020 versus 2019. Vitamins also took on an elevated role in consumers’ lives, with dollar sales rising 25% compared to 2019. More time spent at home due to lockdowns, work-from-home situations and online learning models led to an increased demand for household cleaning products, up 30%, and laundry products, up 12%, in 2020 versus 2019. With an estimated 50 million Americans affected by sleep-related issues, a desire for better sleep was also on the rise. According to total outlet purchase data in the U.S., sleep remedy dollar sales were up 25% in 2020 versus the year prior. Supplements designed to reduce stress outpaced already strong growth by herbal supplements by a factor of three to one in 2020 versus 2019. According to IRI’s recent self-care survey, consumers also made efforts to actively support their immunity in 2020, and 52% of Americans said that strengthening immunity was one of their primary goals.

Opportunities for Retailers and Manufacturers

The current market presents a crossroads of opportunity. In 2020, the average household spent an additional $55 on health care products, and maintaining this spend represents a $325 million opportunity this year.

The growing focus on health and wellness has created a space to connect with consumers and meet their needs in a way that elevates self-care to be an essential part of their daily lives. To fill this gap, retailers and manufacturers have the opportunity to consider what self-care comprises on a broader scale, including what types of products can enhance a consumer’s wellness journey across all categories.

Adopting a benefits-driven approach is key in providing consumers the information they seek to fulfill their multifaceted self-care needs and find individualized solutions that work. At IRI we understand that, and have developed an approach for not only understanding but enabling the specific targeting (messaging and media) of consumers based on those aspects that differentiate and drive how they approach wellness: what they think, what they need, what they buy and what holds them back. The ability to hone in on those consumer self-care targets with whom your brand resonates most — as well as those who offer the greatest growth opportunities — and those who are unlikely to be swayed, regardless of what actions are taken, exponentially elevates the precision with which you can create brand messages that resonate, deliver them impactfully and innovate against their most pressing needs. Truly, the greatest insights live at the intersections of consumer attitudes and behaviors.

Mindy Albuck is principal and health care team lead for market and shopper intelligence at IRI, and Lynne Gillis is principal for survey and segmentation practice at IRI.