Despite inflation finally slowing, we’re still in a cost-of-living crisis so shoppers are continuing to pull back spending where they can whilst seeking out value for money when they do have to make purchases.
What makes the Winter Remedies category unique is that there are key moments when shoppers really do need what’s on offer, particularly when they’ve been struck down with a dreaded cold or flu.
This is why the category is worth a significant £79.6m in total retail (Nielsen), and we can expect to see this grow this year, as inflation continues to settle and, as a result, consumers have a little more money to spend. “Therefore, it’s essential for retailers of all shapes and sizes to stock-up on products which are not only going to help shoppers with their symptoms, but also demonstrate value for money, as shoppers still have a choice regarding how much they are prepared to spend, even as the state of the economy looks a little brighter,” says Fisherman’s Friend Regional Business Manager, Jon R White.
Menthol is an ingredient traditionally associated with cold and flu relief, and Fisherman’s Friend offers one of the highest levels of menthol in any lozenge product (10mg in Original Extra Strong) which, coupled with its relatively low price per pack (RRP: 99p, 25g), continues to resonate with shoppers.
“This has contributed to Fisherman’s Friend sales across total retail hitting £1.94m (Nielsen), making our lozenges the perfect companions to your Winter Remedies fixtures this cold and flu season,” adds White. The impulse channel remains a significant player in the Winter Remedies market, accounting for 21.3% of value share and 30.9% of volume share. Within this channel, Fisherman’s Friend continues to be a popular choice, representing 31.6% of value share and 38.8% of volume share — making it a must-stock brand for convenience retailers and the second-highest channel for the brand (Nielsen).
“There are no signs of this growth slowing down, as Fisherman’s Friend sales in the impulse channel increased by +25% (Ceuta) in 2023,” White comments. “It would therefore be wise for independent retailers – along with wholesalers – to get stocked-up on a range of Fisherman’s Friend variants, to prep themselves for the inevitable sales rush that this year’s cold and flu season will bring.”
At the moment, shoppers are clearly dividing into two very distinct camps at either end of the premium v value scale, so it’s the brands sitting in the middle that are likely to feel the greatest pinch this coming winter. For example, sales of super premium healthcare products (priced at an average of £8.58) are growing by +8.6%, and the only other products in growth (+1.2%) carry an average price of 91p (Circana), similar to the RRP on Fisherman’s Friend’s core 25g packs.
In the squeezed middle, it’s a very different picture with premium (average price £6.28), standard (£4.63) and value (£2.71) healthcare products, all in decline by -0.9%, -3.4% and -7.4% respectively (Circana).
“We are therefore confident that the Fisherman’s Friend proposition and price point will continue to be right in the sweet spot of what many shoppers are looking for,” White continues. “Our hard-fought reputation for providing products containing high contents of menthol at a competitive price and in a convenient format has stood the test of time, and shoppers continue to trust us to deliver on this time and time again, increasingly drawn in by our wide range of different flavours and offerings.”
Despite this, a massive 55% of Fisherman’s Friend sales still come from the Original Extra Strong product (Ceuta), showing this variant has most definitely stood the test of time.
Elizabeth Hughes-Gapper, Jakemans Senior Brand Manager, comments: “The demand for OTC healthcare products remains high this year and has continued to increase into 2024 (Kantar), with 93 per cent of people purchasing these products within the past 12 months (Statista), and over a third (36 per cent) of people buying OTC products several times a year (Statista). This demand can be attributed to the number of cold/flu/COVID symptoms that people are experiencing regularly, with 39 per cent of the public suffering with these 2-3 times in the past year (Statista). 80 per cent of people have suffered with a cough following a cold in the past 12 months, and 72 per cent have suffered with a sore throat (Kantar) meaning that OTCs that can treat this, such as throat lozenges, will be key in the winter remedies range. Remedies for colds was the second highest category of OTC medicines sales in Great Britain in 2023 (Statista).”
As consumers continue to evaluate their spending habits due to the ongoing cost-of-living crisis the pressure and expectation for medicated confectionery products and brands is high. Consumers hold expertise, trust and reputation highly when it comes to choosing branded products.
Jakemans remains the No.1 cough / throat lozenge brand (Kantar) and offers various product formats to meet different consumer needs, including 73g bags in all seven flavours, and 160g bags and stick packs available in the top three flavours: Throat & Chest, Honey & Lemon, and Cherry. Plus, Jakemans has a sugar free option featuring the much-loved classic flavour, Throat & Chest in a 50g bag format. All Jakemans products come in shelf ready packaging, making them easy to display both on shelves and at the till.
“Since 2022 we’ve seen a significant acceleration in E-Health,” adds Hughes-Gapper. “Initially triggered by the COVID-19 pandemic, the E-Health category has since shifted from a necessary means of healthcare to the norm (BMJ). Fuelled by its accessibility, convenience, elevating strain on the NHS and widespread advancements in technology, over half of the UK population (52 per cent) now turn to healthcare apps or online consultation rather than in person (Statista).”
Increased reliance on E-Health can lead to greater health literacy and empowerment as individuals take more control over their health decisions. Brands can help build credible sources for the UK public by using their platforms to raise awareness about health conditions and encourage early detection, which is crucial for effective treatment (Tebra). Jakemans has been active on social media for a number of years and is experiencing growth in its channels as consumers look to brands for a sense of community.
Jakemans offers a range of different product formats that appeal to different consumer needs, such as 73g (in all seven flavours) and 160g bag formats and stick packs (available in the top three flavours, Throat & Chest, Honey & Lemon and Cherry) which offer convenience and choice for consumers. The brand has a sugar free option featuring the much-loved classic flavour, Throat & Chest in a 50g bag format. Jakemans uses only the finest ingredients to provide lozenges with a soothing vapour action to ease sore or tickly throats and keep airways clear. All Jakemans products are also sold in shelf ready packaging making it easy to display whether on shelf or at the till.
A limited edition flavour, Blood Orange & Winter Spice, will launch late Summer early Autumn 2024-25.
Year on year, Jakemans remains the most popular cough / throat lozenge brand (Kantar), and alone contributes to 24% market share and overall annual sales in the category (Kantar) which can be attributed to its 100+ year heritage.
“In 2023-24, the NHS continues to be under pressure from increased demand and low morale,” says Hughes-Gapper. “To address this, the NHS recommends that patients experiencing common winter ailments – such as coughs or sore throats – self-medicate or consult their local pharmacist. This shift presents a significant opportunity for multiple grocery retailers, convenience stores, independents, and pharmacies.”
Jakemans will be supported throughout the winter season with a strong TV, radio and PR campaign ensuring the brand remains front of mind throughout winter, spring and other key seasonal moments. “Convenience and ease of purchase are important to consumers, meaning retailers should look to use SRP (shelf ready packaging) when merchandising. They should also place winter ailments remedies in prominent locations to ensure products have the best visibility on shelf,” suggests Hughes-Gapper.
“By stocking a range of remedies, independent retailers can maximise their seasonal sales. Through winter, menthol lozenges – such as Jakemans – are a vital product to stock for soothing a sore throat. Dual siting, by displaying menthol lozenges at both the till point and healthcare aisle, will help with convenience and ease of purchase, two key components for consumers and retail staff.”
Rachel Anthony, Olbas Brand Manager, comments: “The demand for winter remedies is seeing a year-on-year growth particularly amongst young families (Kantar). This is because illnesses and viruses can spread easily in the household. Retailers can, therefore, be clever in positioning remedies that can be used by children and adults as an opportunity to save money for the consumer whilst driving sales.”
Olbas Oil is suitable for adults and children as young as three months, though Olbas also has a gentler formulation especially developed for little noses – Olbas for Children, also suitable from three months. This is a gentle yet effective decongestant oil that helps relieve congestion and catarrh for easy breathing.
“The cost-of-living crisis continues to affect people’s buying patterns which has seen a slight decrease in OTC branded products sales (Kantar),” adds Anthony.
“However, shoppers are willing to invest in their health and wellbeing and are loyal to branded products that they trust for their efficacy and quality and are therefore undeterred by slightly higher price points (IRI). Known brands such as Olbas who can showcase their expertise and assert their points of difference will continue to perform well.”
The strongest performing sub-categories within OTC and winter remedies include decongestants (Kantar), which have demonstrated consistent year-on-year growth due to their effectiveness in relieving symptoms of colds, flu, and other respiratory ailments. Remedies that incorporate natural ingredients are also seeing a significant surge in popularity, as consumers increasingly seek out products with perceived health benefits from natural sources (Statista).
New research has shown that spray is the most popular format of cold and flu decongestants, increasing in value 11.3% YoY (Circana). This year Olbas Nasal Spray will now include the additional benefits of soothing aloe vera. Brands that can meet the demand for providing natural ingredients in a popular format, such as Olbas, are set to perform well this year.
The best-selling products in the Olbas range include Olbas Oil, available at an RRP of £5.85 for a 12ml bottle and £8.59 for a 30ml bottle. Additionally, due to the demand for spray format of OTC products, the Olbas Nasal Spray is performing strongly and is sold for £6.99 per 20ml bottle.
A new ingredient is being introduced to the Olbas Nasal Spray, which will now include aloe vera. This addition is designed to offer enhanced benefits to users, providing not only effective relief from nasal congestion but also the soothing properties of aloe vera.
Year on year, Olbas remains the nations favourite decongestant oil (IRI). Providing natural remedies and convenient, ‘on-the-go’ solutions, they remain a trusted brand among consumers.
This year, Olbas’ marketing support includes a yearly winter campaign featuring TV ads, digital advertising and an educational PR campaign to drive awareness of winter ailments and the benefits of Olbas products. “With a shortage of doctor’s appointments, consumers are self-diagnosing and medicating with OTC remedies. Retailers should dedicate shelf space for winter remedies, making it accessible for consumers. Training staff to provide informed recommendations can enhance further customer loyalty and increase sales. Additionally, highlighting pharmacist-recommended products with in-store promotions can help drive sales,” says Anthony.
“With cases of cold/flu/covid rising in winter, independent retailers/grocers/ pharmacists should be prepared for an uplift in demand for cold and flu remedies over the colder season. Ensuring to offer a mix of products and formats will ensure you meet demand throughout the cold and flu season. With cold and flu season likely to peak in December, retailers should look to start increasing their stock of OTC products that are suited to treat winter ailments and are household names, such as Olbas, in early Autumn to meet this increase in demand. Monitoring sales data from previous years can help predict peak demand periods more accurately.”
Matt Stanton, Head of Insight at DCS Group, comments: “The key Winter Medicines categories in symbols and independents are cough, cold and flu, £34.8m (+5.3% YoY), 7.3m units (-3.2% YoY, Nielsen); adult pain remedies, £45.5m (+2.6% YoY). 28.4m units (-1.8% YoY); and children’s medicines, £12.5m (-5.9% YoY), 2.6m units (-10.5% YoY).
“Also worth bearing in mind is digestive health. Whilst not typically thought of as a ‘winter medicine’, it is a particularly important category through the festive period, and for people taking winter sun breaks abroad.” Value is performing ahead of volume, driven by inflation over the past 12 months, as is the case across the majority of the grocery market.
Children’s medicines are in decline YoY, but this is due to unusually high usage last year, leading to higher than expected sales.
Adult pain remedies are not just winter medicines but are naturally associated with easing the symptoms of many winter illnesses.
With many people still struggling to get doctors’ appointments, shoppers will continue to resort to self-care for minor illnesses over the winter.
Price continues to be a key driver in shopper purchasing decisions. However, medicines shoppers who are ill and in distress are looking for a product they can trust to do the job. These shoppers are generally less price-sensitive, they trust brands as the experts, and they will buy from you if you have the top-selling products in your range.
Medicines shoppers are extremely brand loyal because shoppers see brands as the experts, who produce products that can be trusted to get the job done. Whereas other grocery categories are seeing shoppers trading down to cheaper private label products, shoppers are less likely to do this on medicines.
“Most retailers should stock own-label paracetamol and ibuprofen products alongside the leading brands (Nurofen, Anadin and Panadol), especially those looking to attract larger top-up missions,” adds Stanton. “The biggest driver of medicines category growth in convenience stores over the past 12 weeks has been penetration (Kantar). Retailers stocking a full range covering all the core shopper needs will benefit from this continued trend over the coming weeks.”
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