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
Slowdown in 2006
Sales growth in the OTC healthcare industry slowed significantly in 2006.
Growth was constrained mainly by increasing maturation of some product
categories and a poor performance of vitamins. After it was reported that most
drinking vitamin C products contain excessive benzene levels, sales of this
range dramatically declined leading to negative sales value growth over 2005.
While many product groups within OTC healthcare recorded a similar or better
performance than the previous year, the decline in sales of vitamins led to
slower growth of the overall OTC healthcare industry in 2006.
Increasing health concerns drive sales growth
In 2006, growing concerns about health and wellbeing among consumers continued
to be the major growth drivers for many product groups within the OTC
healthcare industry. Preventive medicines such as dietary supplements, NRT
smoking cessation aids and aspirin posted healthy sales growth as a result of
this trend. In the case of dietary supplements, products became significantly
diversified in terms of product types, benefits and prices to satisfy the
demand of various consumer groups. Product availability also improved
noticeably in the many retail distribution channels, which contributed to the
positive sales growth.
Vitamins and dietary supplements remains the largest product group
Despite the sales decline of vitamins, vitamins and dietary supplements
remained the largest product group within OTC healthcare in 2006. While many
types of OTC medicines are suffering from maturing demand, demand for vitamins
and dietary supplements increased, boosted by the wellbeing trend in they
country. Over the review period products were diversified extensively due to a
number of new entries as well as new product launches from existing players.
In 2006, companies continued to introduce various new products and competition
grew substantially in vitamins and dietary supplements.
Rapid growth of Rx industry hinders the growth of OTC
Faster sales growth of Rx medicines continued to hinder the development of
most OTC medicines over the review period. Consequently, the share of Rx sales
has become much larger than OTC. After the medical reform in 2000,
pharmaceutical companies have focused more on the Rx industry, strengthening
marketing activities to hospitals and doctors. At the same time, the OTC
industry has become less attractive to pharmaceutical companies due to
significant marketing costs and stagnant consumer demand. As a result, there
were fewer new product launches in OTC medicines and consumer marketing
activities were limited to some leading brands in the OTC healthcare industry.
Moreover, consumers now increasingly prefer to consult doctors even for minor
ailments for re-imbursement from insurance and consumer confidence in
self-medication is now even lower than it has been in the past.
Moderate forecast value growth is expected
Over the forecast period, sales of OTC healthcare are expected to post
moderate value growth. Although significant volume growth is not expected in
many of the more mature product groups, a gradual unit price rise and
noticeable growth of some, such as analgesics, vitamins and dietary
supplements, NRT smoking cessation aids and wound treatments will lead to
positive value growth of the total OTC healthcare industry in the forecast
period.
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