The children’s OTC category experienced value growth of 4% to £194 million in 2019, despite a decline in ailments experienced, suggesting that parents are continuing to invest in higher-priced, branded products. Indeed product quality is the most important purchase driver in this category, prioritised by 69% of parents.

The pandemic has impacted the rate of infectious and non-infectious ailments in 2020. Data in this Report from July 2020 shows that 45% of children suffered from a cold in the last 12 months, compared with 68% in 2017. School closures for much of the year as well as ongoing social distancing measures have reduced the rate of ailments.

As such, the use of OTC remedies has also declined with 39% of parents whose children have been sick having used a non-prescription remedy in 2020 compared with 54% in 2017. Pressure on the NHS has also seen fewer parents seek professional medical advice.

There are opportunities, however, for encouraging a more proactive approach to health as parents show interest in more preventative solutions. 40% are interested in products that strengthen the immune system while 36% are interested in products with added vitamins/minerals. This presents NPD opportunities in OTC products containing VMS, or cross-category collaborations.

Key issues covered in this Report

  • The impact of COVID-19 on the children’s healthcare market.

  • The value and forecast of the category, and the value of individual segments and brand performance in 2019.

  • Launch activity and interest in children’s healthcare products.

  • Ailments experienced in the last 12 months and treatments sought.

  • Purchase drivers and retailers used for children’s OTC healthcare products.

COVID-19: Market context

This update on the impact that COVID-19 is having on the market was prepared on 14 October 2020.

The first COVID-19 cases were confirmed in the UK at the end of January, with a small number of cases in February. The government focused on the ‘contain’ stage of its strategy, with the country continuing to operate much as normal. As the case level rose, the government ordered the closure of non-essential stores on 20 March.

A wider lockdown requiring people to stay at home except for essential shopping, exercise and work ‘if absolutely necessary’ followed on 23 March. The Health Protections Regulations 2020 came into effect on 15 June allowing the reopening of all non-essential stores in England and the mandatory use of face coverings on public transport. Pubs, restaurants, hotels and hairdressers reopened on 4 July and beauty salons reopened on 13 July. The use of face coverings in shops and supermarkets became mandatory on 24 July.

On 21 September, the alert level was moved from 3 to 4, which means transmission is high or rising exponentially. New restrictions took effect from 24 September, including a 10pm curfew on pubs, restaurants and bars in England. On 23 September, the government announced that all shop staff must wear face coverings and people were advised to work from home if possible. On 30 September, lockdown measures were tightened across the North East of England. On 14 October, the COVID-19 tier regulations came into force, replacing the existing lockdown regulations, defining three levels of restrictions to be applied as necessary in local areas.

Economic and other assumptions

Mintel’s economic assumptions are based on the Office for Budget Responsibility’s central scenario included in its July 2020 Fiscal Sustainability Report. The scenario suggests that UK GDP could fall by 12.4% in 2020, recovering by 8.7% in 2021, and that unemployment will reach 11.9% by the end of 2020, falling to 8.8% by the end of 2021.

The current uncertainty means that there is wide variation on the range of forecasts, however, and this is reflected in the OBR’s own scenarios. In its upside scenario, economic activity returns to pre-COVID-19 levels by Q1 2021. Its more negative scenario, by contrast, would mean that GDP doesn’t recover until Q3 2024.

Products covered in this Report

For the purposes of this Report, Mintel has used the following definitions:

Children are defined as those aged 0-12 years.

As well as reviewing general attitudes and behaviours towards children’s health, this Report covers the market for children’s OTC and healthcare products, including remedies for the following ailments suffered by children:

  • Cold and flu

  • Fever and pain

  • Head lice

  • Allergies

  • Nappy rash

  • Teething pain

  • Gastrointestinal upset (ie colic, diarrhoea, constipation).

A market size has been produced based on children’s OTC remedies for the above ailments only.

OTC medicines are defined as products with either a ‘P’ or ‘GSL’ licence, issued under the Medicines Act 1968 and related EU (European Union) legislation, and enforced by the MHRA (Medicines and Healthcare products Regulatory Agency) and the CHM (Commission on Human Medicines). They are defined by the Proprietary Association of Great Britain as being:

“Specifically designed to treat the symptoms of common, minor and self-limiting ailments that do not require a medical diagnosis.”

The two categories of OTC medicines are:

P – Pharmacy-only products, which can only be sold in a premise when a pharmacist is present and under their supervision

GSL – General Sales List, which can be sold in any premise.

Excluded:

POM (prescription-only medicines), which are prescribed by an appropriately qualified prescriber, usually a doctor, and dispensed by a pharmacist.

Vitamin and mineral supplements.

Products such as homeopathic and other complementary medicines.

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