The consumer segment is a stable and resilient business, as it caters to the everyday needs of consumers around the world. The segment has a strong portfolio of trusted and well-known brands, such as Johnson’s, Neutrogena, Aveeno, Listerine, Tylenol, Zyrtec, and Motrin.
The consumer segment is also undergoing a transformation, as Johnson & Johnson announced in August 2023 that it will spin off its consumer health business into a new independent company called Kenvue. The spin-off is expected to be completed by the end of 2023, and will create two focused and agile companies with enhanced growth potential and shareholder value.
Some of the key growth drivers in this segment include:
- Baby care, which includes products for baby skin, hair, and bath care, as well as baby wipes and cotton. The baby care business generated $1.8 billion in sales in 2022, down 4% year-over-year, but up 7% in the third quarter of 2023 compared to the same period in 2022. The business is expected to benefit from the innovation in natural and gentle products, the expansion into new markets and channels, and the improvement in birth rates after the pandemic.
- Beauty, which includes products for skin health, hair care, and cosmetics. The beauty business generated $4.8 billion in sales in 2022, down 7% year-over-year, but up 13% in the third quarter of 2023 compared to the same period in 2022. The business is expected to benefit from the recovery in consumer spending and confidence, the growth of e-commerce and online platforms, and the diversification of product offerings and consumer segments.
- Oral care, which includes products for oral hygiene, whitening, and fresh breath. The oral care business generated $1.7 billion in sales in 2022, up 3% year-over-year, and up 9% in the third quarter of 2023 compared to the same period in 2022. The business is expected to benefit from the increasing awareness and demand for oral health, the innovation in product technology and design, and the expansion into new markets and categories.
- Over-the-counter drugs, which includes products for pain relief, allergy, cold and flu, digestive health, and smoking cessation. The over-the-counter drugs business generated $5.4 billion in sales in 2022, up 4% year-over-year, and up 8% in the third quarter of 2023 compared to the same period in 2022. The business is expected to benefit from the growing consumer preference for self-care and wellness, the strong brand equity and loyalty, and the introduction of new products and formats.
- Women’s health, which includes products for feminine hygiene, intimate care, and menopause. The women’s health business generated $1.3 billion in sales in 2022, down 3% year-over-year, but up 6% in the third quarter of 2023 compared to the same period in 2022. The business is expected to benefit from the increasing demand and awareness for women’s health, the innovation in product quality and safety, and the growth of e-commerce and online platforms.
COVID-19 Vaccine: A Potential Game Changer
In addition to its core businesses, Johnson & Johnson is also involved in the development and distribution of a COVID-19 vaccine, which could be a potential game changer for the company and the world. The vaccine, developed in collaboration with Janssen Pharmaceuticals and Beth Israel Deaconess Medical Center, is based on a viral vector platform that uses a modified version of a common cold virus to deliver genetic material that instructs the body to produce antibodies against the coronavirus.
