Report: OTC recalls mean new opportunities for smaller market players
PARSIPPANY, N.J. — Product recalls over the past two years have eroded consumer trust in over-the-counter drugs; however, those same recalls represent opportunity for smaller market players to gain exposure and build brand awareness, wrote Laura Mahecha, industry manager for health care at research firm Kline, in an online report issued Wednesday. In addition, private-label brands and “natural OTCs” are enjoying strong growth.
“The U.S. market for nonprescription drugs will see a dip in sales in 2011, primarily due to the absence of Johnson & Johnson’s brands from the market,” Mahecha noted. With their reintroduction in 2012, however, the market will return on a growth track, expecting to reach an average annual growth rate of 3% through 2015.”
Johnson & Johnson realized a 20% drop in sales due to those recalls, Mahecha reported, and Novartis benefited the most with a 40% boost in sales in part due to the launch of the proton-pump inhibitor Prevacid 24HR and sales gains across its Excedrin brand.
“The ability of some brands to take advantage of the new openings in the market and post high growth rates has helped offset the market leader’s declines, keeping the market at a constant level,” she wrote. “A significant boost to the market also came from the success of some new switch brands, which have seen rapid growth in the market.”
Private-label manufacturers have benefited from both the recalls and a still-challenged economy. From 2009 to 2010, while the overall market posted flat performance with 0.3% growth, private-label OTCs grew by 9.4%.
Natural OTCs, including homeopathic remedies, represent a safer treatment alternative for many consumers concerned over the recalls. “The natural trend, which has been dominating the U.S. personal care industry, has also set roots in the pharmaceutical market as customers gravitate toward natural products across the board,” Mahecha reported.
As many as 47% of U.S. customers believe natural OTCs are as effective as traditional OTCs, according to a recent survey carried out by Kline. “Exposure alone [because of the recalls] is not what is driving consumer interest,” Mahecha indicated. “One of the other crucial findings that comes from customer surveys is that, to a certain extent, natural OTCs do not face direct competition from traditional OTCs.”
Kline will be examining trends across switch opportunities and natural OTCs in two upcoming reports: Global Rx-to-OTC Switch 2012: Forecasts and Opportunities and Natural OTCs 2011: Impact of Non-drug Products on the U.S. OTC Market.
To see Mahecha’s article online, click here.
BioElectronics signs Greenwood Group to manage retail products
FREDERICK, Md. — BioElectronics, maker of the topical drug-free pain relievers ActiPatch and Allay on Tuesday announced it has signed with the Greenwood Group to manage the company’s retail products portfolio.
“Greenwood Group management has a substantial history building successful brands, through international and domestic selling efforts, as well as developing and implementing marketing strategies,” BioElectronics stated in its release.
“There has not been a distinctively new product on store analgesic shelves in decades,” noted Patrick O’Leary, president of the Greenwood Group. “The pricing, safety, market demand, patents and scope of the product line provide a profound market opportunity."
Moszkito insoles now available at Shoebuy.com
SCOTTSDALE, Ariz. — Moszkito on Tuesday announced that its collection of over-the-counter insoles, including the Archy Orthotic line, is available for purchase at Shoebuy.com.
At a suggested retail price of $58, Archy Othotic will fit into high heels, boots and loafers. In black and tan Prima leather, they are lightweight, supportive and comfortable, the company stated.
Moszkito was launched in 2001, offering affordable, prefabricated insoles to compete in the expensive custom orthotic market. The original line is available in 73 sizes, and Moszkito’s unique fit system allows approximately 80% of the over-the-counter customers to get a custom fit, the company noted. Addressing shoe size, heel width and arch height, the easy-to-fit footbeds come in both Flex and Rigid models for a suggested retail price of $55.
"As the comfort footwear market expands, the demand for arch and foot support is becoming commonplace," stated company founder Laurin Fox. "Today’s consumer is more educated in foot care and realizes that taking care of one’s feet will be a lifetime reward."
The new addition of the Archy Orthotic rounds out the footbed offering by addressing the fashion footwear market. Boots and loafers continue to be popular, and women’s high heels still are a staple in every “fashionista’s” closet.
Moszkito products can be found at better comfort footwear stores, chiropractors, podiatrists or online at Moszkito.com.