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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. | 
