The revenue of the global sexual wellness market is expected to grow at a CAGR of over 8% during the period 2019-2025.
Digital marketplaces are growth catalysts
By 2025, the global sexual health market size is expected to reach $40 billion. Global markets are witnessing the digitization of sales strategies. Online strategies are one of the preferred modes for consumers to purchase sexual health products. In the United States, more than 25% of health products are sold through online channels, and Amazon is the most popular site. This trend is increasing not only in the United States but globally.
With the high penetration of the Internet, the availability of smartphones and laptops, and most importantly, the multitude of online platforms for customers to choose from, has dramatically increased. More and more consumers around the world are opting for digital and online purchasing models, a trend that is accelerating rapidly. A key reason behind the growth of online sales remains to maintain anonymity during the buying process and protect the privacy of consumers.
Demand for sexual health products is growing strongly from online retailers in countries such as the US, China, the UK, Japan, and Germany. In addition, the convenience of the Internet and the ease and comfort of purchasing sexual wellness products through online channels will allow for the growth of a large consumer base in developing countries.
In particular, the pandemic has had a different impact on the sexual health market. Condoms have seen a surge, while demand for other items has fallen temporarily. However, people around the world have come to rely on toys to meet their sexual needs, and the increased demand has caused severe supply disruptions around the world, forcing governments around the world to issue policies to promote safety with partners during lockdowns Sexual Advice. Under the influence of the Coronavirus epidemic, the sales form of offline stores had to change to online.
Although there is an increasing trend to sell these devices online, a large portion of sexual health product distribution is through sex specialty stores. During the forecast period, the annual growth rate of online sales will exceed 20%. The main reason is that online stores offer more options than retail stores. Additionally, more than 95% of online retailers offer sexual health supplements and products at discounted prices rather than the list prices that apply to sex specialty stores and other brick-and-mortar distribution channels.
Evolving target audience
In 2019, the sex toy market led the market with a share of over 57%, and countries such as the United States, China, and Japan have a high demand for sex toys. Historically, men have been the main customers, and as women gain sexual rights globally, this sexual health trend is shifting, and female users’ demand for shared sex toys and single-person sex toys is also growing.
In terms of gender, men accounted for more than 75% of the sexual health market in 2019, and this share is expected to drop to 73% by 2025 due to the increasing shift to women-centric products. Several products developed on the market are mainly aimed at men, and male customers tend to provide better opportunities for suppliers in the sexual health industry.
Condoms are considered one of the most effective ways to prevent STDs. As a result, governments, NGOs, and foundations around the world are involved in distributing condoms to individuals in several countries. Plus, they’re a low-cost alternative to birth control. This, coupled with innovations in condom design, has stimulated the global demand for condoms. In terms of volume, the male condom market accounted for nearly 99% of the sexual health market share in 2019.
Additionally, with more than 30.1 million men suffering from erectile dysfunction in the U.S. alone, the sexual lubricant market is facing a huge opportunity due to the demand for lubricants. Condoms and sexual sex toys such as Sex Dolls, Ass Masturbators, or Torso sex dolls are in high demand among male customers in the market.
Pay attention to the existing problems and opportunities for development
The global sexual health market share is currently increasing. A rapidly changing technology environment can adversely affect suppliers as customers expect constant innovation and upgrades. The market is moderately fragmented, with many sexual health brands offering products with more appropriate functionality and more user-friendly products.
In the international market, sexual health products are mainly sold through retail channels such as specialty stores, supermarkets, hypermarkets, mass-market players, pharmacies or pharmacies, and grocery stores. Manufacturers have been very focused on low-cost manufacturing processes, which has fueled price wars among suppliers. The market faces the threat of penetration of low-quality products.
China, Japan, South Korea, and India are the main users of gender health products in Asia. Demand is likely to increase during the forecast period in Thailand, Vietnam, Malaysia, and Indonesia due to rising quality of life and increasing acceptance of health products. Social norms are changing due to the global exposure of the internet and media.
Millennials are more inclined to change because they reflect on norms and traditions and make their own choices. There has been an increase in awareness and testing of sexual health products in the region. In addition, the consumer market in the Asian region, especially in Southeast Asian countries, will grow at an alarming rate due to the increased spending power of buyers in several countries. Advances in lifestyle coupled with rising consumer spending are likely to increase the penetration of these products in the Asian region during the forecast period.