Sexual Wellness Market in Europe - Industry Outlook and Forecast 2019-2024

INDUSTRY INSIGHTS

The Europe Sexual Wellness market size will be valued at USD 8 billion in 2025, growing at a CAGR of 8% during the forecast period

Europe sexual wellness market is witnessing strategic investment by small and mid-sized equity firms and other sources. These investments are expected to facilitate an enhanced customer engagement along with a more influx of vendors, thus boosting the market growth. Besides, various consumer and technology trends prevailing in the region are also improvising the market scenario. Further, countries such as the UK, Germany, France, Italy, and Spain are certain key growing countries driving the demand for sexual wellness products in Europe during the forecast period.

In addition, the entry of new digital platforms is expected to drive the demand for health and wellness products considerably, owing to a high internet and smartphone penetration. Several vendors are adopting online mediums to gain comprehensive visibility and increased profit margins. Further, advertisements and campaigns are expected to emerge as a key growth factor for the vendors of the European sexual wellness market.

The sexual wellness market is primarily observing a significant growth in focus toward women customers. Vendors are launching several female-centric toys, exotic lingerie, and condoms to attract female customers, considering the age and the need. Thus, the essence of realizing the urge to fulfill the desires of women tends to generate business opportunities for various vendors across the Europe sexual wellness market.

Further, diverse government initiatives for imparting quality sex education have led to an increased demand for sexual wellness products. Strategic consolidations adopted by vendors across countries coupled with the emergence of daring start-ups are one of the substantial factors facilitating the European sexual wellness market growth. Another crucial factor being looked upon by vendors is the long-standing untapped opportunity of serving women more comprehensively via gender-neutral tones, which is likely to contribute to the market growth. The Europe sexual wellness market is expected to grow at a CAGR of more than 6% during 2018−2024.

EUROPE SEXUAL WELLNESS MARKET SEGMENTATION

This market research report includes a detailed segmentation by

• Product
• Distribution channel
• End-users
• Geography

INSIGHTS BY PRODUCTS 

The growing awareness about sex toys is expected to help the industry to gain mainstream acceptance

The increasing demand for both shared and solo sex toys among end-users is a significant factor, which is contributing to the growth of the Europe sexual wellness market. To gain profit, the sex toy manufacturers and retailers are capitalizing on this growing interest by offering bundled products and “starter kits” for inquisitive customers. In addition, discrete packaging is also helping the industry to prosper, especially in developing economies.

The augmented demand by governments, NGOs, and foundations for distribution among several countries is a significant factor contributing to the increased demand for condoms. The segment is witnessing a boost likely due to improved branding by the manufacturers and appealing packaging. Further, vendors are introducing premium female condoms, which are expected to give momentum to the industry.

As end-users are opening up about their sexual preferences, the appetite for fashion-forward and exotic, sensual lingerie is increasing in the market. Young couples are emerging as the largest end-users of exotic lingerie. Besides, the evolution of BDSM and the emergence of online shopping websites are also playing a significant role in boosting the demand for sexual wellness products.

The demand for sexual lubricants has majorly been concentrated in Western European countries such as the UK, Germany, France, and Italy. Further, the acquisition of Johnson & Johnson’s K-Y brand by Reckitt Benckiser played a major role in the increased adoption of sexual lubricants, especially in the UK.

The demand for other products, which mainly consist of sexual enhancement supplements, is growing at a steady pace. The Europe sexual wellness market is also witnessing a proliferated demand for herbal products as they are free from any side-effects contrary to allopathic products.

INSIGHTS BY END-USER

The market is witnessing a gradual shift towards female-centric products

The male end-users segment occupied the largest share in 2018. Condoms and sex toys are observing huge demand by male customers in the market. Condoms are witnessing high demand and generating high revenues owing to a wide range, easy availability, and competitive prices. Further, vendors are considering free-spots (free to use condoms) to promote the sale of free condoms which tend to reduce their scope for pushing the branded condoms up for sale. Thus, the increasing likeness of males toward sexual wellness products and vendors initiatives are expected to drive the Europe sexual wellness market during the forecast period.

The market is witnessing a shift due to the increased introduction of women's sexual products. For instance, female condoms, vibrators, dildos are gaining traction in the market. Thus, the increased demand for innovative products is attracting new start-ups to enter the industry as well. Start-ups such as Nuelle, B-wom, Damivia, and Sustain have evolved significantly, thereby contributing to the growth of the market for females. For instance, Nuelle garnered more than $23.05 million from investors to deliver sexual wellness products aimed at enhancing women’s health.

INSIGHTS BY DISTRIBUTION CHANNELS

Offline stores dominate the market, online platforms to gain profits

Sexual wellness products are primarily sold through retail channels such as specialty stores, supermarkets, hypermarkets, etc. The entry of leading condom manufacturers with decade-old established retail presence has increased the sale of sex toys and lubricants through retail stores. Besides, product manufacturers harness sex specialty stores and supermarkets due to personalized customer services, which are giving momentum to the offline retail market.

Further, the growth in online sales is set to increase by over 20% YOY during the forecast period. The reasons can be attributed that they offer a variety of options to choose from at discounted prices than retail stores. In addition, the online channel offers product bundles at a lower price and enables potential consumers to have a look at reviews which the brick-and-mortar formats lack.

INSIGHTS BY GEOGRAPHY

Innovative manufacturing and emphasis on customized designs are likely to contribute to the market growth

The arrival of new technologies and innovations in manufacturing sex toys such as 3D printing and manufacturing of organic lubricants is driving the market in Germany. Due to an increased focus on quality, vendors are shifting the emphasis from mass-market products to custom designs and requirements. Further, effective product manufacturing and distribution are also likely to contribute to the growth of health and wellness products in Germany. In the UK, vendors and retailers are coming up with new strategies to garner interest and increased sales of sexual wellness products. Further, the increased adoption of sex toys among women is also contributing to the growth in the UK

The market in France, Italy, and Russia are growing at a healthy rate. Factors such as high penetration of vendors and an emerging audience for the sexual wellness products across these nations are the key factors for the substantial growth.  Also, key countries such as the Netherlands, Germany, and Austria are expected to remain crucial with regard to the economic growth of the region. For instance, net trade, private consumption, and investments along with government expenditure are set to boost the growth in the Netherlands.

The market in Sweden is expected to grow at a substantial CAGR close to 7% during the forecast period. The region is emerging as one of the promising markets for the sexual wellness product manufacturers, specifically regarding products such as sex toys. Further, the Czech Republic is significantly contributing to the market growth. The factors such as abundant media coverage for the popularity, presence of a sexually aware young population, and continuous innovation in the small market are driving the growth in the country.

KEY VENDOR ANALYSIS

Global vendors with huge infrastructure and R&D support are rapidly expanding their footprint in the Europe sexual wellness market. Thus, regional vendors find it increasingly difficult to compete in terms of reliability, technology, and price. Further, manufacturers are creating marketing strategies based on the durability of the equipment. The competitive environment is likely to intensify further with an increase in product/service extensions, technological innovations, and mergers and acquisitions.

The Europe sexual wellness market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments: