The segment was hit hard by the COVID-19 pandemic, as many elective and non-urgent procedures were postponed or canceled. However, the segment has shown signs of recovery, as the demand for medical devices and diagnostics has rebounded with the easing of lockdowns and the rollout of vaccines.
Some of the key growth drivers in this segment include:
- Orthopedics, which includes products for joint reconstruction, trauma, spine, sports medicine, and power tools. The orthopedics business generated $8.4 billion in sales in 2022, down 11% year-over-year, but up 62% in the third quarter of 2023 compared to the same period in 2022. The business is expected to benefit from the aging population, the rising prevalence of obesity and osteoarthritis, and the increasing adoption of robotic surgery and digital solutions.
- Surgery, which includes products for general surgery, biosurgery, endocutters, energy, and sterilization. The surgery business generated $10.3 billion in sales in 2022, down 9% year-over-year, but up 35% in the third quarter of 2023 compared to the same period in 2022. The business is expected to benefit from the growing demand for minimally invasive and advanced surgical techniques, as well as the expansion into emerging markets.
- Vision care, which includes products for contact lenses, surgical vision, and dry eye. The vision care business generated $3.6 billion in sales in 2022, down 11% year-over-year, but up 23% in the third quarter of 2023 compared to the same period in 2022. The business is expected to benefit from the increasing prevalence of myopia and presbyopia, the innovation in contact lens technology, and the growth of e-commerce and online platforms.
- Interventional solutions, which includes products for cardiovascular, neurovascular, and electrophysiology. The interventional solutions business generated $2.9 billion in sales in 2022, up 1% year-over-year, and up 19% in the third quarter of 2023 compared to the same period in 2022. The business is expected to benefit from the rising incidence of cardiovascular and neurological diseases, the advancement in device technology, and the expansion into new geographies and segments.
Consumer Segment: A Stable and Resilient Business
The consumer segment is the smallest and least profitable segment for Johnson & Johnson, accounting for about 10% of its total revenue and operating income in the third quarter of 2023. The segment focuses on five areas: baby care, beauty, oral care, over-the-counter drugs, and women’s health.
