OTC Private Label Sales Heat Up

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August 10, 2010

While overall over-the-counter medicine sales increased 3.8 percent in 2009 –– due to the H1N1 virus scare and the economy -- retailers with stores brands gained the most market share.

In fact, OTC sales are expected to continue to rise between 2.3 percent and 2.6 percent over the next four years, according to Mintel, due to the recession which has contributed to the rise of in-store clinics, as well as the number of people who have lost their jobs and health insurance who are opting for less costly medications and homeopathic alternatives to a doctor’s visit and prescription drugs.

Private label cough and throat cold remedies rang up $158 million in sales in 2009, garnering a 20.5 percent share of the $770 million cough and throat care market, according to Mintel.

Share of private label grew in each market segment between 2008 and 2009, “ according to the report. Private label cough drops grew 5.5 percent during that period, while store brand cough syrup and sore throat remedies increased by 13.7 percent and 7 percent respectively.

However, the percentage of private label decongestive, cough, cold, and flu new product launches relative to national brands actually decreased to a 25 percent share in 2009 from 36 percent the prior year, according to Mintel’s GNPD, between 2004 and 2009.

“This further attests to the power of private label during tough economic times: even though national brand launches outnumber private label launches, consumers are still turning to this type of product at an increasing rate.”

Read These Related Articles:

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• Profiles in Innovation: A&P's Non-Foods Are Positioned to Explode (Part 4 of 4)
• P&G Uses Product Innovation to Attack Store Brands
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