Circana weighs in on U.S. consumer health care market's growth
The consumer healthcare sector in the United States is undergoing a dynamic transformation, with innovation and evolving consumer priorities driving remarkable growth and change. This finding comes from Circana’s latest report, The State of Consumer Healthcare.
The report found that the consumer healthcare market experienced above-average growth in 2024, expanding by 4%, compared to total retail growth of 2.4%.
Notably, the $103 billion category has been fueled by increasing consumer interest in proactive and holistic self-care solutions. Key drivers include nutritionals, personal care, and over-the-counter products, which collectively support growing wellness trends.
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Circana’s research highlights several meaningful and emerging trends shaping the industry's future:
- Intersection of Wellness and Beauty: Products that combine these aspects saw significant growth in 2024, reflecting consumer demand for solutions that enhance long-term well-being.
- Innovation in Nutritional Products:
- Developments in probiotics, collagen-based solutions and sustainable offerings demonstrate how brands are catering to diverse health needs while aligning with environmental priorities.
- Digital Engagement’s Influence:
- Online research will influence 70% of all healthcare product sales by 2027, emphasizing the need for brands to connect with consumers online through personalized and engaging strategies.
- Sustainability Leadership: Sustainability-marketed products are growing twice as fast as conventionally marketed alternatives, aligning with consumers’ expectations for products that are better for the planet.
"The state of consumer healthcare in 2025 reflects not only the remarkable progress we've made as an industry, but also our commitment to meeting consumers where they are,” said Kristin Hornberger, executive vice president and practice leader for Wellness, Beauty and Homecare at Circana. “By focusing on sustainable practices, digital transformation, and forward-thinking innovation, we ensure that healthcare solutions are as inclusive and dynamic as the consumers who rely on them.”
Despite macro headwinds such as rising costs and global economic uncertainty, the healthcare industry continues to demonstrate resilience and adaptability. Consumers are adopting a holistic approach to their well-being, and prioritizing mental health, stress reduction and better sleep as central components to their health routines.
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“The opportunities ahead are clear,” added Hornberger. “With proactive innovation at the intersection of wellness, beauty, and sustainability, the healthcare industry is positioned to thrive. But to succeed, companies must remain attuned to shifting consumer needs and consistently adapt to new market realities.”