Americans are thinking about their self-care journey in new ways than they ever have before and millions of people rely on the consumer healthcare industry for effective solutions to their medical needs. More Americans are proactively incorporating health and wellness into their lifestyles which significantly contributes to the annual savings that over-the-counter drugs offer the U.S. healthcare market (more than $146 billion). Even though there were no recorded Rx to OTC switches in 2018, according to IRI Principal Kristin Hornberger’s presentation, “The Evolving Competitive Landscape” the industry experienced an almost 4% growth rate in 2018 – higher than most other sectors in the consumer products industry.
The consumer healthcare industry is also starting to take notice of CBD treatments to be a potential threat or opportunity in the consumer healthcare market as a treatment option for pain and sleep aids, although there is still a lot of work to be done to understand the path to commercialization. Additionally, the retail landscape continues to change as brick-and-mortar companies are investing heavily in their heath and wellness capabilities and the competition from the eCommerce channel intensifies, specially from Amazon. As with every industry the rapid evolution of technology plays a major role in industry disruption as well. The result of these changes is a plethora of new opportunities for consumer healthcare companies.
The consumer healthcare industry is in an exciting evolutionary journey. Companies are starting to think more about treating the whole person and not just a specific indication or problem. Organic and homeopathic treatments combined with digital consumer engagement are driving industry growth. As your company looks to find new ways to appeal to consumers on their self-care journey, Clarkston has highlighted 4 key trends to help you beat the competition in the year ahead.
Over the course of 2018, Novartis, Merck, Bristol-Myers Squibb, Bayer and Pfizer made decisive moves relative to their consumer brands – either selling off all or parts of each. Takeda, meanwhile, started 2019 with an announcement from CEO Christophe Weber than the Japanese pharmaceutical giant would be holding on to their OTC business.