Contraceptives - US - June 2008

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
A growing FDMx market
Lubrication and enhancement fastest-growing segment
Drug stores carry more than half of FDMx and C-store sales
Favorable demographics at work
Use of barrier contraceptives still low
Ambivalence about pregnancy decreases usage
Rx options becoming more appealing
The pleasure principle
Monogamy stymies sales
Men ready to experiment with new products
FAST FORWARD TRENDS
No boundaries
A national sex chain?
Education, education, education
Service, design and entertainment value
Celebrity endorsement
Taking a stand
Current good deeds often self-serving
Smaller suppliers likely to gain from cause marketing
Going green
INSIGHTS AND OPPORTUNITIES
Supporting MSM
Reaching out to the fairer sex
Comparative marketing
Cause marketing
Scare tactics
Pulling sales from the pill
Partnering with Rx products for multiple product usage
Stepping in when the government doesn’t
Spreading the word on IUDs
Communications training for primary care doctors, nurses and physicians’ assistants
More creative kits
MARKET SIZE AND FORECAST
Emphasis on pleasure infuses market with new products
Plan B grows the market in 2007
Growth of under-35s factors into sales
OTC sales at FDMx and convenience stores
Figure 1: OTC (FDMx and convenience store) sales and forecast of contraceptives, at current prices, 2002-12
Figure 2: OTC (FDMx and convenience store) sales and forecast of contraceptives, at inflation adjusted prices, 2002-12
COMPETITIVE CONTEXT: RX BIRTH CONTROL
Overview
Limited access to healthcare, higher costs limit growth of oral contraceptives
Focusing on functionality
Only four annual periods with Seasonique
Figure 3: Duramed Seasonique television ad, 2007
Shorter periods with Loestrin
Figure 4: Loestrin 24 television ad, 2007
Taking the punch out of the period
Figure 5: Yaz television ad, 2007
COMPETITIVE CONTEXT: UNPROTECTED INTERCOURSE
Ambivalence towards pregnancy
Reduced fear of AIDS/HIV
SEGMENT PERFORMANCE
Condoms making marginal gains
Lube, toys, and Plan B rise to action
Female condoms, standalone spermicide headed nowhere
Contraceptive sales
Figure 6: OTC FDMx and C-stores sales and forecast of contraceptives, at current prices, by segment, 2002-12
Figure 7: OTC sales at FDMx and C-stores, by segment excluding Plan B, 2005 and 2007
SEGMENT PERFORMANCE – CONDOMS
Faster growth may be occurring outside FDMx
FDMx and C-store sales of condoms
Figure 8: U.S. sales and forecast of condoms at FDMx and C-stores, at current prices, 2002-12
Figure 9: U.S. sales and forecast of condoms at FDMx and C-stores, at inflation-adjusted prices, 2002-12
SEGMENT PERFORMANCE – LUBRICATION AND ENHANCEMENT
Lube sales swelling
Sexual enhancement toys mainstream
Vibrating rings a hit at Duane Reade
FDMx sales of lubrication and enhancement products
Figure 10: U.S. sales and forecast of lubrication and enhancement products, at current prices, 2002-12
Figure 11: U.S. sales and forecast of lubrication and enhancement products, at inflation-adjusted products, 2002-12
SEGMENT PERFORMANCE – PLAN B
Plan B sales carried $69 million in sales in 2007
RETAIL CHANNELS
Key points
Drug stores remain premier contraceptive retail destination
Other retailers somewhat disadvantaged
Sales by channel
Figure 12: U.S. sales of contraceptives, by retail channel, 2005 and 2007
RETAIL CHANNELS – DRUG STORES
Key points
Drug stores capitalize on “new openness”
Pharmacies make all the difference
Drug store sales
Figure 13: U.S. sales of contraceptives at drug stores, in current prices, 2002-07
RETAIL CHANNELS – OTHER
Key points
Supermarkets, mass stores trail in reputation as healthcare outlets
Convenience stores gain as condoms specialize in pleasure
Other channel sales
Figure 14: U.S. sales of contraceptives at other* channels, 2002-07
MARKET DRIVERS: PREVENTING STDS AND PREGNANCY
Unplanned pregnancy incidence
Rate of STD contraction
More women delaying childbirth
Figure 15: U.S. births, by age of mother, 2002
Half of women avoiding pregnancy remain at risk of unplanned births
MARKET DRIVERS: THE PLEASURE PRINCIPLE
If it’s not about procreation, it’s for recreation
Substantial shifts in condom line sales
Figure 16: Condom lines showing rapid growth, based on FDMx sales, 2005 and 2007
Figure 17: Condom lines showing rapid decline, based on FDMx sales, 2005 and 2007
MARKET DRIVERS: DEMOGRAPHICS
18-34s should drive 3.7% annual growth in condom sales
Figure 18: Usage of condoms, by age, January-November 2007
Teens
Figure 19: Population, by age, 2003-13
Minority groups use condoms more than whites
Figure 20: Usage of condoms, by race/ethnicity, January-November 2007
Figure 21: Usage of condoms, by race/ethnicity and age, January-November 2007
Figure 22: Population, by race and Hispanic origin, 2003-13
LEADING COMPANIES
Key points
Plan B alters the landscape
Figure 23: FDMx sales of leading contraceptives companies, including Plan B, 2005 and 2007
Trojan gains share in traditional market
Figure 24: FDMx sales of leading contraceptives companies, excluding Plan B, 2005 and 2007
BRAND SHARE – CONDOMS
Product lines offer variety, but simplicity is lost in the formula
Figure 25: FDMx brand sales of male contraceptives in the U.S., 2005 and 2007
BRAND SHARE – LUBRICANTS AND SEXUAL AIDS
Key points
J&J’s KY top lube company
Other companies surge, private label steady
Figure 26: FDMx brand sales of lubricants and sexual aids in the U.S., 2005 and 2007
BRAND SHARE – SPERMICIDES AND FCS
Sales declining
Figure 27: FDMx brand sales of OTC female contraceptives in the U.S., 2005 and 2007
BRAND QUALITIES
Condom suppliers focus on enhancing intimacy
Leaders mining the same ground
Trojan tour aims to make safety sexy
Durex’ Play takes a look at women’s needs
Plan B signifies new OTC brand category
INNOVATION AND INNOVATORS
Leading providers investing in similar products
Get it on faster
Durex can make you a big man
Pleasure-enhancing condoms
All-natural lubricants
ADVERTISING AND PROMOTION
Condoms a perfect fit for event sponsorship
It’s good to be bad
Figure 28: Trojan “evolve” ad, 2007
Durex has dark humor
Hundreds of sperm men viewed millions of times
Faux Durex president in pain 900,000 times over
“Sandwich” and “Hello” over 250,000
It’s entertaining, but does it sell condoms?
Similar ads up for Trojan
LifeStyles says we’re all animals
Website review: selling sex, products, health, and humor
“America is not a sexually healthy nation”
Meet Noah and Baron
Learn how a condom is made
Buy direct from Mayer Labs
SEX, PARTNERS AND CONDOM USAGE
One in three under-35s report condom usage…
Figure 29: Usage of condoms, by age, January-November 2007
Figure 30: Usage of condoms, by gender, January-November 2007
Figure 31: Use of birth control, by gender, April 2008
Frequency of sex, # of partners, condom usage, declines with age
Figure 32: Frequency of sex, use of condoms, number of sexual partners in the past month, by age, April 2008
Reasons for not using a condom
Figure 33: Reasons for not using condoms in the past month, by gender, April 2008
Figure 34: Reasons for not using condoms in the past month, by age, April 2008
One in three online 18-34s not using birth control
Figure 35: Use of birth control, by age, April 2008
One in six women online aged 18-24 have used Plan B
Figure 36: Use of and attitudes towards Plan B, by age, April 2008
Preferences for non-latex condoms higher among over-45s
Figure 37: Condom type preferred, by age, January-November 2007
USE OF RX BIRTH CONTROL
The pill still reigns
Figure 38: Birth control that women have used, tried, or are willing to try, April 2008
Figure 39: Use of and interest in the pill, by age, April 2008
Figure 40: Use of and interest in tubal ligation, by age, April 2008
Figure 41: Use of and interest in female hormone injection, by age, April 2008
Figure 42: Use of and interest in IUDs, vaginal rings, and the patch, by age, April 2008
Figure 43: Use of and interest in spermicide, contraceptive sponges, and diaphragms, by age, April 2008
Reasons for not using Rx birth control
Figure 44: Reasons for not using Rx birth control, by age, April 2008
USE OF AND INTEREST IN PLEASURE-POSITIONED PRODUCT
Interest in new condoms highest among men, under-45s
Figure 45: Attitudes towards new condom experimentation, by age, April 2008
Figure 46: Attitudes towards new condom experimentation, by gender, April 2008
Consumers ready to move past ribbed condoms
Figure 47: Use of pleasure-positioned product, by type of product, April 2008
Figure 48: Interest in pleasure-positioned product, by age, April 2008
Figure 49: Interest in pleasure-positioned product, by gender, April 2008
ATTITUDES AND MOTIVATIONS
Let’s talk about STD prevention
Figure 50: Concerns about condom efficacy regarding STD prevention, by age, April 2008
Figure 51: Concerns about condom efficacy regarding STD prevention, by gender, April 2008
Addressing concerns over efficacy in preventing pregnancies
Figure 52: Concerns about condom efficacy regarding preventing pregnancy, by age, April 2008
Figure 53: Concerns about condom efficacy regarding preventing pregnancy, by gender, April 2008
More lube, please
Figure 54: Purchase of condom and lube in last six months, and preference for unlubricated condoms, by age, April 2008
Figure 55: Purchase of condom and lube in last six months, and preference for unlubricated condoms, by gender, April 2008
Men, under-35s, didn’t get the memo about STDs and unwanted pregnancy
Figure 56: Preference for avoiding condom usage if partner agrees, by age, April 2008
Figure 57: Preference for avoiding condom usage if partner agrees, by gender, April 2008
FDA warning hasn’t reached consumers yet
Figure 58: Preference for condoms without spermicide, by age, April 2008
Figure 59: Preference for condoms without spermicide, by gender, April 2008
HIGHER ED MAKES FOR HIGHER USAGE
College grads more likely to be active and using birth control
Figure 60: Use of birth control, by education level, April 2008
Figure 61: Any sexual activity in the past month, by education level, April 2008
Interest in experimentation
Figure 62: Interest in pleasure-positioned product, by education level, April 2008
RACE AND ETHNICITY
Overview
Figure 63: Usage of condoms, by race/ethnicity, January-November 2007
Figure 64: Use of birth control, by race/ethnicity, April 2008
Figure 65: Reasons for not using condoms, by race/ethnicity, April 2008
Interest in pleasure-positioned product
Figure 66: Interest in experimenting with new condoms, by race/ethnicity, April 2008
Figure 67: Interest in pleasure-positioned products, by race/ethnicity, April 2008
Blacks show surprisingly little interest in Plan B
Figure 68: Interest in and use of Plan B, by race/ethnicity, April 2008
Frequency of sex, # of partners, condom usage, declines with age
Figure 69: Frequency of sex, use of condoms, number of different sexual partners, by race/ethnicity, April 2008
Preference for natural skin condoms
Figure 70: Condom types used, by race/ethnicity, January-November 2007
PRESENCE OF CHILDREN
Overview
Figure 71: Use of condoms, by presence of children, January-November 2007
Figure 72: Use of birth control, by presence of children, April 2008
A niche for condoms among women who dislike Rx birth control
Figure 73: Reasons for not using Rx birth control, by presence of children, April 2008
CUSTOM CONSUMER GROUPS
Responses by number of partners and sexual orientation
An open sexual world is a condom-using world
Figure 74: Recent purchase of condoms and lube, by number of sexual partners and sexual orientation, April 2008
Figure 75: Use of birth control, by number of sexual partners and sexual orientation, April 2008
Figure 76: Frequency of sex, use of condoms, number of sexual partners, by number of partners and sexual orientation, April 2008
With increased usage comes increased interest in new condom and lubrication products
Figure 77: Interest in experimentation, by number of sexual partners and sexual orientation, April 2008
Figure 78: Interest in pleasure-positioned product, by number of sexual partners and sexual orientation, April 2008
Multiple-partner and GLBT respondents less keen on unknown brands
Figure 79: Use of familiar brands, by number of sexual partners and sexual orientation, April 2008
At-risk groups still acting risky
Figure 80: Eschewing condom usage, by number of sexual partners and sexual orientation, April 2008
The role of marriage and children
Singles much more likely to use condoms
Figure 81: Use of condoms, by marital status, January-November 2007
Use of contraception
Figure 82: Use of birth control, by marital status and presence of children, April 2008
Reasons for not using Rx contraception
Figure 83: Reasons for not using Rx birth control, by marital status and presence of children, April 2008
CLUSTER ANALYSIS
The New Wave
Non-condom users
Active and at-risk
Cluster characteristics
Figure 84: Clusters, April 2008
Figure 85: Use of birth control, by clusters, April 2008
Figure 86: Attitudes toward contraception, by clusters, April 2008
Figure 87: Frequency of sex, frequency of condom usage, and number of partners, by clusters, April 2008
Figure 88: Sexual orientation, by clusters, April 2008
Figure 89: Use of and interest in pleasure-positioned product, by clusters, April 2008
Cluster group demographics
Figure 90: Clusters, by age, April 2008
Figure 91: Clusters, by household income, April 2008
Figure 92: Clusters, by race/ethnicity, April 2008
Methodology
APPENDIX: IMPACT OF HOUSEHOLD INCOME
Little difference in condom usage by household income
Figure 93: Use of condoms, by household income, January-November 2007
Figure 94: Use of birth control, by household income, April 2008
Attitudes driven more by age than by income
Figure 95: Attitudes towards condoms and other types of birth control, by household income, April 2008
Reasons for not using a condom
Figure 96: Reasons for not using condoms, by household income, April 2008
APPENDIX: TRADE ASSOCIATIONS