The sleep and stress category is no longer the boring industry it once was referred to. Today, stress and sleep are officially the fastest growing global food supplement category for the second year in a row. With the current socioeconomic climate and rising cost of living, it’s expected that many of us are having trouble sleeping and experiencing stress.
Written by Michelle O’Hagan, Superintendent Pharmacist, The Pharmacy Hub Tallaght
Historically, sleeping issues were not even discussed as it was identified as an age-related change in sleeping patterns. But in today’s society, it’s an ever-increasing issue in all ages and lifestyles, especially since the excessive use of screen time, busy lifestyles and work stress. Increased focus on mental health in recent years has resulted in this rising demand of supplements. According to Euromonitor stress and sleeping disorders like insomnia, central sleep apnoea and obstruction sleep apnoea have been in the top three consumer health concerns in recent years.
Overall Value of the Category
The category is flourishing and is not merely a fleeting trend. The last forecast by Euromonitor leaves us in no doubt with growth in the market at 14.5% in 2021, 14.9% in 2022, and 17.3% predicted in 2023. The pandemic induced sales increase of stress and sleep supplements have certainly sustained and there is no sign of plateauing as the market becomes more innovative and customer demand has soared across all age cohorts especially under 75 years. The global stress management treatments market should reach $20.6 billion by 2024 from $17.2 billion in 2019 at a compound annual growth rate (CAGR) of 3.7% for the forecast period of 2019 to 2024. The global stress management market has been segmented on the basis of mode of treatment, end user and age group.
The sleep aid market valued at $67.51 million in 2022 and is expected to grow in at a CAGR of 6.5% during the current forecast period.
Sleep and General Health of the Nation’s Impact on the Category
Stress and sleep are closely linked, and both can lead to chronic health conditions and mental health problems. Latest report in general health of the nation, shows a decrease in health of 4% from 2016 to 2021 in under 75 years of age. As a result, there is more focus now on well being and health of the nation. From the RedCResearch.ie, 53% report feeling stressed in the 18-35 age group. An increase in elderly population and density in Ireland has contributed to direct market growth.
In 2022, STaDa published a health report in which 37% of European countries said their stress levels worsened during the pandemic and 59% stated they experienced or felt close to burnout.
Consumer Behaviour / Shopper Trends
Consumers hold a relative share of influence within the industry (51%) and this is evident with the recent rise in innovation and technology. Shopper trends amongst the younger generation drive the industry forward. Nytol is the market leader clinically proven OTC sleep aid in Pharmacies and apart from Panadol Night, it’s the only Pharmacy licensed product available. We do have many other options to choose from when advising on the most appropriate products suitable for self-management of stress and insomnia, e.g., Valerian Root containing products like Kalm Night, FabU Relax, Rescue Remedy and the A.Vogel Stress and Sleep Range.
Other products Pharmacies can stock to extend their category include aroma therapy (e.g. lavender oil), CBD products, herbal teas, pillow sprays and scented candies.
In 2023 there are a lot of sleep aids that have sold well, top ten being:
1. Better Sleep Mattress
2. CBD products
3. Melatonin Infused Oil
4. Weighted Blanket
5. Herbal Teas
6. Headphones for Sleep
7. Sleep Earbuds
8. Deep Sleep Pillow Spray
9. White Noise Sound Machine
10. Essential Oil Diffuser
Many customers are excited by the latest trends in sleep and embracing non-medical options, driving this industry into the future. They include, Smart Bed, SleepCast (e.g., Headspace), Sleep Sensor, App Controlled Mattress Cooler and Contactless Sleep Tracker.
Online evidence shows two thirds of consumers prefer natural healthcare products as they want to avoid unpleasant side effects and get on with their busy lives. Pharmacists can aim to offer a holistic approach to stress management and sleep hygiene rather than solely referring the patient for a prescription medicine. User friendly formulations are growing popular, like increased demand for chewable and gummies and driving innovation in product development. Albeit slow, expect to see products being launched aimed for children. 30% affected by a childhood sleep disorder and only last year Holland Barret launched sleep gummies for kids.
Risks to the Category
Some people are hesitant to approach Pharmacies and instead choose to purchase online and this is potentially driving revenue away from Pharmacies. Pharmacists need to recognise their value in educating and informing their customers well. There is hesitancy for innovation in Pharmacy licensed products due to regulatory barriers along with increase in popularity in alternative solutions. Rising cost of bringing OTC products to the market and end sale of the product could potentially become an issue.
Is the Category Growing, Declining or Emerging?
The sleep and stress global economy has a current value estimated share of 5.2% of the market and this is significantly increasing year on year. The economy is more than what we know, i.e., prescription medicine, supplements, stress and sleep aids, includes ecommerce as having the edge in this growing market. Whilst Pharmacy business is competing with many new development and innovation it is clear we still have a percentage of the market and are in a key position to increase this OTC share value. Referring to the 1QVIA data report, quarter one 2023 demonstrates the growth in market share and value of the category in Pharmacy. As well as this current increase as shown in the Calm Sleep and Mood category, the vitamins and minerals section have grown 14% in value ad 6% in class and as the consumer looks for alternative sleep aid, this market is one we can capture our niche in.
Building a strong sleep and stress category is an opportunity in increasing Pharmacy revenue. Allocate space to extend your range, make sleep and stress products easy to find, monitor ongoing sales and keep abreast of trends in the market. Consumer request can vary considerably, so it’s important to know your customer base and stock your Pharmacy accordingly.
Pharmacy Strengths in Category
To grow a category, it is essential to understand mental health, stress, insomnia, and anxiety and how these causes can be prevented or best managed as we have the potential to make positive impact on our consumers’ wellbeing. Consumers need someone to talk to and Pharmacists can give the reassurance that they are not alone as many may feel. This Sleep and Stress category is one where massive impact may be made in conversation with a patient that can really help lift them and provide direction and support. Pharmacists have opportunities to showcase products in the Pharmacy and encourage consumers to evaluate their lifestyle and diet and play a key role in health promotion by offering OTC medicines and alternative remedies.
Technology
Evidence indicates customers are not happy with the amount of treatment choices and are looking for new solutions and turning to technology. Psychological dependence towards mobile phone use is causing sleep deprivation and increased stress and this association with mobile phone usage is reducing sleep quality and spins out into our work/life. Improving sleep habits by one hour from 6-7 hours can significantly impact the economy and a person overall health.Health experts warn society needs to get more sleep. Scientists, like Michael Gradisar, are joining software companies to ensure the industry remains as close as possible to the latest finds.
Identify Opportunities to Increase Revenue
Ironically, sleep is one of the most undervalued medicines in the world. We as healthcare professionals understand this well and encourage sleep as far as possible. In the busy world we live in today, 62% people suffer from sleep issues globally. 8 in 10 adults are actively looking for things to help them sleep.
The customer will come in already quite informed and it’s important for healthcare professionals that we have a good knowledge on all the products we sell in the category and to train our staff not only on the products but to recognise red flags. A customer may present with one product in mind and when you explore with further questioning, if this is the most appropriate product for the customer, you often find there is something more suitable to offer. Listen to your customer, hear the question as they may be anxious and need the support and confidence to start a conversation, and some may suggest they are experiencing anxiety, yet we need to consider that there may be an element of depression.
Community Pharmacies can provide a supportive environment to assess a patient, consider your approach of care. Of course, we would love the opportunity to sit the consultation and allow the patient to open, listen to them and discuss a self-management plan for them, however this is rarely possible in a busy community Pharmacy. Set up a simple step approach of products and referral pathway whether that be to other HCPs, GPs, or charities, e.g., Pieta House, Aware, or local counselling services, even social groups, as isolation plays a big part for some in growing anxiety. Direct your customers to reliable resources and have leaflets to hand.
What’s the Future of Sleep and Stress?
The value of growth may well be tempered by the increased willingness of the Irish consumers to explore alternative methods to improve the duration and quality of their sleep. Expect more premium products to come to the market.
References
TheGoodBody 2022 RedCResearch.ie
EuroMonitorInternational Pharmacy Pulse Quarter One 2023 / 1QVIA 2023 BCCResearch.com
