Nicholas Hall s Global OTC Markets The Definitive Guide to the World s 12 Leading OTC Markets

Transcription

1 Nicholas Hall s Global OTC Markets The Definitive Guide to the World s 12 Leading OTC Markets Canada USA UK France Germany Italy Russia China Japan India Brazil Australia

2 Global OTC Markets The Definitive Guide to the World s 12 Leading OTC Markets Published by Nicholas Hall s Reports, September 2015 Nicholas Hall & Company Guernsey Nicholas Hall s Reports is a registered trademark belonging to Nicholas Hall Nicholas Hall & Company 35 Alexandra Street Southend-on-Sea SS1 1BW, UK T: +44 (0) F: +44 (0) This report may not be reproduced in any form or for any purpose without prior knowledge and consent of the publisher. The information in this report is believed to be correct at the time of publication. However, no responsibility can be accepted by the publisher for its completeness or accuracy. If you would like clarification of any information in this report, or would like to point out any inaccuracies or omissions, please contact: Ian Crook, Managing Editor, e: ian.crook@nicholashall.com For information on other products and services provided by Nicholas Hall & Company, or for additional copies of this report, please contact: Val Bates, Group Director of Marketing & Sales T: +44 (0) , F: +44 (0)

3 Definitions & methodology Common abbreviations A+P advertising & promotion BTC behind-the-counter j-v joint-venture L&A licensing & acquisition MSP manufacturer s selling price M&A merger & acquisition OTC over-the-counter POS point-of-sale Rx prescription SPD separation of prescribing and dispensing UTC under-the-counter (illegal OTC sales of Rx-only products) Definitions An oblique mark (/) is used to show the ultimate owner of a company, e.g. McNeil / Johnson & Johnson ; the term for is used to indicate that the former company markets a brand under license from the latter, e.g. Taisho for GSK. The term mass market is used to mean sales through non-pharmacy retail outlets. Principal markets or key markets for a given company are examples of some of the most important countries or regions where the company generates sales, rather than an exhaustive list of countries where it markets products. OTC market definition Market sizes, growth rates and brand sales are, unless stated otherwise, based on Nicholas Hall & Company s global OTC database, DB6. All data is being updated continually, and is believed to be accurate at the time of going to press. All OTC market data contained in this report is expressed at manufacturer s selling prices (MSP), although it relates to consumer purchases. Sales data includes all non-prescription sales. Data includes retail sales in all outlets. Mail order, multi-level, e-commerce and other non-retail sales are not included. Full year sales data is for the calendar year January-December for each year shown, unless otherwise stated. All data is calculated in local currency and converted to US dollars at the exchange rate that applied on 31 December The symbol $ refers to United States dollars unless otherwise stated.

4 Definitions & methodology OTC market definition (continued) Under-the-counter (UTC) sales are not included except in countries where there are few or no legal OTCs (such as Turkey) where UTC sales are included for products that fall within the DB6 category definition and would be considered consumer items in most established OTC markets. Non-prescribed sales of semi-ethical brands (which can be sold both with and without a prescription) are included in all sales estimates. Prescription sales of OTC-registered brands are included where these sales are significant. Sales of traditional medicines (e.g. TCM, jamu and ayurvedic), homeopathic medicines, food supplements and medical devices are included where they are packaged and positioned alongside registered OTCs. Manufacturers sales data is based on branded products alone. Manufacturers sales do not include any private label sales to retailers or bulk sales of unbranded products to other manufacturers or distributors. Sales of individual private labels are included in others in each subcategory. Sales data for each manufacturer includes sales made by any national or international subsidiaries. All acquisitions are added to manufacturers historical data so growth excludes the effect of M&A activity. Volume sales, where available, represent the absolute number of packs sold (unadjusted for size / dosage). All forecasts take into account published socio-economic and demographic forecasts plus OTC-specific factors such as switch, regulatory change and historical trends.

5 Table of Contents Overview 11 Australia 25 OTC market facts 26 OTC growth drivers 27 Distribution overview 30 Consumer trends 31 Regulatory environment 34 Key OTC players 36 Analgesics 39 Cough, cold & allergy 41 Gastrointestinals 44 Vitamins, minerals & supplements 46 Dermatologicals 49 Lifestyle OTCs 52 Eye on the horizon 54 Brazil 55 OTC market facts 56 OTC growth drivers 57 Distribution overview 60 Consumer trends 61 Regulatory environment 64 Key OTC players 66 Analgesics 69 Cough, cold & allergy 71 Gastrointestinals 74 Vitamins, minerals & supplements 76 Dermatologicals 79 Lifestyle OTCs 82 Eye on the horizon 84

6 Table of Contents Canada 85 OTC market facts 86 OTC growth drivers 87 Distribution overview 90 Consumer trends 91 Regulatory environment 94 Key OTC players 96 Analgesics 99 Cough, cold & allergy 101 Gastrointestinals 104 Vitamins, minerals & supplements 106 Dermatologicals 109 Lifestyle OTCs 112 Eye on the horizon 114 China 115 OTC market facts 116 OTC growth drivers 117 Distribution overview 120 Consumer trends 121 Regulatory environment 124 Key OTC players 126 Analgesics 129 Cough, cold & allergy 131 Gastrointestinals 134 Vitamins, minerals & supplements 136 Dermatologicals 139 Lifestyle OTCs 142 Eye on the horizon 144

7 Table of Contents France 145 OTC market facts 146 OTC growth drivers 147 Distribution overview 150 Consumer trends 152 Regulatory environment 155 Key OTC players 157 Analgesics 160 Cough, cold & allergy 162 Gastrointestinals 165 Vitamins, minerals & supplements 167 Dermatologicals 170 Lifestyle OTCs 173 Eye on the horizon 175 Germany 176 OTC market facts 177 OTC growth drivers 178 Distribution overview 181 Consumer trends 182 Regulatory environment 185 Key OTC players 187 Analgesics 190 Cough, cold & allergy 192 Gastrointestinals 195 Vitamins, minerals & supplements 197 Dermatologicals 200 Lifestyle OTCs 203 Eye on the horizon 205

8 Table of Contents India 206 OTC market facts 207 OTC growth drivers 208 Distribution overview 211 Consumer trends 212 Regulatory environment 215 Key OTC players 217 Analgesics 220 Cough, cold & allergy 222 Gastrointestinals 225 Vitamins, minerals & supplements 227 Dermatologicals 230 Lifestyle OTCs 233 Eye on the horizon 235 Italy 236 OTC market facts 237 OTC growth drivers 238 Distribution overview 241 Consumer trends 242 Regulatory environment 245 Key OTC players 247 Analgesics 250 Cough, cold & allergy 252 Gastrointestinals 255 Vitamins, minerals & supplements 257 Dermatologicals 260 Lifestyle OTCs 263 Eye on the horizon 265

9 Table of Contents Japan 266 OTC market facts 267 OTC growth drivers 268 Distribution overview 271 Consumer trends 272 Regulatory environment 275 Key OTC players 277 Analgesics 280 Cough, cold & allergy 282 Gastrointestinals 285 Vitamins, minerals & supplements 287 Dermatologicals 290 Lifestyle OTCs 293 Eye on the horizon 295 Russia 296 OTC market facts 297 OTC growth drivers 298 Distribution overview 301 Consumer trends 302 Regulatory environment 305 Key OTC players 306 Analgesics 308 Cough, cold & allergy 310 Gastrointestinals 313 Vitamins, minerals & supplements 316 Dermatologicals 319 Lifestyle OTCs 322 Eye on the horizon 324

10 Table of Contents UK 325 OTC market facts 326 OTC growth drivers 327 Distribution overview 330 Consumer trends 331 Regulatory environment 334 Key OTC players 336 Analgesics 339 Cough, cold & allergy 341 Gastrointestinals 344 Vitamins, minerals & supplements 346 Dermatologicals 349 Lifestyle OTCs 352 Eye on the horizon 354 USA 355 OTC market facts 356 OTC growth drivers 357 Distribution overview 360 Consumer trends 361 Regulatory environment 364 Key OTC players 367 Analgesics 370 Cough, cold & allergy 372 Gastrointestinals 375 Vitamins, minerals & supplements 377 Dermatologicals 380 Lifestyle OTCs 383 Eye on the horizon 385

11 China OTC market facts China OTC sales per capita in regional context 2014 ($) Australia Japan S Korea China Asia-Pacific India China OTC growth rate in regional context Growth rate (%) /10 12/11 13/12 14/13 Region China Japan Australia India South Korea OTC growth drivers Increased consumption of medicines among a growing affluent middle class has benefited China s OTC market, although the sustainability of this growth is increasingly in question as the economy shows signs of slowing However, frequent safety scares can rapidly affect a category s fortunes; rapid spread of stories about medicine side-effects via social media can significantly impact sales in the short term TCMs, benefiting from diverse health positionings and strong reputation among consumers, take the largest share of OTC sales in most categories Global OTC Markets 117

12 Germany OTC market facts Germany OTC value and volume sales (MSP, $mn) 4, , , , % +1% +3% +0% +0% -2% +3% -3% Value sales Volume sales OTC sales 2014: $5.1bn OTC sales growth 14/13: +0.2% Germany OTC category split 2014 (MSP) OTC sales per capita 2014: $62.88 Leading OTC marketers: Bayer, P&G, Klosterfrau, GSK, Novartis, BI, Stada, Pfizer, J&J, Schwabe, Bionorica, Omega, Beiersdorf, RB, Queisser, Orthomol Forecast OTC sales 2024: $6.6bn Forecast OTC CAGR 24/14: +2.7% Derma 16% Lifestyle OTCs 11% VMS 25% Analgesics 12% GIs 11% CCA 25% Germany OTC sales by category 2014 (MSP, $mn) Category $mn 2014/ 2013 CAGR 14/10 % share Analgesics % +4% 12 Cough, cold & allergy 1, % +1% 25 Gastrointestinals % +2% 11 Vitamins, minerals & supplements 1, % -1% 25 Dermatologicals % +2% 16 Lifestyle OTCs % +2% 11 Total 5, % +1% 100 Global OTC Markets 177

13 Japan OTC market facts Consumer trends Japan consumer confidence index Consumer Confidence Index Japan Global Average Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Source: Nielsen Global Survey of Consumer Confidence & Spending Intentions (Q2 2015) Index levels above / below 100 indicate degrees of optimism / pessimism When did you last buy an OTC medicine from a pharmacy or drugstore? Within one month ago 40% 1-3 months ago 21% 3-6 months ago 12% 7-12 months ago 4% More than 12 months ago 11% Never 13% Source: Nielsen Consumer Confidence Index (Q1 2013) Global OTC Markets 272

14 UK Analgesics UK OTC analgesics sales by category 2014 (MSP, $mn) Category $mn 2014/ 2013 CAGR 14/10 % share Systemic analgesics % +1% 74 Topical analgesics % +9% 20 Mouth & dental analgesics % +3% 6 Total % +2% 100 Key analgesics trends The UK s fastest-growing major OTC category, analgesics benefited from extremely dynamic topicals sales Systemics topline was driven by paediatric fever / pain relievers and adult pharmacy-only painkillers, but the latter segment has been hit by the reverse switch of oral diclofenac in January 2015 Among topicals, marketers continue to be rewarded for positioning topical treatments towards the rising elderly demographic; dynamic growth was driven by non-medicated Flexiseq gel, claimed to reduce joint pain / stiffness Systemic analgesics posted solid growth, with the good performance of premium pharmacy-only painkillers helping offset the effect of low-cost competition in the thriving discount channel Key brand Nurofen posted modest growth, with Nurofen for Children the fastest-growing presentation; RB used trade ads to boost pharmacist recommendations, which claimed that the suspension starts to relieve fever in just 15 minutes nothing works faster, day or night UK leading OTC systemic analgesics 2014 (MSP, $mn) Brand $mn 2014 / 2013 CAGR 14/10 1 Nurofen (RB) % +0% 2 Calpol (J&J) % +2% 3 Solpadeine (Omega) % +7% 4 Anadin (Pfizer) % -4% 5 Panadol (GSK) % +6% Others % +1% Global OTC Markets 339

15 USA OTC market facts Distribution overview Mass market is well developed, with OTCs available for self-selection in any outlet Drugstore sales are highly consolidated with just a handful of retailers, notably Walgreens and CVS, dominating distribution of OTC medicines Online purchasing of OTCs is rapidly gaining favour with US consumers, as well as direct selling (particularly significant in VMS and weight loss aids) Walgreens showed its recognition of growing trend for internet sales by acquiring drugstore.com in 2011 Increasing popularity of Pharmacy Point of Care services (e.g. in-store clinics) differentiates drugstores / pharmacies from mass market retailers, although supermarket chains are increasingly adding in-store pharmacies and clinics Walgreens was at the forefront of innovation in in-store clinics and diagnostic services; in 2011 the chain introduced a national healthcare initiative, followed in 2012 by a trial scheme of free HIV tests and a healthcare partnership with Theranos in 2013 PPoC including reimbursement of healthcare services under Medicare schemes is receiving support from Government, with pharmacists in California permitted to dispense certain Rx medicines and vaccinations In 2012 the FDA launched the NSURE initiative, seeking ways to make Rx-to-OTC switch more flexible through conditions of safe use including interventions by a pharmacist or innovative technologies The American Pharmacists Association (APhA) testified about NSURE and specific Rx-to-OTC switches, proposing that patients access to pharmacists may safely increase the OTC availability of medications that may have questionable OTC safety profiles Some have speculated that this could pave the way for an official Third Class (BTC, pharmacist-only) of medicine between Rx and standard OTC, but the likelihood for the time being is that this will continue to only be applied in very rare cases (e.g. EHC) USA OTC retail split 2014 Non-pharmacy 64% Source: Nicholas Hall s DB6 87% go to the pharmacy knowing the type of OTC brand they want 82% go to the pharmacy knowing the exact OTC brand they want Source: Nielsen Consumer Confidence Index (Q1 2013) Pharmacy 36% Global OTC Markets 360