Medicated Skincare - US - December 2014

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The market
Figure 1: Total US retail sales and fan chart forecast of medicated skincare products, at current prices, 2009-19
Market factors
Total population growth will positively impact market
Growing Hispanic and Asian populations will help the category
Segment performance
Figure 2: Total US retail sales and forecast of medicated skincare products, by segment, at current prices, 2011-16
Market players
Figure 3: Share of MULO sales of medicated skincare products, by leading companies, 2014
The consumer
Skin irritations affect many consumers
Figure 4: Skin issues and sensitivities, September 2014
Medicated skincare products most popular method of treatment
Consumers take a functional approach to selecting medicated skincare products
Figure 5: Most important purchase considerations when selecting medicated skincare products, September 2014
Consumers interested in and willing to pay extra for products with added functional and cosmetic benefits
Figure 6: Interest in new products, September 2014
What we think
ISSUES AND INSIGHTS
How can brands grow sales in a mature, saturated market?
The issues
The implications
How can brands better address the needs of chronic sufferers?
The issues
The implications
What should brands do to better engage Hispanic and Asian consumers?
The issues
The implications
TREND APPLICATIONS
Trend: Extend My Brand
Trend: FSTR HYPR
Trend: Return to the Experts
MARKET SIZE AND FORECAST
Key points
Sales and forecast of medicated skincare products
Figure 7: Total US retail sales and forecast of medicated skincare products, at current prices, 2009-19
Figure 8: Total US retail sales and forecast of medicated skincare products, at inflation-adjusted prices, 2009-19
Steady growth expected for medicated skincare market
Figure 9: Total US retail sales and fan chart forecast of medicated skincare products, at current prices, 2009-19
Forecast methodology
MARKET DRIVERS
Key points
Consumer confidence is improving but consumers still look to save on functional personal care products
Figure 10: University of Michigan’s index of consumer sentiment (ICS), 2007-14
Total population growth will drive market
Figure 11: Population, by age, 2009-19
Hispanic and Asian population growth will help market
Figure 12: Population, by race and Hispanic Origin, 2009-19
COMPETITIVE CONTEXT
Doctors and dermatologists are preferred treatment option for some
Self-healing or “leave it alone” method also impacts category
SEGMENT PERFORMANCE
Key points
Medicated skincare product sales by segment
Figure 13: Segment share of total US retail sales of medicated skincare products, 2014
Anti-itch treatments are top segment in the category
Figure 14: Total US retail sales and forecast of anti-itch treatments, at current prices, 2009-19
Foot medications product sales growing
Figure 15: Total US retail sales and forecast of foot medications, at current prices, 2009-19
Cold sore medications experiencing sold sales growth
Figure 16: Total US retail sales and forecast of cold sore medications, at current prices, 2009-19
Skin growth remover solution segment showing signs of struggle
Figure 17: Total US retail sales and forecast of skin growth remover solutions, at current prices, 2009-19
RETAIL CHANNELS
Key points
Most medicated skincare purchases happening through “other retail channels”
Drug stores post solid gains
Sales of medicated skincare products, by channel
Figure 18: Total US retail sales of medicated skincare products, by channel, at current prices, 2009-14
LEADING COMPANIES
Key points
Medicated skincare market is highly competitive
MULO manufacturer sales of medicated skincare products
Figure 19: MULO sales of medicated skincare products, by leading companies, 2013 and 2014
BRAND SHARE – ANTI-ITCH PRODUCTS
Key points
Chattem tops the segment with Cortizone 10 and Gold Bond brands
MULO sales of anti-itch products
Figure 20: MULO sales of anti-itch products, by leading companies, 2013 and 2014
BRAND SHARE – FOOT MEDICATIONS
Key points
Merck & Co. top company in foot medications segment
MULO sales of foot medications
Figure 21: MULO sales of foot medications, by leading companies, 2013 and 2014
BRAND SHARE – COLD SORE MEDICATIONS
Key points
GlaxoSmithKline dominates cold sore medication segment with Abreva
MULO sales of cold sore medications
Figure 22: MULO sales of cold sore medications, by leading companies, 2013 and 2014
BRAND SHARE – SKIN GROWTH REMOVER SOLUTIONS
Key points
Every skin growth remover solution brand is struggling
MULO sales of skin growth remover solutions
Figure 23: MULO sales of skin growth remover solutions, by leading companies, 2013 and 2014
INNOVATIONS AND INNOVATORS
Private label accounts for a third of new product launches
Figure 24: Share of branded and private label medicated skincare product launches, 2009-14
More eczema-specific product options for babies
MARKETING STRATEGIES
Overview
Abreva continues to be tough on cold sores
Figure 25: Abreva “Don’t tough it out. Knock it out.” campaign
INCIDENCE OF SKIN IRRITATIONS
Key points
Skin irritations affect consumers across demographic segments
Figure 26: Skin issues and sensitivities, September 2014
Younger consumers are important to the category
Figure 27: Skin issues and sensitivities, by gender and age, September 2014
FREQUENCY OF SKIN IRRITATIONS
Key points
Most common skin irritations are seasonal for most consumers
Figure 28: Frequency at which skin issues occur, September 2014
Chronic skin irritations more apt to affect older consumers
Figure 29: Frequency at which skin issues occur – Chronic, by gender and age, September 2014
TREATMENT METHODS
Key points
Medicated skincare products most popular treatment method
Figure 30: Treatment methods, September 2014
Usage of medicated skincare products highest among men
Figure 31: Treatment methods, by gender and age, September 2014
Most already have products in their homes
Figure 32: Acquisition of treatment product, September 2014
Younger consumers most likely to have to go out and buy products
Figure 33: Acquisition of treatment product, by gender and age, September 2014
PURCHASE FACTORS
Key points
Consumers want products that are easy to use and deliver fast results
Figure 34: Most important purchase considerations when selecting medicated skincare products, September 2014
Women prioritize fast-acting formulas
Figure 35: Purchase factors – Very important, by gender and age, September 2014
Parents are discerning medicated skincare shoppers
Figure 36: Purchase factors – Very important, by parent with children in household, September 2014
RETAIL OPPORTUNITIES
Key points
Consumers want more treatment information in-store
Figure 37: Interest in retail concepts, September 2014
Younger consumers interested in mobile identification apps
Figure 38: Interest in retail concepts, by gender and age, September 2014
Parents with younger children interested in getting more information
Figure 39: Interest in retail concepts, by parent with children in household, September 2014
NEW PRODUCT OPPORTUNITIES
Key points
Consumers interested in products with added functional and cosmetic benefits
Figure 40: Interest in new products, September 2014
Younger consumers have interest in a number of new products
Figure 41: Interest in new product – Interested in buying and would be willing to pay more for, by gender and age, September 2014
Parents with children aged 11 and younger most willing to pay more for added benefits
Figure 42: Interest in new product – Interested in buying and would be willing to pay more for, by parent with children in household, September 2014
INCIDENCE OF FOOT AILMENTS
Key points
Foot ailments are fairly prevalent among consumers
Figure 43: Foot ailments, September 2014
Older consumers will have more pressing foot care needs as they age
Figure 44: Foot ailments, by gender and age, September 2014
TREATMENTS FOR FOOT AILMENTS
Key points
Foot moisturizing creams, lotions, gels, and scrubs most popular treatment product
Figure 45: Toe Pads
Figure 46: Foot treatments, September 2014
Men across age groups using more antifungal products
Figure 47: Foot treatments, by gender and age, September 2014
IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Asians/Pacific Islanders and Hispanics most likely to have experienced skin irritations in the past year
Figure 48: Skin issues and sensitivities, by race/Hispanic origin, September 2014
Hispanics are discerning medicated skincare shoppers
Figure 49: Purchase factors – Very important, by race/Hispanic origin, September 2014
Hispanics looking for more information in store aisles
Figure 50: Interest in retail concepts, by race/Hispanic origin, September 2014
Hispanics could be early adopters of innovative new products
Figure 51: Interest in new product – Interested in buying and would be willing to pay more for, by race/Hispanic origin, September 2014
Hispanics more commonly struggle with skin-related foot ailments
Figure 52: Foot ailments, by race/Hispanic origin, September 2014
APPENDIX – OTHER MARKET TABLES
Segment performance
Figure 53: Total US retail sales of medicated skincare products, by segment, at current prices, 2012-14
Retail channels
Figure 54: Total US retail sales of medicated skincare products, by channel, at current prices, 2012-14
Key purchase measures
Figure 55: Key purchase measures for the top medicated skincare brands, by household penetration, 52 weeks ending Dec. 29, 2013 (current) and Dec. 29, 2012 (year ago)
APPENDIX – OTHER USEFUL CONSUMER TABLES
Incidence of skin irritations
Figure 56: Skin issues and sensitivities, by area, September 2014
Figure 57: Skin issues and sensitivities, by region, September 2014
Frequency of skin irritations
Figure 58: Frequency at which skin issues occur – Seasonal, by gender and age, September 2014
Figure 59: Frequency at which skin issues occur – Once in a while, by gender and age, September 2014
Figure 60: Frequency at which skin issues occur – Seasonal, by region, September 2014
Figure 61: Frequency at which skin issues occur – Chronic, by region, September 2014
Brand usage
Figure 62: Antibiotic remedy brands used, by gender, April 2013-June 2014
Figure 63: Antibiotic remedy brands used, by age, April 2013-June 2014
Figure 64: Antibiotic remedy brands used, by household income, April 2013-June 2014
Treatment methods
Figure 65: Treatment methods, by household income, September 2014
Figure 66: Acquisition of treatment product, by household income, September 2014
Purchase factors
Figure 67: Most important purchase considerations when selecting medicated skincare products, September 2014
Figure 68: Purchase factors – Very important, by household income, September 2014
Retail opportunities
Figure 69: Interest in retail concepts, by household income, September 2014
Figure 70: Interest in retail concepts, by area, September 2014
New product opportunities
Figure 71: Interest in new products, September 2014
Race and Hispanic origin
Figure 72: Antibiotic remedy brands used, by race/Hispanic origin, April 2013-June 2014
Figure 73: Frequency at which skin issues occur – Seasonal (experience it less than two times per year), by race/Hispanic origin, September 2014
Figure 74: Frequency at which skin issues occur – Chronic (experience it four or more times per year), by race/Hispanic origin, September 2014
Figure 75: Treatment methods, by race/Hispanic origin, September 2014
Figure 76: Acquisition of treatment product, by race/Hispanic origin, September 2014
Figure 77: Foot treatments, by race/Hispanic origin, September 2014
APPENDIX – TRADE ASSOCIATIONS
American Academy of Dermatology
Personal Care Products Council
Pharmaceutical Research and Manufacturers of America (PhRMA)