As people are becoming more and more self-aware, there is a growing consumption of wellness-related products and consumers’ desire to control their health. According to a report by Sky Quest, global Consumer Healthcare Market size was valued at $281 billion in 2022 and is poised to grow from $302.36 billion in 2023 to $543.27 billion by 2031, growing at a CAGR of 7.60% during the forecast period (2024-2031).
The online distribution channel is set to become the fastest-growing segment in the global consumer healthcare market, fueled by the increasing penetration of the internet and the rising popularity of e-commerce, the report revealed.
Another report by Strait Research revealed that consumer healthcare companies are “encountering novel digital prospects across their value chains, encompassing the proliferation of electronic commerce platforms.” Companies like Abbott Laboratories, Johnson and Johnson Services Inc., Nestle S.A etc continue to contribute to the growing market.
In May 2023, Kenvue (erstwhile Johnson & Johnson Consumer Health) was listed on the New York Stock Exchange (NYSE) as a standalone consumer health company. Kenvue has three business segments including Essential Health (Johnson’s Baby, Stayfree), Self-Care (ORSL- Electrolyte drink, Benadryl) and Skin Health (Neutrogena, Clean & Clear). With iconic and diverse brands, it has played a role in millions of consumers’ daily care routines and rituals.
In an email interaction with Financial Express.com, Manish Anandani, Managing Director, Kenvue India talked about the company’s business and strategy to reshape the Indian consumer health industry, various emerging trends in the self-care space, product portfolio and more. Excerpt:
How has been the company’s journey so far after the split from Johnson & Johnson in 2023? How has the split affected its focus in markets like India?
The last year has been a transformational year for Kenvue as we became an independent consumer health company listed on the New York Stock Exchange. We are the world’s largest pure-play consumer health company by revenue, bringing a new view of care to the world. Standing at the intersection of healthcare and consumer goods, Kenvue has a global portfolio of iconic brands, operating in some of the most attractive categories in consumer health. While we are a new company, our brands have played a role in consumer’s everyday care routines for over 135 years. With our iconic brands, we reach about 1.2 billion consumers globally providing everyday care and at every stage of life.
As we aim to become the undisputed leader in consumer health by growing our share, we have three clear strategic priorities; to reach more consumers, reinvent our ways of working to invest more behind our brands, and foster a culture that rewards performance and impact. In this journey, India has become even more important and is priority for Kenvue given the country’s strong economic growth fundamentals and it being poised to become the third largest economy by 2027. The rise of ‘Many Indias’ with a growing urban and middle class with rising disposable income, nuclearization of families and an aspirational young population makes India an attractive market with a huge consumption opportunity. Within this, consumer health is an emerging trend with self-care and preventive health gaining popularity amongst consumers.
What are Kenvue’s strategic plan for business growth in markets like India? What are your key focus areas?
We are present in three key business segments, including Self Care enabling consumer to take the power of their health in own hands with brands like ORSL, Benadryl, secondly, Essential Health which aims to raise standards of personal care across baby care, oral care, and menstrual health with brands like Johnson’s Baby, Stayfree, Aveeno, Listerine, and thirdly, Skin Health and Beauty bringing together the next generation of science partnering with skin experts to create high-performance products for healthy skin with brands like Neutrogena, Clean & Clear and Aveeno. As Kenvue, we believe in choices versus prioritization. As part of our global growth strategy, we have chosen 15 priority brands.
In line with this strategy, we have made strategic choices for the Indian market where we feel we have an opportunity to grow, scale and meet unmet needs of consumers. For example, for Essential health, Johnson’s Baby, Stayfree and Listerine are priority brands, in the Self-Care segment we have ORSL, India’s No. 1 electrolyte drink brand amongst the global priority brands. In Skin Health and Beauty, which is an exciting space and is growing aggressively across all markets including India, we are focusing on Neutrogena and Aveeno to cater to the Indian audience who are looking for premium beauty and skin products.
We plan to accelerate investment behind our priority brands by enhancing consumer engagement, and amplifying innovation. We also aim to enhance consumer experience by enhancing store presence and prominence.
Premiumization is positively impacting the entire FMCG industry including consumer health and wellness industry. With consumers becoming more discerning and looking for high quality premium products, we see a strong opportunity for premium portfolio offerings becoming growth engines for entire portfolio. Kenvue in India is pivoting its portfolio to capitalize these opportunities to address unmet consumer needs with our science backed premium portfolio with brands like Neutrogena, Aveeno, Stayfree. The recent launch of Neutrogena Visible Repair range designed to address aging needs of consumers or premium offerings like Stayfree Secure Nights are some examples of our premium offerings.
How has the Consumer Health market evolved in India? What are the challenges that the industry continues to face?
The Indian consumer health market today stands at an exciting crossroad, witnessing exponential growth with a potential to become a big hub to address both domestic demand as well as address global needs in the coming years. Post-pandemic, Indian consumers are increasingly prioritizing preventive healthcare. There is noticeable uptick in consumers becoming more conscious about their health choices, focusing on self-care and aware about growing impact of non-communicable diseases (NCDs) in India. With growing focus on health and wellness, Kenvue is well positioned to seize these trends with our science-backed, doctor recommended products.
As of 2024, the global consumer healthcare market is valued at USD $700Bn+ (Source IQVIA 2024 report) and is growing steadily. While India’s contribution to the global industry is relatively small, given its size and growth potential, India is taking big strides and growing exponentially. Within this, the OTC Treatment and prevention, personal care, beauty and hygiene, nutrition and patient care are key areas for growth and expansion. Despite the growth opportunity, self-care penetration in India remains low presenting a significant challenge but an opportunity for us to bridge.
Self-care delivers the greatest value when consumers and patients have high health literacy, understand the value of prevention, and are empowered to make their own health decisions. In a country like India, health literacy and self-care awareness while growing is still in the nascent stage. To address this, significant efforts need to be focused on consumer awareness and education to improve health literacy, as well as better understanding of scientific claims and formulations to make more informed decisions. Additionally, we need to make consumer health and self-care more accessible to consumers across India. While we have seen a promising start with the rise of ecommerce and quick commerce platforms, there remains tremendous scope to further enhance distribution channels to ensure last mile delivery.
Could you share some insights on the emerging trends in the self-care space? How does India serve as an opportunity in this market? What are your plans to capitalize on this opportunity?
The self-care space in India offers tremendous opportunities. The pandemic has given a strong impetus to preventive care with consumers looking varied solutions, products and services. We are seeing a shift towards premium, customized health solutions tailored to consumers’ personal needs, particularly in urban centres. Earlier this year, we launched Neutrogena Skin360, an AI enabled platform that uses decades of Neutrogena science and breakthrough technology to assess skin and create a custom skincare routine that fits consumer’s needs. We have further scaled this technology at key offline beauty destinations to engage with consumer offline and help shape their skin health journey.
The second big trend we are observing is consumers are increasingly looking at expert backed and recommended products. In the health industry, doctors have always been one of the biggest influencers. The convergence of health and wellness has redefined the industry with healthcare professionals and derms in the skin health industry gaining currency.
At Kenvue, we are at the intersection of health and consumer brands, anchored in science to provide products which are doctor recommended. Our brand ORSL is a scientifically formulated electrolyte drink recommended by doctors to help patients to replenish electrolytes and provide energy to support holistic recovery during illness and depletion occasions. Over the last two decades, ORSL has been recognized by doctors and patients alike for fulfilling the hydration and energy needs during non-diarrheal illnesses. Again, for another brand like Aveeno, we are collaborating with India’s leading healthcare professionals across the country to strengthen awareness on better manage sensitive skin conditions like atopic dermatitis in babies and adults.
Thirdly, today consumers are becoming more conscious looking for transparency on product information including claims, ingredients, formulations and sustainability. To enable parents to make more informed decisions, last year, Johnson’s Baby introduced augmented reality (AR) innovation that allows mums to explore the 100% baby-safe ingredients in Johnson’s Baby products. By scanning the pack, parents could engage in a real-time interactive experience, learning about each ingredient and its role in our products.
Lastly, increased use of digital platforms for health advice and quick commerce access to health solutions with consumers seeking convenience is another emerging trend.
What are your upcoming plans for your product portfolio? Are you looking at focusing on special therapy areas or are you planning to explore new segments?
At Kenvue, we are excited about the growth potential of the Indian consumer health industry and what it means for our product portfolio with iconic brands. We are deeply committed to build and scale focus therapy areas through robust partnerships with healthcare professionals and industry. One such focus areas includes our pioneering efforts to advance the science around Fluids, electrolytes and energy (FEE). India recorded unprecedented 280 heat wave days in 2022, a 55% increase in deaths due to extreme heat in last 2 decades. UN has forecasted next five years to be hottest period ever making more people vulnerable to dehydration.
Conventionally, we associate dehydration with diarrhoea where there is visible loss of fluids. However, basis evaluation of published scientific literature, we have identified that dehydration may also be observed in non-diarrheal conditions like fever including tropical fevers, respiratory tract infections, heat illnesses, etc. In April 2024, Kenvue released a whitepaper titled Role of Oral Fluid Electrolytes & Energy in Non-Diarrheal Illnesses in Hospitalized Patients at APICON which aims to address challenges in oral FEE management in hospitalised patients and oral FEE as part of the core treatment for such patients. For brand ORSL, we are expanding our portfolio to identify other health conditions. Recently, we launched ORSL Immunity+, an innovative ready to serve electrolyte drink which helps in supporting the immune system of the body as well as address hydration needs. It is a blend of electrolytes along with immunonutrients like Zinc and Selenium. As an adjuvant, it helps support recovery for individuals with weakened immunity.
We also are committed to supporting healthcare professionals with the latest research to improve pediatric care especially for sensitive skin conditions. Given the increase in babies experiencing sensitive skin conditions, we are advancing science behind colloidal oatmeal as a powerful solution to address dry and sensitive skin in babies through varied educational initiatives. Additionally, with Aveeno Baby portfolio, we bring nourishing solutions to skincare so even the most sensitive skin feels soothed and moisturized. For example, Aveeno Baby Dermexa with its clinically proven formula moisturises and help soothes the baby’s skin in 16 seconds on an average.
In Skin Health and Beauty, we are focusing on educating consumers on various aspects of skin health including skin aging. Retinol is the number one dermatologist-recommended anti-aging cosmetic ingredient, however not all retinol products are created equal and can cause irritation. To educate consumers on the importance of using retinol in their anti-aging skincare regime, we have collaborated with leading dermatologists and skin influencers to educate consumers on how and when to start using it and which ingredients should retinol be paired with and much more. In women’s health, we are constantly innovating to address consumer emerging needs, with products like Stayfree Secure Nights and Stayfree Advanced XXL+.
