Nicotine Replacement Product Manufacturing OTC in the US Industry Market Research Report Now Available from IBISWorld

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Although sales growth slowed during the recession, the population's growing aversion to smoking has pushed up demand for OTC nicotine replacement products, a trend that will continue over the next five years. For these reasons, industry research firm IBISWorld has added a report on the Nicotine Replacement Product Manufacturing OTC industry to its growing industry report collection.

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Existing smokers are quitting at higher rates and purchasing more OTC nicotine products

As more Americans try to kick the habit, they will increasingly turn to the Nicotine Replacement Product Manufacturing OTC industry to help give them a fighting chance. During the five years to 2012, industry revenue is expected to increase at an average annual rate of 3.7% to $527.9 million, although sales growth in recent years has slowed slightly due to the recession and due to mounting competition from other industries offering similar products. Nevertheless, industry growth has been driven by rising adverse attitudes toward smoking and demographic shifts that have discouraged smoking, says IBISWorld industry analyst Nima Samadi. As a result, IBISWorld expects revenue will increase 6.5% in 2012.

The Nicotine Replacement Product Manufacturing OTC industry has a moderate level of concentration, influenced by GlaxoSmithKline, the industry's largest operator. GlaxoSmithKline manufactures the industry's most well-known brands, including NicoDerm and Nicorette. The remaining companies are largely generic manufacturers, but also include Novartis, the maker of the Habitrol patch. The concentration would likely be higher with the participation of other major pharmaceutical firms, such as Pfizer. However, Pfizer only produces prescription smoking cessation products and, therefore, does not operate within this industry. IBISWorld estimates that industry concentration will remain relatively steady during the next five years, says Samadi. Despite overall concentration remaining steady, GlaxoSmithKline's share of the market is likely to decrease slowly as more companies enter the industry and consumers opt for the less expensive generic brands.

According to the Centers for Disease Control and Prevention (CDC), 68.8% of US adult smokers report that they want to quit smoking completely. However, only a small percentage of those smokers are able to quit for good. Research shows that with good smoking cessation programs, 20.0% to 40.0% of participants are able to quit smoking and stay off cigarettes for at least one year. This has encouraged consumers to purchase OTC nicotine replacement products in conjunction with their plans to stop smoking. The percentage of smokers has been declining steadily since 1997, when the CDC began tracking it. The decline occurred for a few reasons, all tied to Americans' growing aversion to cigarettes. With fewer people smoking overall, existing smokers have been quitting (or attempting to quit smoking) at higher rates and purchasing more OTC nicotine replacement products. Demographic shifts have also encouraged this industry's growth. The median age has risen uninterrupted for several decades and older Americans are less likely to smoke. Therefore, as the population grows older, a greater proportion of Americans are more likely to stop smoking and purchase OTC nicotine replacement products to help them quit for good. Industry revenue is forecast to grow during the five years to 2017. This will be driven by a continuation of fewer people smoking, the aging of the population, and new industry products being developed. For example, a newly developed (but not US-approved) mouth spray that delivers a dose of nicotine faster than patches and gums may help a higher proportion of smokers successfully quit. This has the potential to fuel increased consumer interested in industry products. For more information, visit IBISWorld’s Nicotine Replacement Product Manufacturing OTC in the US industry report page.

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IBISWorld industry Report Key Topics

This industry includes companies manufacturing smoking cessation products that deliver small, steady doses of nicotine into the body, with a goal to relieve nicotine withdrawal symptoms. Most industry manufacturers also produce other types of medications.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
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