By Vanessa P. Ferreira, Consumer Health expert, and Emily May, Life Sciences Research Manager, Deloitte

As we have discussed in our Deloitte insight reports and blogs, there are transformative changes underway in health and wellbeing, driven by empowered, connected, and informed consumers taking preventive actions while demanding better diagnoses, early detection, and targeted solutions. This shift, coupled with technology advancements and new market entrants, signifies a revolution disrupting the health ecosystem. In our first blog, Powering the consumer health revolution, we shared learnings from our recent panel session, including the opportunities to seize, and the challenges to navigate, in this dynamic environment. In this new blog, we explore the provocations from Claire Wright, leader of Deloitte’s retail and consumer packaged goods (CPG) practice and Alex Curry, Consumer Strategy Partner at Deloitte, on the need to evolve the consumer health operating model to better serve the emerging consumer needs.

The rise of the empowered health consumer

The combination of societal changes and technology advances has led to the emergence of a more empowered consumer – more connected, informed, and demanding than ever before. This necessitates a shift in the consumer health industry operating and business model, driven by five key dynamics:

• Increased self-monitoring: beyond simple tracking and testing, consumers are reflecting a fundamental shift towards proactive health and well-being management. Wearables provide continuous data streams for informed lifestyle choices, and home testing enables early detection and intervention. Together, they empower personalised, consumer-driven health management.
• The information revolution: the changing role of pharmacists, the abundance of online health information, and the influence of health and wellness influencers all contribute to a more informed - yet potentially overwhelmed - consumer. These information channels require careful curation and navigation, to ensure a better consumer experience.
• Targeted solutions and services: the demand for personalisation is driving the development of tailored solutions for specific demographic groups, health conditions and life stages, such as mothers and babies, individuals managing specific ailments, or individuals pursuing a holistic approach to wellness. While some tailored products lack evidential data, there is increased focus on the development of products and services that deliver trusted, quantifiable benefits (underpinned by a reliable evidence base). Striking the right balance of regulations for new solutions and services will be key.
• Untapped potential in key areas: migraine, menopause, mental health, sleep, reproduction and ageing represent areas with significant potential for consumer health solutions. Targeting these unmet needs can reduce workplace absenteeism, improve quality of life, and destigmatise these often-overlooked health concerns.
• Health equity: ensuring equitable access to self-care resources is paramount. Addressing affordability barriers, providing culturally competent healthcare, and bridging the digital divide are crucial to mitigating these inequalities.

CPG perspectives: meeting the demands of a new era

Developing strategies in this dynamic environment can be daunting for companies that, until recently, operated under a model more closely aligned with the traditional pharmaceutical approach which prioritises healthcare professionals as key demand drivers. While medical experts still remain an important influence, consumer health companies need to further sharpen their capabilities to connect directly with the retailers, and consumers. At our event, Claire Wright and Alex Curry, building on their CPG experience, highlighted several key provocations:

• balancing brand and evidence-based marketing
• agile demand creation in a dynamic market
• building strong retail partnerships
• developing and scaling critical capabilities.

Balancing brand and evidence-based marketing

The rise of data-driven marketing, powered by AI and machine learning, presents a unique challenge for consumer health companies: balancing the need for evidence-based strategies with the enduring power and emotional connection that strong brands create. While a reliance on external marketing agencies has been common for CPG and consumer health, there is a marked shift towards more internal brand building and digital-driven content creation. This involves strategically leveraging external agencies while simultaneously developing compelling brand narratives and emotional connections in-house. In a crowded consumer health market, the winners will be those that best leverage technology to develop a close understanding of consumer needs, to then create stronger brands which differentiate, build trust, and convey reliability to discerning consumers.

Agile demand creation in a dynamic market

In today’s dynamic market, traditional linear marketing is no longer effective. Consumer health companies need to adopt agile and responsive approaches, adapting to the multiple ways in which consumers now access and absorb information. A future-ready model requires targeted consumer engagement, personalised experiences like immersive metaverse interactions, sophisticated AI-powered chatbots and omnilingual digital health technology.

Centralising core operational processes is key to freeing up capacity for these new approaches, and more virtual and in-person community engagement to understand consumer needs. Building in-house teams with expertise in community management, social media marketing, and trade marketing is critical to connect and maintain brand engagement across the different points of contact (social media, AI-enabled consumer portals and in-store). Cross-functional ‘demand creation squads’ combine the capabilities needed to respond rapidly to market trends and consumer insights. Crucially, automating and centralising non-core marketing processes frees up resources for targeted, in-market demand creation.

Building strong retailer relationships

Consumer health companies need to reimagine their retail partnerships (i.e. physical and virtual retailers, including supermarkets and pharmacies).  This involves investing in the skills and capabilities to build strong strategic alliances, recognising them as crucial partners for consumer engagement. Rather than seeing retailers as simply a distribution channel, retailers are increasingly viewed as collaborators in capturing data and developing differentiated category insights.  For example, optimising trade and information interactions with a diverse national network of pharmacists is a critical success factor.

Retailers’ insights can inform targeted product development, assortment and placement strategies, and can help steer investment to retail initiatives that drive greatest growth and enhance the in-store experience. Close collaboration on merchandising, shelf placement, and promotions is essential. Value-adding services like training programmes, category management support, and data analytics and insights can foster deeper, more ‘sticky’ relationships with retail partners. Data-sharing will also feed into product development programmes, enabling breakthroughs in emergent categories such as nutrition, sleep, menopause and mental well-being.

Developing and scaling critical capabilities

Successfully navigating the consumer health revolution requires a fundamental shift in organisational capabilities. Consumer health companies need to define a clear operating model that balances global scale and efficiency with local market responsiveness. This involves establishing centres of excellence to drive capability building, share best practices, and ensure consistent execution. Standardised processes enabled by digital and AI-based tools enable rapid scaling of successful initiatives. Centralising and standardising non-core processes reduces complexity and improves efficiency, but where necessary local teams should be empowered to adapt global strategies to their specific markets with local accountability maintained.

Conclusion

The consumer health revolution is not just a shift; it's a fundamental reshaping of the industry. To thrive, companies need to embrace change, prioritising agile strategies, strong retail partnerships, and a consumer-centric approach, while leveraging advanced digital tools and IT infrastructure. The future of consumer health belongs to those who can adapt, innovate, and build trust with empowered retailers and consumers alike in this dynamic and ever-evolving market.

Vanessa Ferreira, Consumer Health expert, Deloitte Consulting

Vanessa is a Commercial Strategy and M&A specialist with experience in driving change and growth both in professional services and in line management. Vanessa has depth of expertise in Consumer Health, in the industry for over 15years across multiple geographies. She has a proven track record of planning and executing strategic change, and her unique strategy ‘in-action’ experience on revenue growth and commercial functions is unique.

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Emily May, Research Manager, Centre for Health Solutions

Emily is a manager in the Centre for Health Solutions where she applies her background in both scientific research and pharmaceutical analytics to produce supported insights for the Life Sciences and Healthcare practice. Emily leads the research and publication of the life sciences insights, performing thorough analysis to find solutions for the challenges impacting the industry and generating predictions for the future. Prior to joining the centre, Emily worked as an Analytical Scientist conducting physical chemistry analysis on early stage drug compounds and previously lived in Antwerp, Belgium where she researched and developed water-based adhesive films.

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