HRG reviews 1,875 new items in 2022
HRG’s new item review team, in its ongoing evaluation of products suitable for the independent pharmacy channel, examined 1,875 new health, beauty, and wellness items in 2022. This is a decrease of 15.8% from the 2,227 products reviewed in 2021, and it is the third consecutive year with a decrease in HBW launches. This three-year decline can be directly attributed to delayed introductions in some cases. In others, it is because of continued supply chain irregularities as the retail market continues to stabilize post-pandemic.
HRG analysts evaluate each HBW product launch using the company’s proprietary, weighted Star Rating System. In 2022, they awarded Stars to 196 of the products they predict to have the highest potential for future success and to drive profitability in independent pharmacies and beyond. In products on the shelves in store comparison, there were 198 starred products launched in 2021, so although manufacturers are launching fewer products overall, the percentage of starred items has increased. Because starred products offer maximum growth opportunities for retailers, distributors and manufacturers, they should be added to appropriate-sized departments without delay to capture sales and profits as they gain momentum in the marketplace.
[Read more: HRG awards Nature's Truth No. 1 in Independent Pharmacy two years running]
A breakdown of the 2022 HBW new item launches:
- Within the top five categories in independent pharmacy (cold & allergy, vitamins & dietary supplements, pain relief, diabetes management and digestive health), 564 new items were reviewed with nearly 17% awarded Stars;
- The wellness classification had more new product launches than the beauty segment, a change from 2021. Wellness items also garnered the highest quantity of Stars of the 2022 introductions—10.94% of products received Stars;
- The health classification had the largest percent of Stars awarded at nearly 18%; and
- The beauty classification experienced a decline in overall launches from 2021 by nearly 200 products, with 7.20% awarded HRG Stars.
A few of the trends detected by HRG's new HBW item analysis:
- The gummy form remains popular—37.5% of vitamin & dietary supplement items introduced were gummies, including those for immunity and sleep, among others;
- Multi-packs were launched in all product classifications in 2022 and spanned a dozen HBW categories. This is a trend HRG predicts will continue well into 2023 as consumers continue to seek value;
- Manufacturers continue to address sun safety in the beauty segment, introducing 42 sunscreens with SPF 50 or higher. Of those, nearly 31% earned an HRG Star Rating; and
- Popular scents in the beauty categories included lavender, rose, vanilla and watermelon.
Those interested in learning about the performance of a particular category or subcategory can contact HRG to conduct a data analysis of product performance and distribution across the drug channel down to the four-digit Fine Line (product type) or SKU level, depending on their particular needs and goals.
[Read more: HRG updates industry-standard Fine Line Classification system]