Sexual Wellness Market

Market Overview

The global sexual wellness market size was valued at USD 33.20 billion in 2022. It is estimated to reach USD 64.34 billion by 2031, growing at a CAGR of 7.63% during the forecast period (2023–2031).

Sexual wellness is an approach toward sexual health and encourages well-being related to human sexuality. Sexual wellness products focus on enhancing the sexual experience among end-users and checking their sexual health. These products include condoms, sexual lubricants, sensual lingerie, sex toys, exotic costumes, herbal supplements, and other allied products. They are also known to enhance sexual pleasure and induce an element of adventure during sexual intercourse.

Healthy sex life is a human aspect that significantly impacts one'sone's overall wellness. Sexual wellness refers to physical, emotional, and mental well-being. A person'sperson's ability to have satisfying and safe sexual experiences is just one major part of sexual wellness. Understanding one'sone's body and what makes one feel good about oneself, developing communication with partners about needs and wants, and respecting others' rights regarding their sexuality are additional considerations. An essential conceptual element is that sexual wellness is about well-being rather than just the absence of illness.

Highlights

• Sex Toys dominate the product segment
• Offline dominates the distribution channel segment
• Male dominates the gender segment
• Asia-Pacific is the highest shareholder in the global market

Market Dynamics

Market Drivers

Rising Awareness due to Sex Education Programs

The use of contraceptives, despite their better availability, is primarily challenged by two major factors: social compulsions warranting against their use and the lack of awareness. Teenagers aged 17–19 constitute a potential customer base as they undergo significant hormonal changes and are sexually active. Teenage sex can potentially result in unintended pregnancies and transmission of STIs and STDs.

In 2019, the adolescent fertility rate, i.e., births per 1,000 women, was roughly around 40 in the age group of 15–19 years. However, this figure consistently decreases yearly at a slow and steady pace. The decline is primarily attributed to the rising awareness of contraceptives and their easy availability. In order to prevent unwanted pregnancies and control the teenage pregnancy rate, birth control measures, and post-conception contraceptives have increased significantly in recent years. Moreover, sex education is a significant factor driving the use of contraceptives, including condoms, among the teenage population.

Government Initiatives for Free Condom Distribution

Free condoms distributed by government agencies have always been and will continue to be a significant source of condom distribution, especially among poor people. The NYC Department of Health and Mental Hygiene (DOHMH) has distributed free condoms since 1971. Under its recent initiative, it enables social service organizations to directly order free condoms from DOHMH's website as frequently as needed. Countries have also understood that the intended public regularly has a negative view of free condoms. In response, the government started distributing branded condoms and their variations in various countries. Therefore, these government initiatives make significant contributions to the growth of the global market.

Market Restraint

Rise in Product Counterfeiting

As the sexual wellness industry grows in terms of sophistication and the number of value-added offerings, there is also an increased risk of counterfeit products. Counterfeiting has spread from durables such as books, furniture, electronics, and appliances to consumables, including contraceptives. Counterfeiting of condoms involves imitation of value-added branded products, wherein counterfeited products are usually made from cheaper materials, thinner, not tear-resistant, and not subject to proper testing procedures for leakage. These condoms cannot be used for birth control or to prevent STDs as they would not act as effective barriers. In addition, fake condoms are often subject to inappropriate lubricants and spermicides, leading to severe skin rashes, abrasions, fungal infections, and other bacterial and viral infections. Such factors are expected to hinder market growth during the forecast period.

Market Opportunities

Growing Penetration of Digital Marketplaces

One of the key growth opportunities for vendors in the sexual wellness market is going digital in their sales strategies. Online channels are the most preferred modes of purchase for customers in the global market. For instance, over 25% of the sexual wellness products sold in the US are via online channels, with Amazon.com being the most preferred website for customers among all other websites offering such products. With high internet penetration rates, the availability of smartphones and laptops, and most importantly, the numerous online platforms for customers to choose from have increased dramatically.

A key reason for the growth in online sales is the luxury of remaining anonymous in their purchases. Another key benefits customers derive from going online is the chance to engage in live forums to discuss the product benefits. Customers can look to provide reviews, go through the ones given by others, and learn about the product usage, benefits, and lifespan, which are not readily possible while making purchases in a retail store or any other offline channel. Vendors catering to the global market have immense opportunities by embracing digital platforms.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global sexual wellness market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific is the most significant global sexual wellness market shareholder and is anticipated to exhibit a CAGR of 7.31% during the forecast period. Asia-Pacific has the potential to account for a large percentage of the sexual wellness market since it offers several opportunities for new and existing vendors. The overall cumulative environment supports various products, including condoms, sex toys, and erotic lingerie, among numerous others. In addition, the key countries in the Asia-Pacific region, such as China, Japan, and Singapore, have established economies, which, in turn, provide higher buying power to customers. Southeast Asia is a significant revenue contributor to the global sexual wellness market.

Furthermore, Asia-Pacific is witnessing rapid urbanization among all other geographies. While Japan and China are the major markets for sexual wellness products, countries like India are expected to see increased demand due to improved quality of life and per capita disposable income. Although high levels of conservatism characterize Asia-Pacific countries, there is an increasing awareness and acceptance of the concept of sexual pleasure, courtesy of global exposure and changes in attitude.

Europe is anticipated to exhibit a CAGR of 7.41% over the forecast period. The sexual wellness market in Europe grew at a moderate rate during the period 2012−2018. With the increase in consumer spending since the 2008−2009 economic recession and the 2011−2012 Eurozone debt crisis, the prospects of the sexual wellness market in many European countries have improved. Further, sexual wellness products are becoming mainstream consumers, thereby witnessing high adoption among European end-users. Europeans are more likely to adopt birth control measures than US nationals, and about 84% of women in Europe use contraceptives in one form or the other. In addition, high rates of contraception usage among women are attributed to easy access to birth control measures and better information and education on reproductive health. IUD remains the most popular form of contraceptive, followed by condoms and pills. Such factors stimulate the growth of the market in the region.

North America is home to about 357 million people and about 143 million households. The US nationals are known for their preference for innovative and niche products and those that make life convenient. North America represents some of the most advanced economies in the world. It is a significant market for contraceptives and sexual wellness products due to a properly formulated sex education program and an efficient distribution network. In addition, the region represents one of the most sexually active populations using condoms and sexual lubricants. There is a high demand for sexual wellness products due to the increasing popularity of innovative condoms such as Hex by LELO among end-users. Furthermore, the growing popularity of adult stores and a relaxed attitude towards sexuality among US nationals have fueled the market growth in the region. Institutional buyers such as USAID, UNFPA, Bill & Melinda Gates Foundation, and PSI are the major growth boosters for the sexual wellness market in North America.

The sexual wellness market in Latin America is promising for several vendors. The region comprising key countries such as Brazil, Mexico, and Argentina has great potential for sexual wellness products such as sex toys, condoms, sexual lubricants, and exotic lingerie. This growth potential can be attributed primarily to several government initiatives and increasing consumer spending capacity, leading to purchasing sexual wellness products.

There is low popularity of condoms in the Middle East and Africa. The low prevalence rate is often attributed to religious and cultural values, which discourage pre-marital sex, encourage faithfulness between partners, and emphasize universal male circumcision. In addition, sexual wellness products are not sold legally in the open market in the Middle East. The market is challenged by the prohibition of these products and tight scrutiny by customs officials, making sourcing difficult and hampering the market growth. However, the immigrant population, mainly expatriates from Europe and Asia, are the primary adopters of contraceptives. With the influx of immigrants expected to rise by 15–18% in the Middle East and Africa during the forecast period, the demand for sexual wellness products is expected to rise.

Segmental Analysis

The global sexual wellness market is segmented by product, distribution channels, and gender.

Based on product, the global market is divided into sex toys, condoms, exotic lingerie, sexual lubricants, and others. 

The sex toys segment is responsible for the largest market share and is anticipated to grow at a CAGR of 6.75% over the forecast period. The global sex toys market is witnessing steady growth worldwide. Vibrators or dildos, massagers, rubber penis, real dolls, sexual games, and bondage gear are the prominent sex toys available. Historically, men were the primary customers of sex toys worldwide. Recently, the market is witnessing a shift in this trend as women become sexually more empowered globally. There is also a growing demand for both shared and solo sex toys among end-users. Sex toy manufacturers and retailers capitalize on this increasing interest by offering bundled products and "starter kits" for inquisitive customers. All these factors contributed to the growth of sex toys in the market.

Condoms are crucial products for a healthy sexual life. They are also one of the primary contraceptive products that are widely used. They have observed a growth in demand in recent times owing to factors such as a rising global population, awareness of sexually infectious diseases, and focus on safe sex communicated through sex education platforms. Vendors are catering to the demand for condoms by delivering variants of sizes, shapes, thicknesses, flavors, prices, and packaging, among others. The free distribution of condoms in Brazil, Poland, and Thailand, backed by their respective government and health ministry initiatives, is another driver for product growth.

Based on distribution channels, the global market is segmented into offline and online channels. 

The offline segment owns the highest market share and is expected to exhibit a CAGR of 7.10% during the forecast period. Sales of sex toys and sexual lubricants in retail establishments like sex specialty shops and supermarkets have increased globally due to the entry into the market of condom manufacturers like Reckitt Benckiser and Church & Dwight. Despite the growing trend of selling these gadgets online, sex specialty shops still account for a sizable portion of the distribution of sexual wellness products. In addition, sexual wellness product manufacturers harness sex specialty stores and supermarkets due to personalized customer services. The staff in supermarkets and shops are educated about these products, their modus operandi, and their usage. The staff, in turn, educates customers about these new products and helps them select these lubricants.

The growth in online sales is set to increase by over 20% YoY during the forecast period because online stores offer more options than retail stores. Many avid users of e-tailing services seek to buy sexual lubricants online because of the ease of accessibility and convenience afforded by such channels. Some vendors offer YouTube videos (video tutorials) and help beginners to get knowledge about the applications and make them aware of these products.

Based on gender, the global sexual wellness market is segmented into males and females. 

The male segment dominates the global market and is estimated to exhibit a CAGR of 7.20% over the forecast period. A long-lasting perception of the global sexual wellness market prevails in the fact that it is a male-centric one. Numerous products developed in the sexual wellness market, be it condoms to sexual lubricants, have focused on the demands and needs of men being the primary customers. Despite efforts to develop female-centric sexual wellness products by companies such as FC2, the market has predominantly generated revenues from male customers. Male customers tend to provide better opportunities for vendors to develop products for the global market.

The market for sexual wellness has no doubt remained male-centric, but the trend of serving and creating products catering to the demand and health of men is currently witnessing a steep shift. Women have faced restrictions on sexual choices and other sexual health-related preferences. Even global market vendors have predominantly focused on creating sexual wellness products for men and their health. These efforts have not only resulted in a neglected approach to cater to women but even in the loss of a considerable market opportunity had the female segment been considered.

Recent Developments

• October 2022- Morari, a pioneering sexual health and wellness firm, announced the start of an equity-based community round campaign through the funding platform Wefunder to finish product development, obtain regulatory approval, and prepare the introduction of its breakthrough Mor patch.

• June 2022- KamaSutra, one of India'sIndia's most prominent sexual wellness brands, introduced the nation's first NFTs. As a pioneering brand known for introducing the concept of sex as a pleasure to India, it has partnered with Bobble AI to debut its six distinct NFTs as part of its sexual health campaign.