Demand Increases for OTC Meds
Lower prices and easier access are prompting many pet owners to opt for over-the-counter remedies instead of veterinary medicines, according to a new report from Kalorama Information (Rockville, Md.).
The rising demand for pet nutraceuticals, including anti-parasitics and joint mobility products, is expected to fuel 5.2 percent annual growth in the OTC sector through 2014, Kalorama said. The company values the current market for OTC pet products at $4.9 billion.
Based on this strong trend, some manufactures have begun developing separate over-the-counter brands.
“While manufacturers’ current product lines continue to generate revenue, they are finding that sales by veterinarians are decreasing as consumers shift to alternate sales channels and OTC products,” said Bruce Carlson, publisher of Kalorama. “Part of the reason is the economy, but it’s also because it [has] been made easy for consumers.
They can buy OTC products on the Internet, or in pet stores, supermarkets and other superstores, which is leading to price erosion and commoditization.”
Because many veterinary health products are versions of human pharmaceutical products, most veterinary companies have thrived as smaller divisions of big companies. Now, however, they face the same issues as their parent companies—rising research and development costs, pricing pressures, less product innovation, threats from generic drugs, and customer price sensitivity.
To purchase the full report, “World Veterinary Health Products (Animal Pharmaceuticals, Vaccines, OTC and Performance Enhancers),” visit www.kaloramainformation.com. [July 2009 PET AGE]
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