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OTC market contracts

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OTC Pharmacy has been contracting in growth, price and range, according to IRI’s Market Moves Report

Seven out of the 27 OTC category recorded stronger growth in 2017 than a year ago. They include: Honey and Syrups, Allergy, Cough and Cold, and Prestige Skincare. However, two of these seven categories—Weight Management and Small Appliances—remain in decline. Weight Management’s decline, in part, is due to diluted value with consumers, who can purchase these products in health food stores and grocery.

Ten categories posted a decline in 2017, that’s double the number of categories compared with 2016.

These categories have seen a price per unit decrease and include Analgesics, Vitamins and Minerals, which represent a third of all OTC sales in pharmacy.

Last year also saw range rationalisation with 70% of categories incurring 5-6% SKU reductions. Some of the categories were: Animal Health, Small Appliances, Baby Care, Vitamins and Minerals and Smoking Cessation.

IRI said that retailers are “getting smarter about how they range products by adopting the processes of grocery.”

“SKU rationalisation has been occurring because there are too many brands and not enough shelf space for them in small stores.”

To read the full report click here…

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