Nutritional Supplements During and After Pandemic Forecasts

 Nutritional Supplements Gain During Coronavirus Outbreak – But Can The Market Sustain a Recession? 

The COVID-19 pandemic has consumers scrambling to do more than kill germs on hands and surfaces. Amid the chaotic situation of out-of-stock shelves for cleaning products, hand soaps, and paper products, consumers are seeking ways to bolster their immune systems by eating more whole foods, increasing rest, and exercising. As a result, the nutritional supplements category is witnessing strong surge in demand as customers turn toward multivitamins, single-letter vitamins, and specialty supplementsFor one, Vitamin C products have seen a strong uptick in sales, as have other specialty supplements such as elderberryzincand echinacea.   

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OTC Drugs: U.S. Competitor Cost Structures

How are Shifts in Cost Structures Affecting the Leading OTC Marketers?

Major mergers and acquisitions in the U.S. OTC market have a way of shifting OTC cost structures both in the near- and long-term. For example, when major businesses are merged, such as Bayer Group’s acquisition of Merck’s U.S. OTC business or when GlaxoSmithKline and Novartis formed a consumer healthcare joint venture, the costs of goods for these organizations often rises initially. This is largely because of duplication of plants and employees. As the new venture sheds duplicate resources, the organization realizes increased profits over the long-term as a result of consolidated resources being used more efficiently.Continue reading

OTC Drugs: U.S. Competitor Cost Structures

Digital Media, Gummy Product Forms, and Mergers Impact OTC Cost Structures

The OTC industry continues to consolidate and transform itself with companies merging or acquiring/divesting brands. Recent examples include the merger of Bayer’s and Merck’s OTC businesses, the joint venture between GlaxoSmithKline’s and Novartis’ consumer health units, and Sanofi’s upcoming acquisition of Boehringer-Ingelheim’s OTC unit. With acquisitions come synergies, such as more media buying power, widened retail distribution, and competitive strengths across more OTC categories. However, mergers and joint ventures can also lead to increased costs of raw materials, packaging, and processing to manufacture a larger array of products. Increased marketing expenditures in support of newly acquired brands also impacts profitability, with the longer term goal of increasing sales and market share. Sales growth of acquired brands can help offset additional costs in cost of goods sold (COGS) and marketing. Continue reading

Nonprescription Drugs USA

A Multitude of Upper Respiratory Choices Creates Confusion Among Consumers

The upper respiratory self care market is crowded with many brands, ingredients, claims, and offers. Walking down the cold and allergy aisles of retail stores can make consumers dizzy from the assortment and sheer number of products on shelves, each making similar but not exactly the same claims. This makes the cold and allergy aisle a complex section for consumers to navigate. Much of this complexity is rooted in the fact that colds, the flu, and allergies all affect the upper respiratory system—yet each condition has symptoms that set it apart, as well as symptoms that overlap with each other. Continue reading

Nonprescription Drugs USA

Top Three Drivers of the U.S. OTC Market

Estimated at over $24 billion at the manufacturers’ level in 2014, the U.S. nonprescription drugs market shows interesting opportunities for its players, posting growth in five out of the seven product classes tracked in Kline’s annual Nonprescription Drugs USA report. Let’s take a look at the top three drivers behind this market’s success:

  1. Rx-to-OTC switches – the big game changer

Rx-to-OTC switches represent the core driver of market growth as they involve large, popular brands, bringing former prescription users to the OTC market. According to our recently released Rx-to-OTC Switch Pipelines USA: Competitive Assessment, the increasingly favorable regulatory environment facilitated the approval of four new and important switches, in categories that five years ago would have been considered as challenging.Continue reading

Rx-to-OTC Switch Pipelines in the United States

Rx-to-OTC Switches – Game Changers for the U.S. OTC Drugs Market through 2019

Growth of the U.S. nonprescription market is primarily driven by Rx-to-OTC switches as they bring former prescription users to the OTC market. Due to an increasingly favorable regulatory environment, Kline forecasts robust Rx-to-OTC switch activity over the next five years with several all new OTC categories emerging along with many new brands entering the market into existing categories.

If all switches occur over the next five years (even those with low to moderate likelihood), the market is forecast to increase at a compound annual growth rate (CAGR) of 5% by 2019, according to the recently published report covering Rx-to-OTC Switch Pipelines in the United States. By contrast, if the only switches that come to market are those that are predicted to have moderate to high likelihood of approval and launch, the overall OTC market will expand by a CAGR of 3.6% over the next five years.Continue reading

The Allergy Market in 2014

Allergy Sales That Rose Up Your Nose

In 2014, two intranasal steroids for the treatment of allergic rhinitis received FDA approval for Rx-to-OTC switch—Sanofi’s Nasacort Allergy 24 Hour and GlaxoSmithKline’s Flonase Allergy Relief. Nasacort entered the OTC market in February 2014 and according to recently released data from Kline’s Nonprescription Drugs USA study, from February through December 2014, the product generated about $100 million in sales at the manufacturers’ level. Kline pegs the overall allergy market up 10.0% to over $1.8 billion in sales at the manufacturers’ level.Continue reading