OTC Sleep Aids - US - February 2015

OTC Sleep Aids - US - February 2015


“Building market share may require more granular outreach to consumers and targeted marketing to address the different needs, interests and concerns of young, active, tech-savvy 18-35-year-olds; busy parents and aging baby boomers. Key opportunities may lie in areas such as promoting natural products, mobilizing the insights offered by wearable fitness trackers and helping consumers create their own personal, flexible plans for getting the most, high quality sleep night after night.”

– Molly Maier, Category Manager, Health & Wellness, Household, Beauty & Personal Care

This report answers the following questions:

How can suppliers maximize appeal to those aged 18-34?
How can suppliers increase the usage of OTC sleep aids among women?
How can suppliers encourage retirees to maintain OTC sleep aid usage?
How to limit concerns about sleep aids, address interest in alternatives?


SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Overview
The market
Figure 1: Total US sales and fan chart forecast of OTC sleep aids, at current prices, 2009-19
Major players
Figure 2: OTC sleep aid sales through MULO channels, by major suppliers, 2013-14
The consumer
Some six in 10 report struggling with sleep
Figure 3: Sleep issues, by gender, November 2014
Use of OTC sleep aids high among those aged 18-34
Figure 4: OTC sleep aid product usage, among 18-24s and 25-34s, November 2014
Interest is strong in diverse formats of OTC sleep aids
Figure 5: Not used but interested in trying sleep aid product formats, by 18-24s and 25-34s, November
2014
Concern about dependency and side effects are top barriers to usage
Figure 6: Barriers to sleep aid usage, by 25-34s and 65+, November 2014
Those who use OTC sleep aids seek out range of alternatives
Figure 7: Alternatives to OTC sleep aids, sleep aid users vs total population, November 2014
What we think
ISSUES AND INSIGHTS
How can suppliers maximize appeal to those aged 18-34?
The issues
The implications
How can suppliers increase the usage of OTC sleep aids among women?
The issues
The implications
How can suppliers encourage retirees to maintain OTC sleep aid usage?
The issues
The implications
How to limit concerns about sleep aids, address interest in alternatives?
The issues
The implications
TREND APPLICATIONS
Trend: Extend Your Brand
Trend: Second Skin
Trend: Guiding Choice
MARKET SIZE AND FORECAST
Key points
OTC sleep aid growth slows in 2014
Sales and forecast of OTC sleep aids
Figure 8: Total US sales and forecast of OTC sleep aids, at current prices, 2009-19
Figure 9: Total US sales and forecast of OTC sleep aids, at inflation-adjusted prices, 2009-19
Moderate growth projected through 2019
Figure 10: Total US sales and fan chart forecast of OTC sleep aids, at current prices, 2009-19
Forecast Methodology
MARKET DRIVERS
Key points
Medical reports highlight the importance of sleep for healthy living
Multiple factors endemic to contemporary life contribute to sleeplessness
Figure 11: Median household income in inflation-adjusted dollars, 2002-12
Six in ten people struggle with sleep
Females more likely to struggle with sleep
Figure 12: Female and male population, 2014-19
Aging population puts downward pressure on market
Figure 13: Population aged 18 or older, by age, 2014-19, Trouble sleeping, by age, November 2014
Increasing non-White population bodes well for the market
Figure 14: Population, by race and Hispanic origin, 2009-19
Declining number of households with children
Figure 15: US households, by presence of own children, 2003-13
COMPETITIVE CONTEXT
Key points
Concern about dependency, side effects, and safety often limit usage
Many alternatives to OTC sleep aids are available and widely used
A gamut of alternatives to sleep aids exist, and are widely used
Figure 16: Alternatives to OTC sleep aids, November 2014
New products and growth in various alternatives to OTC sleep aids
Herbal teas and sleep-inducing foods promoted as sleep aids
Other OTC medications and supplements, including melatonin
Yoga and meditation offer natural ways to calm mind, promote rest
Aromatherapy, candles, and sprays can help create a sleep-friendly environment
Prescription sleep aids are widely used
Wearable fitness bands, mobile apps, and other technologies track sleep
SEGMENT PERFORMANCE
Key points
Sales shift from nighttime analgesics to sleep-only remedies
Figure 17: Sales of OTC sleep aid market, segmented by type, 2009-14
Figure 18: Sales of OTC sleep aid market, segmented by type, 2012 and 2014
RETAIL CHANNELS
Key points
Sales of OTC sleep aids, by channel
Figure 19: Total US retail sales of OTC sleep aids, by channel, 2009-14
Drugstores offer pharmacist advice and promote private label offerings
Supermarkets may be able to capitalize on interest in sleep-inducing food and drink
“Other retailers” include mass merchandisers and online retailers
LEADING COMPANIES
Key points
The largest suppliers, P&G and Pfizer, see sales and market share decline
Private label offerings and “other” suppliers post growth, build share
Manufacturer sales of OTC sleep aid market
Figure 20: MULO Manufacturer sales of OTC sleep aids, 2012 and 2014
BRAND SHARE – OTC SLEEP AIDS
Key points
ZzzQuil dominates the segment, but sees sales decline slightly
Manufacturer sales of other OTC sleep aids segment
Figure 21: MULO sales of other OTC sleep aids, by leading companies and brands, rolling 52 weeks
2013 and 2014
BRAND SHARE – OTC NIGHTTIME ANALGESICS
Key points
Advil PM is dominant brand, but new Aleve PM draws interest
Manufacturer sales of nighttime pain relievers
Figure 22: MULO sales of OTC nighttime pain relievers, by leading companies and brands, rolling 52
weeks 2013 and 2014
INNOVATIONS AND INNOVATORS
OTC sleep aids category continues to innovate
Figure 23: Share of branded/private label launches of OTC sleep aids, 2009-14
Private label products comprise a third of new product introductions
Natural, herbal, and “free from” products
MARKETING STRATEGIES
Overview of the brand landscape
ZzzQuil targets parents by showcasing pleasures, benefits of sleep
Figure 24: ZzzQuil, “Because sleep is a beautiful thing,” television ad, 2014
Tylenol PM reminds moms they need sleep to be “at their best”
Figure 25: Tylenol PM “Not Yourself,” television ad, 2014
Fear of nighttime pain evoked in Advil PM campaign
Figure 26: Advil PM, “For a Healing Night’s Sleep,” television ad, 2014
Neuro SLEEP appeals to youth via dreams, play, and flirtatiousness
Figure 27: Neuro sleep, “buy neuro,” television ad, 2014
Figure 28: Neuro Sleep, “Booty Call,” television ad, 2014
SLEEP HEALTH ASSESSMENT – AMOUNT OF SLEEP
Key points
Average time spent sleeping is less than 7 hours per night
Figure 29: Time spent sleeping, by gender, November 2014
Amount of time spent sleeping increases with age
Figure 30: Time spent sleeping, by gender and age, November 2014
Those with lower HH income, kids in household get less sleep
Figure 31: Time spent sleeping, by household income and presence of children in HH, November 2014
Those who use OTC sleep aids report getting less sleep
Figure 32: Time spent sleeping, by types and brands of sleep aids used, November 2014
SLEEP HEALTH ASSESSMENT – ISSUES WITH SLEEP
Key points
Some six in 10, and even more women, report struggling with sleep
Figure 33: Sleep issues, by gender, November 2014
Difficulties with sleep vary with age
Figure 34: Sleep issues, by age, November 2014
Those in the lowest income bracket struggle more with sleep
Figure 35: Sleep issues, by household income, November 2014
Those with kids have more sleep issues
Figure 36: Sleep issues, by presence of children in household, November 2014
SLEEP AID USAGE – PRODUCT AND BRAND CHOICE
Key points
Those who struggle to fall asleep show highest sleep aid usage
Figure 37: OTC Sleep aid product usage (nets only), by sleep issues, November 2014
ZzzQuil and Tylenol PM are reported as most widely used brands
Figure 38: Types and brands of sleep aids used, November 2014
Use of OTC sleep aids highest among those aged 18-34
Figure 39: OTC Sleep aid product usage (nets only), by age, November 2014
Those using one OTC sleep aid, often use others as well
Figure 40: OTC Sleep aid product usage, by product usage (nets only), November 2014
SLEEP AID USAGE – FREQUENCY OF USAGE
Key points
Frequency of use highest among those aged 25-44 years old
Figure 41: Frequency of OTC sleep aids used, by age, November 2014
Despite sleep issues, those from lower income HHs limit usage
Figure 42: Frequency of OTC sleep aids used, by household income, November 2014
Those struggling to fall asleep use OTC aids most frequently
Figure 43: Frequency of OTC sleep aids used, by sleep issues, November 2014
Traditional sleep aids used more frequently than nighttime pain medication
Figure 44: Frequency of OTC sleep aids used, by types and brands of sleep aids used, November
2014
PRODUCT FORMATS
Key points
Strong interest in trying diverse formats
Figure 45: Usage of and interest in product formats, November 2014
Females show stronger interest in roll-ons, gels, and patches
Figure 46: Product formats not used but interested in trying, by gender, November 2014
Younger users eager to try new diverse formats
Figure 47: Product formats not used but interested in trying, by age, November 2014
New formats have strong appeal to existing users of OTC sleep aids
Figure 48: Product formats not used but interested in trying, by types of sleep aids used, November
2014
BARRIERS TO SLEEP AID USAGE
Key points
Concern about dependency and side effects are top barriers to usage
Figure 49: Barriers to sleep aid usage, by gender, November 2014
Concerns about OTC sleep aids vary with age
Figure 50: Barriers to sleep aid usage, by age, November 2014
RACE AND HISPANIC ORIGIN
Key points
Non-Whites sleep less than Whites
Figure 51: Time spent sleeping, by race/Hispanic origin, November 2014
Hispanics more likely than non-Hispanics to use OTC sleep aids
Figure 52: OTC Sleep aid product usage (nets only), by race/Hispanic origin, November 2014
Less costly products and in-store information may support Hispanic usage
Figure 53: Barriers to sleep aid usage, by race/Hispanic origin, November 2014
Hispanics show strong interest in a range of new formats
Figure 54: Any usage of or interest in product formats, by race/Hispanic origin, November 2014
APPENDIX – MARKET DATA
Figure 55: Total US sales of OTC sleep aids, at current prices, 2009-19
Figure 56: Total US sales of OTC nighttime analgesics, at current prices, 2009-19
Figure 57: Sales of OTC sleep aids market, by channel, 2012 and 2014
APPENDIX – OTHER USEFUL CONSUMER TABLES
Figure 58: Time spent sleeping, by sleep issues, November 2014
Figure 59: Sleep issues, by types and brands of sleep aids used, November 2014
Figure 60: Sleep issues, by race/Hispanic origin, November 2014
Figure 61: Frequency OTC sleep aids used, by gender, November 2014
Figure 62: Frequency OTC sleep aids used, by race/Hispanic origin, November 2014
Figure 63: OTC Sleep aid product usage (nets only), by gender, November 2014
Figure 64: Barriers to sleep aid usage, by household income, November 2014
Figure 65: Barriers to sleep aid usage, by types and brands of sleep aids used, November 2014
Figure 66: Barriers to sleep aid usage, by frequency of OTC sleep aids used, November 2014
Figure 67: Alternatives to OTC sleep aids, by types and brands of sleep aids used, November 2014
Figure 68: Alternatives to OTC sleep aids, by frequency OTC sleep aids used, November 2014
Figure 69: Any use/interest in alternatives to OTC sleep aids, by sleep issues, November 2014
Figure 70: Any use/interest in alternatives to OTC sleep aids, by types and brands of sleep aids used,
November 2014
Figure 71: Alternatives to OTC sleep aids would use in the future, by age, November 2014
APPENDIX – TRADE ASSOCIATIONS
American Academy of Sleep Medicine (AASM)
American Pharmacists Association (APhA)
Chain Drug Marketing Association (CDMA)
Consumer Healthcare Products Association (CHPA)
US Consumer Product Safety Commission (CPSC)
Drug, Chemical & Associated Technologies Association (DCAT)
National Sleep Foundation (NSF)
Sleep Research Society (SRS)
World Self-Medication Industry (WSMI)
US METHODOLOGY
CONSUMER RESEARCH
Primary Data Analysis
Secondary Data Analysis
Qualitative Research
Further Analysis
Social Media Research
TRADE RESEARCH
STATISTICAL FORECASTING

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