Digital channels as the new infrastructure for health
The market structure is changing noticeably. Drugstore chains like dm are preparing to enter the OTC mail-order business. A step that blurs the traditional separation between pharmacies and drugstores. With digital consultation tools, QR-code-based ingredient explanations, and social-proof campaigns at the shelves, the classic sales conversation is increasingly shifting to mobile channels. Digital players like DocMorris and Shop-Apotheke are solidifying their roles as central access platforms, while gesund.de bridges the gap between online orders and local pharmacies. New collaborations are emerging in parallel: major drugstore chains are working with startups like dermanostic to integrate dermatological consultations and product recommendations directly into the sales floor – for a seamless experience across diagnosis, consultation, and purchase. All without media disruption: consumers now compare, review, and buy in real time, mostly via smartphone in-store. Beyond distribution, consumption patterns are also changing. Customers increasingly expect health products to be as easily accessible as cosmetics or fitness items. Simplicity, quick availability, and digital connectivity are simply expected.
Target group: Generation Z
Seventeen percent of spending on beauty and personal care products now comes from people under 30. Generation Z (Gen Z) – born between 1997 and 2012 – is fundamentally changing the health market. Around eleven million people in Germany belong to this age group. They grew up with digital technologies and are reshaping consumption behavior, communication, and health perceptions accordingly. For them, health is not a reactive issue but part of a holistic lifestyle. Gen Z consumes preventively, digitally, and value-oriented. Their focus on well-being and care goes far beyond aesthetics. This generation believes that true beauty is rooted in health, self-confidence, and emotional well-being. Gen Z consumers integrate dietary supplements and OTC products into their daily lives to enhance performance, improve sleep, reduce stress, or care for skin and hair. While older generations often use such products reactively, Gen Z uses them preventively and as part of their lifestyle.
Their consumption behavior is also digitally influenced. Purchase decisions rarely occur solely at the shelf. They are based on influencer recommendations, community feedback, and comparison platforms. Subscription models and personalized product packages resonate particularly well, as they combine good availability with a sense of individualization. At the same time, Gen Z is value-oriented and price-sensitive. They demand transparency in ingredients, sustainability in packaging and production, and authenticity in communication. High quality, good value for money, and affordable prices primarily influence purchasing behavior. Higher prices are only acceptable if justified by high quality and added value. Pure premiumization without justification, on the other hand, is rejected. As their purchasing power and financial independence grow, Gen Z will continue to shape the consumer health market with their unique preference patterns. Since they enjoy experimenting with different brands, building loyalty will be challenging for market participants. However, brands that offer proven product efficacy, transparency, and strong social media presence have a good chance of winning Gen Z over.
Social media as growth driver
Trends on social media can trigger new demand peaks within days. Nutrient powders or probiotics recently experienced viral surges via TikTok – with immediate impact on in-store sales. Retailers and manufacturers, therefore, must be able to respond flexibly to sudden shifts in demand without risking margins due to out-of-stock situations or overstock.
One such trend is fitness and performance orientation. Formats like the HYROX fitness event or CrossFit shape behavior and purchasing patterns: dietary supplements are often part of the competition preparation, not optional add-ons. Recovery supplements, immune boosters, and energy shots are standard in these communities. Analysis shows that hashtags like #SleepSupport, #Immunity, #GutHealth, and #GlowFromWithin are among the fastest-growing in the health segment, with over two billion views on TikTok. Manufacturers visible in such ecosystems benefit from accelerated diffusion into the mainstream – comparable to the rise of protein-rich or low-sugar products, which have expanded assortments by up to 80 percent in recent years.4
At the same time, the consumer health market is experiencing a strong convergence with beauty and lifestyle themes. Not only to consumers want to feel healthy, looking healthy is equally important. “Beauty from within” – i.e., skin, nail, and hair care via dietary supplements like collagen or hyaluronic acid – is gaining traction. Companies like Unilever recognize the growing demand for functional beauty and care products and invest in product innovations. Consumers increasingly seek products with functional added value – especially those formulated with natural ingredients, vitamin complexes, or targeted active ingredient combinations.5 Cosmetic brands leverage their credibility in beauty to launch new dietary supplement lines. Conversely, traditional pharma players are entering markets previously reserved for beauty companies with lifestyle-oriented dietary supplements.
These trends are complemented by health apps and wearables (e.g. smartwatches). Consumers track sleep quality, stress levels, or vital parameters and actively seek products that can improve their personal metrics. Some providers already link dietary supplements with app-supported nutrition and workout plans. This combination of data, prevention, and product creates a new level of customer loyalty – with high demands regarding data protection. However, it offers manufacturers and retailers the opportunity to enter into a continuous interaction with their consumers.
It becomes clear: consumer health is no longer driven solely by symptoms of illness but by routines, ideals, virtual communities, and digital services. The entire customer experience should be consistently data-driven. Instead of sporadic health campaigns, “always-on engagement” is of the essence: a continuous, personalized approach via apps, chatbots, and retail media channels along the entire customer journey. Manufacturers and retailers must recognize these trends early and integrate them into their strategies – those who fail to do so risk losing touch with a generation that has made health products a fixed part of their everyday lives.
The new success formula: fast, smart, authentic
For manufacturers of consumer health products, this means aligning their strategies along three dimensions: innovation, speed, and communication. Products must address preventive needs such as stress management, skin care, sleep quality, immune defense, and be available in everyday-friendly formats. Gummies, shots, or functional drinks appeal more to younger audiences than traditional tablets. Supply chains must be designed to bring innovations to market quickly and economically. The necessary flexibility in the network can be achieved through partnerships and contract manufacturers, beyond in-house production and distribution capacities.
A product portfolio that best reflects consumer needs is crucial for business success. Consumer goods companies are currently analyzing their portfolios particularly critically. Successful companies rely on a combination of organic growth through platform innovations and targeted acquisitions. This allows them to tap into not only high-growth brands but also new distribution channels, such as direct sales via social media. This strategy enables rapid access to new target groups and maximizes growth potential.
Moreover, how companies handle data determines success. Those offering consumer health to Gen Z must understand how purchasing decisions are made and which needs dominate their daily life. Data competence in this respect does not merely encompass market research, but the ability to consistently capture, link, and translate consumption, health, and interaction data into product and marketing decisions – while maintaining data protection. In brand management, lifestyle and scientific evidence must be combined. Credibility arises from clinical evidence and transparent communication, relevance from visual, digital engagement and community involvement. Manufacturers who combine both build trust and differentiate themselves in an increasingly competitive environment.
For that matter, AI agents can generate advantages in efficiency and effectiveness: in research and development, they support systematic evaluation of scientific studies and customer feedback to identify trends early and formulate substantiated claims. In the supply chain, they help forecast demand peaks (e.g., due to seasonal effects or viral trends) and dynamically adjust production planning. In commerce, they enable personalized recommendations that translate individual needs (e.g., “better sleep,” “clearer skin”) into evidence-based product suggestions – across channels and in compliance with regulations. For AI to create real added value, manufacturers need a new data strategy: consistent master data, clear taxonomies, and a well-thought-out governance model. Only then can speed, personalization, and compliance be harmonized. In this way, consumer health becomes part of a connected, digital health market. Recent calculations show: the market for digital and connected health is growing faster than all other segments.6