The Over the Counter (OTC) cough, cold and allergies market is worth £760m annually however, the market is down -0.9% in the latest 12 months (L12M) to w/e 19 July versus last year, with sales having dropped sharply in the latest four weeks vs last year.
Of the two main categories, it is OTC cough and cold remedies that are in decline versus last year, with cough remedies the poorest performing sub-category. Decline is being driven by a year-on-year drop in unit sales with average unit prices up on last year. In contrast, the allergies category is performing strongly, with value sales up 9.5% in the L12M vs last year. Growth in allergy remedies is driven by both unit sales and pricing, with unit sales boosted by the good weather this year vs last year.
The sector is dominated by the major multiple grocers and chemists which include Boots & Superdrug, together these retailers have nearly 90% share of the market, with symbols and independent retailers having just 6.8% value share in the L12M, well below the food market share. Symbols and independent retailers are under-performing the market as whole, dropping -0.3PP of share in the L12M versus last year. Part of the reason for the decline is symbols and independent retailers have a significant under-trade in the only growing category – allergies, with just a 1.5% share. OTC allergy care grew year-on-year in symbol and independent retailers with a value sales growth of 5.5%. With the summer coming to an end this year, symbols and independents will not be able to capitalise this year, but going forward the allergy care markets looks like a growth opportunity for the channel.
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