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Trends & Insights     >     Publications   >     Consumer Insight Magazine

An Aging Population Translates into Healthy OTC Sales

Jane Perrin
Managing Director
ACNielsen Global Services


Clare Nishikawa
Senior Business Manager
ACNielsen Global Services


The aches and pains experienced by the middle-aged middle class are energizing over-the-counter (OTC) sales across all classes of trade in Canada. And 2003 was also the “anti” year for Canadian OTC product sales, with antihistamines, antidiarrheals and antioxidants fueling sales across channels, registering healthy double-digit growth rates of 59%, 36% and 35%, respectively.

To develop a comprehensive look at Canadian consumer health and wellness concerns, ACNielsen combined OTC sales data captured by ACNielsen MarketTrack with the results of Health Care 2003, the eighth annual ACNielsen study of Canadian consumer health-related attitudes and behavior.

Aches a Balm for Sales
In addition to the “anti” leaders, other OTC categories posting double-digit sales gains reflect the interests and issues of an aging population, from daily acetylsalicylic acid (ASA) therapy to ward off strokes, to topical treatments and wraps for the twinges of daily living, to supplies for coping with chronic diseases [See chart 1].



These remedies include: adult low-dose acetylsalicylic acid (ASA) at 28%, fever thermometers (26%), diabetes test meters (24%) and ibuprofen (17%).

Register Remedies
Cough and cold remedies, a category comprising cold remedies, cough syrup, throat lozenges and nasal preparations, rang up CDN$259.5 million in 2003 for a 4% annual increase. The next largest category was internal analgesics, with total 2003 sales of CDN$208.5 million for a 2% annual increase.

In descending dollar sales order, the other largest Canadian OTC categories of 2003 were (in Canadian dollars): vitamins at $142.3 million, antihistamines at $80.1 million, upset stomach remedies at $65.0 million, smoking cessation at $64.1 million, dietary aids at $62.0 million, topical wound care at $46.2 million and sun protection and tanning at $45.0 million.

Grocery Pulse Racing
When making space allocation decisions for next year’s planograms, grocery retailers should note that Canadian grocery OTC sales rates outperformed the drug channel in 55 of 66 product categories measured. The lesson learned: as drug-store OTC sales go, so go grocery-store OTC sales, and then some!

In many cases, the performance differential was impressive: grocery-store antihistamine sales grew 89% faster than drug-store sales; hot/cold compress kits posted 29% more rapid growth. Ibuprofen (23%), antinauseals (22%) and personal lubricants (21%) also showed better results at grocery than at drug stores.

Women More Proactive
It will come as no surprise to marketers in the Canadian health and wellness arena that women are much more proactive than men when it comes to taking control of their health. In the last year, 86% of women and 79% of men sought the advice of their family doctor regarding a health condition or ailment. Dentists were consulted by 55% of women and 50% of men. Pharmacists lent an ear to 47% of women and 38% of men.

Not only were Canadian women more aggressive about asking for help, they also were more likely to self-medicate and try non-traditional treatments. More than 80% of women used a non-prescription medication in the last year vs. 77% of men. Sixty-eight percent of women took vitamins and minerals vs. half the men.

Women also were more likely to ingest or apply an herbal remedy (29%), natural or nutritional product (25%), home remedy (15%) or homeopathic solution (4%).

Daily Dose Defense
An aspirin a day keeps the doctor away and heart attacks at bay. While not exactly clinically accurate, that statement reflects the cardiovascular benefits of aspirin recognized by the American Heart Association and Health Canada. This more than 100-year-old drug enjoys skyrocketing popularity, particularly in the adult low-dose form recommended as a preventive or wellness measure.

Drug channel ASA sales of CDN$36.9 million were up 2% in 2003, with all channel numbers even higher, posting a 5% increase. Adult low-dose ASA sales of CDN$16.2 million spiked by 24% in the drug channel, 35% at grocery, and 28% across all trade classes.

Sales Relief in a Bottle
Seven in 10 Canadian households purchased an adult headache remedy in 2003, representing an average total outlay of $26.48 each year. The largest category sold at drug stores, with sales of CDN$208.5 million, is adult headache remedies, which is composed of ibuprofen at CDN$72.6 million, acetaminophen at CDN$68.8 million and ASA—which includes low-dose ASA categories—at CDN$36.9 million [See chart 2].


Battle of the Brands
One causative factor contributing to OTC marketer migraines might be the growing popularity of private-label and store-brand analgesics. Store brands captured more than one-quarter of all 2003 analgesic dollar sales. Fully two-thirds of all Health Care 2003 respondents reportedly purchased private-label or store-brand OTC medications, citing price as the primary motivation.

Invigorating Vitamins
Committed to retaining their youthful vigor for as long as possible, boomers are snapping up multivitamins and antioxidants. Considered as essential and basic as food, these nutritional “musts” have become a staple of the grocery-shopping list.

This “standing list” phenomenon explains a 5% increase in vitamin sales and 7% increase in multivitamin sales at grocery, while the drug channel posts a 1% decline and modest 2% increase in the respective categories. Vitamin C, children’s vitamins and prenatal vitamins all muscled onto the charts with sales increases at grocery.

Radical Growth
Touted as multi-purpose cell protectors and the antidote to the free radicals that can cause heart damage, cancer and cataracts, antioxidants finished the year with an astonishing 35% increase in all channel sales. One possible sales driver: publicity surrounding the U.S.-based study of eye disease and aging that identified antioxidants and zinc as two nutrients capable of slowing the progression of age-related macular degeneration.

Food Fuels Wellness
Curious about consumer perceptions regarding the food and health link, ACNielsen conducted a 2004 Cooking and Wellness survey among U.S. Homescan Consumer Panel members. Almost 60% of participants reported that low fat was an important purchase influencer, followed by low in cholesterol and lower in calories (44.9% each), lower in sodium (42.6%) and altogether nutritious (37.6%).

Surprisingly, given all the media coverage of the Atkins, South Beach and other low-carb diets, low in carbohydrates and high in protein both were cited by 28% of respondents, as was the category no trans fats/hydrogenated or partially hydrogenated oils.

Good Appetite for Healthy Eating
More than 80% of research respondents took pride in how healthy they ate, with two-thirds noting they were careful to serve foods that reduced the risk of cancer and heart disease. Seven in 10 diners said they actively limited the amount of fat and cholesterol in their diet, and two-thirds gamely tried to maintain a low-calorie diet.

Fully three-quarters of those surveyed identified themselves as “very knowledgeable about nutrition and health issues” and described their overall diet as “very healthy.” While self-reported, survey results suggest that Americans have an appreciation for the link between good health and good nutrition, as well as a solid foundation regarding nutritional supplements and their role in maintaining well being.





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