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Pharmaceuticals Consumer - US - March 2011

Sales of all pharmaceuticals have been steadily rising, from $280.4 billion in 2007, to $296.7 billion in 2009. Behind these positive numbers, however, is a category facing numerous challenges and opportunities. This report examines how consumers view pharmaceuticals, and covers the following:

  • Factors driving sales of pharmaceuticals, including an aging population, unhealthy lifestyles, and price moves by brand drug makers
  • Challenges confronting brand name pharmaceuticals, including the growth of generics, the loss of patent protection for best-selling drugs, and price wars at chain drug stores, as well as the changing face of health insurance coverage
  • Treatment methods consumers turn to—including prescription drugs, over-the-counter (OTC) remedies and alternative medicine—for a range of non-life-threatening ailments
  • Respondents’ impressions of pharmaceuticals and attitudes toward associated side effects
  • The tendency of respondents to ask for brand drugs versus generics
  • Specific marketing recommendations for building brand awareness and consumer interest, such as creating unbranded websites and partnering with celebrities

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Table of contents

  1. Scope and Themes

    • What you need to know
      • Definition
        • Data sources
          • Consumer survey data
            • Advertising creative
              • Abbreviations and terms
                • Abbreviations
                  • Terms
                  • Executive Summary

                    • Positive factors affecting pharmaceutical category
                      • Temporary price boosts
                        • Negative factors affecting the category
                          • The challenges of marketing pharmaceuticals
                            • Women and older Americans more concerned about side effects
                              • Less affluent more concerned about side effects
                                • Prevalence of ailments
                                  • Ailment-specific treatment methods
                                    • Most have favorable impressions of pharmaceuticals
                                      • Older Americans have a more passive attitude toward drug choice
                                      • Insights and Opportunities

                                        • Making the most of marketing
                                          • Unbranded marketing to create brand awareness
                                            • Figure 1: RealRALiving.com, television ad, 2010
                                          • Coupons for branded pharmaceuticals
                                          • Inspire Insights

                                              • Inspire Trend: Celebs and Social Engineering
                                              • Market Trends and Factors

                                                • Key points
                                                  • Positive drivers
                                                    • The graying of America
                                                      • Figure 2: U.S. population aged 18 or older, 2006-16
                                                    • Unhealthy lifestyles create a breeding ground for disease
                                                        • Figure 3: Leading causes of death, 2007
                                                      • Black and Hispanic adults more likely to be at risk for health issues
                                                          • Figure 4: Population, by race and Hispanic origin, 2006-16
                                                        • Price increases provide temporary boost before patent expiration
                                                          • Pharmaceuticals are more expensive
                                                              • Figure 5: Average per-person spend on prescription drugs, 2008-09
                                                              • Figure 6: Pharmaceuticals with largest retail price increases, from 2008-09
                                                            • Negative drivers
                                                              • Pharmacies push generics
                                                                  • Figure 7: Sales of pharmaceuticals, by drug chain stores, 2005-09
                                                                • Mail order sales commoditize the category
                                                                    • Figure 8: Sales of pharmaceuticals, by mail order, 2005-09
                                                                  • While Illegal drug sales via the internet complicate
                                                                  • Healthcare Coverage

                                                                    • Key points
                                                                      • Decline in rate of those privately insured
                                                                        • Medicare and Medicaid hurt category sales
                                                                          • Medicare and pharmaceuticals: the buyer’s choice
                                                                            • Medicaid and pharmaceuticals: generics are the choice
                                                                              • Health insurance coverage among under-65s
                                                                                • Figure 9: Type of health insurance coverage for persons under 65, 1997-2009
                                                                                • Figure 10: Percentage of persons under age 65 years without health insurance coverage at the time of interview, by age group and race/Hispanic origin: United States, 2009
                                                                            • Competitive Context: Generics

                                                                              • Generic remedies dominate category sales
                                                                                  • Figure 11: Total U.S. sales of pharmaceuticals, 2005-09
                                                                              • Competitive Context—Lack of Health Insurance

                                                                                • Uninsured, underinsured, and restrictive insurance hurt category sales
                                                                                    • Figure 12: Prescription drug coverage limitations, by household income, November-December 2010
                                                                                • Competitive Context: Complementary and Alternative Medicine

                                                                                  • A desire for natural healing
                                                                                      • Figure 13: Attitudes toward medications, by gender, November-December 2010
                                                                                  • Competitive Context—OTC

                                                                                    • Turning to OTCs that are more affordable and efficacious
                                                                                        • Figure 14: FDMx private label sales, by segment, 2009 and 2010
                                                                                    • The Advertising Landscape

                                                                                      • Key points
                                                                                        • The challenges of marketing pharmaceuticals
                                                                                          • Figure 15: Number of warning letters sent, by the FDA to pharmaceutical companies, 2006 to 2010
                                                                                        • The challenge of online marketing
                                                                                          • Women more interested in the fine print
                                                                                            • Figure 16: Response to prescription drug advertising, by gender, November-December 2010
                                                                                          • Older respondents more concerned about side effects
                                                                                            • Figure 17: Response to prescription drug advertising, by age, November-December 2010
                                                                                          • Parents more attentive to pharmaceutical advertising
                                                                                            • Figure 18: Response to prescription drug advertising, by children in household, November-December 2010
                                                                                        • Brands and the Advertising Landscape

                                                                                          • Overview
                                                                                            • Figure 19: Ad spends for top six pharmaceuticals, 2008-09
                                                                                          • Overview of the brand landscape
                                                                                            • Brand analysis—Advair Diskus
                                                                                              • Figure 20: Brand analysis of Advair Diskus, 2011
                                                                                            • Online initiatives
                                                                                              • TV presence
                                                                                                • Figure 21: Advair Diskus, television ad, 2010
                                                                                              • Print ad—Advair Diskus
                                                                                                • Brand analysis—Spiriva
                                                                                                  • Figure 22: Brand analysis of Spiriva, 2011
                                                                                                • TV presence
                                                                                                  • Figure 23: Spiriva, television ad, 2011
                                                                                                • Online initiatives
                                                                                                  • Drive4copd initiatives
                                                                                                    • Brand analysis—Lipitor
                                                                                                      • Figure 24: Brand analysis of Lipitor, 2011
                                                                                                    • TV presence
                                                                                                      • Figure 25: Lipitor, television ad, 2010
                                                                                                    • Print ad—Lipitor
                                                                                                      • Figure 26: Lipitor, print ad, 2010
                                                                                                  • Insurance Coverage

                                                                                                    • Key points
                                                                                                      • Almost nine in 10 have insurance
                                                                                                        • Figure 27: Insurance coverage, by gender, November-December 2010
                                                                                                      • Age affects type of insurance
                                                                                                          • Figure 28: Insurance coverage, by age, November-December 2010
                                                                                                        • More affluent more likely to be insured
                                                                                                          • Figure 29: Insurance coverage, by household income, November-December 2010
                                                                                                      • Prescription Drug Coverage and Limitations

                                                                                                        • Key points
                                                                                                          • Prescription drug coverage and limitations
                                                                                                            • Figure 30: Prescription drug coverage, by gender, November-December 2010
                                                                                                            • Figure 31: Prescription drug coverage limitations, by gender, November-December 2010
                                                                                                          • 45-64s most likely to have prescription drug coverage
                                                                                                            • Figure 32: Prescription drug coverage, by age, November-December 2010
                                                                                                          • Affluence correlated with prescription drug coverage
                                                                                                            • Figure 33: Prescription drug coverage, by household income, November-December 2010
                                                                                                            • Figure 34: Prescription drug coverage limitations, by household income, November-December 2010
                                                                                                        • Ailments

                                                                                                          • Key points
                                                                                                            • Overview
                                                                                                              • Men and women have different ailments
                                                                                                                • Figure 35: Incidence of ailments, by gender, November-December, 2010
                                                                                                              • Different ailments strike different demographics
                                                                                                                • Figure 36: Incidence of ailments, by age, November-December, 2010
                                                                                                              • The relationship between income and ailments
                                                                                                                • Figure 37: Incidence of ailments, by household income, November-December, 2010
                                                                                                            • Ailment-specific Treatment Methods

                                                                                                              • Key points
                                                                                                                • Treating high blood pressure/cholesterol, acid reflux, and sexual dysfunction with prescriptions
                                                                                                                    • Figure 38: Treatment methods, by physical ailment, November-December 2010
                                                                                                                  • Using prescriptions and alternatives to treat mental ailments
                                                                                                                      • Figure 39: Treatment methods, by mental ailment, November-December 2010
                                                                                                                  • Attitudes Toward Medication—Rx, OTC and Alternative

                                                                                                                    • Key points
                                                                                                                      • Most have favorable impressions of pharmaceuticals
                                                                                                                        • Figure 40: Attitudes toward medications, by gender, November-December 2010
                                                                                                                      • Over-65s more likely to be concerned about side effects
                                                                                                                        • Figure 41: Attitudes toward medications, by age, November-December 2010
                                                                                                                      • Less affluent have more negative attitudes
                                                                                                                        • Figure 42: Attitudes toward medications, by household income, November-December 2010
                                                                                                                    • Generic Remedies

                                                                                                                      • Key points
                                                                                                                        • Older respondents leave drug decisions up to their doctors
                                                                                                                            • Figure 43: Attitudes toward generic drugs, by age, November-December 2010
                                                                                                                          • Impressions of generics
                                                                                                                            • Figure 44: Attitudes toward generic drugs, by marital status, November-December 2010
                                                                                                                        • Race and Hispanic Origin

                                                                                                                          • Key points
                                                                                                                            • Blacks have more health conditions
                                                                                                                              • Figure 45: Incidence of ailments, by race/Hispanic origin, November-December, 2010
                                                                                                                            • Hispanics have more restrictive insurance for drug purchase
                                                                                                                              • Figure 46: Prescription drug coverage limitations, by race/hispanic origin, November-December 2010
                                                                                                                            • Asians prefer alternatives
                                                                                                                              • Figure 47: Attitudes toward medications, by race/Hispanic origin, November-December 2010
                                                                                                                            • Blacks more likely to pay attention to drug ads
                                                                                                                              • Figure 48: Response to prescription drug advertising, by race/Hispanic origin, November-December 2010
                                                                                                                            • Blacks and Asians prefer branded drugs
                                                                                                                              • Figure 49: Attitudes toward generic drugs, by race/Hispanic origin, November-December 2010
                                                                                                                          • Custom Consumer Groups

                                                                                                                            • The importance of physicians among older consumers
                                                                                                                                • Figure 50: Attitudes toward generic drugs, by gender and age, November-December 2010
                                                                                                                              • Men with children attentive to advertising
                                                                                                                                  • Figure 51: Response to prescription drug advertising, by gender and presence of children, November-December 2010
                                                                                                                                • Affluent women attentive to advertising
                                                                                                                                    • Figure 52: Response to prescription drug advertising, by gender and income, November-December 2010
                                                                                                                                  • Moms more cautious toward pharmaceuticals
                                                                                                                                      • Figure 53: Attitudes toward medications, by gender and children, November-December 2010
                                                                                                                                  • Appendix—Other Useful Consumer Tables

                                                                                                                                    • Single and separated more likely to use Medicare and Medicaid
                                                                                                                                      • Figure 54: Insurance coverage, by marital status, November-December 2010
                                                                                                                                    • Parents more likely to have drug coverage limitations
                                                                                                                                      • Figure 55: Prescription drug coverage limitations, by children in household, November-December 2010
                                                                                                                                    • 45-64s with plans that favor generics
                                                                                                                                      • Figure 56: Prescription drug coverage limitations, by age, November-December 2010
                                                                                                                                    • Unmarried respondents resistant to pharmaceuticals
                                                                                                                                      • Figure 57: Attitudes toward medications, by marital status, November-December 2010
                                                                                                                                    • Role of children on attitudes toward medications
                                                                                                                                      • Figure 58: Attitudes toward medications, by children in household, November-December 2010
                                                                                                                                    • Those with household incomes of $75-99.9K more attentive to advertising
                                                                                                                                      • Figure 59: Response to prescription drug advertising, by income, November-December 2010
                                                                                                                                    • Retired and with positive opinions toward generics
                                                                                                                                      • Figure 60: Attitudes toward generic drugs, by employment status, November-December 2010
                                                                                                                                  • Appendix—Trade Associations

                                                                                                                                    Companies Covered

                                                                                                                                    • Abbott Laboratories
                                                                                                                                    • American Association of Retired Persons (AARP)
                                                                                                                                    • American Obesity Association
                                                                                                                                    • American Pharmacists Association (APhA)
                                                                                                                                    • Arthritis Foundation
                                                                                                                                    • Centers for Disease Control and Prevention
                                                                                                                                    • Centers for Medicare & Medicaid Services
                                                                                                                                    • Centocor, Inc.
                                                                                                                                    • Consumer Healthcare Products Association (CHPA)
                                                                                                                                    • CVS Caremark Corporation
                                                                                                                                    • Drug, Chemical & Associated Technologies Association (DCAT)
                                                                                                                                    • Facebook, Inc.
                                                                                                                                    • Food and Drug Administration
                                                                                                                                    • Ford Motor Company (USA)
                                                                                                                                    • Generic Pharmaceutical Association (GPhA)
                                                                                                                                    • GlaxoSmithKline (USA)
                                                                                                                                    • Google, Inc.
                                                                                                                                    • Henry J. Kaiser Family Foundation
                                                                                                                                    • March of Dimes Birth Defects Foundation
                                                                                                                                    • National Association for Stock Car Auto Racing (NASCAR)
                                                                                                                                    • National Institutes of Health
                                                                                                                                    • Novartis Pharmaceuticals Corporation
                                                                                                                                    • Office Depot (North America Retail)
                                                                                                                                    • Pfizer Consumer Health Care Group (US)
                                                                                                                                    • PhRMA Pharmaceutical Research and Manufacturers of America
                                                                                                                                    • Reuters Group PLC
                                                                                                                                    • Safeway Inc
                                                                                                                                    • Sanofi-Aventis (USA)
                                                                                                                                    • Takeda Pharmaceuticals North America, Inc.
                                                                                                                                    • The Kroger Co.
                                                                                                                                    • The New York Times Company
                                                                                                                                    • Twitter, Inc.
                                                                                                                                    • U.S. Bureau of Labor Statistics
                                                                                                                                    • U.S. Bureau of the Census
                                                                                                                                    • U.S. Department of Agriculture
                                                                                                                                    • U.S. Environmental Protection Agency
                                                                                                                                    • United Healthcare Insurance Company
                                                                                                                                    • USA Today
                                                                                                                                    • Walmart Stores (USA)
                                                                                                                                    • Winn-Dixie Stores
                                                                                                                                    • World Health Organization
                                                                                                                                    • YouTube, Inc.

                                                                                                                                    Pharmaceuticals Consumer - US - March 2011

                                                                                                                                    £2,684.63 (Excl.Tax)