Gut instinct can help Pharmacists navigate professional challenges, build relationships with customers, which products to stock or promote and understand their customers needs and this is no less effective when it comes to Optimising the ‘digestive health shelf’ alongside current insights into the digestive health market.
The OTC Digestive remedy market is one of the most stable health categories in Ireland and is generally considered to be emerging and growing.
Digestive Health is big business and one of consumers’ top health concerns. As of the latest available data the overall value of the digestive health market in Ireland is estimated to be growing reflecting global trends. The global digestive health market size was valued at $51.62 million USD in 2023 and is expected to grow at a compound annual growth rate of 8.3% from 2024- 2030.
Of the OTC classes by value; Digestion has a 12.7% share. The latest IQVIA data shows the digestive market has grown by 2.3%.
Several factors contributing to the emerging growth of the digestive market share;
- Increasing awareness of products and best treatment methods as people are more informed thanks to the internet
- Dietary changes- due to our fast-paced lives, obesity, stress and fast-food intake, many people lack fibre and make poor food choices
- Ageing population- as we have an ageing population and more experience health issues the demand for OTC products will continue to increase
- Holistic health trends – digestion is the cornerstone of overall health and keeping the gut in good stead boosts the body’s immunity
- Probiotics popularity – Probiotics and other health supplements are growing in popularity and will continue to grow in the market as people become more health conscious and focus on wellbeing and gut microbiome
- Innovation and new products – continued innovation in the field and development of new products and formulation will drive market growth and maintain customer interest.
- E- commerce – online Pharmacy is driving growth and consumers can access a wide range of digestive health products.
- Digital influencers- social media is becoming significant
- Resurgence of travel- leading to an increase in impulse sales of anti- diarrhoeal, motion sickness remedies and rehydration products.
- Sports enthusiasts – rehydration is becoming a buzz word and with a vast variety of products to choose from ORS to Electrosal.
- Pharmacists have noted an ever-increasing role in health maintenance of the gut as opposed to solely treatment.
Products in the Digestive Health Category
Brands that provide clear reliable information tend to gain consumer trust e.g.: Nexium is the leading PPI on the market and one of the top OTC medicines by sales volume in Ireland. PPIs are perceived as better for acid suppression and have taken over substitutes like the H2 blockers. Gaviscon is also a market leader having a 5% share of the OTC market and as OTC Pharma market is experiencing a growing demand for natural and health remedies Reckitt have innovatively launched ‘Gaviscon Natura’ to enter this group.
Products in the digestive health OTC market – PPIs, H2 blockers Anti-diarrhoeals, antispasmodics Laxatives, fibre supplements, Digestive enzymes, probiotics.
Shopper trends in the digestive health market highlight a growing interest in proactive health management and natural remedies. Focus on healthier lifestyles and well-being and Gut Health has resulted in Probiotics leading the way and helping the digestive health market to innovate and accelerate.
Probiotics are part of the wider digestive category which is the 4th largest OTC category as measured by IQVIA Consumer Health with sales of $18 billion globally. This category is expected to outperform the OTC market as a whole, with a forecasted CAGR of 7% from 2022-2025.
Probiotics are defined by IQVIA as OTC products that contain live micro-organisms either alone or in combination with other Ingredients. Probiotic is the most recognisable digestive Health supplement term, say New Nutrition Business, however there is vast variation within the probiotic sub-category that can make things about them hard to understand, including variations in strains, dosages and formats.
No health claims have been granted for ‘probiotics’ by the European Commission after evaluation by the European Food and Safety Agency. In most recent developments January 2023 France authorised the use of the word ‘probiotic’ on food supplement labels under specific conditions allowing the claim that they “contribute to the balance of the intestinal flora” if they contain a certain amount of live microorganisms.
A growing understanding of the importance of gut microbiome is expected to further boost product demand over the coming forecast period.
Probiotics do have limitations and the health microbiome market will be challenged by a balancing act between innovation and regulation.
Develop a Health Digestive Category smart
Regulation and disrupter’s; Regulation always restricts new products coming to the market and ever rising costs and inflation will also play a part. The last OTC product that was launched from Pom to P was Buscopan in 2021.
As the European market at large embraces a new wave of healthy lifestyles and gut health holistically, food products containing probiotics and prebiotics are widely accessible on supermarket shelves and as consumers are more adept with knowledge a cohort will focus on health prevention and maintenance via daily diet.
Negating this is the growing number of the elderly population and their health concerns and an increased demand for supply of digestive OTC products.
Prevalence of obesity will drive sales of digestive OTC remedies. Despite the growing adoption of healthier dietary and lifestyle habits, Ireland has the not-so proud distinction of having the second highest rate of obesity in the EU.
As we see a continued shift of consumers eating in restaurants more frequently and breakfast and lunch to go, combined with urban lifestyles, we will inevitably experience an increased prevalence of symptoms of acid, gastrointestinal oesophageal reflux and this will support retail volume and current value of PPIs.
Influencers and media are indeed influencing the market by bringing ‘microbiome’ to the forefront and delivering gut health as playing a major role in chronic disease, boosting immunity and mood management.
These products are not always science based and with no proven records or regulation consumers will always search for reliability. Retailers are in a sweet spot to point toward the solutions that can help address specific issues but success hinges on being able to effectively communicate with customers.
Strengths of Pharmacy and keys to sale success;
Education and transparency. Pharmacists are-well regarded and trusted healthcare professionals are ideally placed to become influencers in their communities.
There is a real opportunity in educating your public, highlight the science consumers are interested in.
Marketing must convey the direct benefit to the consumer such as reduced gas, less discomfort, better stool regularity etc There is a gap for better and consistent outreach to consumers in terms of education.
Ensuring staff are knowledgeable on the products you stock is key. Staff potentially could become one of your most valuable assets and allies especially in the face of AI generation.
Staff training can take the form of simple webinars and bite sized nuggets of information.
Companies are also very supportive in this respect. Fact is consumers are motivated to learn more about their health and now the resources exist to do so.
Sales strategies:
Customer surveys are effective in learning about your local market and which products to stock as trends change. Expand and diversify your digestive health in store category to meet consumer needs. e.g. Offer a range of rehydration products they appeal to seasonal shoppers, runners and active families.
Christmas time maybe consider focusing on Gut-health and treatments for over-indulgence rather than gifts with low margins. Consider offering personalised consultations either in store or virtually where customers can discuss their digestive health concerns and receive tailored product recommendations.
Stock only well branded high quality products. OTC will always offer stability so merchandise well market leaders’, consumers know and trust these brands. Create window displays and present in-store offers. Loyalty cards are also an option to attract repeat customers especially for food supplements and Probiotics e.g. 6th purchase discounted for example.
The future will be interesting in the overall Digestive category market as it is likely the food sector will be the winners due to the ever-evolving Probiotic industry and their ever-increasing options for consumers.
Nonetheless Pharmacy holds a stable share and OTC trade cannot be threatened.
Future microbiome research and advancement in digestive supplements which will better address the underlying cause of digestive health issues is promising and will bring new products to the market.
E-Pharmacy promises robust growth prospects over the coming years. By combining the fruits of our labour with the strategic use of gut instinct, Pharmacists can continue to drive growth and maintain strong revenue streams in the competitive digestive health market.
References: Euromonitor | Others on request
Written by Michelle O’Hagan, Superintendent Pharmacist, Pharmacy Hub, Killinarden
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