| Bright
future for global OTC Healthcare
- 28/10/04
Author: Kathrin Jungbeck
Ageing populations in the developed world, an increasing willingness
to self-medicate in developing regions, such as Asia Pacific
and Eastern Europe and a growing concern with personal appearance,
are just three of the key trends helping to make the future
look bright for the global OTC industry, according to a new
report by Euromonitor International.
Ageing
populations seek to increase quality of life
As
life expectancy rises in both developed regions such as North
America and emerging markets such as China and India, older
consumers are increasingly suffering from an array of age-related
ailments. Governments and health-insurance companies have
proved unable and unprepared to incur the prohibitive cost
of treating these ailments. As a result, between 1998 and
2003, governments across the globe embarked on a phase of
medical deregulation, leading to many formerly Rx medicines
being switched to OTC, thereby encouraging a habit of self-medication
among consumers.
Kathrin
Jungbeck, OTC Healthcare Analyst at Euromonitor International,
says, "Ageing consumers are looking to do all they can
to help avoid age-related illnesses such as arthritis, osteoporosis
and prostate problems. Many see vitamins and dietary supplements
as the answer. Not surprisingly therefore, vitamins and dietary
supplements remain the bedrock of OTC healthcare sales, accounting
for almost 40% of global OTC value sales in 2003".
And
this trend is set to continue, with Euromonitor International
forecasting that products such as calcium (taken to improve
bone health), glucosamine (for arthritis) and co-enzyme Q10
(for cardiovascular health) will be the main engines for growth,
especially if aimed at the affluent, older generations.
Preventative
care to boost growth
Future
growth, Euromonitor International suggests, will come from
the further development of condition-specific OTC products
targeting older consumers. As well as vitamins and dietary
health products such as probiotic, mineral, and eye health
supplements, Euromonitor’s latest research suggests that
other age-orientated growth areas will include topical analgesics
in cream, gel, and spray-on formats, which are especially
popular in the burgeoning Asian-Pacific market.
"Value
can be added to most product sectors by targeting different
lifestyles and demographic groups", comments Jungbeck.
"At Euromonitor we expect herbal calming and sleeping
products for example, to see rapid percentage growth in the
next five years, as a new, more demanding kind of older consumer,
suffering stress and sleeping difficulties, is likely to pursue
optimum quality of life".
More
confidence in self-medication
Euromonitor
International’s latest research shows that cough, cold
and allergy remedies is the second largest sector in the global
OTC market after vitamins and dietary supplements, benefiting
from cold winter weather in a number of markets in 2003. Euromonitor
also expects this sector to see strong growth in the medium
term, particularly in the antihistamine product sector.
This
growth in antihistamine sales is already evident. Following
Schering-Plough’s switch of its Claritin antihistamine
from Rx-to-OTC in the US in late 2002, antihistamine sales
in the world’s largest OTC market rose by 63% over the
previous year. This sharp increase was a testament to increasing
consumer demand for more effective antihistamine products
due to the rising incidence of pollution- and diet-related
allergies.
Euromonitor
International also expects growth in the digestive remedies
sector, as the result of the Rx-to-OTC switch of AstraZeneca’s
Prilosec Proton pump inhibitor in the US.
Product
segmentation and innovation to improve looks
A
third key trend that Euromonitor forecasts will positively
impact sales of OTC healthcare is a growing concern with personal
appearance, especially in mature markets in Western Europe
and North America. This trend has already underpinned strong
growth between 1998 and 2003 in medicated skin care subsectors
such as acne treatments and hair loss remedies. Future growth
in such sectors is expected to be driven by increased product
segmentation, led by innovations such as moisturising acne
treatments targeting adults, and hair loss remedies for women. |
