New Acne Elimination Switches and Devices Heat Up the OTC Market

Acne Remedies
Acne Remedies

The U.S. OTC market has enjoyed solid momentum in recent years, increasing far beyond the typical 2% to 3% annual growth it used to experience. Strong advertising and promotional investments, several new products, and Rx-to-OTC switch brands, as well as the steady distribution of major brands that had been off the market for several years, have helped propel the market beyond regular growth.

Lately, we’ve seen several alternative sources of competition for traditional OTCs that are emerging. Self-care devices, which have been around for many years in the beauty realm, are now entering OTC categories. TENS technology is being used in the topical analgesics market, while low light technology is seen in new devices that treat hair loss, cold sores, and even allergies. Bayer, which markets Aleve Direct Therapy TENS device for lower back pain, and Sanofi, with its Icy Hot TENS device, are among the new market entrants in this space. (more…)

Industrial & Institutional Hand Care Poised for Strong Growth

Industrial and Institutional Hand Care
USA

In the presence of many infectious diseases, consumers understand the important role hand hygiene plays in maintaining good health. The public has become more aware about frequent hand washing as a tool to avoid viruses and the spread of germs, which has resulted in an increased frequency of handwashing. Sales of professional-use hand care products surpass other professional cleaning chemicals, growing at 3.6% in 2015 to nearly $1.5 billion at the end-user level.
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Vape and Tobacco Shops Offer E-cigarette Makers Higher Margins

Vape and Tobacco Shops
Vape and Tobacco Shops

As of early August 2016, new FDA regulations took effect requiring e-cigarette manufacturers to prove their products meet public health standards. These new rules apply to manufacturers that began selling e-cigarettes before February 2007 and will now need to obtain FDA marketing authorization for existing and new e-cigarettes in order to continue selling these products. As a result, the cost of doing business just increased significantly for marketers in this industry. (more…)

What is Supporting Strong Growth of the U.S. OTC Market?

OTC Market
OTC Market

Driven by the market return of popular OTC brands from Johnson & Johnson and GlaxoSmithKline, as well as the success of several Rx-to-OTC switch brands, the U.S. OTC market increases by a solid 4% in 2015, reveals our recently published Nonprescription Drugs USA report.

In October 2015, Johnson & Johnson announced that the FDA approved the reopening of the Fort Washington, PA, plant that had been shuttered since May  2010. Johnson & Johnson’s key brands, including Tylenol Arthritis Pain and Tylenol 8 Hour, are re-launched in 2015, supporting overall sales growth of the OTC drugs market. Steady distribution of Zyrtec and other key brands from the market leader, Johnson & Johnson, help propel sales in the OTC market. (more…)

Poised for Solid Growth, Probiotics Appeal to a Variety of Consumers and Health Issues

Probiotics
Probiotics

Over the past several years, the U.S. market for probiotics has emerged as one of the fastest growing consumer healthcare markets, consistently achieving double-digit sales growth. In 2015, according to our recently published Nonprescription Drugs USA and Natural OTCs: Impact of Non-drug Products on the U.S. OTC Market studies, the total market for probiotics is estimated at over $530 million, up above 15% since 2014. It is not uncommon for the category and some brands to achieve sales growth of 15% to 25% on a year-over-year basis. These high growth rates have been sustained by increased consumer awareness and more chronic use as consumers see the value in taking probiotics to increase their immunity rather than just help treat episodic digestive ailments. Furthermore, compared to more traditional digestive products, probiotics have relatively high retail price points, which helps drive overall sales for this market segment. (more…)

A Powerful Retail Channel in the Nutrition Industry: Multi-level Marketing

Nutritional Health and Wellness Products
Nutritional Health and Wellness Products

The U.S. market for nutritional supplements and wellness products is massive and valued at over $30 billion in annual retail sales. This remains an area that elicits strong consumer interest as people seek to preserve and improve their health and avoid illness. Products like digestive enzymes, vitamins and minerals, weight loss and management systems, and energy supplements provide many benefits for consumers, but confusion lingers among consumers due to the number of products available and nebulous product claims.

Mass nutrition brands sold through drug chains, mass merchandisers, health food stores, and specialty retailers account for the lion’s share of the market. (more…)

Are Retailers and Manufacturers Ready for the FDA’s New Authority over E-cigarettes?

FDA tobacco products regulations and tobacco products market
FDA tobacco products regulations

In June 2009, the U.S. Congress passed the Family Smoking Prevention & Tobacco Control Act, which gave the U.S. Food & Drug Administration (FDA) authority to regulate the manufacturing, distribution, and marketing of tobacco products. On June 16, 2016, a new rule was passed extending the FDA’s regulatory authority to all tobacco products, including e-cigarettes, electronic nicotine delivery systems (ENDS), cigars, hookah products, pipe tobacco, nicotine gels, and dissolvables that were not previously under its authority. The new rule requires new health warnings, bans free samples, and limits youth access to tobacco products. The main goals of the new rule are: (more…)

How are Shifts in Cost Structures Affecting the Leading OTC Marketers?

OTC Drugs: U.S. Competitor Cost Structures
OTC Drugs: U.S. Competitor Cost Structures

Major mergers and acquisitions in the U.S. OTC market have a way of shifting OTC cost structures both in the near- and long-term. For example, when major businesses are merged, such as Bayer Group’s acquisition of Merck’s U.S. OTC business or when GlaxoSmithKline and Novartis formed a consumer healthcare joint venture, the costs of goods for these organizations often rises initially. This is largely because of duplication of plants and employees. As the new venture sheds duplicate resources, the organization realizes increased profits over the long-term as a result of consolidated resources being used more efficiently. (more…)

Solid Growth in Most Markets and New Switches Propel the U.S. OTC Market

Nonprescription Drugs USA
Nonprescription Drugs USA

Driven by the solid growth of most markets, sales of the U.S. OTC market increase by 3% in 2015. Particularly high gains are seen in the allergy and antacids markets, fueled by recent Rx-to-OTC switch brands, such as Flonase Allergy Relief by GlaxoSmithKline and Nexium 24HR by Pfizer. Recently released sales data from our annual Nonprescription Drugs USA market study pegs the upper respiratory market at more than 7% growth and digestive products at almost 5% from 2014 to 2015. These growth rates are well above the average growth for these markets, propelled by new switch brands being launched and bringing in previous users of these medications from the prescription market to the OTC market. (more…)

Flonase Allergy Relief Drives the OTC Allergy Market

Allergy Relief Products
Allergy Relief Products

The U.S. OTC allergy relief market has seen a period of rapid growth over the past five years, and 2015 was no exception. GlaxoSmithKline’s Rx-to-OTC switch brand Flonase Allergy Relief entered the market in February 2015 and made a huge impact on the OTC market by adding previous prescription users to the category. The OTC allergy market has seen a steady influx of Rx-to-OTC switch brands, which has resulted in rather high growth for this market over a fairly sustained period of time. In fact, the allergy category has grown by a compound annual growth of over 11% from 2010-2015, finds the latest edition of our Nonprescription Drugs USA report. This healthy increase is well above the typical growth for the overall OTC market, which grows about 2% to 3% per year on average.  (more…)