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

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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

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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

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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

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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

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                                                    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.

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ECOMR       2021 1010data Services LLC. All rights reserved.
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