analgesics_-_uk_-_may_2010

8/7/2019 Analgesics_-_UK_-_May_2010

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Analgesics

May 2010


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Issues in the market

The analgesics market is mature and the products enjoy regular usage

among a broad range of adults.

The drug companies have continued to compete against the growingpressure from cheaper own-label equivalents by developingnew variantssuch as faster acting and stronger products. But how much more scope isthere to enhance the formulations and will consumers be persuaded to pay

higher prices when the own-label versions are so much cheaper?

The market for analgesics is polarising, with wider availability of every-day-low-price own-labels at rock bottom prices, as well as growth in premiumlines. So which consumers are tempted to save andgofor the cheapest andwhich are persuaded to spend more for premium options?

Market growth has been sluggish, mainly due todownward pressure onprices in this highly competitive environment. Market value grew by 11% inthe five years 2005-10. This report considers the key factors behind thisgrowth and asks what manufacturers willdonext togenerate even highersales.


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Internal Market Environment

TGI research reveals the mostcommon ailments suffered by adults inthe last year are headaches(63%), colds/flu (60%) and bad backs(41%).

Self-medicating is commonplaceamong adults, as eight in ten people

say that they have tofeel really illbefore going to the doctor, indicatingthat they will take responsibility formedicating themselves when they feelthey need to.

But over halfclaim that they usuallywait for the pain togoon itsown, without taking anythingfor

it, indicating an air ofcaution abouttakingunnecessary medicines.

Only 9% ofadults claim that theynever use analgesics, so even thoughsome are cautious, analgesics remainpart of their repertoire ofmedicines.

0 10 20 30 40 50 60 70

Headaches

Arthritis

Rheumastism

Bad back

Migraine

Colds/flu

Catarrh/sinus

Cystitis

Incidence ofselected ailments inlast 12 months, 2004-09

Base: adults aged 15+

Source: TGI/Mintel


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Broader Market Environment

Underlyinggrowth of the population is helping togrow demandfor analgesics in the UK.

The populationgrew by 3.3% over 2005-10, and willgrow by 3.4% during 2010-15.

There has been a small baby boom during 2005-10. Growth in the infant and childpopulation will boost demandfor child-specific products and strengths.

Growth in the number ofABs (+9.3% over 2005-10 and projected +18.8% over 2010-15), is positive for pain-specific and added-value products as these are the heaviestusers.

0

1,000

2,0003,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

UKp

opulation

,byage(000),

2005-15

2005 3,429 3,555 3,819 3,957 3,929 7,936 9,245 7,708 7,022 5,064 3,404 1,173

2010 (est) 3,840 3,439 3,561 3,903 4,321 8,191 8,839 8,533 7,311 5,386 3,493 1,406

2015 (proj) 3,886 3,850 3,446 3,632 4,255 9,126 8,128 9,077 7,300 6,224 3,795 1,625

0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+

The heaviest users of headacheremedies are the DEs and this groupis indecline. This is likely tolead to aslowdown in volumedemand, particularly for generalpainkillers.


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Strengths and Weaknesses

Well-known brandedgoods, trusted byconsumers. Store cupboard item and household essential. Plenty of retail chains with well-established

brands and strong reputations that can sellquality ownlabelgoods.

Licence changes making more productsavailable over the counter.

Wider retaildistribution allowed by changes toregulations, so more convenient to buy.

High levelofnew productdevelopment, particularly in added-value linesand pain specific formulations.

More consumers have the confidence andknowledge to self-medicate.

Plenty of choice ofproducts andformatsavailable to a broad audience.

High levels ofusage throughout the population. Good value for money, particularly from

generic andown-label products. Products often cheaper thangetting similar

things on prescription (for those who payprescription charges).

Potential benefits ofpreventingother diseasesand health conditions such as heart disease orstroke.

Many c

ons

umers be

lieve that the i

ngre

die

nts

matter more than the brand and so will switchto cheaper alternatives.

Intense price competitionfrom genericproducts substantially undercuts brandedprices and restricts spendinggrowth.

Restrictions on pack sizes and promotionaloffers limits potential volume growth.

Many consumers canget analgesics free onprescription, rather thanover the counter.

Fears ofside effects couldlimit demand andcause consumers to seek alternatives.

Image as a synthetic, rather thannaturalproduct.

Competitionfor oral preparations from topicalpain relievers eg heat patches.

Strengths Weaknesses


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Whos Innovating?

New product developments arefocusingon convenience, naturaltreatments andon specificdemographics eg infants.

There is a fairly low levelofNPD in the

analgesics sector, but developmentsare dominated by non-oral productssuch as patches and topical treatments.

Glaxo has been investing innewvariants of its Panadol brand, whileReckitt Benckiser is developing and

supporting its Nurofen brand withstronger/faster variants, an infantsuspension and patches.


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Competitive context

The market faces competitionfrom cold andflu products that contain analgesics and

free prescriptions by doctors. Complementary medicines, such as natural roll-ons and heat patches, pose an

increasing challenge.

Analgesics remain a store cupboard staple and this will help to shore up demand, withfamilies more likely to expand their repertoire whennew alternatives arise, rather thancut out general analgesics.

Analgesics Minorailment

remedies

VMS Gastro-Intestinalremedies

Cold &fluremedies

(provisional)

Comple-mentary

medicines

m m m m m m

2005 565 623 362 243 253 158

2006 571 654 364 244 255 172

2007 602 673 372 258 287 185

2008 615 698 383 275 306 198

2009 620 722 396 268 291 213

2010(est)

627 738 404 267 296 231

%change

2005-10

+11.0 +18.5 +11.6 +9.9 +17.0 +46.2

Market value of selected remedies, 2005-10

Source: Mintel


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Market Size and Forecast

Source: Mintel

UK sales of OTC analgesics, at current prices, 2005-15

In the three years to 2010, market growthhas slowed, as cheaper own-labelproducts and promotionaldiscounting hasdramatically eroded prices.

Analgesics are widely purchased by

adults, but as knowledge about the activeingredients has grown, the desire to savemoney has led to thriftier habits by many.

According to TGI the proportionof adultsusing analgesics has fallen, whichindicates that some of those who areusing them are spending more. This

indicates that efforts to persuadeconsumers to trade up are workingfor themanufacturers, helping to combat thedownward pullof cheaper own-labelproducts.

Current

prices

Index % annual

change

m

2005 565 90 +6.8

2006 571 91 +1.1

2007 602 96 +5.4

2008 615 98 +2.2

2009 620 99 +0.8

2010 (est) 627 100 +1.1

2011 (fore) 636 101 +1.5

2012 (proj) 637 102 +0.1

2013 (proj) 640 102 +0.4

2014 (proj) 643 103 +0.6

2015 (proj) 649 103 +0.8


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Above the line advertisingfor analgesics fell by 15% during 2005-09, downfrom

19m to 16m.

The largest advertiser is Reckitt Benckiser, which accountedfor over a thirdof sectorspending in 2009 backing its market leadingNurofen andother brands.

Television advertising is widely used tolaunch new products and communicate thevalues of the brands.

BrandCommunication andPromotion

Source: Nielsen Media Research/Mintel

2005 2006 2007 2008 2009 % chang 2005-09

m m m m m

Reckitt Benckiser 7.1 7.9 7.2 6.9 5.9 -14.5GlaxoSmithKline 3.8 1.1 2.1 1.1 2.8 +154.5

PfizerConsumerHealthcare 1.0 2.4 2.6 2.5 2.1 -16.0Wyeth ConsumerHealthcare 4.0 4.3 4.7 3.7 2.1 -43.2Boots - - - - 1.0 naBayerHealthcare 0.3 0.1 - 0.6 0.9 +50.0DDD 1.2 1.3 1.0 1.0 0.9 -10.0SSL 0.9 0.9 0.9 0.6 - -100.0Other 0.7 0.7 0.3 0.4 0.4 -

Total 19.0 18.7 18.8 16.8 16.1 -4.2

Above the line adspendon analgesics, by company, 2005-09


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Who Buys Analgesics?

Base: adults whoused headache remedies in the last 12 months

Source: GB TGI, Q1 Kantar Media UK Ltd 2004-10 (Oct-Sep)/Mintel

Headache remedies are widely used, although usage has dropped in the last two years,fallingfrom more than eight in ten consumers in 2007 tojust over seven in ten in 2009.

Women are more frequent users of painkillers than men.

2004 2005 2006 2007 2008 2009 p i tc a2004-09

All users 82 82 81 80 75 72 -10A roxi ate nu berof adults(m)

40.1 40.4 40.5 40.4 38 36.7

2-3 times a week ormore(heavy users )

16 16 16 16 16 14 -

2-3 times a month to once aweek (medium users)

32 33 31 32 29 30 -

nce a month orless (lightusers)

53 51 53 52 55 56 +3

Use ofheadache remedies inlast 12 months, 2004-09


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Formats used

Tablets are the most commonly usedformat, followed by capsules and water soluble.Tablets are used by a broad range of consumers, although particularly amongunder 35s.

Capsules are more prominent with 35-44s (54%) andABs (44%).

Liquids/medicines are mostly used by families with young children, which reflects theunsuitability of tablets for small children as well as the popularity of childrensformulations such as Calpol.

%

%

%

%

%

%

%

%

Tabl t

apsul s /capl ts

(i cludi gliquid fill d)

Wat rso lubl /

diss olvabl

iquid/ dici

Topical/patch s

Oth r

Hav usedbut ot i the

las t onths

Neveruse

Type/format of painkiller used inlast 12 months, March 2010

Base: 986 adults aged 15+

Source: BMRB/Mintel


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Factors influencing choice of analgesics

Halfof adults are happy to

buy a shops own brand

but only 17% areinfluenced by a well-knownbrand.

35-54s are especially happywith own-label andown-labels are popular withfamilies.

Once consumers haveidentified something thatworks for their pain they areinclined to stick with it.

Wealthy achievers (39%)appear especially loyal towhat works.

Almost one infive look forthe cheapest available.

Factors influencing choice of painkiller, March 2010

51%

28%

19%

18%

17%

14%

14%

14%

10%

10%

9%

4%

2%

2%

I

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ys

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rks

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ket

T

enu

ber

fsy

pt

sit treats

None

f t

ese

Base: 895 adults aged 15+ whouse

Source: BMRB/Mintel


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Attitudes towards analgesics

Painkillers are a householdessential and 84% alwayskeep a supply at home butonly 17% carries some withthem at all times.

Almost four in tenusers feelthat they dont want to takethem more than is necessary

27% wait until they feel theyare really suffering beforethey take painkillers.

13% reach for the painkillers

at the first signofpain.

Even though the vastmajority has some painkillershandy, only 16% see them asthe only treatment for pain.

Attitudes towards painkillers, March 2010

Base: 895 adults aged 15+ whouse

Source: BMRB/Mintel

84%

38%

27%

17%

16%

13%

9%

5%

3%

2%

2%

2%

& al'

ays keep a supply at(

o)

e

& 0

on1

t like to take t(

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any)

ore t(

an absolutely ne2

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really su3 3

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Iuse t(

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I worry about usin4

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I prefer to use ot(

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)

I prefer to try a rub-on or an in(

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tablets

None of t(

ese


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Target Groups

Medicine chesters (56%) - keep a supply athome. However, only 12% uses analgesics at

the first signofpain and 27% dont like totake them any more than is absolutelynecessary.

Pain killers (14%) - analgesics are the onlything they use to relieve pain (100%) andthis group is most inclined touse them atthe first signofpain (27%). They are veryinclined to have a supply at home (99%)

and a thirdof them carries painkillers about(30%).

Be prepared (14%) - most inclined to keepa supply with them wherever they go (59%)and they all keep a stock at home, indicatingthat they want to be preparedfor anyeventuality ofpain. But, they are an anxiouslot, and 88% dont like touse them unless

absolutely necessary.

Cautious avoiders (16%) - display a lot ofcaution about analgesics. They wait untilreally suffering (44%) and they dont like totake them unless absolutely necessary(34%).

Base: 895 adults aged 15+ who have ever used painkillers

Source: BMRB/Mintel

7 a 8 tio 8 s

9 voide@ s

16 A

Be P@ epa @ ed

14 A

Pain Kille@ s

14 A

Medi B ine

Cheste @ s

56 A

Target groups for painkillers, March 2010


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Your contact

tel: +44 (0)20 7606 4533

email: [email protected]

mintel.com

UK Beauty Fashion &Household Team

Michelle Strutton

analgesics_-_uk_-_may_2010

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