Subscription Economy to Be Worth Almost $1 Trillion by 2028
A new study by Juniper Research found that by 2028, subscription economy revenue will reach $996 billion, up from $593 billion in 2024; a substantial rise of 68%.
Displaying outdated website features and sparse social media adoption, two-thirds of U.S. over-the-counter (OTC) pharmaceutical brands fall below average in digital performance, according to Gartner. As a result, these brands fail to meet the expectations of the modern consumer and are subsequently falling behind private-label pharmaceutical brands.
The brands were measured across more than 1,200 data points against four critical dimensions: website and e-commerce, digital marketing, social media and mobile site. From these calculations, three brands were classified as Genius (Flonase, Vicks Dayquil and Nyquil, and Mucinex), 17 as Gifted, 18 as Average, 15 as Challenged and six as Feeble.
“A majority of U.S. OTC pharmaceutical brands are being overshadowed as more consumers are choosing to buy OTC medicine from private-label brands,“ said Chris Beland, vice president and sector lead at Gartner. “Such consumer trends have been reflected in the drastic increases in unit sales of private-label OTC products and have also inspired new participants in the private-label OTC space, including the entrance of Amazon’s Basic Care product lines early last year. In order to counter the threat of private labels, underperforming OTC brands must learn from the strategies employed by best-in-class brands.“
Private-label OTC products saw a 93% increase in average year-over-year unit sales across retailers, whereas pharmaceutical brand unit sales increased only 57%. Adding to the pressure, retailers show favoritism toward private-label brands in Google Shopping ads and search results on their respective platforms. Healthcare reference sites such as WebMD continue to enhance their services by assisting consumers in locating private-label OTC products offline and providing discounts, virtually replacing features traditionally offered by OTC brand sites.
Gartner research identified four key findings that U.S. pharmaceutical brands should keep in mind as they look for new ways to win over consumers: