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THE BACKGROUND

As making an appointment with a GP becomes less straightforward, so an increasing number of people are turning to over-the-counter remedies to cure their ailments. This trend, combined with the growth of the 45- to 54-year-old age group, the most inclined to self-medicate, has propelled the market to an estimated value of £478m this year. Supermarkets are seizing on the opportunity through sales of own-label products; their role in healthcare is set to grow further, with both Asda and Morrisons offering flu-vaccine services this winter.

These days, if someone is suffering from an ache, itch, sniffle or rash, they are as likely to talk to a pharmacist or visit a supermarket aisle crammed full of remedies, than jump through hurdles to book an appointment with a GP.

Consumers' greater awareness of health issues, an increasing confidence in self-medication and the growth in the variety of over-the-counter (OTC) products available have combined to boost the market for minor-ailment remedies (MARs) to an estimated £478m in 2006, up by nearly one-third since 2001.

In 2000, MARs was the smallest category in the OTC pharmaceuticals market, but it now outranks even analgesics, with the average spend rising to £8 a person last year.

The MARs market includes curative treatments for ailments such as cystitis, as well as products for managing conditions such as skin complaints and rheumatism. This diverse sector is highly fragmented. It is dominated by pharmaceutical giants, including GlaxoSmithKline (GSK) and Novartis, although smaller companies also operate in successful niches, such as Cuxson Gerrard's footcare brand Carnation and Stiefel's Oilatum emollient.

The hay-fever and allergy remedies sector is the most valuable, accounting for 17% of the total market value in 2005 with sales approaching £80m. Its value has grown by 20% since 2001 as a result of a rising number of allergy sufferers and the higher pollen counts associated with hot summers. Hay fever affects nearly 30% of under-25s, and it has been estimated that by 2050, nearly everyone in Europe will suffer from an allergy as a result of rising pollution and 'overly sanitised' lifestyles.

Own-label success

The top four suppliers in the hay fever category - GSK, Pfizer, Schering-Plough and Boots - have invested heavily in promoting their products. But own-label, which has grown by more than 20% since 2003, has contributed to a decline of about 15% in the average price of hay-fever remedies over the past year.

Emollients and anti-pruritics (anti-itching products) is the second-most valuable category, with sales of £65m last year. Value growth has been particularly strong in anti-rheumatics, fuelled by an ageing population, and topical analgesics, boosted by the growing number of people exercising regularly. The proportion of people claiming to do some form of exercise at least once a week rose from 44% in 2001 to 52% last year.

As well as supporting specific brands, the advertising of MARs often aims to educate the public. This can benefit an entire category, particularly one that is new to OTC, not related to a common ailment or has hitherto gone untreated.

For example, between 2001 and 2005, Bayer almost doubled the adspend for its Canesten anti-fungal products, as the range was extended. Last year's expenditure was particularly high, taking in an educational campaign aimed at pharmacists, to convince men of the need to treat thrush, and activity promoting Canesten Duo, a combination oral and cream treatment for thrush.

Disposable income and education are important determinants of purchasing habits, with ABs more likely to keep a supply of most types of MARs at home. An ageing population is likely to benefit the sector further still. Between 2005 and 2010, the number of 45- to 54-year-olds, the group most inclined to self-medicate, will increase by about 11%. The next generation of over-55s is also likely to be more confident in self-treatment than the current one.

Government promotion of the pharmacist's role in primary healthcare should encourage footfall in pharmacies. Elsewhere, services such as NHS Direct, which offers the public 24-hour health advice and diagnoses online and by phone, will give greater access to health information, increasing consumers' confidence in self-treatment.

Bolstering benefits

MARs suppliers could also boost the market by persuading consumers to buy products with added benefits, such as vitamin and mineral supplements.

As consumers continue to desert pharmacies for supermarkets, the challenge for manufacturers of branded products is to establish a point of difference to prevent the large-scale migration to own-label remedies suffered by other OTC pharmaceutical categories, such as analgesics and flu treatments.

'Some people always buy on price, so supermarkets will continue to do well. But where there are differentiated products, we need to help consumers make a choice based on other factors,' says Tim Brooks, OTC marketing director at GSK Consumer Healthcare UK. 'We have to innovate, build our expert positioning and work hard to get people into pharmacies for advice.'

Mintel predicts that the value of the MARs market will continue to grow, over the next five years reaching £625m by 2011, an increase of 31%.

MINOR-AILMENT REMEDY TYPES BY SALES AND MARKET SHARE

2005 2001 01-05
pounds m % pounds m % % chng
1 Hay fever/allergies 78 17 64 18 22
2 Emollients/anti-pruritics 65 14 44 12 48
3 Thrush/antifungals 60 13 49 13 22
4 Topical pain/anti-rheumatics 54 12 36 10 50
5 Eyecare 40 9 32 9 25
6 Sleeping aids (inc herbal) 29 6 24 7 21
7 Mouth pain/ulcers 28 6 21 6 33
8 Cold sores 23 5 21 6 10
9 Haemorrhoids 22 5 20 5 10
10 Head lice/infestations 19 4 15 4 27
11 Footcare 14 3 9 2 56
12 Scalp treatments 12 3 11 3 9
13 Travel sickness 8 2 6 2 33
14 Cystitis 8 2 5 1 60
15 Earcare 7 1 8 2 -12
Total 467 100 365 100 28

Source: Mintel
Note: % totals may not add up to 100 because of rounding



MAJOR REMEDY BRANDS BY ADSPEND (£000)

Brand Company 2005 2003 2001
1 Canesten Bayer 4081 2541 2487
2 Ibuleve DDD 2390 2085 425
3 Bazuka Gel DDD 2086 284 1190
4 Benadryl Pfizer 2016 1671 1809
5 Piriton/Piriteze GSK 1702 1473 1199
6 Nytol GSK 1641 1191 1560
7 Lamisil Novartis 792 1067 556
8 Voltarol Novartis 377 1339 n/a
9 Clarityn Schering-Plough 207 383 504
10 Lyclear Pfizer 41 n/a n/a

Source: Nielsen Media Research/Mintel



HAY-FEVER REMEDY BRANDS BY ADSPEND (£000)

Brand Company 2005 2003 2001
1 Benadryl Pfizer 2016 1671 1809
2 Piriton/Piriteze GSK 1702 1473 1199
3 Clarityn Schering-Plough 207 383 504
4 Zirtek UCB Pharma 165 862 570
5 Beconase GSK n/a 9 968

Source: Nielsen Media Research/Mintel

ANALYST COMMENT - SARAH PHILLIPS, EUROPEAN HEALTHCARE DIRECTOR, RESEARCH INTERNATIONAL

The rapid growth of the sector has been a mixed blessing for big MARs brands. Volume is growing faster than value, driven partly by a 20% growth in supermarkets' own-label products since 2003.

The factors that have contributed to volume growth - the trend by consumers to self-diagnose and self-medicate - are giving people confidence to bypass the big brands and choose remedies based on price. To maintain their authority in the sector and regain the ground they are losing, the pharmaceutical companies need to innovate in ways that connect with savvier consumers.

These trends align the MARs sector with other consumer-goods areas. The challenge from own-labels is familiar to many brands, and strategies implemented in other sectors offer useful lessons.

In food and drink, for example, a key trend has been the addition of functional benefits. MARs brands could broaden their health claims and stress their beneficial effects on wellbeing, as well as their specific curative properties. This could make a consumer's decision to buy MARs proactive rather than reactive.

Brands can also gain authority by 'owning' the emotional territory around a remedy. Communications have always respected that sufferers can find it difficult to talk about sensitive ailments such as cystitis or piles, but there may be opportunities for packaging or product innovations that address the need for privacy and convenience.

MARs brands could also borrow ideas from other OTC sectors. Patch-based delivery systems for pain relief may work as discreet remedies for sensitive ailments, while sachet-based or granular remedies are another area of potential NPD focus.