U.S. Sexual Lubricant Market - Industry Outlook & Forecast 2023-2028

The U.S. sexual lubricant market was valued at USD 456 million in 2022 and is expected to reach USD 722.52 million by 2028, growing at a CAGR of 7.97%. One of the major reasons for the growing demand for sexual lubricants in the U.S. is associated with the rising demand for sex toys. Moreover, factors such as increased openness; desire for quirky products and accessories; excitement, passion, and adventure; and heightened desire for experimentation are boosting the market growth across the country.

Further, online retailers such as Amazon, Lovehoney, and Adam & Eve have become popular distribution channels in the U.S. sexual lubricant market as they offer the freedom to choose any lubricant from a range of products. Moreover, purchasing these products has increased the assurance of safe and discreet delivery via e-commerce platforms. Such features give e-commerce platforms a competitive advantage over drug stores, retail chains, and grocery stores. Apart from this, adult stores and specialty shops offer a wider range of products and tend to cater to specific niches, such as BDSM or vegan-friendly lubricants. Drugstores and mass merchandisers such as Walmart and CVS also stock a range of sexual lubricants, often in the family planning section. However, the distribution landscape in the U.S. sexual lubricant market is evolving and expanding as the market grows and caters to diverse consumer needs.

MARKET TRENDS & OPPORTUNITIES

Growing Popularity of Private-Label Brands
Private label brands are products that retailers sell under their own label rather than the original manufacturer's label. Introducing private label brands in the U.S. sexual lubricant market has allowed retailers to offer their customers a wider range of products at a competitive price. This has increased competition in the market and given consumers more options to choose from. Private label brands typically offer similar quality to established brands at a lower cost, making them a popular choice among cost-conscious consumers.

Nevertheless, private-label brands constitute a significant chunk of the market share in the U.S., with retail sales worth over USD 50 million (about 15% of the U.S. market share). Further, Trojan by Church & Dwight is the largest condom brand in the country. Although Trojan lubricants have not made significant progress in sales and acceptance among U.S. customers, brand awareness and a loyal Trojan condom user base are expected to fuel the growth of Trojan lubricants during the forecast period.

Increase In Festivals, Tradeshows, Expos
The U.S. sexual lubricant market has witnessed rising demand over the last couple of years due to increased festivals, trade shows, and expos related to sexual wellness. People in the U.S. are adopting enhanced and outspoken routes toward sexual wellness. With time, frequent efforts to relate sexual wellness with the daily routine are being emphasized. Brands are constantly striving to reduce the misconception created between obscenity and the sexual wellness of individuals. The increase in the number of brands catering to the needs of women as a part of sexual wellness is further pushing opportunities for growth in the future. Such factors paved the way for sexual wellness festivals, adult trade shows, and expos over the past few years.

At the beginning of 2023, one of the sexual wellnesses B2B trade shows, “STIMULATE,” is starting in Nashville, US. The tradeshow is created to connect industry suppliers, retailers, online sellers, and vendors. The tradeshow will offer complimentary retail education to the attendees. Several brands will participate in the tradeshow with an opportunity to highlight their key innovative product offerings and explore a new method of reaching out to the audience. Institutional investors also watch such occasions to capitalize on suitable revenue-generating opportunities.

INDUSTRY RESTRAINTS

Stringent Regulatory Environment

In the U.S., sexual lubricants, depending on the content of the formula or the scope of use, are classified as either Class I or Class II medical devices by the US FDA and fall in the same category as condoms. Thus, to sell these lubricants in stores, vendors must obtain the premarket notification or 510(k) clearances. This is a lengthy process and requires a comprehensive round of safety tests. For instance, obtaining the 510(k) clearances may cost up to USD 200,000 and take two years. Further, the FDA classifies sexual lubricants under the following five categories:

• LTZ (Class II Medical Device) – Condom with Nonoxynol-9; Regulation# 884.5310
• KMJ (Class I Medical Device) – Lubricant, Patient; Regulation# 884.6375
• NUC (Class II Medical Device) – Lubricant, Personal; Regulation# 884.5300
• PEB (Class II Medical Device) – Lubricant, Personal, Gamete, Fertilization, and Embryo Compatible; Regulation# 884.5300
• MMS (Class I Medical Device) – Lubricant, Vaginal, Patient; Regulation# 880.6375

These regulatory challenges can make it difficult for manufacturers to bring new and innovative products and limit U.S. sexual lubricant market growth. However, companies that can navigate these regulations and create products that meet customer needs and safety standards are well-positioned for success in this market. 

SEGMENTATION INSIGHTS

INSIGHTS BY PRODUCT
The water-based product type dominated the U.S. sexual lubricant market in 2022. Water-based sexual lubricants are highly popular among end-users and have a wide customer base. Water-based sexual lubricants usually contain one or more water-soluble polymers that control their viscosity. Further, these lubricants also contain humectants to reduce the loss of moisture, viscosity modifiers to modify the texture, and moisturizers along with other components to check the rate of evaporation and lubrication. Some of these lubricants available in the market claim to be long-lasting and are thus marketed as vaginal moisturizers. These lubricants use hydrophilic polymers that are claimed to be bio-adhesive and offer long-lasting moisturizing effects.

INSIGHTS BY GENDER
The U.S. sexual lubricant market by gender is segmented into male and female. In 2022, the male segment dominated the market and held a share of over 78%. In recent years, there has been a growing demand for male-specific lubricants designed to enhance the sexual experience and provide added benefits, such as increased sensitivity, reduced friction, and improved stamina. These products are formulated with various ingredients, including natural and organic materials, to meet the specific needs of male consumers. However, over the past few years, the market has witnessed a demand increase for female-centric products. The U.S. has witnessed a noticeable growth in demand for female-centric products.

INSIGHTS BY DISTRIBUTION CHANNEL
The offline distribution segment had the highest U.S. sexual lubricant market revenue in 2022. Many adult stores, pharmacies, and other retailers sell sexual lubricants in physical storefronts across the US. Customers can browse different types of lubricants and get recommendations from staff members. The entry of condom manufacturers such as Reckitt Benckiser, Karex, and Church & Dwight in the market has increased the sale of sexual lubricants through retail stores such as sex specialty stores and supermarkets in the US. However, the offline segment will face strong competition from the online segment in the future due to the rising internet penetration in the United States. Sexual Lubricants are available to end-users through online OEMs’ e-commerce portals and direct-to-consumer stores such as Amazon, eBay, Best Buy, Alibaba, and JD.

REGIONAL ANALYSIS

The Southern U.S. holds the most significant share of the U.S. sexual lubricant market due to the presence of the largest population base. Also, the considerable surge in disposable income in the region has created a high demand for sexual lubricants in the Southern region. The Southern U.S. has a high population of older adults who may experience reduced natural lubrication and seek sexual lubricants to enhance their sexual experience. College students are a large demographic in the Southern U.S. region, and sexual lubricants may be in demand as they explore their sexuality and experiment with new sexual experiences.

The sexual lubricant market in the Midwest U.S. is driven by changing attitudes toward sex and increased awareness of the importance of sexual health. As consumers in the Midwest U.S. become more comfortable discussing and exploring their sexuality, they are more likely to seek products to enhance their sexual experiences. This has led to a proliferation of sexual wellness products, including lubricants, in many areas of the Midwest. In addition to traditional brick-and-mortar retailers, many online platforms now offer various sexual lubricants, making it easier for consumers in the Midwest to access these products.

COMPETITIVE LANDSCAPE

The U.S. sexual lubricant market is moderately fragmented, with many players providing sexual lubricants with high functionality and designs. The key vendors in the U.S. sexual lubricant market are Reckitt Benckiser, BioFilm, Church & Dwight, Lifestyles, and Karex Berhad. A wide range of products is available to consumers, with vendors offering various types of lubricants, such as water-based, silicone-based, and oil-based lubricants. To compete in this industry, vendors must differentiate by offering high-quality products, innovative formulations, and attractive packaging. They must also invest in marketing and advertising to raise awareness of their products and build brand recognition.

The competition will be based solely on features such as quality, brand recognition, value, price, performance, and other consumer benefits. Due to the competitive environment, vendors face pricing pressure from their retail customers & other customers who are selling through various other channels. Especially high-volume customers, including online retailers, look for pricing concessions that could reduce vendor margins. Additionally, suppose in case any vendor couldn’t be able to maintain trade terms. In that case, the online retailers could increase their buying & purchases from other competitive vendors present in the market, which could reduce the sales of vendors (who cannot maintain prices and trade terms).