INDUSTRY REPORT
Health & Personal Care market resilience in Q3 2025
The data suggests Health & Personal Care brands face a challenging path forward: maintaining sales growth while managing compressed margins, escalating advertising costs and strategic inventory allocation to protect revenue from critical OOS events.
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Key takeaways
- Sales outpaced the market: OPS grew 13.9% YoY, driven by strong inventory positioning and improved fulfillment rates.
- Margins compressed despite volume gains: Unit margins fell 2.2% YoY as brands absorbed higher costs and increased Prime Day discounting.
- Advertising efficiency declined sharply: Ad spend rose 33% YoY while ROAS dropped 17.6%, reflecting intensified competition for share of voice.
- Traffic didn't convert: Despite a 22.4% increase in glance views, conversion rates declined 1.1% YoY, indicating weakened purchase intent.
- High-value OOS drove outsized revenue loss: Revenue lost to stockouts jumped 178% YoY, concentrated on premium SKUs despite lower overall OOS rates.
- Supply chain reliability improved: Fill rates reached 91% and inventory grew 25.8% YoY, enabling brands to meet increased demand.
