ECOMMERCE HEALTH & WELLNESS - Spotlight - 1010data
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June 2021 ECOMMERCE HEALTH & WELLNESS Spotlight 75% Increase in Online Over-The-Counter (OTC) Health Product Sales 2020 witnessed a radical redefinition of “self-care” as consumers put a greater priority on health and well-being both to prevent contracting coronavirus and to reduce its harmful effects, should they contract it. This Health & Wellness Spotlight provides further insight to the online growth trends in over-the-counter product sales in 2020. eCommerce Data Although 1010data utilizes multiple panels that track millions of panelists, 1010data is projecting up to the total U.S. population. Panel-based projections are not intended to perfectly correlate to actual sales on an absolute dollar sales basis. The strength of 1010data’s ecommerce data lies in share performance and trends over time. Source: 1010data Market Intelligence eCommerce Panel Year-Over-Year Growth from 2019 to 2020
A TALE OF TWO CHANNELS Online Growth Sees an Explosion in Over-The-Counter (OTC) Pharmaceutical Sales There has been a dramatic shift in buying habits for OTC pharmaceuticals given the pandemic’s impact – showcasing the importance of having channel specific marketing strategies tailored to both the online and offline shopper. Total year-over-year OTC sales decreased 3%,* while online sales grew 75%.** Cough & Cold is the largest OTC category with 45% share* of total 2020 sales; however, online only, vitamins & Supplements account for 73% of OTC sales, growing 68% year-over-year. 2020 OTC Top Performing Categories #1 Cough & Cold Vitamins & Supplements For Total In-Store and Online Sales For Total ONLINE ONLY Sales *According to Statista’s Industry Sales Estimates **According to the 1010data eCommerce Suite for OTC Health Products Sold What is the OTC eCommerce Customer Buying? Vitamins have one of the highest online purchase adoption rates, but this level of growth indicates new online shoppers have joined this trend given the pandemic’s impact. While demand for Cough and Cold also increased significantly within our panel, online buying limitations impact its total performance giving it a rank of only #6 in total online category share. 2020 OTC Online Category Year-Over-Year Growth 200% 164% 150% 143% 131% 108% 100% 68% 58% 50% 0% Vitamins & Probiotics Allergy Relief Sleep Aids Pain Relief Cough & Cold Supplements #1 #2 #3 #4 #5 #6 2020 Market Share Rank Order 1010data eCommerce Suite - YoY Growth From 2019 to 2020 for Health-Centric Products 20Copyright © witnesda0rcrl0lclcfioao0f“n-e”“u0mm 2021 1010data Services LLC. All p0gyy0nesdau0n“u“n-“fip rights reserved.
AND THE WINNERS ARE… The Amazon Effect Amazon even managed to take some of its own market share in 2020 shifting buyers from purchasing items via their 3rd party vendors to re-ordering automatically through their subscription-based service. Amazon Subscribe and Save achieved 133% year-over-year OTC growth and gained 3.5 share points, creating higher long-term value for Amazon given the stickiness of subscribers. 2020 Share Point Change by Merchant for Online OTC Health Spend 4% 3% 3.5 2% 1.7 1.2 1.3 1.0 1% 0.5 -7.7 -0.9 -0.3 -0.3 -0.2 -0.2 0 0.1 0.1 0.2 0% -1% -2% -3% -4% -5% -6% -7% -8% amazon.com – market vitacost.com vitaminshoppe.com gnc.com iherb.com bodybuilding.com amazon.com - direct heb.com ulta.com sansclub.com costco.com target.com walmart.com - pickup + delivery instacart.com walmart.com amazon.com – subscription The Convenience of Instacart Instacart’s OTC sales grew 395%, the highest of any merchant we track. These merchant’s OTC efforts were boosted by consumers including OTC purchases alongside their grocery orders. 2020 OTC Health Merchant Year-Over-Year Online Growth 400% 395% 350% 304% 300% 250% 240% 200% 196% 170% 177% 150% 133% 143% 144% 100% 101% 75% 80% 67% 50% 48% 28% 32% 14% 0% -24% -12% -11% -50% gnc.com bodybuilding.com peapod.com vitacost.com iherb.com vitaminshoppe.com amazon.com – market shoprite.com amazon.com – direct shipt.com sephora.com amazon.com – subscription heb.com costco.com samsclub.com walmart.com – pickup + delivery ulta.com target.com walmart.com instacart.com Source:1010data eCommerce Suite - YoY Growth From 2019 to 2020 for Health-Centric Products 20 witnesda0rcrl0lclcfioao0f“n-e”“u0mm p0gyy0nesdau0n“u“n-“fip
THE POWER COUPLE: & About That Curbside Delivery… As we noted in our State of Grocery Report, Costco’s partnership with Instacart paid off in a big way in 2020, earning them the spot for top performer within our Instacart OTC health sellers data panel as well, owning 31% of seller share. 2020 Top 10 Instacart OTC Health Sellers - eCommerce Panel Data Market Share 35% 30% 25% 20% 31% 15% 13% 9% 10% 6% 4% 5% 3% 3% 2% 2% 2% 0% Costco Publix CVS Sprouts Kroger Safeway BJ’s Sam’s Wegmans H-E-B Pharmacy® Farmers Wholesale Club Market Club Taking a closer look at OTC health brands sold via Instacart in 2020, Costco’s private label Kirkland Signature is the top brand sold by Instacart. 2020 Top 10 Instacart OTC Health Brands - eCommerce Panel Data Market Share 12% 10% 8% 6% 11% 5% 5% 4% 4% 3% 3% 3% 3% 2% 2% 2% 0% Kirkland Nature Nature’s Zyrtec Advil Vitafusion Mucinex Claritin Airborne One A Day Signature Made Bounty Source: 1010data eCommerce Suite - YoY Growth From 2019 to 2020 for Health-Centric Products By offering a more diversified product portfolio and same-day delivery alongside grocery, Costco’s Kirkland brand share is more than double that of its next closest competitor. 42% 1% Sleep Aids Supplements 17% Allergy 28% 12% Vitamins Pain Relief Source: 1010data eCommerce Suite - 2020 Share of Kirkland Signature OTC Health Product Types Sold Via Instacart © Copyright 2021S#S1 A TLEOFWCHN 1010data Services 1#1#23N3 LLC. AllRRT… 45F6WD5I rightsinn reserved. FWCHNI F5I5F652…
THE SEARCH CONTINUES Consumers Expand Their View of Wellness During the pandemic, consumers took a much more proactive approach to their health. This lead them to rely on media (news and social), friends and family, and product descriptions and reviews to proper preventative self-remedies, many of which can be indicated below based on the top populated search terms by category. Growth for Health Category Items That Call Out Specific Terms Via Consumer Online Searches SEARCH TERMS HOLISTIC MEDICINE Item descriptions that contain: All items that reference: Elderberry 231% Mushrooms 49% Probiotic 62% Chaga 116% Melatonin 102% Lion’s Mane 71% Zinc 172% CBD 118% Tylenol 333% Turmeric 16% Mucinex 194% Charcoal 24% Ibuprofen 115% Apple Cider Vinegar 265% Women 67% Nootropics (Brain Supplements) 57% Ashwagandha 54% SPECIFIC LETTER VITAMINS PRODUCT BENEFIT Item descriptions that calls out: Item descriptions that contain: Vitamin A 72% Sleep 78% Vitamin B 104% Immunity 216% Vitamin C 147% Energy 45% Vitamin D 110% Vegan 86% Vitamin E 88% Calming 79% Gummy/Gummies 166% What Did They Buy? Top Search Terms Leading to Add to Cart As loyal as many consumers became to their retailer of choice for OTC products, Probiotics the majority were not as loyal when it Vitamin C came to seeking out specific product brands they wanted to purchase. In fact, Vitamin D Tylenol and Mucinex were the only brands Melatonin that populated within the top 10 search terms that lead to OTC items being Zinc added to a shopper’s cart. Tylenol Mucinex Elderberry Gummies Ibuprofen Probiotics for Women Source: 1010data eCommerce Suite - YoY Growth From 2019 to 2020 for Health-Centric Products © Copyright 2021S#S1 A TLEOFWCHN 1010data Services 1#1#23N3 LLC. AllRRT… 45F6WD5I rightsinn reserved. FWCHNI F5I5F652…
WHICH MANUFACTURERS WERE IN THE RIGHT PLACE AT THE RIGHT TIME? Exclusive & Private Label Brands Are On The Rise Walmart’s private label and exclusive brands performed exceptionally well during this period, achieving the 234% year-over-year sales growth thanks in particular to the success of in-house brands Equate, Spring Valley and Parent’s Choice. 2020 Top OTC Health Manufacturer Year-Over-Year Online Growth 250% 234% 200% 183% 155% 150% 139% 124% 113% 100% 85% 83% 67% 50% 50% 0% Now The Garden GlaxoSmithKline Bayer Murdock Pharmavite Walmart Reckitt Procter & Foods Nature’s Of Life Madaus (private label & Benckiser Gambl exclusive brands) Bounty Co Breakout Success From Goli Nutrition Many brands achieved major sales growth in 2020, such as Goli Nutrition which launched the ‘world’s first’ apple cider vinegar gummy a few months prior to the pandemic and successfully maintained sales momentum throughout the year. 2020 Top Brands with Notable Year-Over-Year Online Growth In Order of 2020 Sales Volume 600% 500% 571% 400% 300% 331% 200% 260% 271% 229% 239% 204% 214% 215% 100% 0% Nature’s Goli Equate Spring Emergen-C Tylenol Airborne Up & Up Dr Emil Bounty Nutrition Valley Nutrition Source: 1010data eCommerce Suite - YoY Growth From 2019 to 2020 for Health-Centric Products A TLEOFWCHN S#S1 1#1#23N3 45F6WD5I RRT… inn FWCHNI F5I5F652…
ITY LOOP INFIN SE HA RC U OURNEY RJ P TO PE 1010DATA’S OP LO TH Y chase r LT OP PA Pu e- YA LO SH Pr ECOMMERCE SUITE M NC urc B E nt o f A H Po R RK M ase Consumers’ Online Decision Journey i IO ET AR V P A K TR H BE IGG h se a BUYER ch ER ur t- P Pos 2020 Apple Cider Vinegar (ACV) Gummies Industry Analysis Diving deeper into the 2020 growth for Goli Nutrition we saw which retailers are capitalizing on this growth, by what means, and how this new brand’s emergence has impacted the OTC industry. Below are top highlights we found: 2020 TOP NEW ACV 2020 TOP SEARCH TERMS CUSTOMERS - MERCHANTS 2020 ACV LESSON’S RELATED TO ACV GUMMIES SHOPPED LEARNED 1 Goli apple cider vinegar gummies Target.com – 45.6% 82% of Goli customers are new Top Item Switched From: 2 Goli Vitacost.com – 39.3% Natrol 5-HTP Top Supplements Switched From: 3 Apple cider vinegar gummies Walmart.com – 13.6% Elderberry & Magnesium At Target.com there is a positive 4 Goli gummies Vitaminshoppe.com – 1.4% affinity for Premier Protein and Goli gummies Goli’s marketing efforts have Bragg liquid ACV lost 14% of Target.com grew from 25% been extremely effective in its customer-base with 32% of market share for ACV gummies generating brand awareness and those customers switching to in 2019 to 60% in 2020. mindshare. Goli gummies Source: 1010data eCommerce Suite - YoY Growth From 2019 to 2020 for Health-Centric Products HOW CAN WE HELP YOU STAY AHEAD OF SHIFTING, ONLINE CONSUMER TRENDS? The statistics in this Health & Wellness Spotlight were generated by the 1010data eCommerce Suite, which offers access to our timely data updates across the broadest category coverage in the marketplace. Companies leverage our data intelligence solutions to better understand digital shopping behaviors and monitor brand performance within today’s online consumer journey from the path-to-purchase and beyond. Contact info@1010data.com for more information. eCommerce Data Although 1010data utilizes multiple panels that track millions of panelists, 1010data is projecting up to the total U.S. population. Panel-based projections are not intended to perfectly correlate to actual sales on an absolute dollar sales basis. The strength of 1010data’s ecommerce data lies in share performance and trends over time. Follow 1010data social media: © Copyright ECOMR 2021 1010data Services LLC. All rights reserved. HALT&CWNWSCSNSN75&5C%eHoAmerCccODCattCHALT&rCHereHoe7D
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