Because of its necessary nature, demand for cough and cold medicine will grow steadily.
New York, NY (PRWEB) May 12, 2014
Cough and cold medicine manufacturers have benefited from consumers purchasing over-the-counter (OTC) medications as a form of self-treatment for their health ailments. In the United States, 240 million individuals use OTC medications, which includes 60 million consumers that would not seek an alternative medication, such as a prescription, if the OTC medication was not available, according to a report from Booz & Co. and the Consumer Healthcare Products Association. Furthermore, cough and cold medication saves the US healthcare system about 28.0% of total over-the-counter drug-related savings, which can be attributed to fewer individuals visiting their healthcare provider for their flu and cough. “This trend has bolstered industry revenue due to many healthcare providers recommending that their patients use OTC drugs to address their minor health ailments,” according to IBISWorld Industry Analyst Sarah Turk.
However, healthcare reform has had mixed effects on the industry. More consumers have been able to afford their prescriptions thanks to healthcare reform lowering out-of-pocket prescription costs for previously uninsured individuals. “While this trend has stimulated demand for prescription drugs, the rise in the number of time-strapped consumers has propped up demand for OTC drugs,” says Turk. Additionally, seasonal demand for cough and cold OTC medications has bolstered industry revenue, particularly during peak flu seasons that typically occur in January or February. In the five years to 2014, industry revenue is anticipated to grow at an annualized rate of 1.3% to $7.8 billion, including 0.1% growth in 2014, driven by many consumers viewing cough and cold OTC medicine as a safe and effective method of treatment for their flu-related health ailments.
Profit is expected to slightly increase, which can be attributed to many manufacturers providing dual cough and cold OTC drugs, such as medications including decongestants, antihistamines, expectorants and cough suppressants. This trend has enabled manufacturers to mark up product pricing, bolstering industry profitability. While the industry will exhibit growth, due to rising demand for cough and cold medication from immunosuppressed individuals, such as the elderly population, the industry will contend with rising external competition from private-label products sold in drug stores.
For more information, visit IBISWorld’s Cough and Cold Medicine Manufacturing OTC in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures over-the-counter (OTC) cough and cold treatments and suppressants. Products include systemic remedies like antihistamines and combination products, decongestants and medicated candies. The industry does not include companies that are primarily retailers, like pharmacies or department stores.
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