UPS Market Vision May - Healthcare | Page 11

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Healthcare & Personal Care:

E-Commerce Trends

Trends: Online vs. In-Store

In 2016, the total value of the U.S. Health and Personal Care Market was $336 billion, with an annual sales growth estimated at 7% YOY (source). Amazon’s sales in this segment last year alone totaled $4.7B. However, the Healthcare industry as a whole has yet to take full advantage of e-commerce opportunities.

Reluctance, past consumer behavior, and the business’ perception of complex and expensive logistics are factors that have led the industry to lag behind other retail sectors online.

Projected 2020 Sales

*For US Health & Personal Care Products

Online:$40 B

In-store: $350 B

B2B Supply Chain Shift to Online

For Healthcare suppliers, e-commerce has been making inroads, driving down operational costs for many suppliers who have opted to transition to an online transactional system.

In 2015, 10-15% of the revenues in the Healthcare supplier sector come from eCommerce websites (source).

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