Allergies and Allergy Remedies - US

Published by: Mintel International Group Ltd.

Published: Feb. 1, 2009

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

A steadily growing market

Rx switches grow sales

Pseudoephedrine products now behind the counter

Other decongestants compete for sales

Alternative medicines infringe on OTC medicated remedies

Tablets top segment

Drug stores remain the remedy retailer of choice

Sales driven by allergy incidence, population factors, growing self-medication/diagnosis trend

Allergy incidence

Children/elderly predisposed to allergies

Growing Hispanic population signifies opportunity

Self-diagnosis/treatment movement suits OTC remedies

Johnson & Johnson/McNeil, Schering-Plough lead based on Rx switches

Brands reflect quality of life, affordability, natural alternatives

Battle of Rx switches

Benadryl looks at the bigger picture

Alavert leverages the price angle

NeilMed’s natural niche

Who’s suffering?

Side effect concerns may hamper the market

Outdoor allergies: Seasonality and treatment

Children’s place in the market

Market Size and Forecast

Key points

Sales driven by range of factors

Allergy incidence and risk

Sheer number of Hispanics cause for marketing focus

Self-diagnosis/medication on the rise

Sales and forecast of market

Figure 1: Total U.S. retail sales of market, at current prices, 2003-13

Figure 2: Total U.S. retail sales of market, at inflation adjusted prices, 2003-13

Wal-Mart sales

Competitive Context

Rx switches constitute big business

PSE products migrate to behind the pharmacy counter

Cold/sinus decongestants compete for customers

Alternative remedies gain popularity

Rx and vaccines draw sufferers away from OTC

Segment Performance

Key points

Tablets grow, provide best platform for Rx switches

Liquids face challenges from tablet switches, safety, and efficacy concerns

Nasal products increase

Sales of cold/allergy/sinus remedies, by segment

Figure 3: Sales of cold/allergy/sinus remedies, segmented by type, 2007 and 2008

Segment Performance—Cold/Allergy/Sinus Tablets

Key points

Tablets simpler, more portable, tasteless

Sales and forecast of cold/allergy/sinus tablets

Figure 4: Sales of cold/allergy/sinus tablets at FDMx, in current prices, 2003-13

Segment Performance—Cold/Allergy/Sinus Liquids

Key points

Fallout over children’s remedies challenges

Liquid delivery system less convenient, more unpleasant

Sales and forecast of cold/allergy/sinus liquids

Figure 5: Sales of cold/allergy/sinus liquids at FDMx, at current prices, 2003-13

Segment Performance—Nasal Spray/Drops/Inhaler

Key points

Nasal products represent valuable alternatives for pediatric sufferers

Sales and forecast of nasal spray/drops/inhalers

Figure 6: Sales of nasal spray/drops/inhalers at FDMx, at current prices, 2003-13

Retail Channels

Key points

Drug stores still the best fit for allergy remedies

Mass stores increase pharmacies, offer affordable OTC remedies

Sales of cold/allergy/sinus remedies, by channel

Figure 7: U.S. retail sales of cold/allergy/sinus remedies, by channel, 2006 and 2008

Retail Channels—Drug Stores

Key points

Drug channel the most trusted remedy retailer

Drug store sales of cold/allergy/sinus remedies

Figure 8: U.S. drug store sales of cold/allergy/sinus remedies, at current prices, 2003-08

Retail Channels—Supercenters/Discount Department Stores, Warehouse Clubs

Key points

Mass stores will grow as economy slows

Supercenter/discount/warehouse sales of cold/allergy/sinus remedies

Figure 9: U.S. supercenter/discount department store, warehouse club sales of cold/allergy/sinus remedies, at current prices, 2003-08

Retail Channels—Other Channels

Key points

Supermarkets, other channels require early adoption of switches

Other channel sales of cold/allergy/sinus remedies

Figure 10: U.S. Other channel sales of cold/allergy/sinus remedies, at current prices, 2003-08

Market Drivers

Incidence of allergies

Figure 11: Types of allergies suffered, November 2008

Figure 12: Change in allergy suffering, November 2008

Figure 13: Population aged 18 or older, 2003-13

Children and elderly are more susceptible

Pediatric sufferers

Figure 14: Use of OTC children’s allergy remedies, November 2008

Figure 15: Child population by age, 2003-13

Elderly sufferers

Figure 16: Types of allergies suffered, by age, November 2008

Figure 17: Usage of allergy remedies, by age, April 2007-June 2008

Growing Hispanic population provides opportunities, represents challenges

Figure 18: Types of allergies suffered, by race/Hispanic origin, November 2008

Figure 19: Usage of allergy remedies, by race/Hispanic origin, April 2007-June 2008

Figure 20: U.S. Hispanic population by age, 2003-13

Self-diagnosis/treatment trend aids OTC sales

Figure 21: Professional vs. self-diagnosis, November 2008

Leading Companies

Key points

Johnson & Johnson/McNeil the clear leader with Zyrtec and Benadryl

Schering-Plough relies on Claritin

Wyeth sells to Pfizer; Alavert sales down

Manufacturer sales of cold/allergy/sinus remedies

Figure 22: Manufacturer sales of cold/allergy/sinus remedies in the U.S., 2006 and 2008

Brand Share—Cold/Allergy/Sinus Tablets

Key points

Rx-to-OTC switches cast long shadow

Manufacturer and brand sales of cold/allergy/sinus tablets

Figure 23: Selected brand sales and market share of cold/allergy/sinus tablets in the U.S., 2006 and 2008

Brand Share—Cold/Allergy/Sinus Liquids

Key point

Both Zyrtec and Claritin available in liquid children’s versions

Manufacturer and brand sales of cold/allergy/sinus liquids

Figure 24: Selected brand sales and market share of cold/allergy/sinus liquids in the U.S., 2006 and 2008

Brand Share—Nasal Spray/Drops/Inhaler

Key points

Zicam tops nasal sprays, Afrin close behind

Asthma inhalers gain but face challenges

Sinus rinse growth reflects popularity of natural remedies

Manufacturer and brand sales of nasal spray/drops/inhaler

Figure 25: Selected brand sales and market share of nasal spray/drops/inhaler in the U.S., 2006 and 2008

Natural channel/SPINS

Natural channel sales

Figure 26: Natural product supermarket sales of herbal formula and homeopathic allergy remedies, at current prices, 2006-08

Figure 27: Natural product supermarket sales of herbal formula and homeopathic allergy remedies, at inflation-adjusted prices, 2006-08

Implications

Consumers reluctant to accept natural remedies

Pharmaca Integrative Pharmacy providing high level onsite ‘education’

Brand Qualities

Claritin Clear vs. fast-acting Zyrtec

Benadryl depresses the pause button

Figure 28: J&J/McNeil Benadryl television ad, 2008

Alavert: The affordable Claritin

NeilMed builds on natural positioning

Innovation and Innovators

Number of launches fluctuates year-to-year

Figure 29: Number of allergy remedy new products, 2003-08

Children’s remedies dominate product claims

Figure 30: Number of allergy remedy new products, by product claim, 2003-08

McNeil introduces the most new products in 2008

Figure 31: Number of allergy remedy new products, by leading company, 2003-08

Natural/homeopathic remedies still gaining popularity

Nasal Ease—Allergy Blocker

Oasis—Children’s Nasal Spray

Zicam—Allergy Relief Gel Swabs

Long-lasting relief

TopCare Children’s—All Day Allergy Reliever

Kroger—24 Hour Allergy Relief

Healthy Accents—Children’s All Day Allergy Oral Solution

Multi-symptom remedies

Rite Aid—Allergy Multi-Symptom Tablets

DG—Multi-Symptom Complete Allergy Capsules

Member’s Mark—Allergy Multi-Symptom Caplets

Advertising and Promotion

Overview

Schering-Plough

Figure 32: Schering-Plough Claritin television ad, 2008

Figure 33: Schering -Plough Claritin television ad, 2008

Figure 34: Schering -Plough Claritin television ad, 2008

Johnson & Johnson/McNeil

Figure 35: J&J/McNeil Zyrtec television ad, 2008

Figure 36: J&J/McNeil Zyrtec television ad, 2008

Allergies and Diagnosis

Key points

Allergy incidence and severity

Figure 37: Allergy incidence and severity, by gender, April 2007-June 2008

Figure 38: Allergy incidence and severity, by age, April 2007-June 2008

Females, younger respondents more likely to suffer from all listed allergies

Figure 39: Types of allergies experienced, by gender, November 2008

Figure 40: Types of allergies experienced, by age, November 2008

Figure 41: Types of allergies experienced, by presence of children in HH, November 2008

Self-diagnosis rates high across all allergy types

Figure 42: Diagnosis of allergies, November 2008

Younger respondents more likely to self-diagnose

Figure 43: Doctor and self diagnosis of allergies, by age, November 2008

Medication and Side Effects

Key points

Over the counter remedies strong

Figure 44: Medicine taken for allergies, November 2008

Side effects most pronounced among young allergy sufferers

Figure 45: Side effects from allergy medicine, by age, November 2008

Figure 46: Side effects from allergy medicine, by presence of children in HH, November 2008

Spotlight on Outdoor Allergies

Key points

Allergies getting worse

Figure 47: State of outdoor allergy suffering, compared to a year ago, by age, November 2008

The seasonal effect

Figure 48: Seasonality of outdoor allergies, by age, November 2008

OTC remedies reign supreme, likely driven by Rx switch

Figure 49: Types of medicine taken for outdoor allergies, by gender, November 2008

Figure 50: Types of medicine taken for outdoor allergies, by age, November 2008

Figure 51: How often take medication for outdoor allergies, by age, November 2008

Allergy Medicine Attitudes and Concerns

Key points

Age Matters

Figure 52: Attitudes towards allergy medicine, by age, November 2008

Figure 53: Attitudes towards allergy medicine, by presence of children in HH, November 2008

Children and Allergies

Key points

Outdoor allergies worse, no matter what your age

Figure 54: Allergies children experienced, November 2008

Figure 55: Medicine children take for allergies, November 2008

Concerns and beliefs about allergy medicine and children

Figure 56: Concerns about children and allergy medicine, November 2008

Appendix: Other Useful Consumer Tables

Figure 57: Types of allergies experienced, by HH income, November 2008

Figure 58: Diagnosis of allergies, by HH income, November 2008

Figure 59: Medicine taken for allergies, by HH income, November 2008

Figure 60: Side effects from allergy medicine, by HH income, November 2008

Figure 61: Seasonality of outdoor allergies, by HH income, November 2008

Appendix: Trade Associations

Abstract

Still addressing side-effects

A number of OTC allergy remedy brands claim to alleviate multiple symptoms. Part of Claritin’s marketing campaign is, “Live Claritin Clear. Indoors and out.” Zyrtec is said to provide “relief from indoor and outdoor upper respiratory allergies.” Yet it’s possible that these types of remedies are too far-reaching for some sufferers, especially those who know exactly what they are allergic to and want a remedy that treats only that allergy as opposed to a blanket medicine that does more than patients want.

Enter the allergy-specific remedy, for sufferers seeking a precise treatment that minimizes their medicine intake and focuses only on the allergy at hand.

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