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NRT Smoking Cessation Aids in the US

US NRT smoking cessation aids market: $855 million industry in 2012

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2014-02-24 09:45:02 - NRT Smoking Cessation Aids in the US - a new market research report on

On a brand level, both private label and GlaxoSmithKlines Nicorette brand of gum and lozenges grew in the US NRT smoking cessation aids market during 2012, at current value rates of 2% and 1%, respectively. Sales of its Nicoderm CQ NRT patches, however, fell by 8%, due to the competitive disadvantage against oral NRTs and e-cigarettes.

NRT smoking cessation aids performed better in current value terms in 2012, largely due to higher sales of NRT lozenges. In fact, NRT lozenges was the only NRT product to show significant positive current value growth in 2012, drawing share from both gum and patches to increase its contribution to total category sales from 23% in 2011 to 24%. NRT lozenges typically sell at a



higher price point than NRT gum, thus balancing lower growth in the latter.

If the FDA does allow a more liberal approach to duration of use for NRT smoking cessation aids, it should help bolster category sales. If NRT smoking cessation aids is perceived more as a constant smoking substitute, rather than just a short-term crutch for a quit attempt, current smokers may be more willing to try them. It also lets NRT companies sell their products for use to reduce, and not just quit, smoking. This is particularly useful in the face of stricter and more prevalent public smoking bans because current smokers who are not ready, or do not wish, to quit may still consider buying NRTs to use when smoking is not convenient such as on planes, in restaurants, or in other public places.

That said, e-cigarettes are likely to still be more competitive. After all, the temporary fix versus ongoing substitute idea is less of an issue in places such as the UK, where duration of NRT use is already less restricted. This is where the force of habit angle is more compelling for e-cigarettes. Certainly, NRT manufacturers could push routine use of lozenges and gum, but they still do not have that easily identifiable like-for-like quality that e-cigarettes possess.

Key Headlines

- Current value sales of NRT smoking cessation aids grow 1% to reach US$855 million in 2012
- Intense competition from both e-cigarettes and private label erodes sales
- NRT lozenges benefits from lingering novelty factor with 7% current value growth
- GlaxoSmithKline continues to lose sales to private label, dropping to 46% value share
- Lower cost and non-category alternatives will result in NRT smoking cessation aids declining by a 2% constant value CAGR over the forecast period

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Mike King
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