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; OTC triptans;
Vitamins and dietary supplements; Wound treatments
Executive summary
Strong growth due to rising incomes and awareness
There was strong growth across OTC healthcare in 2006. Growth was supported by
continued expansion in the Chinese economy, with rising income levels enabling
consumers to buy more OTC healthcare. This drove growth in basic products such
as analgesics and cough, cold and allergy (hay fever) remedies. Rising incomes
also resulted in richer and less healthy diets, boosting digestive remedies,
while increased pollution supported growth in allergy remedies and medicated
skin care. In addition, consumers became more aware of OTC healthcare and more
confident in self-medication, while health and wellness trends boosted
vitamins and dietary supplements. Consumers also became more confident in
discussing once-taboo ailments, with this boosting products such as vaginal
antifungals and haemorrhoid treatments.
Emergency contraception benefits from government campaigns
Emergency contraception saw the strongest current value growth in 2006 over
the previous year. Growth was supported by strong government campaigns and by
advertising. As condoms cannot currently be advertised in the country,
emergency contraception was left with a distinct advantage. In addition, women
generally became more confident and affluent during the review period, leaving
them in a better position to direct their own birth control.
Amway leads despite difficulties
Amway remained the leading player in 2006, with a share considerably higher
than any of its competitors. This was despite seeing a sharp drop in share
over 2005, as it attempted to reconcile its sales representatives to a new
business structure in line with new direct sales legislation. Amway is only
present in vitamins and dietary supplements, which dominates overall OTC
healthcare. Direct sales is particularly strong in vitamins and dietary
supplements, due to its representatives being able to offer individual
guidance to often-confused customers and with distribution expanding rapidly
across the country.
Specialist channels continue to dominate
Chemists/pharmacies and drugstores/parapharmacies jointly dominated value
sales of OTC healthcare in 2006. Many OTC healthcare products are indeed only
permitted for sale via these channels. However, these channels both lost share
during the review period as distribution widened for many products.
Discounters notably gained share across OTC healthcare in the latter half of
the review period, as this channel' s low prices appealed to price-sensitive
consumers. Direct sales also gained share rapidly, due to its growing presence
in dominant vitamins and dietary supplements.
Good growth to continue as distribution and self-medication widens
OTC healthcare is expected to see slower but still strong growth during the
forecast period. Many products are seeing increasing maturity in larger
cities, notably analgesics and vitamins and dietary supplements, with this
expected to dampen growth. Growth will continue to be supported by
distribution widening to include smaller cities and rural areas, however. In
addition, growth will be boosted by consumers' growing confidence in
self-medication, with most happy to choose basic OTC healthcare themselves.
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