Strong Gains for Select Brands and Companies Among U.S. OTC Market Softness in 2016

Nonprescription Drugs USA

The U.S. OTC market posted 2.2% growth overall from 2015 to 2016, according to Kline’s venerable Nonprescription Drugs USA annual market assessment study. However, topical analgesics, nasal allergy medications, herbal products, and contraceptive products posted much higher rates of dollar sales growth. The calendar year of 2016 was marked as being a weak cold and flu season, which put a damper on sales of many OTC upper respiratory brands and market segments. However, in contrast, nasal allergy sprays grew by double digits, driven by growth of newer Rx-to-OTC switch brands, Flonase Allergy Relief (GlaxoSmithKline), and the addition of Rhinocort Allergy Spray by Johnson & Johnson to the market. This rapid uptake of nasal allergy sprays resulted in a small decline in sales of oral allergy medications.  (more…)

The Three Most Important Considerations for Rx-to-OTC Switches: Safety, Safety, and Safety

Rx-to-OTC Switches
Rx-to-OTC Switches

When considering a potential switch, the FDA is tasked with weighing the benefits of enhanced access against the incremental risks greater access will pose. In doing so, the FDA will generally consider the efficacy and safety profile of a drug based upon the studies conducted to gain Rx approval, as well as the clinical knowledge gained from first-hand experience of the product usage on the Rx marketplace. In addition, the FDA requires additional studies with consumers demonstrating that they can use the product safely in an OTC setting without third-party intervention. (more…)

New Scientific Guidelines for Probiotics Emerge

Best Practice Guidelines for Probiotics
“Best Practice Guidelines for Probiotics”

Transparency, ingredients, and clear labeling are important to consumers of nutritional supplements and probiotics. These are also substantial to reputable manufacturers in these markets looking to educate consumers on product benefits and to distance their brands from products on the market with less science supporting their claims and benefits.

In January 2017, the Council for Responsible Nutrition and the International Probiotics Association collaboratively published “Best Practice Guidelines for Probiotics” as a proactive set of voluntary, scientifically-based guidelines to encourage responsible production and marketing of dietary supplements and functional foods that contain probiotics. (more…)

What’s Driving Growth in the Industrial and Institutional Wipes Market?

The U.S. market for Industrial and Institutional Wipes
The U.S. market for Industrial and Institutional Wipes

The industrial and institutional cleaning wipes market presents opportunities for companies to tap into this growing segment. All major end-use segments are expected to increase consumption of wipes, reflecting the need for superior cleaning products and to maintain clean and healthy facilities. The ease of use and convenience that wipes offer end users will contribute to future growth across all end-use segments, largely for general-purpose wipes. End-use segments, such as healthcare facilities, food service, and schools and universities, will continue to emphasize the importance of clean surfaces and hands in order to minimize germs and illness at their facilities. Wipes are expected to play a key role in this goal.

Discover the Impact of Devices on Traditional OTCs

Pain and Self-care Devices
Pain and Self-care Devices

There has been a fair amount of research on the therapeutic effects of light technologies for a broad range of conditions, such as allergies, wound healing, fibromyalgia, neuropathy, and even to help minimize the side effects of chemotherapy and radiation treatments for cancer patients. Polarized medical light has been found in studies to be particularly effective for pain management, wound healing, and other conditions because of its ability to penetrate deep into the body and stimulate healing at the cellular level. As such technologies are studied and more devices are brought to market, these products could have an impact on traditional OTC drugs. Kline’s upcoming Self-care Devices: U.S. Market Analysis and Opportunities study will examine the size, growth, and impact such devices have and are expected to have in the future on traditional OTCs across various categories, including acne, allergy, anti-itch, cold sores, hair regrowth, pain, and sleep aids, among others. (more…)

The Game-changing Jan/San Market Trends

The U.S. jan/san market
Trends in the U.S. jan/san market

Kline is now working on our largest I&I market study, Janitorial and Housekeeping Cleaning Products: U.S. Market Analysis and Opportunities, and we have uncovered several trends that will significantly change the market in the near future.

Rising labor costs with minimum wage increases are driving industrial and institutional (I&I) end users to cut back on costs, which includes less spending on cleaning chemicals and/or reduced frequency of performing certain cleaning tasks. There is also some growth in private-label cleaning chemicals as end users seek low prices and value from their jan/san products. There are cycles of outsourcing and doing the work in-house among end users, such as office buildings and industrial parks. (more…)

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…)

Floor care robots and wide area air care products steal the ISSA Interclean Show

Issa Interclean Show
ISSA Interclean

Last week, Kline attended the ISSA Interclean Show in Chicago, and it was great to see so many exhibitors and clients. It seems that the industry is starting to catch up to technology with the release of floor care robots. Sealed Air Taski’s Intellibot Aerobot 1850 and Minuteman’s Autonomy Roboscrub machine were of the more prevalent robots roaming around and cleaning floors. In addition to being a first-time exhibitor at the show, the Autonomy by Brain Corp. product won the “Innovation of the Year” award from ISSA. The company’s concept is to further the knowledge towards autonomous, machine-learning systems. (more…)

Industrial & Institutional Hand Care Poised for Strong Growth

Industrial and Institutional Hand Care

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.

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…)