![](https://klinegroup.com/wp-content/uploads/PMD-150x150.png)
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![Recent OTC Innovation: Observations and Implications for Future Growth](https://klinegroup.com/wp-content/uploads/2018/12/otc_innovations-150x150.png)
Recent OTC Innovation: Observations and Implications for Future Growth
Innovation is the lifeblood of the OTC industry. From a business perspective, it drives growth, and from a public health perspective, it better satisfies consumers’ health needs. Because innovation is so important, Kline and IRI have collaborated to examine recent OTC launches and identified their success factors including: A point of difference, big or small, real or imagined, to better address patient needs
Expert awareness-generating, heavy advertising and promotion investment
Brand equity plays
The nine brands included in this assessment and shown on the timeline graphic in Table 1, have the following characteristics and were chosen for inclusion jointly by Kline and IRI:
Launched between 2010 to 2014
A mix of Rx-to-OTC switches, new and line extensions of monograph items, and supplements
Part of IRI’s New Products Pacesetters tracking and annual review
Significant media support
Experienced double-digit growth the year after launch
Still growing in Year 2
![](https://klinegroup.com/wp-content/uploads/brains-150x150.png)
Brain Health: Unlocking White Space Potential for the OTC Industry
There are significant opportunities for OTC marketers in the area of brain health. This is an area of serious concern for many individuals who either have the disease or wish to avoid succumbing to it. Current prescription drugs offer treatment for individuals with advanced levels of dementia and Alzheimer’s disease, with mixed results. However, many consumers, seeing first-hand results of brain disease in elderly parents and relatives, are eager to maintaintheir own brain health and prevent or delay the onset of dementia or Alzheimer’s disease.
![](https://klinegroup.com/wp-content/uploads/rx-to-otc-150x150.png)
Natural OTCs: Impact of Non-drug Products on the U.S. OTC Market
Growing consumer interest in natural OTCs is mirroring widespread consumer interest in seeking more natural and less synthetic products across many categories, from food and beverages to personal care products to OTCs. Natural OTCs are drug-free and may contain natural, plant, or herbal ingredients, or be homeopathic, and are used to support, prevent, maintain, or treat minor ailments such as colds, insomnia, aches and pains, or skin problems. Retailers merchandise natural alternatives near OTC medication sections or even within the same planogram. Retailers are increasingly dedicating prime areas of stores to natural OTCs, such as high visibility end-cap displays as the example below from a Target store shows. Online sales of natural OTCs are also growing fast along with sales through natural and specialty stores focused on natural products, such as Whole Foods, Sprout, and Trader Joe’s.
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![](https://klinegroup.com/wp-content/uploads/rx-to-otc-There’s-an-APP-for-That-150x150.png)