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…)
Transcutaneous electrical nerve stimulation (TENS) technology has existed for over 50 years, but such devices have only been in the consumer marketplace since 2006-2007. Today, over 500 manufacturers of TENS products are registered with the FDA, and this number continues to increase. Innovation, convenience, and the ease of use of TENS devices, coupled with consumers’ increasing demand for non-drug options to prevent and alleviate pain, have helped boost sales of such devices.
The introduction of Sanofi’s Icy Hot TENS device in November 2014 had a big impact on this market segment, resulting in a 15% sales increase. Backed by an intensive marketing campaign, wide retail distribution through drug store chains and mass retailers, and a moderate price point of about $40.00-$50.00, this game-changer device helped increase Sanofi’s sales by more than 20%, as well as taking the leading spot in the at-home TENS devices market in the United States. (more…)
Consumers’ desire for natural products doesn’t pertain only to foods and beverages, but extends into many other areas, including personal care products and OTC medicines. Consumers are increasingly aware of ingredients and seek transparency in labeling for products that will be applied topically or ingested. Environmental concerns, green consciousness, and sustainability are important to consumers who are driving strong growth of natural products in both the personal care and natural OTC markets. The U.S. market for natural personal care products has grown over 7% recently while the U.S. market for natural OTC medicines has grown over 11%, fueled by growing consumer awareness and interest in using these products.
In a recent survey of American adult consumers conducted by Kline, 46% note they used natural OTCs both for prevention of illness and to treat themselves when they are sick. Over time, the use of natural OTCs has increased, with 50% of consumers indicating more usage now than one year ago, and nearly two-thirds noting they buy and use natural OTCs more now than they did five years ago. (more…)
As the beauty and nonprescription drug markets evolve, new and innovative devices offer competition to traditional and well-established brands. Historically, when consumers desired treatment for minor pain or allergies, conventional wisdom had them buying OTC medications to help their symptoms subside. While oral analgesics and oral and nasal allergy remedies continue to be large consumer markets, new device technologies offer consumers innovative ways to treat themselves using drug-free options. The growth rates for some of these new devices are a testament to the interest consumers have in using non-drug treatment options, coupled with a thirst for incorporating new technologies into their daily lives. (more…)
In a recent blog post, we discussed the probiotics market, which widely appeals to many U.S. consumers seeking more natural solutions to their health issues, but where did it all start and how did it become so popular? Probiotics awareness specifically received its first boost in the United States with the ubiquitous advertising for Dannon’s probiotic-rich yogurt, Activia, in the early 2000s, featuring actress Jamie Lee Curtis. According to a recent research study, the benefits of probiotics are well-known, with 73% of U.S. consumers with digestive problems aware that “probiotics are used to help maintain the natural balance of organisms in the intestine.” This is up significantly from “47% aware” about 10 years ago. In addition, awareness of the term “probiotics” grew from 9% in 2002 to 60% in 2009 among adults, according to a study by the National Marketing Institute. (more…)
Industry consolidation, major new brand launches, and a series of mergers and acquisitions in the U.S. OTC market have caused OTC cost structures to shift both in the near- and long-term. The costs associated with marketing, sales, and promotions of OTC brands tend to have wider swings from year to year, offset by administrative and R&D costs that tend to be more stable over time. (more…)
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…)
The pain management devices market is growing at a healthy pace due to the introduction of several new products, which have made these devices more accessible to consumers. Analgesic marketers in the United States, such as Chattem and Bayer, have expanded into this segment with strong marketing resources and shelf space in mainstream channels.
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…)
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…)