Navigation Links
OTC Market Is Not Largely Impacted by Recession; However, Prominent Growth Remains Only in Some Categories, According to Kline
Date:7/15/2009

LITTLE FALLS, N.J., July 15 /PRNewswire/ -- The overall OTC market grew 3.2% during non-recession years and only 1.2% during recessions according to the latest research Impact of Recessions on the U.S. OTC Market from worldwide consulting and research firm Kline & Company.

The impact of recessions on the OTC market mainly comes from erosion of branded OTC sales by private-label products and is reflected in slower growth rates. The level of erosion varies by product classes and categories. However, Rx-to-OTC switches, major innovations, and new product launches with related promotion that occur during recessions help cancel the effect of private-label erosion.

While overall the U.S. OTC market grows at slower rates than during non-recession periods, private-label OTC medicines outgrow 2007 rates by 5.7% over the same time period.

Sales of Rx-to-OTC switch brands are either not impacted or are less impacted than regular OTC brands by recession. For instance, the Rx-to-OTC switch of Claritin in 2003 only lost 18% of sales to its sales to private-label competitors in the non-recession period, while private-label equivalents of Zyrtec launched in early 2008 seized one-forth of brand sales during 2009, a recession year.

"There is clear evidence that private-label OTCs grow at significant rates during a recession. Consumers did trade down to private label, and branded products lost considerable shared private label, but at the same time, several switch products still did really well as consumers are still willing to pay extra for a product they feel is more innovative and offers more relief," says Laura Mahecha, healthcare industry manager at Kline.

In previous recessionary periods, overall OTC sales declined two years in a row; from 1999 to 2000 overall manufacturers' sales were down 0.6%, and then declined again from 2000 to 2001 by 0.5%. Declines for the market were not very steep and this may be a result of sustained private-label sales.

Impact of Recessions on the U.S. OTC Market provides subscribers with a historical perspective on industry performance during recessions over the past three decades in order to estimate impacts of the current economic recession on OTC sales performance. The report offers detailed forecasts through 2011 in terms of sales for the existing OTC market and expected future Rx-to-OTC switches. Three scenario forecasts are offered including the most likely-case, best-case, and worst-case sales performance with all assumptions clearly defined.

About Kline

Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for 50 years. For more information, visit www.KlineGroup.com.

For more information, contact:

    Vera Sandarova
    Marketing Communications
    +420-222-316-282
    Vera.Sandarova@klinegroup.com


'/>"/>
SOURCE Kline & Company
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Chinas Rheumatoid Arthritis Drug Market Will More than Double by 2013
2. Perrigo Receives FDA Approval to Market Cherry and Cinnamon Flavored Nicotine Lozenges
3. RecoverCare and MedaSTAT USA to Merge, Creating Leading Provider of Wound Care and Bariatric Treatment Solutions for Acute and Post-Acute Care Markets
4. Increasing Diagnosis Rates and Growing Use of Key Agents Such as Pfizers Lyrica Will Drive Eight Percent Annual Growth in the Fibromyalgia Drug Market Through 2018
5. Analysis of Four Large Post-Marketing Surveillance Studies Describe Clinical Effects of Sucrose-Formulated Recombinant Factor VIII
6. Medical Imaging Modality Vendors Should Focus on Innovation and Alliances with Market Leaders, Advises Frost & Sullivan
7. Pioneer Surgical Technology, Inc. Names Thomas J. McLeer as Chief Marketing Officer and General Manager of Spinal Operations
8. Duane Reade Dispenses a Large Dose of Marketing, as it Strengthens its Hometown Connection
9. Connectyx Looks to Establish Market Leadership with MedSync and MedFlash Product Line As Stated During Nationwide Teleconference
10. MarketArt to Enhance Attendee Experience at AAMSE Annual Conference
11. Pharma-Marketer.com: One-Stop Pharmaceutical Marketing Resource
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:10/13/2017)... ... October 13, 2017 , ... ... process to promote standards of excellence for the field of eating disorders, announces ... 22 – 25, 2018 in Orlando, Florida at the Omni Resort at ChampionsGate. ...
(Date:10/13/2017)... ... October 13, 2017 , ... Apple Rehab Shelton Lakes , which ... evacuation of the facility as part of a disaster drill on October 3rd. , ... and Shelton City Emergency Manager, as well as the Connecticut Long Term Care ...
(Date:10/13/2017)... ... October 13, 2017 , ... Global Healthcare Management’s 4th ... Park in Milford, NJ. This free event, sponsored by Global Healthcare Management’s CEO, ... The fun run is geared towards children of all ages; it is a non-competitive, ...
(Date:10/13/2017)... ... 2017 , ... “The Journey: From the Mountains to the Mission Field”: the ... in the Philippines. “The Journey: From the Mountains to the Mission Field” is the ... She has taught all ages and currently teaches a class of ladies at her ...
(Date:10/12/2017)... ... ... Planet Fitness, one of the largest and fastest growing franchisors and operators ... location in Covington, LA at 401 N. U.S. Highway 190, in January of 2018. ... in the Holiday Square shopping center. Its location allows it to serve both Covington ...
Breaking Medicine News(10 mins):
(Date:10/4/2017)... 2017 OBP Medical , a ... devices, today announced regulatory approval from ... Agência Nacional de Vigilância Sanitária (ANVISA)) to market ... retractor with integrated LED light source and smoke ... exposure of a tissue pocket or cavity during ...
(Date:10/2/2017)... 2017 The Rebound mobile app is poised to ... the tide of prescription drug addiction. The app empowers users ... and stepping down their dosage in a safe, controlled manner ... 2017; the first 100,000 people to sign up will enjoy ... ...
(Date:9/25/2017)...   Montrium , an industry leader in ... IQPC Trial Master Files & Inspection Readiness Conference ... Clinical Services has selected eTMF Connect ... EastHORN, a leading European contract research organization (CRO), ... to enable greater collaboration with sponsors, improve compliance ...
Breaking Medicine Technology: