With the recent OTC industry consolidation and mergers, many seasoned executives have left large OTC companies and moved on to smaller, independent companies where their past experience brings success in a nimbler environment, focused on specific brands and categories. Based on primary research for our soon-to-be published report, OTC Indies: U.S. Analysis of Independent OTC Companies, there are several examples of seasoned OTC executives driving growth at small, independent companies.Continue reading
The market for natural OTC products continues to see double-digit year-over-year sales growth, while the traditional OTC market struggles with only 2%-3% growth each year. Kline defines natural OTCs as drug-free, non-monograph products that may contain natural, plant, or herb-based ingredients. Natural OTCs can be homeopathic products and often make claims of support, prevention, maintenance and/or treatment of minor ailments. What seems to work for natural OTCs is honesty and transparency of ingredients. Millennials are driving demand for natural OTC products that have natural ingredients and help treat minor ailments without harmful ingredients or unwanted side effects. Millennials are also becoming parents and are also demanding natural products for their children.
Unlike most of the large, traditional OTC players, small, independent OTC companies have recently recorded double-digit sales growth. These companies often outpace market growth by offering unique brands, uncommon and often natural ingredients, focused distribution, and a strong online presence, frequently combined with compelling digital marketing that resonates with today’s OTC consumers. Identifying these market disruptors and learning the factors that make them resonate with consumers and retailers is crucial. Continue reading
At the end of July 2018, Johnson & Johnson announced it has entered a definitive agreement to acquire Zarbee’s Naturals for an undisclosed sum. Zarbee’s is a privately-held company that was started by pediatrician Dr. Zak Zarbock in 2008 with the mission of creating naturally sourced cough, cold, and immunity products for children and adults. Zarbee’s first product was a honey-based kids’ cough syrup made with vitamin C and zinc and free of alcohol, drugs, and artificial flavors. Over the last decade, Zarbee’s Naturals has grown into a broad-based health and wellness brand. This brand and others like it have disrupted the cough and cold category, where traditional marketers are struggling to see real sales growth.
Preliminary results from Kline’s Laundry Chemical Products USA: Market Analysis and Opportunities research uncover trends impacting the market. Kline is in the process of conducting hundreds of structured interviews with end users of laundry chemicals, as well as in-depth interviews with suppliers, distributors, and others knowledgeable about the market for commercial laundry chemicals. The research for the report due to be published this summer has uncovered some interesting trends. For example, long-term care and assisted living facilities rather than hospitals are driving sales growth of laundry chemicals for healthcare. Growth in hospitality laundry is being restrained by the increasing popularity of AirBnB and other short-term rental options. Laundry from some of these properties is done on site in a home-style machine.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
With a compound annual growth rate (CAGR) of 5.1% over the last three years, manufacturers’ sales of professional oral care products in the United States are offering much to smile about with sales in 2013 alone estimated at $426.5 million, according to Professional Oral Care USA, which includes extensive research with dentists and dental hygienists by worldwide consulting and research firm Kline & Company.
In the not so distant past, the U.S. FDA has taken a rather conservative stance concerning Rx-to-OTC switches. Many potential categories have been discounted as not safe and/or effective without a physician’s prescription. This has compelled drug manufacturers to judiciously consider which drugs, if any, they would seek to switch given the necessary multi-million dollar expenditure on prerequisite clinical trials including self-selection, actual-use, and label-comprehension studies with consumers before the application and approval process with the FDA can even begin. With its recent NSURE (Nonprescription Safe Use Regulatory Expansion) initiative, there are encouraging indications that FDA is becoming more receptive to allowing greater Rx-to-OTC switches.Continue reading
The overall OTC market has not shown much excitement as of late, especially with low to no growth, manufacturing plant shut downs and brand recalls. However, in the nutritional products segment of the market, there is rapid growth and excitement and there have been several high profile acquisitions in this space recently showing that many companies are moving into this area in order to bolster their traditional OTC businesses. In late 2012, Reckitt Benckiser and Bayer dueled for Schiff with Reckitt Benckiser the victor after bidding over $1 billion for the maker of MoveFree.Continue reading
Given that many of the most obvious “switchable” drugs and categories have already taken place, opportunities that remain in moving medicines from prescription to nonprescription status require extensive research and novel approaches in order to gain FDA approval and be used by consumers safely and effectively without a prescription. There are several opportunities for new product launches in this vain however, the roadmap to get to market remains unclear for novel switches with many unanswered questions. Pharmaceutical companies struggle with the risks of hefty spending on clinical and consumer research to support a switch with unsure outcomes and concerns about the timing of private-label competition if approval is granted.Continue reading