Highlights from OTC DASHBOARD’s Q2 update

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The latest quarterly report on the global OTC market is now available on the OTC DASHBOARD website, including data & trends on the market’s performance at a global, regional and Top 20 country level in the year to end-June 2019. Here we highlight some of the key topline trends from this Q2 update, selecting one major global development from each of our company, category and brand watch sections.

Company Watch

M&A activity completed in 2019 has seen a reshuffle in the rankings of the top global OTC marketers; most notably, GSK is now by far the No.1 consumer healthcare marketer globally, following the closure of its OTC merger with Pfizer in August 2019, giving it a 6.8% share. This consolidation has led to the emergence of new competitors, most notably By-Health, which has broken into the global Top 20 and now claims 15th spot.

While decelerating growth in Emerging Markets, especially China, has been a key macroeconomic trend affecting the wider economy and the consumer healthcare industry, one company that has bucked the trend with accelerating growth (+31%) is By-Health. China accounts for over 90% of By-Health’s OTC portfolio turnover, with Australia accounting for the remainder. In China, the company fields brands including dynamic longline range By-Health and glucosamine supplement Keylid, backed by an intensive A+P strategy.

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Category Watch

Analysing the performance of the major OTC categories at a global level, gastrointestinals enjoyed the fastest growth in the MAT Q2 2019 period, with sales up 4.9%. Antinauseants (+15.9%) performed especially well, recorded a strong performance in Asia-Pacific, the largest regional market for GIs, owing to increasing levels of travel and changing diets.

Antidiarrhoeals, antispasmodics & IBS remedies and liver & bile remedies were the other best-performing categories, powered by new product innovation, as explored more fully in our Q2 update. One cloud on the horizon for GIs are the global concerns and recalls affecting antacids containing ranitidine, after some medicines were recently found to contain a nitrosamine impurity called N-nitrosodimethylamine (NDMA) at low levels — see our previous blog for more details.

Brand Watch

Two OTC brands have global sales of over US$1bn — Vicks (P&G) and Tylenol (J&J) — and both continue to outperform the global OTC market. No.1 Vicks produced above-average growth of 5.7%, despite difficult conditions in the global cough, cold & allergy market.

A strong return to growth in North America for Vicks was at the heart of this upturn, allied with continued strong growth in Latin America, helping to offset the moderate continued decline in Europe. A major factor driving faster growth in North America for Vicks is the sedative & sleep aid range Vicks ZzzQuil, which was boosted by the US launch of a new Pure Zzzs line in 2018. This range has been extended further with Pure Zzzs Kidz in Q3 2018 and several beauty and de-stress gummy supplements in 2019.

Whether you are in the office or on the go, you can access reliable CHC data and trends from OTC DASHBOARD, accessible on tablet, smartphone and desktop, and covering 63 markets across the world. Contact Hannah.Burke@NicholasHall.com to find out how you can benefit from OTC DASHBOARD by setting up a free trial today!

OTCs In Action: Innovative Ayurvedic Acid Relief On the Go

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OTCs are in Action in India, where Sun Pharma’s new Pepmelt updates traditional Ayurvedic medicine with fast-melt granules for speedy relief of acid indigestion and heartburn, allowing Indians to enjoy impromptu meals with friends or new acquaintances.

 “The pioneering innovation of a mouth-melt antacid arose from a big need gap our market research indicated,” said Subodh Marwah, VP & Business Head – Global Consumer Healthcare. “Consumers today lead a very hectic life, eat out a lot and are always on the move. Thus, an easy-to-carry and convenient to use mouth-melt antacid makes Pepmelt extremely relevant to our consumers’ needs. Moreover, the idea of enjoying food without any fear is a key distinction for Pepmelt’s positioning in the antacid category.”

Lowe Lintas’ digital campaign for Pepmelt welcomes heartburn sufferers to the table. “A category defining innovation like Pepmelt, which is also a category disruptive introduction, needs a distinct and refreshing insight,” observed Marwah.”The campaign idea stems from the insight of offering food to someone who’s suffering from heartburn and acidity. This insight is fused into India’s socio-cultural context to create a potentially powerful and progressive brand idea for Pepmelt.”

OTCs in Action Episode 57: IBgard, consumer healthcare trailblazer

The woman stands at her workstation, cringing and holding her stomach while the voiceover gently suggests: “Abdominal pain. Bloating. You may have IBS. Ask your doctor if the nonprescription IBgard is right for you. IBgard – calms the angry gut. Available at CVS and Walgreens.”

This week, IBgard is our OTC in Action as its blazes a new trail for self-medication. The February issue of the prominent medical journal, Digestive Diseases and Sciences, features a randomised, double-blind, placebo-controlled study which demonstrated that IBgard provides reduction in symptoms including abdominal discomfort, bloating, diarrhoea, constipation and gas.

It’s amazing that these stellar claims are not made by an Rx drug or an OTC – IBgard is a medical food that should be used under the supervision of a doctor, and does not require FDA pre-authorisation or a New Drug Application. Interestingly, its capsule formulation of peppermint oil could also be a dietary supplement, but would not be able to make disease-related claims. IM HealthScience also protected its investment by using patented Site Specific Technology in its clinically-tested peppermint oil mixture, preventing other peppermint oils from making the same claims.

OTC marketers have been endlessly searching for innovative products without dangerous side-effects; the dietary supplement folks have been craving claims substantiation and patented formulations. Oh, and by the way, over 10,000 healthcare practitioners, including 3,000 gastroenterologists, are estimated to have already used IBgard for their patients, according to IM HealthScience.

Last week, the company launched an independent spin-off called Physician’s Seal to focus on the development and commercialisation of novel and science-based dietary supplements and over-the-counter (OTC) drugs. Its non-executive Chairman is OTC veteran Fred Hassan, who stated: “We are proud to expand our family of businesses to a wider market using our exceptional science base and our broad intellectual property portfolio. We also will be leveraging the success of our initial medical foods product, IBgard, specially formulated for the dietary management of Irritable Bowel Syndrome.”

Big Growth for the New Year – Nicholas Hall’s OTC INSIGHT Latin America

Cath INSIGHT Header 2014We have just published the January / February issue of OTC INSIGHT Latin America. Our Market Report focuses on Gastrointestinals and it has been a good year for the industry with each Big 4 country and all sub-categories posting growth. Lots of activity has been seen in antacids & antiflatulents where a flurry of innovative launches and line extensions have increased competition. Marketers are expanding their consumer base by extending brands into niche segments, such as Bayer’s Alka-Seltzer Boost in Mexico, positioned to relieve hangovers, while on-the-go line extensions from GSK and Hypermarcas in Brazil offer consumers convenience.

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Key Trends around Gastrointestinals from OTC INSIGHT Europe

Chris INSIGHT Header 2014The latest issue of OTC INSIGHT Europe includes a round-up of the key trends & developments affecting the gastrointestinals category in France, Italy, Spain and the UK. It was a disappointing picture overall, with a significant decline in revenue for semi-ethicals in France dragging down the topline.

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OTC INSIGHT North America: Analysis of OTC Gastrointestinals market

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We start 2014 with good news for OTC INSIGHT subscribers; our new website offers an improved search facility, which will help readers navigate more easily through our archive going back to 2003 and offers an enhanced search function, making it easier than ever before to find the information or data that you need.

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