At the same time as our DB6 division publishes data on the sales performance of the global CHC market in the first quarter of 2020, it’s also a good time to reflect on headline new product development trends in the period from January to March 2020, using our CHC New Products Tracker tool which covers 20 key markets. The major development that stands out this year is the dramatic fall in the volume of new product development (NPD) in March 2020, compared to the same month in the three previous years.
March is traditionally the month we see a sharp rise in NPD activity after the quieter month of February, but this year Covid-19 halted that trend. So far for March 2020, we only have 271 entries – including launches, Rx-to-OTC switches, line extensions, rollouts and relaunches – recorded in our Tracker archive, compared to much higher totals in March 2019 (464 entries), March 2018 (434) and March 2017 (397).
This sharp fall in global NPD activity in March 2020 is likely the result of CHC marketers shelving plans to launch new products in response to the uncertainty caused by the Covid-19 pandemic. The question is whether these plans have been postponed or abandoned altogether? We know that several CHC companies have streamlined their portfolios during the pandemic to ensure continued production of core SKUs, so it’s possible portfolio innovation has fallen down the priority list. Alternatively, we may see a surge in NPD activity in the remainder of 2020. Only time will tell.
What will also be interesting to see play out is how NPD activity in 2020 differs in terms of its focus on fast-growing subcategories, fuelled by the Covid-driven spike in demand. For example, we saw an increasing number of antiseptics & disinfectants launched in March 2020, compared to the same month in previous years. This trend will likely be replicated in other subcategories, such as herbal & natural immune stimulants, when we come to analyse NPD activity in Q2 2020 and later quarters.
Thousands of innovations are launched every year in the global consumer healthcare market, but relatively few offer notable new benefits for consumers in terms of delivery format or formulation. Which new products are breaking through and offering a unique proposition? Contact email@example.com to secure your copy of Innovation in CHC, a report showcasing many of the “wow brands” launched in 2019 and highlighting ingredient and delivery format trends that continue to characterise the market in 2020.