INDUSTRY REPORT
Health & Personal Care market resilience in Q2 2025
Q2 2025 data tells a story of resilience in the Health & Personal Care category despite economic challenges. The expected outcomes of rising prices and falling conversion haven't materialized. Instead, we see a more nuanced landscape where operational execution and cost management have become primary drivers of success.
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Key takeaways
- Inventory grew substantially while sales growth lagged: On-hand inventory increased 34.4% year-over-year in Q2, while sales grew only 2.6%, creating potential efficiency challenges
- Price sensitivity continues to reshape consumer behavior: Average selling prices declined 5.3% year-over-year in Q2 as consumers prioritize value and trade down to lower price points
- Operational excellence remains critical despite improvements: Despite fill rates reaching 18-month highs at 85.9%, revenue losses from out-of-stock issues increased 53%, indicating selective stockout problems on high-value items
- Traffic growth doesn't automatically translate to sales:Glance views increased 5% year-over-year, but without strong conversion strategies, this traffic isn't delivering proportional revenue growth
- Traffic growth doesn't automatically translate to sales: Glance views increased 5% year-over-year, but without strong conversion strategies, this traffic isn't delivering proportional revenue growth
- The advertising efficiency challenge persists: Increased advertising spending outpaced sales growth, creating ongoing return on ad spend (ROAS) challenges for brands in this category
