Medicated Skincare - US - April 2005

INTRODUCTION AND ABBREVIATIONS
Introduction
Other relevant reports
Definition
Figure 1: Products covered in this report with some conditions the products treat
Abbreviations & terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Medicated skincare has sales of $1,676 million
Prevalence and tendency to treat
Population shifts drive sales
Consumers willing to pay more for new, superior treatments
Medicated skincare products face competition on several fronts
Private label sales suggest some perceived parity
Natural products show gains, if effective
Since 2002, wart and acne treatments show greatest growth of the seven segments
Vanity and self-image drive desire for fast working formulas
Pfizer leads the category, followed closely by J&J and Schering-Plough
Drug stores gaining share of sales
Men more apt to have cuts/scrapes
Medicated skincare products have an opportunity to build lifetime value
Future fragmentation of the market with more focus on seniors and kids
Medicated skincare to grow slightly in constant terms
MARKET DRIVERS
Introduction
The prevalence of skin problems and the likelihood to treat them
Figure 2: Suffered from various skin conditions in the past 3 months, January 2005
Figure 3: Reasons for using first aid products, July 2002
Figure 4: Consumers’ response to various skin ailments, January 2005
Figure 5: Tendency for sufferers of specific skin problems to “do nothing and live with it,” January 2005
Population shifts influencing demand for medicated skincare products
Figure 6: U.S. population projections, 2000, 2005 and 2010
Figure 7: U.S. Female population projections, 2000, 2005, and 2010
Product innovation in OTC medicated skincare
Competition for the category
Competition from combination products
Competition from prescription drugs
Competition from non-medicating products/procedures
Increasing number of diabetics
MARKET SIZE & TRENDS
Figure 8: FDM sales of medicated skincare, at current and constant prices, 1999-2004
Figure 9: Graph: FDM sales of medicated skincare products, at current and constant prices, 1999-2004
Market Trends
Some blurring of medicine and cosmetics
More “natural” medicated skincare products
Kid specific products
Evidence of some perceived parity between private labels and brands
Figure 10: Private label sales for products treating specific skin conditions in FDM channels
MARKET SEGMENTATION
Overview
Figure 11: U.S. sales of medicated skincare products, by segment, 2002 & 2004
First aid ointments/antiseptics
Figure 12: Sales of first aid ointments/antiseptics, at current and constant prices, 1999-2004
Anti-itch treatments
Figure 13: Sales of anti-itch treatments, at current and constant prices, 1999-2004
Acne treatments
Figure 14: Sales of acne treatments, at current and constant prices, 1999-2004
Lip balm/cold sore medications
Figure 15: Sales of lip balm/cold sore medications, at current and constant prices, 1999-2004
Athlete’s foot medication
Figure 16: Sales of foot care/athlete’s foot medication, at current and constant prices, 1999-2004
Wart removers
Figure 17: Sales of wart removers, at current and constant prices, 1999-2004
Lice treatments
Figure 18: Sales of lice treatments, at current and constant prices, 1999-2004
SUPPLY STRUCTURE
 COMPANIES AND BRANDS
Figure 19: Manufacturer sales of medicated skincare in the U.S., 2002 & 2004
First aid ointments/topical antiseptics
Figure 20: Manufacturer brand sales of first aid ointments/antiseptics in the U.S., 2002 & 2004
Anti-Itch treatments
Figure 21: Manufacturer brand sales of anti-itch treatments in the U.S., 2002 & 2004
Acne treatments
Figure 22: Manufacturer brand sales of acne treatments in the U.S., 2002 & 2004
Lip balm/cold sore medication
Figure 23: Manufacturer brand sales of lip balm/cold sore medication in the U.S., 2002 & 2004
Foot care/athlete’s foot medications
Figure 24: Manufacturer brand sales foot care/athlete’s foot medications in the U.S., 2002 & 2004
Wart removers
Figure 25: Manufacturer brand sales of wart removers in the U.S., 2002 & 2004
Lice treatments
Figure 26: Manufacturer brand sales of lice treatments in the U.S., 2002 & 2004
 MAJOR MANUFACTURERS
Introduction
Pfizer
Johnson & Johnson
Schering-Plough
Wyeth
GlaxoSmithKline
ADVERTISING & PROMOTION
Pfizer
Johnson & Johnson
Schering-Plough
Wyeth
RETAIL DISTRIBUTION
Introduction
Figure 27: U.S. retail sales of medicated skincare products, by channel, 2002 & 2004
Drug stores
Figure 28: U.S. drug store sales of medicated skincare products, at current and constant prices, 1999-2004
Supermarkets
Figure 29: U.S. supermarket sales of medicated skincare products, at current and constant prices, 1999-2004
Mass-merchandisers
Figure 30: U.S. mass merchandiser sales of medicated skincare products, at current and constant prices, 1999-2004
THE CONSUMER
Introduction
Adult usage of medicated skincare products
Overview
Figure 31: Usage of medicated skincare products, first aid bandages, and topical antibiotic remedies, January 2004-September 2004
First aid products, topical antibiotics
Figure 32: Use of first aid bandages and topical antibiotic remedies, January 2004-September 2004
Figure 33: Use of first aid bandages and topical antibiotic remedies by gender, January 2004-September 2004
Figure 34: Use of first aid bandages and topical antibiotic remedies by presence of children, January 2004-September 2004
Figure 35: Use of first aid bandages and topical antibiotic remedies by age, January 2004-September 2004
Figure 36: Use of first aid bandages and topical antibiotic remedies by household income, January 2004—September 2004
Figure 37: Use of first aid bandages and topical antibiotic remedies by race/ethnicity, January 2004 to September 2004
Prevalence of skin conditions
Figure 38: Suffered from various skin conditions in the past 3 months, January 2005
Figure 39: Suffered from various skin conditions in the past three months, by gender, January 2005
Figure 40: Suffered from various skin conditions in the past 3 months, by age, January 2005
Steps taken when suffering from specific skin conditions
Steps taken for minor cuts/scrapes
Figure 41: Steps taken for minor cuts and scrapes, by gender, January 2005
Figure 42: Steps taken for minor cuts and scrapes, by age, January 2005
Figure 43: Steps taken for minor cuts and scrapes by household income, January 2005
Steps taken for dry or chapped skin
Figure 44: Steps taken for dry, chapped, or cracking skin, by gender, January 2005
Steps taken for rashes and skin itches
Figure 45: Steps taken for minor rashes or skin itches, by gender, January 2005
Steps taken to treat acne
Figure 46: Steps taken for acne or blackheads, January 2005
Steps taken to treat cold sores
Figure 47: Steps taken for cold sores, January 2005
Attitudes toward medicated skincare products
Figure 48: Attitudes about medicated skincare, January 2005
Figure 49: Attitudes about medicated skincare, by age, January 2005
Figure 50: Attitudes about medicated skincare, by race, January 2005
Teenagers’ use of medicated skincare products
Figure 51: Usage of medicated skincare products for acne by teens, January 2004-December 2004
Figure 52: Number of time s used an acne remedy in the last seven days, by teens
Kids’ use of medicated skincare products
Figure 53: Usage of medicated skincare products among kids
Summary
FUTURE & FORECAST
 FUTURE TRENDS
Prescriptions become OTCs
Further fragmentation of the market with more targeting by age
Oral OTC skincare
Extension of natural treatments
Figure 54: Sales of homeopathic skin topical, 1999-2004
 MARKET FORECAST
Medicated skincare
Figure 55: Forecast of U.S. FDM sales of medicated skincare, at current and constant prices, 2004-2009
First aid ointments/antiseptics
Figure 56: Forecast of U.S. FDM sales of first aid ointments/antiseptics, at current and constant prices, 2004-2009
Anti-itch treatments
Figure 57: Forecast of U.S. FDM sales of anti-itch treatments, at current and constant prices, 2004-2009
Acne treatments
Figure 58: Forecast of U.S. FDM sales of acne treatments, at current and constant prices, 2004-2009
Lip balm/cold sore medications
Figure 59: Forecast of U.S. FDM sales of lip balm/cold sore medications, at current and constant prices, 2004-2009
Foot care/athlete’s foot medication
Figure 60: Forecast of U.S. FDM sales of foot care/athlete’s foot medication, at current and constant prices, 2004-2009
Wart removers
Figure 61: Forecast of U.S. FDM sales of wart removers, at current and constant prices, 2004-2009
Forecast Factors
APPENDIX: TRADE ASSOCIATIONS
APPENDIX: NEW PRODUCT DEVELOPMENTS
Wal-Mart: Equate Wart Remover
Vitacilina: Derman Anti-fungal Foot Cream
Medtech: Compound W Wart Remover for Kids
Johnson & Johnson: Daily Cleansing Pads
Blistex: Medicated Berry Balm
Woodridge Labs: SafeTek Lice Removal Kit