Cough and Cold Medicine Manufacturing OTC in the US Industry Market Research Report from IBISWorld Has Been Updated
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.
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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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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 http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld 2, +1 (310) 866-5042, [email protected]
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