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
Health Standards Remain Low but Improve
Health levels remain low in Russia, with heavy smoking, poor diets and alcohol
and drug abuse resulting in increasing rates of disease. This trend was
further exacerbated by an ageing population. The deteriorating health of the
Russian population, coupled with rising disposable income levels, resulted in
more consumers purchasing a wider variety of OTC healthcare more frequently.
Simultaneously, players launched more products to take advantage of sales
dynamism and chained chemists/pharmacies continued to expand across the
country. These factors therefore supported strong overall growth in OTC
healthcare in 2006 over the previous year.
NRT Smoking Cessation Aids Dynamic but from Low Base
NRT smoking cessation aids saw the strongest current value growth in 2006 over
the previous year. However, this was chiefly due to a low base, with these
products first gaining a significant presence in 2005. These products are
proving increasingly popular but sales remain largely limited to the major
cities. There is a huge smoking population in Russia but most are unaware of
or uninterested in the potential risks of smoking. Strong consumer education
campaigns will be required to support stronger growth.
Fragmented Sales Led by Multinationals
OTC healthcare is extremely fragmented, with a large range of players. The
leaders are multinationals, including Novartis, Berlin Chemie, Aventis,
GlaxoSmithKline and Krka. These players benefit from high quality products and
strong funds for investment in new product development and marketing. With
rising disposable income levels, many consumers traded up from domestic
generics and unbranded products to products from multinationals, which are
often viewed as offering higher quality.
Consumers Prefer Specialised Distribution Outlets
Chemists/pharmacies continued to be the most significant distribution channel
for OTC healthcare during the review period. Most consumers prefer this
channel, believing it to offer expert advice. In addition, its lead was
supported by the expansion of chains across Russia. Direct sales is also
significant, however, particularly in vitamins and dietary supplements.
Grocery outlets is meanwhile fairly undeveloped, with only larger urban
outlets offering a limited range of vitamins and dietary supplements.
Faster Growth in Forecast Period
OTC healthcare is expected to see even stronger constant value growth during
the forecast period. Growth will be partly underpinned by increasing consumer
demand, driven by rising disposable income levels, a growing interest in
health and widening awareness of OTC healthcare. In addition, growth will be
driven by players, with more players expected to enter this dynamic area
during the forecast period, often through the acquisition of or investment in
local producers. Players will launch numerous value-added products, with a
growing focus on quality as they attempt to meet changing consumer demands.
Finally, the spread of chained chemists/pharmacies across the regions will
make a wider range of OTC healthcare available to more consumers during the
forecast period.
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