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Private-label OTC Drugs Post Solid Gains in 2008, According to Kline
Date:4/8/2009

vate-label erosion. Branded OTCs may use advertising messages to stress the brand's value, efficacy, safety, and possibly longer-lasting doses, which translates into fewer doses and therefore, costs less."

According to preliminary research for Kline's upcoming report Impact of Recessions on the U.S. OTC Market, past declines during recessions have not been particularly steep for the industry. OTC sales declined two years in a row; from 1999 to 2000 overall manufacturers' sales were down 0.6%, and then it declined again from 2000 to 2001 by 0.5%. Declines for the market were kept at bay possibly as a result of Rx-to-OTC switches, continued innovation, and to some extent sustained private-label sales, albeit at lower price points. There may also have been some spill over from Rx patients who chose OTCs as less expensive alternative in some cases to Rx medications and MD visits. Further research for this study will analyze the shifts in ad spending by marketers, shifts in private-label share, and the impacts innovations have had on industry performance during past recessions in order to forecast impacts of the current recession.

Kline's Nonprescription Drugs 2008: U.S. Market Analysis and Opportunities contains sales data on hundreds of OTC brands and companies, new product and ad spending analysis, retail distribution, five years historical sales and five year sales forecasts for 36 major product categories, detailed profiles of 15 leading marketers and 50 minor companies, and an analysis of media spending.

Kline's Impact of Recessions on the U.S. OTC Market is a comprehensive assessment that will provide subscribers with a historical perspective on industry performance during recessions over the past three decades and forecasts impacts of the current econo
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SOURCE Kline & Company
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