Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Adult mouthcare; Allergy care; Analgesics; Calming and sleeping products; Child-specific OTC healthcare; Cough; cold and allergy (hay fever) remedies; Digestive remedies; Ear care; Emergency contraception; Eye care; Medicated skin care; NRT Smoking cessation aids; OTC obesity; OTC statins; OTC triptans; Vitamins and dietary supplements; Wound treatments
Executive summary
OTC sales growth remains consistent
Sales of OTC products grew at a consistent pace in 2006, despite flat growth in some sectors. The US market for OTC healthcare remains very mature, but dynamic growth in fairly recently switched brands, like Prilosec OTC and Mucinex, continues to drive overall sales. In the absence of new product categories and formulations, many manufacturers turned to new delivery formats in 2006, such as Tylenol Soft Chews, Sudafed Quick Dissolve Strips, and Gas-X Thin Strips. Such innovations helped drive new consumer interest in established brands.
Mergers and acquisitions continue to change competitive landscape
As in previous years, 2006 was marked by continued merger activity among OTC manufacturers. By far the largest deal was Johnson & Johnson' s purchase of Pfizer Consumer Healthcare, combining the first and third ranked companies in the market. As a corollary to that deal, Chattem Inc also picked up some former Johnson & Johnson and Pfizer brands, including ACT mouthwash, Balmex diaper rash treatment, Cortizone anti-itch treatment, Kaopectate antidiarrhoeal, and Unisom sleep aids.
Pfizer' s exit from the US OTC market was just the latest in a series of recent company exits in recent years, including Bristol-Myers Squibb selling its OTC portfolio to Novartis in 2005, Boots International selling its US healthcare division to Reckitt Benckiser in 2005, Roche going to Bayer in 2004, and Pfizer acquiring Pharmacia in 2003. Such deals continue to be the primary growth strategy for major OTC manufacturers as they deal with an increasingly mature marketplace.
New regulations
Two major regulations were passed by the Food and Drug Administration in 2006 and 2007. The first, in September 2006, directed that sales of products containing pseudoephedrine be conducted behind the counter, in an effort to control the illegal use of the ingredient in methamphetamine production. Rather than force consumers to show identification to purchase their products, most cough, cold and allergy remedies manufacturers reformulated their products, and the temporary change in product mix led to a slight sales decline for the sector in 2006.
The second new regulation, proposed in June 2007, overhauls the existing guidelines for dietary supplement production, and would require the adoption of current good manufacturing practices. This would force supplement manufacturers to institute procedures guaranteeing ingredient quality, dosages, correct labelling and other quality control procedures, and would help to establish greater consumer confidence in dietary supplement products.
New switches to create new markets
The review period saw very little OTC switching activity, but that changed in 2006 and 2007 with FDA approval of Plan B and Alli. The Plan B "morning after" contraceptive was approved in late 2006 after several years of delays and a final intervention from the US Senate. As a compromise, sale of the pill without a prescription was only approved for women over the age of 18. GlaxoSmithKline' s Alli orlistat pill was approved in February 2007 and represents the first OTC obesity remedy in the US. Both of these products create new categories for growth in the US OTC market and represent the most significant OTC switches in many years.
Table of Contents
- OTC HEALTHCARE IN THE US : MARKET INSIGHT
- EXECUTIVE SUMMARY
- OTC sales growth remains consistent
- Mergers and acquisitions continue to change
- competitive landscape
- New regulations
- New switches to create new markets
- KEY TRENDS AND DEVELOPMENTS
- Product safety concerns erode confidence in FDA
- Average household size decreases and ages
- OTC switches lead to new growth
- MARKET INDICATORS
- Table 1 Consumer Expenditure on Health Goods and Medical Services 2001-2006
- Table 2 Life Expectancy at Birth 2001-2006
- MARKET DATA
- Table 3 Sales of OTC Healthcare by Sector: Value 2001-2006
- Table 4 Sales of OTC Healthcare by Sector: % Value Growth 2001-2006
- Table 5 OTC Healthcare Company Shares by Retail Value 2002-2006
- Table 6 OTC Healthcare Brand Shares by Retail Value 2003-2006
- Table 7 Penetration of Private Label by Sector 2002-2006
- Table 8 Sales of OTC Healthcare by Distribution Format: % Analysis 2001/2006
- Table 9 Sales of OTC Healthcare by Sector and Distribution Format: % Analysis 2006
- Table 10 Forecast Sales of OTC Healthcare by Sector: Value 2006-2011
- Table 11 Forecast Sales of OTC Healthcare by Sector: % Value
- Growth 2006-2011
- APPENDIX
- OTC Registration and Classification
- Advertising
- Packaging and Labelling
- Distribution
- Vitamins and Dietary Supplements Registration and Classification
- Generics
- Consumer Expenditure on Health Goods and Medical Services
- Table 12 Consumer Expenditure on Health Goods and Medical Services 2001-2006
- DEFINITIONS
- Sources
- Summary 1 Research Sources
- LOCAL COMPANY PROFILES - USA
- ADAMS RESPIRATORY THERAPEUTICS INC - OTC HEALTHCARE - USA
- STRATEGIC DIRECTION
- KEY FACTS
- Summary 2 Adams Respiratory Therapeutics Inc: Key Facts
- Summary 3 Adams Respiratory Therapeutics Inc: Operational Indicators
- COMPANY BACKGROUND
- PRODUCTION
- Summary 4 Adams Respiratory Therapeutics Inc: Production Statistics 2006
- COMPETITIVE POSITIONING
- Summary 5 Adams Respiratory Therapeutics Inc: Competitive Position 2006
- CHATTEM INC - OTC HEALTHCARE - USA
- STRATEGIC DIRECTION
- KEY FACTS
- Summary 6 Chattem Inc: Key Facts
- Summary 7 Chattem Inc: Operational Indicators
- COMPANY BACKGROUND
- PRODUCTION
- Summary 8 Chattem Inc: Production Statistics 2006
- COMPETITIVE POSITIONING
- Summary 9 Chattem Inc: Competitive Position 2006
- FOREVER LIVING PRODUCTS LLC - OTC HEALTHCARE - USA
- STRATEGIC DIRECTION
- KEY FACTS
- Summary 10 Forever Living Products LLC: Key Facts
- COMPANY BACKGROUND
- PRODUCTION
- COMPETITIVE POSITIONING
- Summary 11 Forever Living Products LLC: Competitive Position 2006
- GENERAL NUTRITION CENTERS INC - OTC HEALTHCARE - USA
- STRATEGIC DIRECTION
- KEY FACTS
- Summary 12 General Nutrition Centers Inc: Key Facts
- COMPANY BACKGROUND
- PRODUCTION
- Summary 13 General Nutrition Centers Inc: Production Statistics 2006
- COMPETITIVE POSITIONING
- Summary 14 General Nutrition Centers Inc: Competitive Position 2006
- MANNATECH INC - OTC HEALTHCARE - USA
- STRATEGIC DIRECTION
- KEY FACTS
- Summary 15 Mannatech Inc: Key Facts
- Summary 16 Mannatech Inc: Operational Indicators
- COMPANY BACKGROUND
- PRODUCTION
- Summary 17 Mannatech Inc: Production Statistics 2006
- COMPETITIVE POSITIONING
- Summary 18 Mannatech Inc: Competitive Position 2006
- MCNEIL CONSUMER & SPECIALTY PHARMACEUTICALS - OTC HEALTHCARE - USA
- STRATEGIC DIRECTION
- KEY FACTS
- Summary 19 McNeil Consumer & Specialty Pharmaceuticals: Key Facts
- COMPANY BACKGROUND
- PRODUCTION
- COMPETITIVE POSITIONING
- Summary 20 McNeil Consumer & Specialty Pharmaceuticals: Competitive Position 2006
- NBTY INC - OTC HEALTHCARE - USA
- STRATEGIC DIRECTION
- KEY FACTS
- Summary 21 NBTY Inc: Key Facts
- COMPANY BACKGROUND
- PRODUCTION
- Summary 22 NBTY Inc: Production Statistics 2006
- COMPETITIVE POSITIONING
- Summary 23 NBTY Inc: Competitive Position 2006
- PROCTER & GAMBLE CO, THE - OTC HEALTHCARE - USA
- STRATEGIC DIRECTION
- KEY FACTS
- Summary 24 The Procter & Gamble Co: Key Facts
- COMPANY BACKGROUND
- PRODUCTION
- COMPETITIVE POSITIONING
- Summary 25 The Procter & Gamble Co: Competitive Position 2006
- WYETH CONSUMER HEALTHCARE INC - OTC HEALTHCARE - USA
- STRATEGIC DIRECTION
- KEY FACTS
- Summary 26 Wyeth Consumer Healthcare: Key Facts
- Summary 27 Wyeth Consumer Healthcare: Operational Indicators
- COMPANY BACKGROUND
- PRODUCTION
- Summary 28 Wyeth Consumer Healthcare: Production Statistics 2006
- COMPETITIVE POSITIONING
- Summary 29 Wyeth Consumer Healthcare: Competitive Position 2006
- ANALGESICS IN THE US
- HEADLINES
- TRENDS
- COMPETITIVE LANDSCAPE
- PROSPECTS
- SECTOR DATA
- Table 13 Sales of Analgesics by Subsector: Value 2001-2006
- Table 14 Sales of Analgesics by Subsector: % Value Growth 2001-2006
- Table 15 Herbal vs Standard Topical Analgesics 2001/2006
- Table 16 Analgesics Company Shares by Retail Value 2002-2006
- Table 17 Analgesics Brand Shares by Retail Value 2003-2006
- Table 18 Forecast Sales of Analgesics by Subsector: Value 2006-2011
- Table 19 Forecast Sales of Analgesics by Subsector: % Value Growth 2006-2011
- COUGH, COLD AND ALLERGY (HAY FEVER) REMEDIES IN THE US
- HEADLINES
- TRENDS
- COMPETITIVE LANDSCAPE
- PROSPECTS
- SECTOR DATA
- Table 20 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: Value 2001-2006
- Table 21 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: % Value Growth 2001-2006
- Table 22 Sales of Decongestants by Type: Value 2001-2006
- Table 23 Sales of Decongestants by Type: % Value Growth 2001-2006
- Table 24 Sales of Child-specific Cough, Cold and Allergy (Hay Fever) Remedies by Type: Value 2001-2006
- Table 25 Sales of Child-specific Cough, Cold and Allergy (Hay Fever) Remedies by Type: % Value Growth 2001-2006
- Table 26 Herbal vs Standard Cough, Cold and Allergy (Hay Fever) Remedies 2001/2006
- Table 27 Cough, Cold and Allergy (Hay Fever) Remedies Company Shares by Retail Value 2002-2006
- Table 28 Cough, Cold and Allergy (Hay Fever) Remedies Brand Shares by Retail Value 2003-2006
- Table 29 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: Value 2006-2011
- Table 30 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: % Value Growth 2006-2011
- DIGESTIVE REMEDIES IN THE US
- HEADLINES
- TRENDS
- COMPETITIVE LANDSCAPE
- PROSPECTS
- SECTOR DATA
- Table 31 Sales of Digestive Remedies by Subsector: Value 2001-2006
- Table 32 Sales of Digestive Remedies by Subsector: % Value Growth 2001-2006
- Table 33 Herbal vs Standard Digestive Remedies 2001/2006
- Table 34 Digestive Remedies Company Shares by Retail Value 2002-2006
- Table 35 Digestive Remedies Brand Shares by Retail Value 2003-2006
- Table 36 Forecast Sales of Digestive Remedies by Subsector: Value 2006-2011
- Table 37 Forecast Sales of Digestive Remedies by Subsector: % Value Growth 2006-2011
- MEDICATED SKIN CARE IN THE US
- HEADLINES
- TRENDS
- COMPETITIVE LANDSCAPE
- PROSPECTS
- SECTOR DATA
- Table 38 Sales of Medicated Skin Care by Subsector: Value 2001-2006
- Table 39 Sales of Medicated Skin Care by Subsector: % Value Growth 2001-2006
- Table 40 Herbal vs Standard Medicated Skin Care 2001/2006
- Table 41 Medicated Skin Care Company Shares by Retail Value 2002-2006
- Table 42 Medicated Skin Care Brand Shares by Retail Value 2003-2006
- Table 43 Acne Treatments Brand Shares by Retail Value 2003-2006
- Table 44 Hair Loss Treatments Brand Shares by Retail Value 2003-2006
- Table 45 Forecast Sales of Medicated Skin Care by Subsector: Value 2006-2011
- Table 46 Forecast Sales of Medicated Skin Care by Subsector: % Value Growth 2006-2011
- VITAMINS AND DIETARY SUPPLEMENTS IN THE US
- HEADLINES
- TRENDS
- COMPETITIVE LANDSCAPE
- PROSPECTS
- SECTOR DATA
- Table 47 Sales of Vitamins and Dietary Supplements by Subsector: Value 2001-2006
- Table 48 Sales of Vitamins and Dietary Supplements by Subsector: % Value Growth 2001-2006
- Table 49 Sales of Vitamins by Type: Value 2001-2006
- Table 50 Sales of Vitamins by Type: % Value Growth 2001-2006
- Table 51 Vitamins and Dietary Supplements Company Shares by Retail Value 2002-2006
- Table 52 Vitamins and Dietary Supplements Brand Shares by Retail Value 2003-2006
- Table 53 Vitamins Brand Shares by Retail Value 2003-2006
- Table 54 Sales of Dietary Supplements by Type: Value 2001-2006
- Table 55 Sales of Dietary Supplements by Type: % Value Growth 2001-2006
- Table 56 Dietary Supplements Brand Shares by Retail Value 2003-2006
- Table 57 Forecast Sales of Vitamins and Dietary Supplementsby Subsector: Value 2006-2011
- Table 58 Forecast Sales of Vitamins and Dietary Supplements by Subsector: % Value Growth 2006-2011
- NRT SMOKING CESSATION AIDS IN THE US
- HEADLINES
- TRENDS
- COMPETITIVE LANDSCAPE
- PROSPECTS
- SECTOR INDICATORS
- Table 59 Number of Smokers by Gender 2001-2006
- SECTOR DATA
- Table 60 Sales of Smoking Cessation Aids by Subsector: Value 2001-2006
- Table 61 Sales of Smoking Cessation Aids by Subsector: % Value Growth 2001-2006
- Table 62 Smoking Cessation Aids Company Shares by Retail Value 2002-2006
- Table 63 Smoking Cessation Aids Brand Shares by Retail Value 2003-2006
- Table 64 Forecast Sales of Smoking Cessation Aids by Subsector: Value 2006-2011
- Table 65 Forecast Sales of Smoking Cessation Aids by Subsector: % Value Growth 2006-2011
- EYE CARE IN THE US
- OVERVIEW
- SECTOR DATA
- Table 66 Sales of Eye Care by Subsector: Value 2001-2006
- Table 67 Sales of Eye Care by Subsector: % Value Growth 2001-2006
- Table 68 Eye Care Company Shares by Retail Value 2002-2006
- Table 69 Eye Care Brand Shares by Retail Value 2003-2006
- Table 70 Forecast Sales of Eye Care by Subsector: Value 2006-2011
- Table 71 Forecast Sales of Eye Care by Subsector: % Value Growth 2006-2011
- EAR CARE IN THE US
- OVERVIEW
- ADULT MOUTHCARE IN THE US
- OVERVIEW
- CALMING AND SLEEPING PRODUCTS IN THE US
- OVERVIEW
- WOUND TREATMENTS IN THE US
- OVERVIEW
- SECTOR DATA
- Table 72 Sales of Wound Treatments by Subsector: Value 2001-2006
- Table 73 Sales of Wound Treatments by Subsector: % Value Growth 2001-2006
- Table 74 Wound Treatments Company Shares by Retail Value 2002-2006
- Table 75 Wound Treatments Brand Shares by Retail Value 2003-2006
- Table 76 Forecast Sales of Wound Treatments by Subsector: Value 2006-2011
- Table 77 Forecast Sales of Wound Treatments by Subsector: % Value Growth 2006-2011
- OTC OBESITY IN THE US
- OVERVIEW
- EMERGENCY CONTRACEPTION IN THE US
- OVERVIEW
