OTC Healthcare in South Africa published by Euromonitor International in May, 2009. This report consists of Tables: 116 and the price starts from US $ 2400.

Introduction

Abstract

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Product coverage

Adult mouth care; 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

Consistent growth in challenging economic environment

OTC healthcare value growth achieved during 2008 was slightly higher than the review period CAGR documented. This growth over 2008 within OTC was impressive as many other industries within South Africa are experiencing declines in growth due to the tough economic conditions, attributed to increasing costs of raw materials, inflation, distribution and exchange rate fluctuations.

Role of nutritionals downplayed in management of HIV/AIDS

2008 saw a slight decline in the growth of vitamins and dietary supplements compared with the review period. This was due to the Treatment Action Campaign (TAC) -- a non-government organisation campaigning for treatment of people with HIV and to reduce new HIV infections -- reversing its advice to HIV/AIDS sufferers in April 2008 regarding the benefits of taking vitamins and dietary supplements to ward off or to better manage AIDS-related illnesses.

The ousting of Thabo Mbeki as President of South Africa also lead to a new Health Minister -- Barbara Hogan -- being appointed in September 2008. This appointment was highly favourable to AIDS campaigners. They have long called for the dismissal of Manto Tshabalala-Msimang, known as "Dr Beetroot" due to her advocacy of healthy eating, such as consumption of beetroot, garlic, lemons and alcohol, rather than use of drugs for the treatment of HIV/AIDS.

In a statement made in October 2008 at an international AIDS vaccine conference, Hogan said it was unquestionable that HIV leads to AIDS. This change in policy and government focus on providing antiretroviral medication will definitely have an negative impact on the growth of nutritional supplements used for management of HIV/AIDS over the forecast period.

Price regulation and up scheduling affect competitive environment

A handful of companies dominated OTC healthcare sales within South Africa at the end of the review period. South African company Adcock Ingram was the leading player. Adcock leads OTC pharmacy sales with its range of well established brands, such as Panado, Corenza C, Syndol, Betapyn, Pynstop) and Adco-generic products within analgesics and cold and cough medicines. Other active companies include Aspen Pharmacare, Johnson & Johnson, Reckitt Benckiser Pharmaceuticals and GlaxoSmithKline.

Price regulations in 2006 resulted in lower price increases compared with other fast-moving consumer goods within the current economic climate. Price regulations established by the department of health initiated the "single exit price" (SEP) in April 2004. SET entails that the manufacturer or importer must set a price at which a particular medicine shall be sold to any person other than the State. The government also set a limit on future price increases and confirms the allowed percentage increase annually. No price increases was allowed over 2003-6. In May 2008 the annual price increase was capped at 6.5%, and the government allowed a 6.5% increase on medicine prices during 2008. Increasing raw materials' prices and distribution costs and changing exchange rates resulted in tighter profit margins for manufacturers.

Up scheduling of products containing single ingredients: ephedrine, d-nor-pseudoephedrine or pseudoephedrine resulted in some products requiring a prescription and label changes, which resulted in increased costs for affected companies. This also resulted in a re-evaluation of product portfolios to ensure future competitive advantage.

Grocery channels growing in importance

OTC medicines, like prescription medication, are subject to scheduling. Schedule 0 to 2 medication is accessible without a prescription. Schedule 0 products are freely accessible in both FMCG and pharmacy channels. Schedule 1 products can only be found on pharmacy shelves, while Schedule 2 products require a pharmacist be consulted before purchasing. Volume sales of Schedule 0 products were the highest due to convenience of obtaining these medications through grocery and mass merchandise outlets at affordable prices, and the increasing trend towards self medication. Non-store retailing is still relatively limited with regard to OTC products, as it is less accessible to the majority of consumers and more expensive due to increasing distribution costs.

Health and wellness trend expected to dent future OTC healthcare growth

A declining growth rate expected over the forecast period will be due to the consumer trend from self-medication to prevention. Increasing focus on health and wellness and costs related to illness will result in the increasing adoption of the "prevention is better than cure" ethos. Consumers are more educated and an increasing number realise the benefits of living a healthy lifestyle. Immune system-boosting supplements are expected to dominate in terms of future performance. Concern among consumers regarding the side-effects of medication will result in the increase of herbal brands or variants over the forecast period. Herbal products are considered safer, with fewer side effects, and consumers are likely to experiment with herbal alternatives.

OTC HEALTHCARE IN SOUTH AFRICA : MARKET INSIGHT
EXECUTIVE SUMMARY
Consistent growth in challenging economic environment
Role of nutritionals downplayed in management of HIV/AIDS
Price regulation and up scheduling affect competitive environment
Grocery channels growing in importance
Health and wellness trend expected to dent future
OTC healthcare growth
KEY TRENDS AND DEVELOPMENTS
Decrease in disposable income drives self-medication
Corporate retail pharmacies extending distribution footprint
Up scheduling drives natural/herbal variants
Private label OTC products increasing
New Health minister committed to fighting HIV/AIDS
MARKET INDICATORS
- Table 1 Consumer Expenditure on Health Goods and Medical Services 2003-2008
- Table 2 Life Expectancy at Birth 2003-2008
MARKET DATA
- Table 3 Sales of OTC Healthcare by Sector: Value 2003-2008
- Table 4 Sales of OTC Healthcare by Sector: % Value Growth 2003-2008
- Table 5 OTC Healthcare Company Shares by Value 2004-2008
- Table 6 OTC Healthcare Brand Shares by Value 2005-2008
- Table 7 Penetration of Private Label by Sector 2003-2008
- Table 8 Sales of OTC Healthcare by Distribution Format: % Analysis 2003-2008
- Table 9 Sales of OTC Healthcare by Sector and Distribution Format: % Analysis 2008
- Table 10 Forecast Sales of OTC Healthcare by Sector: Value 2008-2013
- Table 11 Forecast Sales of OTC Healthcare by Sector: % Value Growth 2008-2013
APPENDIX
OTC Registration and Classification
Vitamins & Dietary Supplements Registration and Classification
Self-medication and Preventative Medicine
Generics
Switches
- Summary 1 OTC Healthcare Switches S2 to S6 2008
DEFINITIONS
- Summary 2 Research Sources
LOCAL COMPANY PROFILES - SOUTH AFRICA
ADCOCK INGRAM LTD - OTC HEALTHCARE - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
- Summary 3 Adcock Ingram Ltd: Key Facts
- Summary 4 Adcock Ingram Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
- Summary 5 Adcock Ingram Ltd: Competitive Position 2008
ASPEN PHARMACARE HOLDINGS LTD - OTC HEALTHCARE - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
- Summary 6 Aspen Pharmacare Holdings Ltd: Key Facts
- Summary 7 Aspen Pharmacare Holdings Ltd -- SA
Pharmaceutical Division: Operational Indicators 2
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
- Summary 8 Aspen Pharmacare: Competitive Position 2008
CIPLA-MEDPRO (PTY) LTD - OTC HEALTHCARE - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
- Summary 9 Cipla-Medpro (Pty) Ltd: Key Facts
- Summary 10 Cipla-Medpro South Africa Limited: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
DIS-CHEM PHARMACIES (PTY) LTD - OTC HEALTHCARE - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
- Summary 11 Dis-Chem (Pty) Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
VITAL HEALTH FOODS (PTY) LTD - OTC HEALTHCARE - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
- Summary 12 Vital Healthfoods (Pty) Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
- Summary 13 Vital Healthfoods (Pty) Ltd: Competitive Position 2008
ANALGESICS IN SOUTH AFRICA
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
- Table 12 Sales of Analgesics by Subsector: Value 2003-2008
- Table 13 Sales of Analgesics by Subsector: % Value Growth 2003-2008
- Table 14 Herbal vs Standard Topical Analgesics 2003-2008
- Table 15 Topical Analgesics by Format: % Value Breakdown 2004-2008
- Table 16 Analgesics Company Shares by Value 2004-2008
- Table 17 Analgesics Brand Shares by Value 2005-2008
- Table 18 Forecast Sales of Analgesics by Subsector: Value 2008-2013
- Table 19 Forecast Sales of Analgesics by Subsector: % Value Growth 2008-2013
COUGH, COLD AND ALLERGY (HAY FEVER) REMEDIES IN SOUTH AFRICA
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
- Table 20 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: Value 2003-2008
- Table 21 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: % Value Growth 2003-2008
- Table 22 Sales of Decongestants by Type: Value 2003-2008
- Table 23 Sales of Decongestants by Type: % Value Growth 2003-2008
- Table 24 Sales of Child-specific Cough, Cold and Allergy (Hay Fever) Remedies by Type: Value 2003-2008
- Table 25 Sales of Child-specific Cough, Cold and Allergy (Hay Fever) Remedies by Type: % Value Growth 2003-2008
- Table 26 Herbal vs Standard Cough, Cold and Allergy (Hay Fever) Remedies 2003-2008
- Table 27 Cough, Cold and Allergy (Hay Fever) Remedies Company Shares by Value 2004-2008
- Table 28 Cough, Cold and Allergy (Hay Fever) Remedies Brand Shares by Value 2005-2008
- Table 29 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: Value 2008-2013
- Table 30 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: % Value Growth 2008-2013
DIGESTIVE REMEDIES IN SOUTH AFRICA
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
- Table 31 Sales of Digestive Remedies by Subsector: Value 2003-2008
- Table 32 Sales of Digestive Remedies by Subsector: % Value Growth 2003-2008
- Table 33 Herbal vs Standard Digestive Remedies 2003-2008
- Table 34 Digestive Remedies Company Shares by Value 2004-2008
- Table 35 Digestive Remedies Brand Shares by Value 2005-2008
- Table 36 Forecast Sales of Digestive Remedies by Subsector: Value 2008-2013
- Table 37 Forecast Sales of Digestive Remedies by Subsector: % Value Growth 2008-2013
MEDICATED SKIN CARE IN SOUTH AFRICA
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
- Table 38 Sales of Medicated Skin Care by Subsector: Value 2003-2008
- Table 39 Sales of Medicated Skin Care by Subsector: % Value Growth 2003-2008
- Table 40 Herbal vs Standard Medicated Skin Care 2003-2008
- Table 41 Acne Treatments by Format: % Value Breakdown 2004-2008
- Table 42 Medicated Skin Care Company Shares by Value 2004-2008
- Table 43 Medicated Skin Care Brand Shares by Value 2005-2008
- Table 44 Acne Treatments Brand Shares by Value 2005-2008
- Table 45 Hair Loss Treatments Brand Shares by Value 2005-2008
- Table 46 Forecast Sales of Medicated Skin Care by Subsector: Value 2008-2013
- Table 47 Forecast Sales of Medicated Skin Care by Subsector: % Value Growth 2008-2013
VITAMINS AND DIETARY SUPPLEMENTS IN SOUTH AFRICA
HEADLINES
TRENDS -- VITAMINS
TRENDS -- DIETARY SUPPLEMENTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
- Table 48 Dietary Supplements: Brand Ranking by Positioning 2008
- Table 49 Sales of Vitamins and Dietary Supplements by Subsector: Value 2003-2008
- Table 50 Sales of Vitamins and Dietary Supplements by Subsector: % Value Growth 2003-2008
- Table 51 Folic Acid v Other B Vitamins 2004-2008
- Table 52 Dietary Supplements by Positioning 2006-2008
- Table 53 Vitamins and Dietary Supplements Company Shares by Value 2004-2008
- Table 54 Vitamins and Dietary Supplements Brand Shares by Value 2005-2008
- Table 55 Vitamins Brand Shares by Value 2005-2008
- Table 56 Dietary Supplements Brand Shares by Value 2005-2008
- Table 57 Forecast Sales of Vitamins and Dietary Supplements by Subsector: Value 2008-2013
- Table 58 Forecast Sales of Vitamins and Dietary Supplements by Subsector: % Value Growth 2008-2013
NRT SMOKING CESSATION AIDS IN SOUTH AFRICA
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR INDICATORS
- Table 59 Number of Smokers by Gender 2003-2008
SECTOR DATA
- Table 60 Sales of Smoking Cessation Aids by Subsector: Value 2003-2008
- Table 61 Sales of Smoking Cessation Aids by Subsector: % Value Growth 2003-2008
- Table 62 NRT Gum Flavours: % Value Breakdown 2006-2008
- Table 63 Smoking Cessation Aids Company Shares by Value 2004-2008
- Table 64 Smoking Cessation Aids Brand Shares by Value 2005-2008
- Table 65 Forecast Sales of Smoking Cessation Aids by Subsector: Value 2008-2013
- Table 66 Forecast Sales of Smoking Cessation Aids by Subsector: % Value Growth 2008-2013
EYE CARE IN SOUTH AFRICA
HEADLINES
SECTOR DATA
- Table 67 Sales of Eye Care by Subsector: Value 2003-2008
- Table 68 Sales of Eye Care by Subsector: % Value Growth 2003-2008
- Table 69 Standard Eye Care by Type: % Value Breakdown 2007-2008
- Table 70 Eye Care Company Shares by Value 2004-2008
- Table 71 Eye Care Brand Shares by Value 2005-2008
- Table 72 Forecast Sales of Eye Care by Subsector: Value 2008-2013
- Table 73 Forecast Sales of Eye Care by Subsector: % Value Growth 2008-2013
EAR CARE IN SOUTH AFRICA
HEADLINES
SECTOR DATA
- Table 74 Sales of Ear Care: Value 2003-2008
- Table 75 Sales of Ear Care: % Value Growth 2003-2008
- Table 76 Ear Care Company Shares by Value 2004-2008
- Table 77 Ear Care Brand Shares by Value 2005-2008
- Table 78 Forecast Sales of Ear Care: Value 2008-2013
- Table 79 Forecast Sales of Ear Care: % Value Growth
2008-2013
ADULT MOUTH CARE IN SOUTH AFRICA
HEADLINES
SECTOR DATA
- Table 80 Sales of Adult Mouth Care: Value 2003-2008
- Table 81 Sales of Adult Mouth Care: % Value Growth 2003-2008
- Table 82 Adult Mouth Care Company Shares by Value 2004-2008
- Table 83 Adult Mouth Care Brand Shares by Value 2005-2008
- Table 84 Forecast Sales of Adult Mouth Care: Value 2008-2013
- Table 85 Forecast Sales of Adult Mouth Care: % Value Growth 2008-2013
CALMING AND SLEEPING PRODUCTS IN SOUTH AFRICA
HEADLINE
SECTOR DATA
- Table 86 Sales of Calming and Sleeping Products: Value 2003-2008
- Table 87 Sales of Calming and Sleeping Products: % Value Growth 2003-2008
- Table 88 Calming and Sleeping Products Company Shares by Value 2004-2008
- Table 89 Calming and Sleeping Products Brand Shares by Value 2005-2008
- Table 90 Forecast Sales of Calming and Sleeping Products: Value 2008-2013
- Table 91 Forecast Sales of Calming and Sleeping Products: % Value Growth 2008-2013
WOUND TREATMENTS IN SOUTH AFRICA
HEADLINES
SECTOR DATA
- Table 92 Sales of Wound Treatments by Subsector: Value 2003-2008
- Table 93 Sales of Wound Treatments by Subsector: % Value Growth 2003-2008
- Table 94 Wound Treatments Company Shares by Value 2004-2008
- Table 95 Wound Treatments Brand Shares by Value 2005-2008
- Table 96 Forecast Sales of Wound Treatments by Subsector: Value 2008-2013
- Table 97 Forecast Sales of Wound Treatments by Subsector: % Value Growth 2008-2013
EMERGENCY CONTRACEPTION IN SOUTH AFRICA
HEADLINES
SECTOR DATA
- Table 98 Sales of Emergency Contraception: Value 2003-2008
- Table 99 Sales of Emergency Contraception: % Value Growth 2003-2008
- Table 100 Emergency Contraception Company Shares by Value 2004-2008
- Table 101 Emergency Contraception Brand Shares by Value 2005-2008
- Table 102 Forecast Sales of Emergency Contraception: Value 2008-2013
- Table 103 Forecast Sales of Emergency Contraception: % Value Growth 2008-2013