U.S. health care evolving to become more personalized, consumer-focused, research finds
Coresight Research has released a new report titled, Market Navigator: U.S. Healthcare—Evolving To Become More Personalized and Consumer-Focused.
Coresight Research noted that according to the Centers for Medicare and Medicaid Services, the total personal healthcare expenditure for the U.S. market amounted to $3,704.0 billion in 2022 and is projected to reach $5,128.0 billion by 2028, meaning the market will see a 5.3% compound annual growth rate for 2018–2028,
Looking forward, the focus for the U.S. healthcare market will be on key trends that could impact the market’s future, including the potential for future pandemics, emerging advancements in healthcare technologies and the influence of the aging population, Coresight Research said.
The report also revealed the following:
• The U.S. healthcare market has remained very resilient in the post-pandemic years, with consumers spending a significant amount of their overall expenses on healthcare products. This demand is creating opportunities for many retailers, both large and small, across the healthcare market. As of 2023, CVS Health, UnitedHealth Group (via its OptumRx segment) and Walgreens Boots Alliance rank as the top retailers in the U.S. healthcare market.
[Read more: IQVIA's Long sizes up pharmacy trends in DSN webinar]
• Following the pandemic, as consumers began taking their health more seriously, many healthcare brands began to focus on developing innovative health products, from supplements to pharmaceuticals, to help consumers achieve their health goals and enhance their wellness. As of 2023, UnitedHealth Group, CVS Health and McKesson Corporation are the brand owners leading the U.S. healthcare market.
• According to a survey of 400 U.S. consumers conducted by Coresight Research, CVS, Walgreens Boots Alliance and Walmart (in that order) emerged as the most popular destinations among U.S. shoppers who shopped at drugstores or pharmacies over the three months prior to the survey.
• There are some factors, such as still-high inflation, that will likely remain major challenges for the healthcare and pharmacy market through 2024. Nevertheless, in the medium and long term, a variety of other factors, including better healthcare outcomes for patients and an increase in weight-loss drug prescriptions, will positively influence the sector.
• Based on our RESET framework, Coresight discusses key themes that it believes will help brands and retailers operating in the U.S. healthcare market respond to short-term consumer needs while securing longer-term success, including:
- The increase in chronic diseases in the US
- The aging population in the US
- Growing healthcare expenses
- An increased focus on preventative healthcare
- The opioid epidemic
- Increased convenience
- Accessibility and inclusion
- Sustainability
- The food-as-medicine trend
While spending on consumer health products in the U.S. remains high (compared to previous years), Coresight expects that the demand for health products will increase even further in 2024 and beyond. The increased demand will be driven primarily by prescription and over-the-counter medications, supplements and medical devices, and, to a lesser extent, fitness equipment, wellness wearables and skincare products. Consumers are now prioritizing everyday health products, and many of these products have become deeply entrenched in consumers’ daily routines, leading to sustained purchases.
The U.S. healthcare industry is undergoing a profound transformation, one characterized by a shift toward consumer-centricity, personalized health care and technology-enabled solutions. Amid this change, pharmacies and primary care centers are emerging as consumers’ preferred destinations for their healthcare concerns as retailers and healthcare providers leverage emerging technologies to offer personalized consultations, omnichannel services and precision medication at these destinations, Coresight said.
Overall, these trends reveal a U.S. healthcare market that is becoming more accessible, efficient and, perhaps most importantly, patient-focused.
[Read more: IQVIA’s Long offers view of pharmaceutical industry amid COVID pandemic]