OTC Healthcare in Algeria
Euromonitor International's OTC Healthcare in Algeria market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 89 | Publication date: May 2009
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- Get insight into trends in market performance
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- Identify market and brand leaders and understand the competitive environment
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
Moderate growth for OTC healthcare, despite the rising cost of staples
OTC healthcare in Algeria continued to see moderate growth of 10% in current value terms in 2008. This was despite a decline in value growth for many categories in 2008, due to the financial constraints of most Algerian customers as a result of the 2008 price increases on staple food products, which led to less money available for OTC products. Analgesics continued to dominate value sales in 2008 thanks to the prevailing trend towards self medication. Digestive remedies drove value growth in 2008 albeit from a smaller base. Industry sources suggest that three out of four Algerians self-medicated in 2008. Algerians are familiar with analgesics and some medicated skin care creams and are becoming increasing interested in digestive remedies, and they are happy to obtain these items from a pharmacist as an OTC purchase. Cough, cold and allergy remedies also saw good growth due to a very hot summer and then a period of heavy rain, which led to flu and flu-like illnesses.
Ban on imported products set to stimulate local production
At the end of October 2008 the Algerian government bowed to pressure from the Union Nationale des Opérateurs de la Pharmacie (UNOP) and the Syndicat Algérien de l’Industrie Pharmaceutique (SAIP), and banned the import of pharmaceuticals which are also currently manufactured in Algeria. The ban will involve a list of some 250 products covering a range of around 600-1,000 brands. It was not clear at the end of 2008 whether many OTC brands would be affected. However, industry sources state that at least analgesics, cough remedies and antihistamines are likely to be affected.
The ban comes at a time when the local pharmaceuticals industry cannot compete against multinational branded products, which are imported principally from France, and is in danger of bankruptcy. The ban is intended to protect and stimulate the local pharmaceuticals industry, and to date many foreign companies which export their products into Algeria have approached Algerian companies with the aim of getting the Algerian company to manufacture their products inside Algeria for them. It is expected that multinationals wanting to remain in this industry in Algeria will also establish contacts with local companies to set up joint ventures and/or build local subsidiaries of their own inside the country. In the last quarter of 2008 Algerian produced Rx and OTC medicines only accounted for a meagre 18% of all medicines sold in the country. The remaining 82% was accounted for by imported pharmaceuticals.
Saidal Algérie SPA continues to lead in high value categories
The competitive environment remained heavily dominated by imported products in 2008, particularly in Rx medicines. However, multinational-owned domestic subsidiaries such as Pfizer Algérie SPA, GlaxoSmithKline Algérie SPA and Sanofi-Aventis Algérie SPA were able to hold strong shares in the majority of categories in 2008. Local player Saidal Algérie SPA continued to hold the leading shares in analgesics, cough, cold and allergy remedies, digestive remedies, antifungals and ear care thanks to a series of agreements with multinational firms, whereby Saidal manufactures the products of multinational companies under license. Saidal also manufactures its own products, mostly generics, which became increasingly attractive to the government as a way of keeping down healthcare costs. Smaller companies such as Magpharm also started to develop and become increasingly visible in herbal/traditional products, although its share remained negligible within the OTC healthcare market in 2008. Other smaller players, such as Société Pharmaceutique Sophal and Biopharm Algérie SPA were visible, although not major players overall in value terms. However, in the future local companies are likely to become increasingly visible, as the country will rely on local players to supply the market.
Chemists/pharmacies continues to monopolise distribution; problems persist
Chemists/pharmacies held 100% share of distribution in overall OTC healthcare in 2008. Despite this monopoly on distribution, industry sources declared in October 2008 that many pharmacies are on the brink of bankruptcy thanks to government moves to adjust the profit margins of pharmacists down to 17% on products priced at more than DZD600. The previous law of 1998 had a profit margin of 20% for products costing more than DZD150. Minimum international profit margins are between 30% and 33%.
As a result, many pharmacies in 2008 branched out into selling cosmetics, milk, toothpaste and other sundry items. Industry sources stated in November 2008 that around 40% of pharmacy sales came from OTC products, food supplements, milk and toothpaste. In order to keep pharmacies profitable, Sanofi-Aventis Algérie SPA held seminars for Sanofi-Aventis sponsored pharmacies, so that the pharmacist could branch out into the retail of non-pharmaceutical products in order to maintain profits.
Ban on imported products to negatively affect growth
The October 2008 government ban on importing products also made locally is likely to have major effects on the OTC healthcare market in Algeria. The ban is likely to affect around 600-1,000 Rx and OTC products, although it was not clear at the end of November 2008 which brands would be affected. Although many OTC brands are already made in Algeria, the expected chaos which is likely to ensue for the next year or two is expected to have a negative impact on the OTC healthcare market as a whole, with expected shortages of medicines available at a time when demand is steadily rising. Consumer preference for foreign brands is likely to stimulate black market sales of OTC products, with an expected explosion of such products over 2009-2010. Should black market drugs also be counterfeit/fake drugs, then serious health complaints are likely to follow, as consumers suffer from the effects of fake drugs, particularly in medicated skin care.
Government initiatives to protect and support the Algerian pharmaceuticals industry, such as this ban, are timely, but it is feared that many local companies have overstated their production capacity and potential to the point that they are unlikely to be able to supply the local market properly in 2009-2010. Local companies have stated that they should be in a position to supply 65% of local market needs by 2012, but this is highly ambitious and overoptimistic, although companies such as Saidal Algérie and local subsidiaries of multinational companies inside Algeria are likely to be able to meet their targets.
Table of contents
OTC HEALTHCARE IN ALGERIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Moderate growth for OTC healthcare, despite the rising cost of staples
Ban on imported products set to stimulate local production
Saidal Algérie SPA continues to lead in high value categories
Chemists/pharmacies continues to monopolise distribution; problems persist
Ban on imported products to negatively affect growth
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 Sales of OTC Healthcare by Distribution Format: % Analysis 2003-2008
Table 8 Sales of OTC Healthcare by Sector and Distribution Format: % Analysis 2008
Table 9 Forecast Sales of OTC Healthcare by Sector: Value 2008-2013
Table 10 Forecast Sales of OTC Healthcare by Sector: % Value Growth 2008-2013
APPENDIX
OTC Registration and Classification
Vitamins & Dietary Supplements Registration and Classification
Generics
Switches
DEFINITIONS
Summary 1 Research Sources
ANALGESICS
Headlines
Trends
switches
Competitive Landscape
Prospects
Sector Data
Table 11 Sales of Analgesics by Subsector: Value 2003-2008
Table 12 Sales of Analgesics by Subsector: % Value Growth 2003-2008
Table 13 Herbal vs Standard Topical Analgesics 2003-2008
Table 14 Analgesics Company Shares by Value 2004-2008
Table 15 Analgesics Brand Shares by Value 2005-2008
Table 16 Forecast Sales of Analgesics by Subsector: Value 2008-2013
Table 17 Forecast Sales of Analgesics by Subsector: % Value Growth 2008-2013
COUGH, COLD AND ALLERGY (HAY FEVER) REMEDIES
Headlines
Trends
switches
Competitive Landscape
Prospects
Sector Data
Table 18 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: Value 2003-2008
Table 19 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: % Value Growth 2003-2008
Table 20 Sales of Decongestants by Type: Value 2003-2008
Table 21 Sales of Decongestants by Type: % Value Growth 2003-2008
Table 22 Sales of Child-specific Cough, Cold and Allergy (Hay Fever) Remedies by Type: Value 2003-2008
Table 23 Sales of Child-specific Cough, Cold and Allergy (Hay Fever) Remedies by Type: % Value Growth 2003-2008
Table 24 Herbal vs Standard Cough, Cold and Allergy (Hay Fever) Remedies 2003-2008
Table 25 Cough, Cold and Allergy (Hay Fever) Remedies Company Shares by Value 2004-2008
Table 26 Cough, Cold and Allergy (Hay Fever) Remedies Brand Shares by Value 2005-2008
Table 27 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: Value 2008-2013
Table 28 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: % Value Growth 2008-2013
DIGESTIVE REMEDIES
Headlines
Trends
switches
Competitive Landscape
Prospects
Sector Data
Table 29 Sales of Digestive Remedies by Subsector: Value 2003-2008
Table 30 Sales of Digestive Remedies by Subsector: % Value Growth 2003-2008
Table 31 Herbal vs Standard Digestive Remedies 2003-2008
Table 32 Digestive Remedies Company Shares by Value 2004-2008
Table 33 Digestive Remedies Brand Shares by Value 2005-2008
Table 34 Forecast Sales of Digestive Remedies by Subsector: Value 2008-2013
Table 35 Forecast Sales of Digestive Remedies by Subsector: % Value Growth 2008-2013
MEDICATED SKIN CARE
Headlines
Trends
switches
Competitive Landscape
Prospects
Sector Data
Table 36 Sales of Medicated Skin Care by Subsector: Value 2003-2008
Table 37 Sales of Medicated Skin Care by Subsector: % Value Growth 2003-2008
Table 38 Herbal vs Standard Medicated Skin Care 2003-2008
Table 39 Medicated Skin Care Company Shares by Value 2004-2008
Table 40 Medicated Skin Care Brand Shares by Value 2005-2008
Table 41 Forecast Sales of Medicated Skin Care by Subsector: Value 2008-2013
Table 42 Forecast Sales of Medicated Skin Care by Subsector: % Value Growth 2008-2013
VITAMINS AND DIETARY SUPPLEMENTS
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 43 Sales of Vitamins and Dietary Supplements by Subsector: Value 2003-2008
Table 44 Sales of Vitamins and Dietary Supplements by Subsector: % Value Growth 2003-2008
Table 45 Vitamins and Dietary Supplements Company Shares by Value 2004-2008
Table 46 Vitamins and Dietary Supplements Brand Shares by Value 2005-2008
Table 47 Vitamins Brand Shares by Value 2005-2008
Table 48 Dietary Supplements Brand Shares by Value 2005-2008
Table 49 Forecast Sales of Vitamins and Dietary Supplements by Subsector: Value 2008-2013
Table 50 Forecast Sales of Vitamins and Dietary Supplements by Subsector: % Value Growth 2008-2013
NRT SMOKING CESSATION AIDS
Headlines
EYE CARE
Sector Data
Table 51 Sales of Eye Care by Subsector: Value 2003-2008
Table 52 Sales of Eye Care by Subsector: % Value Growth 2003-2008
Table 53 Eye Care Company Shares by Value 2004-2008
Table 54 Eye Care Brand Shares by Value 2005-2008
Table 55 Forecast Sales of Eye Care by Subsector: Value 2008-2013
Table 56 Forecast Sales of Eye Care by Subsector: % Value Growth 2008-2013
WOUND TREATMENTS
Sector Data
Table 57 Sales of Wound Treatments by Subsector: Value 2003-2008
Table 58 Sales of Wound Treatments by Subsector: % Value Growth 2003-2008
Table 59 Wound Treatments Company Shares by Value 2004-2008
Table 60 Wound Treatments Brand Shares by Value 2005-2008
Table 61 Forecast Sales of Wound Treatments by Subsector: Value 2008-2013
Table 62 Forecast Sales of Wound Treatments by Subsector: % Value Growth 2008-2013
EAR CARE
Sector Data
Table 63 Sales of Ear Care: Value 2003-2008
Table 64 Sales of Ear Care: % Value Growth 2003-2008
Table 65 Ear Care Company Shares by Value 2004-2008
Table 66 Ear Care Brand Shares by Value 2005-2008
Table 67 Forecast Sales of Ear Care: Value 2008-2013
Table 68 Forecast Sales of Ear Care: % Value Growth 2008-2013
ADULT MOUTH CARE
Headlines
Sector Data
Table 69 Sales of Adult Mouth Care: Value 2003-2008
Table 70 Sales of Adult Mouth Care: % Value Growth 2003-2008
Table 71 Adult Mouth Care Company Shares by Value 2004-2008
Table 72 Adult Mouth Care Brand Shares by Value 2005-2008
Table 73 Forecast Sales of Adult Mouth Care: Value 2008-2013
Table 74 Forecast Sales of Adult Mouth Care: % Value Growth 2008-2013
CALMING AND SLEEPING PRODUCTS
Sector Data
Table 75 Sales of Calming and Sleeping Products: Value 2003-2008
Table 76 Sales of Calming and Sleeping Products: % Value Growth 2003-2008
Table 77 Calming and Sleeping Products Company Shares by Value 2004-2008
Table 78 Calming and Sleeping Products Brand Shares by Value 2005-2008
Table 79 Forecast Sales of Calming and Sleeping Products: Value 2008-2013
Table 80 Forecast Sales of Calming and Sleeping Products: % Value Growth 2008-2013
EMERGENCY CONTRACEPTION
SAIDAL ALGÉRIE SPA
Strategic Direction
Key Facts
Summary 2 Saidal Algérie SPA: Key Facts
Summary 3 Saidal Algérie SPA: Operational Indicators
Company Background
Production
Competitive Positioning
Summary 4 Saidal Algérie SPA: Competitive Position 2008
SOCIETE PHARMACEUTIQUE SOPHAL SARL
Strategic Direction
Key Facts
Summary 5 Société Pharmaceutique Sophal SARL: Key Facts
Summary 6 Société Pharmaceutique Sophal SARL: Operational Indicators
Company Background
Production
Competitive Positioning
BIOPHARM ALGÉRIE SPA
Strategic Direction
Key Facts
Summary 7 Biopharm Algérie SPA: Key Facts
Summary 8 Biopharm Algérie SPA: Operational Indicators
Company Background
Production
Competitive Positioning
Summary 9 Biopharm Algérie SPA: Competitive Position 2008