Cough, Cold, Flu and Allergy Remedies - US - April 2017

OVERVIEW

What you need to know

Definition

EXECUTIVE SUMMARY

The issues

Figure 1: Total US sales of cough, cold, flu, and allergy remedies, at current prices, 2011-16

Figure 2: MULO sales of select children’s cold and sinus brands, rolling 52 weeks 2015 and 2016

Figure 3: No need to treat barrier to OTC remedy use, by gender and age, January 2017

The opportunities

Figure 4: Purchase medication to be prepared, by parental status, January 2017

Figure 5: OTC selection factors, by rank, January 2017

Figure 6: Take natural remedies in addition to conventional, January 2017

What it means

THE MARKET

What you need to know

Cough, cold, flu, and allergy market experiences minor growth in 2016

People take measures to prevent illness

Alternative and nontreatment threaten OTC remedy use

People get sick, how many depends on severity of the cold and flu season

Families get sick the most; number of households with kids declining

Market size and forecast

Regularity of cough, cold, flu, and allergy ailments supports stable market growth

Figure 7: Total US sales and fan chart forecast of cough, cold, flu, and allergy remedies, at current prices, 2011-21

Figure 8: Total US sales and forecast of cough, cold, flu, and allergy remedies, at current prices, 2011-21

Market breakdown

Market segments post modest gains

Figure 9: Total US retail sales and forecast of cough, cold, flu, and allergy remedies, by segment, at current prices, 2011-21

Market perspective

Proactive measures are taken to prevent illness

Figure 10: Proactive health measures, January 2017

Figure 11: Use of vitamins or minerals and supplements in the past year, by ailment, January 2017

Flu vaccine protects against flu, reducing OTC remedy needs

Figure 12: Yearly flu shot and first time getting flu shot, January 2017

Figure 13: Vaccine effectiveness (VE) estimates for influenza seasons from 2005-16

Home remedies help some people cope with symptoms

Figure 14: Use of a home remedy in the past year, by ailment, January 2017

Some suffer through without intervention

Figure 15: Did nothing for ailment in the past year, by ailment, January 2017

Market factors

People get sick and it can happen year-round

Figure 16: Ailments experienced seasonally in the past year, January 2017

Mild 2015-16 flu season

Figure 17: Seasonal flu severity, 2010-16

Households with children are declining

Figure 18: US households, by presence of related children, 2006-16

KEY PLAYERS

What you need to know

Market leaders change places, competition intensifies

Nasal sprays, streamlined offerings, children’s external remedies thrive

Cough/throat stagnate, mainstream children’s remedies decline, allergy brands try sales tactic

Private label introductions and new allergy options will impact market

Children are the key for supplementary growth

Company and brand sales of cough, cold, flu, and allergy remedies

Reckitt Benckiser and Bayer change places in the ranks

Figure 19: Sales of cough, cold, flu, and allergy remedies, by company, 2015 and 2016

Mucinex and Vicks lead sales of cold and sinus remedies

Bayer introduces line extensions, more natural formulas

J&J experiences solid gains

Figure 20: MULO sales of cold/sinus remedies, by leading companies and brands, rolling 52 weeks 2015 and 2016

What’s working?

Sales of nasal sprays continue to grow with new 2016 introductions

Figure 21: MULO sales of nasal sprays, by select brands, 2015 and 2016

Vicks streamlines its offerings; relaunches sinus brand

External therapies for children are thriving

Figure 22: MULO sales of chest rubs and nasal aspirators, 2011-16

What’s struggling?

Overall sales of cough/throat remedies stagnate

Figure 23: MULO sales of cough/throat remedies, by leading companies and brands, rolling 52 weeks 2015 and 2016

Mainstream children’s medications take a hit

Figure 24: MULO sales of select children’s cold and sinus brands, rolling 52 weeks 2015 and 2016

Allergy tablet brands aim to improve value proposition

What’s next?

Private label sales will get a boost from new formulation introductions

Plateauing allergy sales could gain boost from children’s launches

Figure 25: MULO sales of Claritin and Zyrtec allergy remedies and children’s allergy remedies, rolling 52 weeks 2015 and 2016

New allergy relief introductions give consumers more options

Dye-free offers more natural approach without compromising potency

Essential oils offer alternative cold, cough, and sinus relief

THE CONSUMER

What you need to know

Proactive measures are taken to prevent illnesses

Most everyone gets sick, and there’s somewhat of a seasonal pattern

OTC medications are the top remedy choice regardless of the ailment

Consumers focus on product claims

Some people are willing to suffer without treatment

Natural remedies have a place in the medicine cabinet

Health attitudes

People take proactive measures to keep illness at bay

Figure 26: Proactive health attitudes, January 2017

Women and older adults are more vigilant

Figure 27: Proactive health attitudes, by gender, generation, and parental status, January 2017

There is seasonality in the minds of most consumers

Figure 28: Seasonality of cold, cough, and flu season and purchase medication to be prepared, January 2017

Illness is less seasonal for older adults

Figure 29: Seasonality of cold, cough, and flu season, by age, January 2017

Moms prepare

Figure 30: Purchase medication to be prepared, by parental status, January 2017

Those making preparation purchases also taking other proactive measures

Figure 31: Purchase medication to be prepared, by proactive health attitudes, January 2017

Ailments experienced

Illnesses are common

Figure 32: Ailments experienced in the past year (net), January 2017

Young adults are most susceptible to illness

Figure 33: Ailments experienced in the past year (net), by age, September 2016

Adults and kids share the germs

Figure 34: Ailments experienced in the past year (net), by parental status, January 2017

Employed adults need more sick days

Figure 35: Ailments experienced in the past year (net), by employment status, January 2017

Cold and cough occur in cold months; allergies spike in spring

Figure 36: Ailments experienced in the past year, by season, January 2017

Ailment treatment

OTC medications are turned to most often, no matter the ailment

Figure 37: Correspondence analysis – Cough, cold, flu and allergy remedies treatment, January 2017

Correspondence methodology

Figure 38: Treatment of ailment, by ailment, January 2017

Young men and Hispanics are least likely to treat with OTC medications

Figure 39: OTC medication used for treatment of ailment, by gender and age, and by Hispanic origin, January 2017

Parents, more so than nonparents, turn to homeopathic remedies

Figure 40: OTC homeopathic remedy used for treatment of ailment, by parental status, January 2017

Older women using an Rx for allergies, younger adults opt to do nothing

Figure 41: Used prescription or nothing for treatment of allergies, by age, and by gender and age, January 2017

OTC selection factors

Product claims are central to choice

Figure 42: OTC selection factors, by rank, January 2017

Women more drawn to certain claims, men to brand name

Figure 43: Specific symptom claim, nondrowsy formula, brand name impact on OTC medication choice, any rank (net), by gender, January 2017

Older adults are influenced by a professional recommendation

Figure 44: Recommendation impact on OTC medication choice, any rank (net), by age, January 2017

Parents factor in naturalness and on-the-go convenience

Figure 45: Natural ingredients and easy to take on-the-go impact on OTC medication choice, any rank (net), by parental status, and by parental status by gender, January 2017

Barriers to OTC remedy use

Willingness to suffer without is the main barrier to OTC remedy use

Figure 46: Barriers to OTC remedy use, January 2017

Young adults most willing to forgo OTC medication

Figure 47: No need to treat as barrier to OTC remedy use, by gender and age, January 2017

Lack of seasonality limits the need to treat

Figure 48: No illness season by no need to treat, January 2017

Natural remedy perceptions

Natural remedies are prominent

Figure 49: Natural remedy use, January 2017

Figure 50: Don’t know which natural remedies treat symptom, by female by age, January 2017

Younger generations and parents seek natural options

Figure 51: Natural remedy use, by generation, and by parental status by gender, January 2017

Some adults don’t buy into natural

Figure 52: Natural remedy perceptions, January 2017

Opportunity to encourage stocking up on natural remedies

Figure 53: Purchase medication to be prepared, by natural remedy use, January 2017

APPENDIX

Data sources and abbreviations

Data sources

Abbreviations and terms

Market

Figure 54: Total US sales and forecast of cough, cold, flu, and allergy remedies, at inflation-adjusted prices, 2011-21

Figure 55: Total US retail sales and forecast of cold/sinus remedies, at current prices, 2011-21

Figure 56: Total US retail sales and forecast of cough/throat remedies, at current prices, 2011-21

Figure 57: Total US retail sales and forecast of allergy remedies, at current prices, 2011-21

Figure 58: Total US retail sales of cough, cold, flu, and allergy remedies, by segment, at current prices, 2014 and 2016

Figure 59: Total US retail sales of cough, cold, flu, and allergy remedies, by channel, at current prices, 2011-16

RESEARCH METHODOLOGY

US Research Methodology

Consumer research

The Mintel fan chart

Cough, Cold, Flu and Allergy Remedies - US - April 2017

"US sales of OTC cough, cold, flu, and allergy remedies have had healthy growth for the past few years, yet slowed from 2015-16. A mild cold/flu season, effective flu vaccines, and more moderate success in Rx-to-OTC switches is likely to have tempered market growth. Mintel expects growth to continue on a slow and steady pace as consumers continue to rely on OTC remedies to relieve the symptoms of colds, flu, or allergies. New product introductions, along with a harsh cold and flu season, will drive growth in the market. Family households represent the most significant demographic opportunity for brand marketers while the choice not to treat challenges growth."

- Marissa Gilbert, Senior Health & Wellness Analyst

This Report discusses the following key topics:

Overall OTC cough, cold, flu, and allergy market slows
Mainstream children’s medications decline, while natural grows
Young adults, a key consumer, most willing to forgo OTC medication when sick