RX-TO-OTC SWITCH: AN IMPORTANT ENABLER OF SELF-CARE AND A GROWTH ENGINE FOR THE OTC MARKET
The COVID-19 pandemic accelerated major shifts in consumer behavior, including a growing focus on self-care. Intensified over-the-counter (OTC) usage and purchasing was a notable component of this trend.
While prescription (Rx) to OTC switches have been occurring for more than 40 years, some OTC marketers still view switching as a lucrative growth engine. According to IRI data, overall OTC sales grew 5.9% in 2021, while the Rx-to-OTC switch segment increased 8.3%, accounting for 28% of OTC industry growth.
This report, a collaboration between IRI and the consulting and research firm Kline, highlights the history, current landscape and best future opportunities for Rx-to-OTC switches, including:
- The benefits and evolution of switch.
- Details on how regulatory receptivity to switch is increasing.
- Recent switches and the most promising potential future switch categories.
- The ways in which new technologies for at-home testing, telemedicine and smartphone apps could facilitate additional switch opportunities.
- Keys for appropriately weighing a switch business opportunity versus its considerable regulatory risk.
Read the full report for additional insights on these and other considerations in what IRI and Kline see as a very promising switch environment for the foreseeable future.