Many OTC marketers struggle with staying abreast of what is happening with their competitors’ brands online. There are rapidly changing conditions online, including new brands and competitors that may or may not be sold on shelves in brick-and-mortar retail stores. These independent brands may not always be on the radar as many are sold exclusively online. They change as often as their prices and promotional offers online. Understanding OTC brands sold online and adjacent brands that can impact an OTC category is critical for success so that marketers can protect their market share and deliver sales growth for their OTC brands.Continue reading
The market for digestive health products has undergone massive changes over the past several years. Once only known for the benefits of digestive health, these products now claim benefits of immune support, women’s health benefits (Ph benefits and vaginal health), nutrient absorption improvement, and even products that help with brain and cardiovascular health. Moreover, there is a wide variety of probiotic supplement forms available, such as drinks, sodas, chews, cubes, gummies, and prefilled straws. Continue reading
While natural foods and beverages are the predominant focus at the Natural Products Expo West by New Hope Network each year, there were several trends Kline noted that are pertinent to natural OTCs and supplements.
The blurring of lines on health claims where foods and beverages are making claims of boosting health and immunity continues. Claims that were once reserved mainly for nutritional supplements, vitamins, minerals, and probiotic supplements are now found on natural foods and beverages.Continue reading
There is growing interest in transparency on product labels from foods and beverages, to consumer goods, to personal care products, and now vitamin supplements. The Clean Label Project is an independent product testing organization that tests pet and baby foods and beverages for the presence of harmful ingredients. Clean labels are found on products that contain no artificial flavors, colors, sweeteners, preservatives, GMOs, antibiotics, or hard-to-pronounce, unrecognizable ingredients. Consumers are scrutinizing labels and ingredient lists, looking for short, easy-to-read, easy-to recognize ingredient lists. They are also attracted to products that claim to be “free of” artificial dyes, preservatives, GMOs, and other synthetic substances.Continue reading
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.Continue reading
Natural OTC/wellness products have seen rapid expansion in terms of sales and prominent retail shelf placement. Natural OTC/wellness products are those that usually are drug-free, may contain natural, plant-, or herb-based ingredients or vitamins and minerals, can be homeopathic, and often make claims of support, prevention, maintenance, and/or treatment of minor conditions. Common examples include probiotics for digestive health, vitamin C supplements for immune support, zinc-based products to help shorten a cold, melatonin for occasional sleeplessness, and other similar products.Continue reading
Retail aisles and OTC shelves change all the time and vary by category, retail channel, and time of the year. Keeping abreast of what’s happening on shelves is an arduous task, and it’s even harder to track trends over time for OTC sales professionals and brand managers. Therefore, Kline is announcing a powerful new image database to help our clients stay informed of trends in major retailers for their brands and categories. Retail Landscape: OTC Drugs is a fully searchable, filterable image database of actual images taken in stores monthly. Images are uploaded to the database monthly and can be searched by category, brand, company, retail channel, store, location, and date.
“OTC sales professionals may be capturing such information from their individual store visits, but it is often done on an ad hoc basis and not shared across the organization,” says Laura Mahecha, Kline’s Healthcare Industry Manager. “With travel budgets reduced and actual time spent in retail stores limited, it is even harder for sales professionals to make informed decisions.”
This new image database will provide monthly images of category planograms, brand facings and placement, pricing, on-shelf and in-store promotions, signage, and private-label placement and pricing starting in Q1 2018. Both urban and suburban locations will be captured at various geographies in the United States. Images from approximately 100 retail stores will be added to the database each month, and it is accessible without any limits on the number of users, making it a more comprehensive and thorough tool to help inform OTC professionals’ decisions. The categories and retail channels tracked will evolve and change, based on subscriber needs and input, over the course of the year to result in a fully searchable database across all OTC categories and most major retail channels. Quarterly newsletters highlighting trends or changes at retail will also be provided to subscribers. Subscribers also have the option to make custom requests when necessary, for fast-turn around images that capture specific competitive brands, retailers, geographic locations, etc.
For a free demonstration and more information, CONTACT US.
Over 100 million Americans are affected by chronic pain, according to The American Academy of Pain Medicine. With the aging population, the number of people looking for pain relief solutions is set to grow. Currently, the most commonly used pain remedies are prescription drugs, OTC medications, rubs, and powered devices. According to Kline’s Nonprescription Drugs USA report, manufacturers’ sales of OTC medications are valued at almost USD 3 billion, growing at a slow pace of 1.5%. The topical analgesics account for USD 450 million, showing 12% growth. Powered pain management devices, with a market value of USD 250 million, are growing at over 20% in 2017.
The U.S. market for OTCs has shown a compound annual growth rate of only 2.6% from 2011 through 2016. Most years during that five-year period the market have shown 3.0% or less year-over-year growth, with the exception of 2014 to 2015, when the market was up nearly 5.0%. This was largely driven by the return to market of previously recalled brands. By comparison, natural OTCs (which refers to non-drug, non-monograph, plant- or supplement-based, or homeopathic products that often make claims of support, prevention, maintenance, and/or treatment of minor conditions or ailments) have grown strongly by double digit gains over the same timeframe.Continue reading
The top six branded OTC marketers in the United States hold 37% of the total market, and many of these companies have grown as a result of consolidation and acquisitions over the past five years.
Bayer’s acquisition of Merck’s consumer health unit bolstered its position from #3 in 2011 to now being the #1 marketer in the United States. GlaxoSmithKline’s rank improved from #6 in 2011 to #3 in 2016 with the addition of Novartis’ OTC unit via a joint venture. Sanofi’s acquisition of Boehringer-Ingelheim’s consumer health unit helped it jump from #9 in 2011 to #6 in 2016. Continue reading