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OTC and health launches down by almost one-third


OTC and health launches down by almost one-third

The number of new branded launches in OTC and health categories stocked by grocery “multiple retail outlets” fell by almost one-third (31 per cent) in 2015 compared to the previous year, according to recent market data from analysts IRI.

This was compared to a reduction in new branded launches of 13 per cent across the whole fast moving consumer goods (FMCG) market.

The figures reflect an ongoing trend in all grocery sectors as retailers continue to reduce their ranges reported director of strategic insight Tim Eales in IRI's 2016 New Product study.

The contribution of new product development (NPD) to overall sales was down by 1.1 per cent in OTC and health in grocery, said IRI.

Typically launched at a premium price to the category average, NPDs encourage trading up, “so less NPD adversely affects category growth,” said Mr Eales.

However, the market showed large variation between healthcare-related categories in supermarkets.

For example, in baby care there was a doubling in the number of new branded launches, and in the pain relief category NPD launches rose by 50%.

In the gastrointestinal OTC and GSL product category NPD launches had risen by 33 per cent, although achieving success in the category (a measure determined by a product selling faster than the average in a sector) has reduced by over 22% since 2010-11.

The cough and cold market in grocery saw a 71% fall in the number of new launches. NPD was down by 38% in the health supplements category in 2015, by 42% in oral care and by 33% in the medicated and dry skincare sector.

Supermarkets have cut back on the number of SKUs stocked by an average of 6.3%, says IRI, making it harder for brands offering new products to gain listings. The number of new product launches across the board fell by 13% in 2015 as UK retailers cut their ranges, said the report.



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