Analgesics - US - June 2015

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
OTC internal analgesic competition tightens for top brands
Figure 1: MULO Sales of leading OTC internal analgesics companies, by share, rolling 52 weeks 2014 and 2015
Traditional external brands see sales decline at expense of diversified growth
Figure 2: MULO Sales of select OTC external analgesics, by leading brands, rolling 52 weeks 2014 and 2015
Feminine pain relief sales decline along with use
Figure 3: Sales of OTC internal analgesic feminine pain relievers, 2010-14
The opportunities
Growing interest in natural ingredients could deliver sales boost
Figure 4: Interest in natural analgesic innovations, February 2015
Easy to consume, on-the-go formats appeal to a younger generation
Figure 5: Interest in convenient analgesic innovations, February 2015
Expand use of external analgesics by targeting older adults
Figure 6: Pain remedies used in past 12 months, by generation, February 2015
What it means
THE MARKET – WHAT YOU NEED TO KNOW
OTC analgesic market has stabilized and steady growth to remain
Majority of consumers use OTC analgesics, though alternatives to treat pain exist
Varying factors are likely to impact category growth
MARKET SIZE AND FORECAST
OTC analgesic sales stabilize, projected growth is steady
Figure 7: Total US sales and fan chart forecast of OTC Analgesics, at current prices, 2010-20
Figure 8: Total US retail sales and forecast of OTC analgesics, at current prices, 2010-20
MARKET BREAKDOWN
Internal is the category leader though external experiencing greater growth
Figure 9: Sales growth trends of OTC analgesic segments, percent change, 2011-15 (est)
Natural supermarket sales comprised mainly of external remedies
Figure 10: Share of natural supermarket analgesic sales, by form, rolling 52 weeks ending 2/22/15
Figure 11: US retail sales of analgesics, by channel, 2010-14
MARKET PERSPECTIVE
Alternative pain treatment methods are diverse, some complement OTC use
Figure 12: Pain remedies used in past 12 months, February 2015
MARKET FACTORS
Population age dynamics are shifting, could impact pain relief choices
Figure 13: US population aged 18 or older, by age, 2010-20
Stress trending down, but still not within healthy levels
Figure 14: Average American stress levels, 2007-14
Frequent strenuous workouts point towards pain treatment need
Figure 15: Regular exercise participation and frequency, November 2013-December 2014
KEY PLAYERS – WHAT YOU NEED TO KNOW
OTC analgesics competition tightens for top brands as sales increase
Nighttime relief, children’s liquid, and external analgesics boost sales
Traditional external and feminine pain relief sales decline; shot format stall
Analgesics are diversifying; consumers want natural, on-the-go, and tech to relieve pain
MANUFACTURER SALES OF OTC ANALGESICS
Competition at the top continues to tighten, category sales increase
Manufacturer sales of OTC analgesics
Figure 16: MULO sales of OTC analgesics, by leading companies, rolling 52 weeks 2014 and 2015
WHAT’S WORKING?
Nighttime pain relief expands with recent releases by major brands
Figure 17: MULO sales of select leading PM internal analgesics, rolling 52 weeks 2014 and 2015
Liquid sales continue to grow due to leading children’s formulas
Figure 18: Sales of OTC internal analgesic liquids, 2010-15
Figure 19: MULO sales of select children’s liquid analgesics, rolling 52 weeks 2014 and 2015
Diversified external analgesics market continues to grow
Figure 20: MULO sales of OTC external analgesics, by leading companies and brands, rolling 52 weeks 2014 and 2015
Tylenol launches a string of successful campaigns
Figure 21: Tylenol campaign, For what matters most
Figure 22: Tylenol and GSN campaign, Pop up pop culture pop quiz
Figure 23: Tylenol PM campaign, #IWasSoTired
WHAT’S STRUGGLING?
Feminine pain reliever segment experiencing sales decreases
Figure 24: Sales of OTC internal analgesic feminine pain relievers, 2010-14
Figure 25: MULO sales of select feminine pain relievers, rolling 52 weeks 2014 and 2015
Traditional external analgesic brands trend downward
Figure 26: MULO sales of select OTC external analgesics brands, rolling 52 weeks 2014 and 2015
Shot format MULO sales stall despite new product introductions
WHAT’S NEXT?
Natural products and ingredients becoming more essential to pain relief
Pain relief on-the-go is gaining traction
TENS evolving into affordable, discreet designs and competition for OTC
THE CONSUMER – WHAT YOU NEED TO KNOW
OTC internal analgesics are the leading pain treatment choice
Name brand analgesics are preferred over store brand
Consumers are most interested and willing to pay more for natural
PRODUCT USAGE
Aligning with sales, internal remedies used most to treat pain
Figure 27: Pain remedies used in past 12 months, February 2015
External remedies used less often, opportunities to expand usage
Figure 28: Pain remedies used in past 12 months, by segment, February 2015
TREATMENT BY TYPE OF PAIN
Different pains require a particular segment of pain relief
Figure 29: Correspondence analysis – Pain remedy segments used to treat specific pain, February 2015
TREATMENT CHOICE BY SPECIFIC REMEDY
Headaches and upper body pains require OTC treatment
Figure 30: Top three reasons for using headache and pain relievers, November 2013-December 2014
The majority of pains can be treated with ibuprofen
Figure 31: Pain remedy used to treat specific pain, February 2015
PURCHASING BEHAVIOR
Consumers prefer a brand name OTC internal analgesic
Figure 32: Behavior when purchasing branded versus private label internal OTC pain relievers, February 2015
Omitting price, name brands and store brands perform similarly
Figure 33: Brand impact on perceptions of OTC internal pain relievers, February 2015
AREAS FOR INNOVATION
Consumers are interested in natural and some willing to pay more
Figure 34: Interest and willingness to pay for natural analgesic innovations, February 2015
Figure 35: Types of headache and pain relievers used, Fall 2009-14
Easy to consume formats are appealing to young adults
Figure 36: Interest and willingness to pay for convenient analgesic innovations, February 2015
Smart packaging and apps are nice to have, but not worth paying for
Figure 37: Interest and willingness to pay for technology analgesic innovations, February 2015
DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
APPENDIX – MARKET
Figure 38: Total US retail sales and forecast of analgesics, at inflation-adjusted prices, 2010-20
Figure 39: Total US retail sales of analgesics, by segment, at current prices, 2013 and 2015
Figure 40: Natural supermarket sales of analgesics, by form, at current prices, rolling 52 weeks ending 2/24/13 and 2/22/15
Figure 41: Total US retail sales of analgesics, by channel, at current prices, 2010-15
Figure 42: Total US retail sales of analgesics, by channel, at current prices, 2013 and 2015
APPENDIX – KEY PLAYERS
Figure 43: MULO sales of OTC internal analgesics, by leading companies and brands, rolling 52 weeks 2014 and 2015
Figure 44: MULO sales of OTC external analgesics, by leading companies and brands, rolling 52 weeks 2014 and 2015
APPENDIX – CONSUMER
Correspondence analysis methodology
Figure 45: Frequency of headache and pain reliever use, November 2013-December 2014
Figure 46: Products used to relieve PMS symptoms, November 2013-December 2014