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
Economic growth spurs sales
The growth of OTC products was fairly good in 2006. Growth was supported by
continuing economic development in the country, with increasing levels of
affluence and consumer sophistication. However, growth was hindered by
continuing low-income levels for much of the population, particularly in rural
areas, and by a poorly-developed retail infrastructure, in addition to strong
competition from UTC sales of Rx medication.
Eye care boosted by growing computer usage
Increasing urbanisation and a growing economy resulted in consumers becoming
increasingly focused on their careers, with a surge in office and call centre
work. Many consumers are working long hours and this, along with growing
pollution, resulted in a higher incidence of eye strain. Consequently, eye
care saw the strongest growth in 2006 over the previous year, with growth also
exaggerated by a low sales base.
Fragmented shares led by multinationals
GlaxoSmithKline continued to be the leading player in 2006, due to offering a
wide range and enjoying a strong reputation for quality, supported by an
extensive advertising budget. Amway meanwhile ranked second, despite being
only present in vitamins and dietary supplements, due to its high prices and
the effectiveness of its direct sales methods. However, domestic player Dabur
began to gain share in third place in 2006. The company benefits from a strong
ayurvedic tradition and stepped up its advertising and new product development
in 2006 in order to regain lost share.
Distribution remains fairly limited
Distribution continues to be dominated by chemists/pharmacies, with
drugstores/parapharmacies being the second largest distribution channel.
Grocery outlets gained share during the review period but at a slow rate, with
the poor distribution infrastructure in the country limiting this channel' s
expansion. Many consumers remain uncertain about self-medication and prefer to
seek advice from a pharmacist. In addition, in rural areas often only
chemists/pharmacies or drugstores/parapharmacies are available as a source of
OTC healthcare.
Steady growth expected for forecast period
The forecast period is expected to see a slightly stronger constant value
growth for OTC healthcare than seen during the review period. Growth will be
underpinned by rising income levels. In addition, higher stress levels, longer
working hours, rising pollution and the growth of consumer foodservice will
result in greater demand for OTC healthcare, with consumers suffering an
increased incidence of allergies, eyestrain, tension headaches, digestive
upsets and a host of other problems. Growth will also be supported by players
continuing to expand their presence in rural areas.
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