Why it matters:
- The global digital health market was valued at $240.9 billion in 2023, according to Grandview Research.
- As consumers increasingly tap tech to track and improve their health, the category is expected to grow at a 21.9% CAGR (compound annual growth rate) through 2030, driven by telehealth, wearable health devices, and e-prescription systems.
- User penetration for the global digital health tech market will be 20.96% in 2024 and is expected to hit 26.24% by 2029, according to Statista Market Insights.
In a consumer economy increasingly focused on health and wellness, Oura has distinguished itself with a product that melds advanced technology and user-friendly design to deliver personalized insights on sleep activity, heart health, and more.
The company, which launched in Finland in 2013, offers just a single marquee product: a smart ring that can be worn day and night, transmitting real-time biometric data from the wearer’s body to the Oura smartphone app on their personal device. It’s sold more than 2.5 million rings to date and counting, according to Oura. And Crunchbase estimates that Oura’s sales are between $50 million and $100 million today.
As the business scales to meet the demands of mass-market retail environments like Target, it maintains its commitment to delivering customized results for each user.
Oura is one of many startups in the health tech space looking to leverage precision healthcare and home diagnostic tools to extend consumers’ “healthspan,” the period of life spent in good health, as well as lifespan.
“Our target consumer is anyone dedicated to understanding and improving their health and wellness,” Chief Marketing Officer Doug Sweeny told CO—. “We have designed our product to be accessible for all.”
Adapting the Oura experience for mass-market retail ‘to reach a more diverse audience’
Though the Oura ring is only available in two styles and can be purchased across mass retailers like Target and Amazon, it aims to offer an intimate user experience once out of the box.
Designed by an interdisciplinary science team, the titanium ring uses its wearer’s finger to gauge their heart rate, blood oxygen levels, temperature, and more. If shopping brick-and-mortar, customers can ensure a custom fit with an in-store sizing display at Target locations.
Our target consumer is anyone dedicated to understanding and improving their health and wellness. We have designed our product to be accessible for all.
Doug Sweeny, Chief Marketing Officer, Oura
The ring’s fit is just the first element of personalization. Once the buyer starts to wear it, while both asleep and awake, the ring begins generating personalized insights about their health and biometric data, from tracking their sleep to stress levels.
With regular wear, Oura claims, the ring learns more about that individual’s body and insights become even more personalized to one’s unique lifestyle and habits. According to an internal study completed by the brand, 88% of Oura users felt that their health was improved after at least a month of regular use.
Though sizing adds an extra element of friction to the retail sales process, it’s a necessary adjustment as the brand expands beyond direct-to-consumer sales to drive growth. “Target’s unique omnichannel approach matches Oura’s and allows for seamless integration of the product online and in-store,” said Sweeny.
“With our presence in major retail outlets, we are not only enhancing our accessibility to more users but also are now reaching a more diverse audience… including everyday consumers who are becoming increasingly interested in monitoring and improving their health.”
[Read: Emotional Rescue: (Unexpected) Brands Are Building Wellness Into Marketing Plans]
Oura leans into longevity trend and the (hot) women’s-tech sector to stay on the cutting edge of a competitive digital health market
As its audience grows, so do Oura’s goals for new consumer metrics to measure and health goals to support. “Our ongoing investment in research and development ensures that we stay ahead of the curve,” said Sweeny, “continuously introducing cutting-edge features and technologies to address evolving consumer needs.”
According to Sweeny, delivering on this promise to consumers means remaining at the forefront of health, wellness, and tech trends. For example, he said, “our efforts around longevity and women’s health are just getting started.”
Longevity is a newer focus of the $5.6 trillion global health and wellness industry. Though more people are expected to live longer — the CDC estimates average life expectancy to be 77.5 years — chronic conditions like cardiovascular disease and diabetes are growing. And data from the World Health Organization (WHO) predicts most people can only expect to live to age 66 in full health.
Amid the heightened consumer focus on health and wellbeing, the global longevity and anti-senescence therapy (anti-biological aging) market is projected to reach $44.2 billion by 2030, growing at a CAGR of 6.1% since 2021, according to Allied Market Research.
Against that backdrop, Oura, for its, part, introduced two new heart health features this year, Cardiovascular Age and VO2Max, “providing users with actionable insights to improve heart health and extend their health span,” Sweeny said.
The company has also rolled out new features to capitalize on the growing women’s health tech space, designed to help women understand their life cycles and “promote body literacy at every stage of their lives,” Sweeny explained.
According to research from FemHealth Insights, there has been a 1,000% increase in the number of startups in the women’s health space over the past ten years. This rise in interest is also driving more attention to the menopause space in particular; earlier in 2024, Oura also teamed up with period tracking app Clue and UC Berkeley to launch a study on the impact of perimenopause on women’s overall health.
[Read: Trend Forecasters on Four Key Consumer Trends Set to Impact Business in 2024]
Strategic positioning for continued retail growth
Sweeny is optimistic about Oura’s future growth, underpinned by a commitment to ongoing innovation in the wearables space, as well as expansion via mass-market retail partnerships.
Though the private company has not shared any revenue numbers thus far, Sweeny said the new Target partnership is “going very well and has exceeded our expectations so far.”
“This recent development marks a significant step forward in our retail market presence,” he added. “Oura maintains its position as a trusted leader in the wearables market, poised for continued expansion and success.”
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