Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Adult mouthcare; Allergy care; Analgesics; Calming and sleeping products;
Child-specific OTC healthcare; Cough; cold and allergy (hay fever) remedies;
Digestive remedies; Ear care; Emergency contraception; Eye care; Medicated
skin care; NRT Smoking cessation aids; OTC obesity; OTC statins; Vitamins and
dietary supplements; Wound treatments
Executive summary
Some products grow, others decline
As there are many products in the OTC healthcare market, their growth rates
are influenced by different factors, which cause them to grow in different
directions. In 2005, cough, cold and allergy remedies recovered due to harsher
weather conditions.
Smoking cessation aids has enjoyed goods sales thanks to the improvements in
people' s health awareness and government policy. The Japanese government chose
to prohibit smoking in more public places and buildings, as well as to promote
health awareness among the population.
Growth in medicated skin care has been driven by the successful launches of
new products. Within medicated skin care, however, lip care has been declining
due to weather conditions. Meanwhile, other OTC healthcare products such as
analgesics, digestive remedies have stagnated or declined.
There are popular factors that provide OTC medicines growth opportunities in
the forecast period. The changes in the national health insurance system,
deregulation, Rx-to-OTC switches, the convenience of OTC healthcare products
themselves and others will open the way for new developments.
Cutting costs
Manufacturers are cutting costs through different methods, from outsourcing to
mergers and acquisitions. Industry alignments have been a popular phenomenon
in the review period. Manufacturers have collaborated in different ways, from
joint research to joint marketing, or even merging into a new entity. Thanks
to some changes in regulations regarding outsourcing, from 2005, manufacturers
can outsource all of their products. Many manufacturers have found outsourcing
opportunities abroad, and sought profits overseas in order to offset the
declines in domestic sales.
Not only manufacturers but also retailers have tried to collaborate with each
other so as to cut costs. Good examples are partnerships formed between such
retailers as Matsumotokiyoshi with some other entities. These partnerships
mutually supply product, share information and support each other for further
business development.
Although cutting costs is important in this period, manufacturers are not
hesitant to spend more on TV advertising and online communications with
consumers. Also, they have been conducting many surveys so as to gain more
understanding of consumers' needs. Unlike products sold under prescription,
OTC medicines require many of these marketing efforts to boost sales.
Inspiration from women and ageing population
In all areas of the OTC healthcare market, most priorities have been given to
women and people aged 40 years and above. It is noticeable that most new
products are for adults, who are defined as over 15 years old. Moreover, the
most successful products, such as RiUP Lady, or some vitamin and dietary
supplements target women and middle-aged consumers.
These target groups account for a large proportion of Japan' s ageing
population. In addition, they have the desire stay young and beautiful, as
well as to stay in good health. Another important factor is that these are the
consumers who have the purchasing power to satisfy their desires. Hence, it is
no surprise that products for these two groups are doing well in Japan. New
product developments also target these groups.
Vitamins and dietary supplement shows healthy growth
On the back of the health craze in Japan and increases in medical costs, the
shift of concept from curing an illness to preventing one became more
prominent and this helped to increase sales of vitamins and dietary
supplements in the country.
Especially due to the deregulation of new ingredients and continues efforts by
the players, with various new product developments, dietary supplements in
particular posted strong growth. On the other hand, tonics and bottled
nutritive drinks saw another year of decline in 2005 due to fierce competition
and a shift in consumer attention from old types of tonics and bottled
nutritive drinks to functional drinks which are not within the context of this
research.
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