It’s funny how easily we overlook the things that have become part of our everyday rituals – a vitamin with breakfast, a dab of retinol before bed, a paracetamol tucked into a desk drawer. Consumer healthcare and OTC products have slipped so naturally into our lives that few of us stop to think how quickly they have evolved, or how far they have drifted from their pharmaceutical roots. Yet behind those familiar bottles and tablets lies a market moving at real speed, as consumers begin to take more ownership of their health and wellbeing, and brands pivot to become more consumer centric. In recent years, this has led to the sector being valued at more than $362 billion, with that figure projected to double by 2034.
As momentum builds, the distinction between traditional pharmaceuticals and consumer healthcare has become more pronounced. Although both have a foundation in science, their business models are significantly different. Nick Sedgwick, CEO of Alliance Pharma told us: “In pharmaceuticals, you may be on a five or ten-year drug development timeline, but in consumer healthcare, we will have launched five new products that have gone from start to end in four months. In consumer-land, you have to be fast.”
Traditional pharmaceutical structures tend to prioritise compliance, process, and control, which can inadvertently slow innovation. “Unless you have the right mindset” Nick continues, “there will be processes scattered all over the business, slowing everything down.”
“In consumer-land, you have to be fast.” – Nick Sedgwick, CEO, Alliance Pharma
The need for this fast, agile mindset has shaped how consumer healthcare companies are hiring executive talent. The sector is increasingly recruiting from FMCG, ecommerce, and even prestige beauty, blending scientific rigour with commercial agility. As Colin Westcott-Pitt, Global Chief Brand Officer at Glanbia Performance Nutrition shared: “The best operators will increasingly be the ones who have had multi-category experiences. FMCG leaders typically offer a strategic and disciplined approach tailored to the retail landscape, while prestige and image-based leaders know how to create and sustain pricing power.” This convergence of science and storytelling has created a new kind of leadership DNA: one that combines the discipline of pharma with the creativity of consumer marketing. As Nick points out, it’s no longer enough to simply have scientific expertise; businesses need “great sales teams, external partners and brilliant marketeers who can unlock insights and tap into consumers to get them to purchase.”
The sector has also recently seen a wave of major spinoffs, most notably Haleon from GSK, Kenvue from J&J, and Opella from Sanofi. These carve outs have accelerated the trend towards consumer centricity, by giving greater strategic attention to brands that were previously part of much broader pharmaceutical portfolios. These businesses now have greater freedom to operate more entrepreneurially. Many organisations are actively hiring from outside the sector to complement existing capabilities and help them adapt to these new dynamics. Executive talent is of course playing a key role in driving these shifts, but these businesses are also bringing more commercial thinking onto their Boards, with Haleon and Opella appointing former Tesco CEO Sir Dave Lewis and ex P&G CEO David Taylor as their respective Chairs.
“FMCG leaders typically offer a strategic and disciplined approach tailored to the retail landscape, while prestige and image-based leaders know how to create and sustain pricing power.” – Colin Westcott-Pitt, Global Chief Brand Officer, Glanbia Performance Nutrition
Navigating the diverse international regulatory landscape is naturally critical to success in a global consumer healthcare business, and diverging regulation is creating a spectrum of challenges and opportunities.
In some markets such as Japan, regulators have accelerated the switch from prescription only drugs to OTC products, to help manage ageing populations and reduce the strain on healthcare systems, as part of a broader shift towards a more preventative approach for public health. This has attracted investment from domestic and international players, such as the $2.5 billion acquisition of health supplement manufacturer Fancl by Kirin Holdings, which is capitalising on the growth of the category by creating a new health sciences division to complement its existing alcohol and pharmaceutical business units.
However, in other markets, such as the USA, government intervention and resulting uncertainty is creating challenges for the sector. But this is not dampening consumer appetite or commercial ambitions, and vitamin gummy startup Grüns hit a $500m valuation with their Series B in April.
Carol-Ann Stewart, Regional President of Asia Pacific, Middle East, and Africa at Opella believes that “regulatory divergence is reshaping the industry’s ability to operate globally. Companies must adapt their strategies to local regulatory climates, which increasingly influence market access and growth potential.” For companies who have a presence across multiple regions, a one-size-fits-all strategy is no longer viable.
“In consumer healthcare, consumers typically value brands that have scientific credentials, have built up trust over time, and are the subject of recommendations by credible people.” – Carol-Ann Stewart, Regional President of Asia Pacific, Middle East, and Africa, Opella
But as the category expands, the field of competition is changing. Private label brands – once seen as budget options – have become the first choice for many consumers. Carol-Ann notes that “private label products are becoming an increasingly credible, shoppable option, meaning the branded players, like ourselves, must continue to innovate to lead”. Colin agrees, telling us that branded propositions must now prove why they are worth the higher price point: “In consumer healthcare, consumers typically value brands that have scientific credentials, have built up trust over time, and are the subject of recommendations by credible people such as doctors, pharmacists, and healthcare professionals.” Price gaps, he cautions, must be managed carefully; brands that allow too wide a difference between themselves and private label products risk losing the trust and loyalty that justify their premium.
Consumer experience is a key part of this as Colin explains: “If a consumer gets a certain level of experience in one category, they are likely to expect a similar experience in another.” The digitalisation of fitness and performance through wearables and apps has raised expectations around customisation and data access, and those expectations are now being carried into healthcare. Nick echoes this sentiment, saying that although regulatory changes are a challenge, it is the consumer experience that is critical to success. He says: “Away from regulatory restrictions or the scientific piece, it’s the dynamics of the consumer and what they understand as the value they receive for purchasing your product that matter.” In a category where functional differences between products can be minimal, brand trust, education, and experience are what drive conversion.
The consumer healthcare space is rapidly growing and transforming as consumers continue to prioritise health and wellness in an uncertain world. Our clients and candidates are experiencing the talent landscape dramatically evolving, and we look forward to seeing what the next few years hold for the sector. As Carol-Ann puts it, this is not simply an industry adapting to new rules – it’s one redefining the meaning of health, access, and value to the contemporary consumer.
