In Q4 2023, drug channel sales continued to lag the multioutlet market as consumers shopped value channels to save money. But consumer needs in women’s health, healthy aging, sexual health, gut health, and sleep all present opportunities for the channel to grow. This report follows up on trends identified in our previous analyses and examines how those trends compare to the broader multioutlet and convenience channel landscapes.

Highlights:

1. Drug channel dollar sales declined 5.7% in Q4 2023.

2. Average price inflation increased in the health and beauty departments, which accounted for 65% of total dollar sales in the drug channel.

3. Private label sales declined compared to the previous year across most departments.

4. The drug channel must capitalize on over-the-counter releases, as the channel dominates sales for the first few months after a product launch.

5. The Opill will become the most effective over-the-counter birth control. It will be available in U.S. stores in early April 2024.