It’s no secret that health care in the U.S. is expensive, and costs continue to increase each year—hitting consumers pockets in the long run. So it’s not surprising that consumers are increasingly searching out more affordable options to manage their health, such as purchasing over-the-counter (OTC) medications over those prescribed by a doctor or physician.
Despite these shifts and the impending challenges it presents to the industry, OTC manufacturers and retailers have an opportunity to tap into how consumers are managing their health conditions and other ailments, as well as to understand the ways they are shopping for OTC medications. In turn, retailers will be better prepared to leverage total store ailment management to capture consumer dollars across the store.
At the recent annual Consumer Healthcare Products Association (CHPA) Executive Conference, Andrew Mandzy, director of strategic insights for Health & Wellness Growth & Strategy at Nielsen, spoke on-stage to OTC manufacturers about how consumers seek information and which products they are buying across the aisles. His presentation pushed manufacturers to think outside of their own categories to realize growth opportunities across the total store.
Mandzy also highlighted a number of factors that OTC manufacturers should consider around total store ailment management.
Aging Shoppers’ Impact on Retail
Rising health care costs are influencing consumers to take their personal health into their own hands, and this is especially true for the Boomer generation. This segment of shoppers, in particular, are increasingly turning to retail stores to shop for OTC medications, as well as functional foods and beverages to manage their health. Boomers are seeking ingredients that are high in fiber, heart healthy and full of antioxidants. Retailers have an opportunity to ensure their products are geared toward this group of consumers.
Sustainability Claims are Outpacing Total Store Growth
Mandzy also highlighted consumers’ growing interest in products that are made sustainably. When it comes to food, beverage and packaging, consumers want products with sustainable packaging, that were made through fair business practice and production methods, take animal welfare into consideration and support sustainable farming practices.
Transparency Across the Store
When it comes to both dollar sales and item counts, transparency matters. Health and wellness claims across the total store are transforming the fast-moving consumer goods (FMCG) marketplace. Claims like organic, GMO free, natural, gluten free and no artificial colors/flavors are growing the fastest in the store, both in dollar sales and in the number of products on the shelves making those claims. FMCG manufacturers seeking to reach today’s health-conscious consumer should take these claims into consideration when developing and marketing their products.
For more information, download our report, “Capitalizing on Health & Wellness Trends.”
Photo: Pictured left to right: Matthew Poli, Vice President, Emerson Marketing; Musab Balbale, Vice President, Health, Core Beauty and Personal Care, Jet.com and Walmart.com; Andrew Mandzy, Director of Strategic Insights, Health & Wellness Growth & Strategy, Nielsen