OTC Pediatrics - US

Published by: Mintel International Group Ltd.

Published: Oct. 1, 2008

Table of Contents

Scope and Themes

What you need to know

Definition

Data sources

Sales data

Consumer survey data

Abbreviations and terms

Abbreviations

Terms

Executive Summary

Infant cold/cough remedy recalls/warnings challenge the market

Manufacturers seek to ease compliance

Analgesics are the top segment

Drug stores maintain reputation as premier healthcare retailer

Market driven by population factors, incidence, but hampered by safety and efficacy questions

Incidence

Obesity a contributing factor in childhood ailments

Child population growth fuels need for OTC pediatric medicine, yet usage hampered by safety and efficacy concerns

Johnson & Johnson/McNeil lead with broad and acute symptom care

Usage and preferences

Attitudes and concerns towards the OTC pediatric market

Researching

Side effects, dosing and other concerns

Alternative treatments

Race/Hispanic origin

Market Size and Forecast

Key points

Lack of health insurance prompts more self-diagnosis/care

Pediatricians advise against OTC remedies

Manufacturers offer remedies that ease administration to boost sales

Sales and forecast of OTC pediatrics

Figure 1: Total U.S. FDMx sales and forecast of OTC pediatrics at current prices, 2003-13

Figure 2: Total U.S. FDMx sales and forecast of OTC pediatrics at inflation adjusted prices, 2003-13

Wal-Mart sales

Competitive Context

Pediatric remedies face competition from both adult-strength and natural remedies as professional opinion sours

Johnson & Johnson’s brand triple threat

Ease of administration a top selling point

Vitamin makers’ cartoon competition

Segment Performance

Key points

Four segments comprise majority of sales

Sales and forecast of OTC pediatric remedies, by segment

Figure 3: U.S. FDMx sales and forecast of OTC pediatric remedies at current prices, by segment, 2003-13

Figure 4: U.S. FDMx sales of OTC Pediatrics, by segment, 2007 and 2008

Segment Performance—Internal Analgesics

Key points

Growth decelerates, but analgesics increase sales despite market slide

Sales and forecast of pediatric internal analgesics

Figure 5: U.S. FDMx sales and forecast of pediatric internal analgesics, 2003-13

Segment Performance—Cold/Allergy/Sinus Remedies

Key points

Cold medicines bear the brunt of bad publicity

Allergies in children increasing

Sales and forecast of pediatric cold/allergy/sinus remedies

Figure 6: U.S. FDMx sales and forecast of pediatric cold/allergy/sinus remedies, 2003-13

Segment Performance—Baby Formula/Electrolytes

Key points

Baby formula/electrolytes useful for a number of ailments

Sales and forecast of pediatric baby formula/electrolytes

Figure 7: U.S. FDMx sales and forecast of baby formula/electrolytes, 2003-13

Segment Performance—Vitamins

Key points

Filling in dietary holes

Vitamin segment will benefit from vitamin D push

Sales and forecast of pediatric vitamins

Figure 8: U.S. FDMx sales and forecast of pediatric vitamins, 2003-13

Segment Performance—Nasal Products

Key point

Nasal products could step in for some cold remedies

Sales and forecast of pediatric nasal products

Figure 9: U.S. FDMx sales and forecast of pediatric nasal products, 2003-13

Segment Performance—GI Remedies

Key point

Surge in childhood obesity may lead to OTC sales

Sales and forecast of pediatric GI remedies

Figure 10: U.S. FDMx sales and forecast of pediatric GI remedies, 2003-13

Segment Performance—Cough Remedies

Key points

Cough remedies face same scrutiny as cold medicines, with fewer usage possibilities

Sales and forecast of pediatric cough remedies

Figure 11: U.S. FDMx sales and forecast of pediatric cough remedies, 2003-13

Segment Performance—Miscellaneous Health Remedies

Key point

Chest rubs bring in virtually all sales to the segment

Sales and forecast of miscellaneous pediatric health remedies

Figure 12: U.S. FDMx sales and forecast of miscellaneous pediatric health remedies, 2003-13

Retail Channels

Key points

Drug stores still the go-to OTC destination

Other FDMx channels

Sales of OTC pediatrics, by retail channel

Figure 13: U.S. FDMx sales of OTC pediatrics, by retail channel, 2006 and 2008

Retail Channels—Drug Stores

Key points

Drug chains come together over pediatric cough/cold recall impact

Walgreens works to make pediatric remedies palatable

Drug store sales of OTC pediatrics

Figure 14: U.S. sales of OTC pediatrics at drug stores, 2003-08

Retail Channels—Other FDMx outlets

Key points

Other channels attempt to compete with pharmacies of their own

Other FDMx channel sales of OTC pediatrics

Figure 15: U.S. sales of OTC pediatrics at other FDMx channels, 2003-08

Some healthcare sales shift to mass stores

Market Drivers

Key points

Incidence of pediatric ailments

Influenza

Figure 16: Seasonal influenza severity in the U.S., 2003-07

Rhinitis/hay fever

Gastrointestinal ailments

Fattening of U.S. children contributes to/exacerbates pediatric ailments

Figure 17: Childhood overweight rates in the U.S., 1971-74, 1976-80, 1988-94, 1999-02

Growing number of children means more need for OTC pediatric medicine

Figure 18: Population by children’s age, 2003-13

Usage decline dampens sales

Figure 19: Usage of children’s cough/cold and fever/pain relieving products, trended 2003-07

Leading Companies

Key points

J&J most comprehensive company in the market

Bayer’s leading position based on vitamins only

Other companies decline

Sales of leading OTC pediatric companies

Figure 20: FDMx Sales of leading OTC pediatric companies, 2007 and 2008

Brand Share—Internal Analgesics

Key points

Tylenol and Motrin dominate

Wyeth loses ground

Figure 21: FDMx brand sales of pediatric internal analgesics in the U.S., 2007 and 2008

Brand Share—Cold/Allergy/Sinus Remedies

Key point

Tylenol suffers least

Figure 22: FDMx brand sales of pediatric cold/allergy/sinus remedies in the U.S., 2007 and 2008

Brand Share—Baby Formula/Electrolytes

Key points

Pedialyte offers range of flavors and packaging

Private label gains on national brands

Figure 23: FDMx brand sales of baby formula/electrolytes in the U.S., 2007 and 2008

Brand Share—Vitamins

Key point

Cartoon licensing is big business for vitamin brands

Figure 24: FDMx brand sales of pediatric vitamins in the U.S., 2007 and 2008

Brand Share—Nasal Products

Key points

Prestige bases nasal care on “less is more”

J&J’s PediaCare Gentle Vapors loses steam

Figure 25: FDMx brand sales of pediatric nasal products in the U.S., 2007 and 2008

Brand Share—Gastrointestinal Remedies

Key points

Most leading brands suffer losses

Figure 26: FDMx brand sales of pediatric gastrointestinal remedies in the U.S., 2007 and 2008

Brand Share—Cough Remedies

Key points

Cough syrup brands in free-fall

Drops could help decelerate declines

Figure 27: FDMx brand sales of pediatric cough remedies in the U.S., 2007 and 2008

Brand Share—Miscellaneous Health Products

Key points

Chest rub brands comprise almost all segment sales

Vicks BabyRub far outweighs other brands

Figure 28: FDMx brand sales of pediatric miscellaneous health products in the U.S., 2007 and 2008

Brand Qualities

Tylenol and Motrin positioned as most comprehensive pediatric remedies

Private label baby formula outpaces brand names

Flintstones corners the cartoon vitamin segment

Nasal spray brands positioned to capitalize on pediatric cold remedy ban

Innovation and Innovators

Focus on compliance through taste

Medication on the go

Well-being products on the rise

Advertising and Promotion

Two major themes—helping parents and addressing symptoms

Adspend

Figure 29: Advertising expenditures for leading OTC remedy brands, 2007

A look at selected suppliers’ television ad clips

Johnson & Johnson/McNeil

Figure 30: Children’s Tylenol television ad, 2008

Figure 31: Children’s Motrin television ad, 2008

Bayer

Figure 32: Flintstones Gummies Vitamins television ad, 2007

Northwest Natural Products

Figure 33: L’il Critters Vitamins television ad, 2007

Schering-Plough

Figure 34: Children’s Claritin television ad, 2007

Reckitt Benckiser

Figure 35: Children’s Delsym Cough Syrup television ad, 2007

Adams Respiratory

Figure 36: Children’s Mucinex television ad, 2007

OTC Pediatric Usage

Key points

Parents appear to trust cough/cold and fever/pain remedies less

Figure 37: Usage of children’s cough/cold and fever/pain relieving products, trended 2003-07

Children’s Tylenol is the overwhelming favorite

Figure 38: Brands of children’s cough/cold medicine used, by household income, February 2007-March 2008

Figure 39: Brands of children’s fever/pain relievers used, by household income, February 2007-March 2008

Purchase and Preferences

Key points

Current OTC pediatric remedy purchases reflect the most common ailments

Figure 40: OTC children’s medicine purchased in past 12 months, by age, July-August, 2008

Figure 41: OTC children’s medicine purchased in past 12 months, by household income, July-August, 2008

Taste is a major concern in remedies for kids

Figure 42: Children and adult-specific medicine usage, by age, July-August 2008

Figure 43: Children and adult-specific medicine usage, by household income, July-August 2008

Children’s OTC Medicine Forms

Key points

Liquid cough/cold and fever/pain relievers most used over all other forms

Figure 44: Form of children’s cough/cold and fever/pain relieving products used, February 2007-March 2008

Preferred medicine forms

Figure 45: Preferred delivery system of children’s medicine, by age, July-August 2008

Chewables/dissolvables also viewed as easy to administer

Figure 46: Ease of administration of various children’s medicine forms, by age, July-August 2008

Effectiveness of OTC Pediatrics

Key point

Cold remedies face diminishing parental confidence

Figure 47: Effectiveness of OTC children’s medications, July-August 2008

Importance Attributes

Key points

Ease of compliance tops parents’ importance list

Figure 48: Important attributes when purchasing children’s medicine, by gender and age, July-August 2008

Researching Children’s Medicine

Key points

Preferred sources of recommendation for selecting children’s medicine

Figure 49: Children’s medicine research and recommendations, by gender and age, August 2008

Figure 50: Children’s medicine research and recommendations, by household income, July-August 2008

The Role of Alternative Treatments

Key point

Parents show real interest in homeopathic/herbal remedies

Figure 51: Use of homeopathic or herbal remedies, by key demographics, July-August 2008

Figure 52: Attitudes towards homeopathic/herbal remedies, by gender, July-August 2008

Side Effect Concerns

Key point

Side effects are a major concern

Figure 53: Side effect concerns about children’s medicine, by gender and age, July-August 2008

Figure 54: Side effect concerns about children’s medicine, by region, July-August 2008

Dosing Concerns

Key point

Fear of dosing errors appears high

Figure 55: Dosing concerns, by gender and age, July-August 2008

Health and Safety Concerns

Key points

Remedy safety top concern among parents

Figure 56: Health and safety concerns, by gender and age, July-August 2008

Figure 57: Health and safety concerns, by region, July-August 2008

Race and Ethnicity

Key points

Brands of children’s medicine used among ethnicities

Figure 58: Brands of children’s cough/cold medicine used, by race/Hispanic origin, February 2007-March 2008

Current OTC pediatric remedy purchases among ethnicities

Figure 59: OTC children’s medicine purchased in past 12 months, by race/Hispanic origin, July-August, 2008

Preferred medicine forms

Figure 60: Preferred delivery system of children’s medicine, by race/Hispanic origin, July-August 2008

Importance attributes

Figure 61: Important attributes when purchasing children’s medicine, by race/Hispanic origin, July-August 2008

Researching children’s medicine

Figure 62: Children’s medicine research and recommendations, by race/Hispanic origin, July-August 2008

Concerns with children’s medicine

Figure 63: Concerns about children’s medicine, by race/Hispanic origin, July-August 2008

Appendix: Other Useful Consumer Tables

Current OTC pediatric remedy purchases

Figure 88: OTC children’s medicine purchased in past 12 months, by gender, July-August, 2008

Figure 89: OTC children’s medicine purchased in past 12 months, by region, July-August, 2008

Using children’s and adults’ medicine

Figure 90: Children and adult-specific medicine usage, by gender, July-August 2008

Preferred medicine forms

Figure 91: Preferred delivery system of children’s medicine, by gender, July-August 2008

Figure 92: Preferred delivery system of children’s medicine, by region, July-August 2008

Ease of administration

Figure 93: Ease of administration of various children’s medicine forms, by gender, July-August 2008

Figure 94: Ease of administration of various children’s medicine forms, by household income, July-August 2008

Figure 95: Ease of administration of various children’s medicine forms, by region, July-August 2008

Importance attributes

Figure 96: Importance attributes when purchasing children’s medicine, by household income, July-August 2008

Researching children’s medicine

Figure 97: Children’s medicine research and recommendations, by region, July-August 2008

Children’s medicine concerns—side effects, dosing, health & safety

Figure 98: Side effect concerns about children’s medicine, by household income, July-August 2008

Figure 99: Dosing concerns, by region, July-August 2008

Appendix: Trade Associations

Abstract

The U.S. OTC pediatric remedies market is in decline in 2008, due in large part to serious concerns about the safety and efficacy of cough and cold remedies. While cold/allergy/sinus remedies are still one of the leading segments in the market, these remedies along with cough syrups bear the brunt of waning public and professional confidence.

While the safety/efficacy issue has spread to the rest of the OTC pediatric market, the incidence of pediatric ailments, the growing child population in the U.S. and attempts by manufacturers to make remedies easier to administer should decelerate the slide.

This report offers in-depth analysis of the OTC pediatrics remedies market, including:

• How manufacturers are combating declining confidence in pediatric remedies
• The role of pharmacies in helping drug stores maintain primacy
• How obesity contributes to a number of childhood ailments
• The declining usage of cough/cold and fever/pain relievers between 2003-08

Get Full Details About This Report >>

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 250,000 market research reports, company profiles and country profiles from over 650 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.