The sexual wellness market was valued at $28.66 and is forecasted to reach $45.05 billion by 2026, growing at a CAGR of 7.83% from 2021 to 2026. The shift to disassociate the stigma, taboo, and the label of pornography attached to the sexual wellness market and shift of these products to mainstream shelves is creating lucrative opportunities for vendors. There are lucrative revenue growth potentials, and many vendors are expected to enter the market during the forecast period, which is expected to make it highly consolidated. Online distribution channels are gaining traction in the industry, and the presence of online retailers such as Amazon, Alibaba, and eBay will increase the proliferation of these products in both developed and developing countries.
Social media campaigns and awareness initiatives will enable companies to widen their customer base and encourage them to launch new product portfolios in the mainstream market. Asia’s first-ever sexual wellness festival – Spark Fest, enabled new emerging brands to showcase their true potential and capitalize on revenue-generating opportunities created by institutional investors attending the event. Furthermore, various countries' government initiatives to supply condoms helped maintain the demand and supply momentum in the global sexual wellness market even during the coronavirus pandemic. In India, the Bihar Health Department, District of Columbia (DC) Department of Health HIV/AIDS, Hepatitis, STD, and TB Administration’s (HAHSTA), UNAIDS, New York City's Condom Availability Program (NYCAP), and Philadelphia Department of Public Health (PDPH) are examples of few such departments who distributed free condoms to create awareness among their populations.
- Male condoms accounted for over 99% of the global market. However, the female condom segment will witness a significant CAGR of over 25%.
- Few brands such as Durex are using creative promotional strategies such as advertising through the latest trends on Instagram, Twitter, and other media channels, influencer marketing, and innovative product launch to gain a larger sexual wellness market share.
- North America has a well-structured and developed system. The market in North America is expected to reach USD 10.50 billion by 2026.
- Some major players such as HBM Group and others have started focusing on their manufacturing capacity. This is expected to reduce the gap between demand and supply caused by the COVID-19 outbreak.
- In 2020, the sex toys segment led the market with a market share of 57.71%. Sex toys are witnessing a huge demand from countries such as the US, China, and Japan.
- Innovation in the distribution channels, the rise of e-commerce platforms, vending machines, and social media campaigns will enable vendors to widen their reach and ensure the scope of experimentation for their customer base.
- Chinese manufacturers will expand their presence in Europe and North America, which are likely to lead the price war among vendors, and the increased commoditization can also lead to low-quality products being manufactured in the market.
- The rising demand for B2B female condoms will lead to a drop in their per-unit cost. However, as vendors expand their presence in the retail market, the ASP per piece will increase during the forecast period.
- Pro-bono distribution of condoms in underprivileged geographies. For instance, HERO Condoms of Australia promises to distribute one condom-free in Africa for each purchase of its condom in Australia.
- There is an influx of new entrants in Brazil, Russia, India, Vietnam, the Philippines, and Mainland China sexual wellness market creating a price-based competitive scenario in these regions.
- Vendors can tie up with sex education and awareness campaigns to increase customer awareness and remove the taboo associated with these products in the global market.
Product: The sexual lubricant and exotic lingerie market segments are expected to post an incremental growth of USD 710 million and USD 960 million, respectively, by 2026. Innovation in condom designs has fueled the demand for condoms across the globe. The condoms segment is likely to account for a market share of 32.65% in 2026. The sudden spike in sex toys was witnessed in March and April 2020 due to the outbreak of COVID-19. There is a growing demand for both shared and solo sex toys among end-users. Sex toy manufacturers and retailers are capitalizing on this growing interest by offering bundled products and "starter kits" for inquisitive customers.
Numerous products developed within the industry, be it condoms to sexual lubricants, have focused on the demands and needs of men being primary customers. However, male customers tend to offer better opportunities for the vendors to develop products for the market. The global sexual wellness industry by gender-male was valued at USD 21.42 billion in 2020 and will reach USD 32.87 billion by 2026. Several free-to-use condoms are being made available for end-users in developing countries such as South Africa, Kenya, Nigeria, and Zimbabwe. Vendors can consider eyeing such free spots promoting the sale of free condoms, which tends to reduce their scope for pushing the branded condoms up for sale.
There is a gradual shift in focus among vendors to promote and target campaigns catering to breaking gender roles while marketing their products in the global market. Start-ups such as Nuelle, B-wom, Damivia, and Sustain (currently Combe owns a majority stake in Sustain) have evolved significantly, thereby contributing to the growth of the market for females. For instance, Nuelle garnered more than USD 23.05 million from investors to deliver wellness products aimed at enhancing women’s health.
Distribution: The products are available to end-users through online OEMs e-commerce portals and online direct-to-consumer stores such as Amazon, Adam & Eve online stores, eBay, Ann Summers, Alibaba, and AliExpress. The entrance of key condom manufacturers such as Reckitt Benckiser and Church & Dwight is surging the sale of sex toys and sexual lubricants through retail stores such as sex specialty stores and supermarkets worldwide. The rise in online sales is set to fuel by over 20% YoY during the forecast period.
The sexual wellness industry in North America is witnessing high traction due to the growth in the spending power of end-users, especially millennials. One of the key factors driving the growth of the market in North America is the robust institutional sales by government and federal agencies, NGOs, and charitable organizations. The sex toys market enjoys a majority of share of 48.78% in the sexual wellness products in the region, followed by condoms (33.25%). North America is expected to follow a leadership strategy, where players are expected to establish more enhanced facilities in this region and maintain offshore facilities for profit enhancement and customer base expansion. The U.S. sexual wellness market size is expected to reach USD 9.34 billion by 2026, growing at a CAGR of 8.27%.
APAC is the largest revenue contributor in the market, and regional markets such as India, China, Japan, and South Korea are witnessing high demand. Countries such as Thailand, Vietnam, Malaysia, and Indonesia are also expected to witness increased demand due to the improving quality of life and growing openness towards accepting sexual wellness products in these countries during the forecast period.
The aggressive competitive scenario in the global sexual wellness market is currently intensifying. It is moderately fragmented, with many global players providing sexual lubricants with high functionalities and designs. Players have to develop new technologies and need to remain abreast with upcoming technologies to have a competitive advantage over other vendors. The female condom market is more concentrated in developing and marginalized regions such as Africa and Central Asia. Veru Healthcare/The Female Health Company, Cupid Ltd., HLL, Shanghai Dahua Medical Apparatus Company, and Tianjin Condombao Medical Polyurethane Tech. Co. are some of the major vendors in the female condom market.
Vendors are expected to witness higher sales by targeting the untapped markets of APAC and the Middle East & Africa by collaborating with government bodies. Spreading awareness through campaigns in collaboration with government bodies is expected to increase sales for vendors eventually. New partnerships with Glovo, Deliveroo, and Ocado Zoom are part of Durex's strategy to reach consumers in new and innovative ways. Durex made the necessary supply chain adjustments as shoppers shifted their spending to e-commerce channels to meet unprecedented demand levels.
The research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
- Sex Toys
- Rubber Pennies
- Cock Rings
- Rubber Vaginas
- Harness & Strap-on-Penises
- Bondage Gear
- Latex & Non-latex
- Branded & Institutional
- Male & Female
- Exotic Lingerie
- Sexual Lubricants
- Offline Retail
- Specialty Stores
- Mass Market Players
- Drug Store/Pharmacies
- Grocery Stores
- Online Retail
- South Korea
- New Zealand
- Sri Lanka
- North America
- Middle East & Africa
- Saudi Arabia
- South Africa
- Latin America