OTC Healthcare in Azerbaijan
Euromonitor International's OTC Healthcare in Azerbaijan 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: 10 | Publication date: Jan 2007
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Adult mouthcare; 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; Vitamins and dietary supplements; Wound treatments
Executive summary
Low income levels stifle demand
Azerbaijan is one of the wealthiest countries in the South Caucasus region thanks to its oil industry. Consumer incomes continued to rise across the review period making goods such as OTC healthcare products increasingly affordable, particularly in urban areas. However, the majority of consumers in the country remain poor by western standards: the average monthly wage of a worker was just US$90.00 at the end of 2006, while almost 10% of the population live on less than US$20.00 per month.
Urban Azeris demonstrate interest in foreign products
Despite the small size of the OTC healthcare market in Azerbaijan competition is keen, and many urban Azeris are becoming increasingly brand-conscious, demonstrating a preference for foreign brands which they perceive as being more effective. Some local distributors are entering into agreements with Indian and Turkish producers to important products and change the brand names. For instance, Liderfarm is ordering Prostamol Uno from a Turkish company, and selling the products in Azerbaijan under the brand name of Dinokaps.
Increasing polarity evident
In several areas of the OTC healthcare environment in the country products in the mid-price segment have suffered due to increased interest in both more expensive products, and also cheaper offerings. Notably, low-priced products – mainly from India, Turkey and Russia – continued to demonstrate growth in 2005, proving particularly attractive to rural consumers on very low incomes, while affluent urban consumers traded up to more expensive imported brands. The primary factor for any company considering entry into Azerbaijan’s OTC healthcare market is a pricing strategy that takes into account product positioning and the income level of the target consumer segment.
Staple products dominant market
While there was some rise in consumer interest in marginal products such as eye care, ear care and adult mouthcare in 2005 due to rising incomes among urban consumers, it was the staple offerings of analgesics, cough, cold and allergy remedies and digestive remedies which continued to underpin the performance of the market as a whole. Consumer awareness of niche products such as eye care is low, and such goods appeal only to the most affluent consumers, of which there is a very limited number. Moreover, in products such as analgesics there is a strong preference for cheap generic products such as acetaminophen, that are effective at minimal cost.
Increased fuel costs may impact market over forecast period
While there is potential for growth in products which are currently very immature, fuel price hikes implemented by Azerbaijan’s government at the beginning of 2007 could have an adverse effect on the performance of the OTC healthcare market in the country in coming years. With petrol prices rising 50%, and diesel prices increasing 25%, manufacturers may be forced to increase retail prices to cover higher distribution costs, leading to consumers reducing their expenditure on OTC healthcare products.
Table of contents
OTC HEALTHCARE IN AZERBAIJAN : MARKET INSIGHT
1. EXECUTIVE SUMMARY
2. OPERATING ENVIRONMENT
2.1 OTC Registration and Classification
2.2 Traditional Remedies
2.3 Consumer Expenditure on Health Goods and Medical Services
Table 1 Consumer Expenditure on Health Goods and Medical Services 2000-2005
2.4 Life Expectancy
Table 2 Life Expectancy at Birth 2000-2005
3. OTC HEALTHCARE SALES
3.1 Market Performance
Table 3 Retail Sales of OTC Healthcare by Sector: Value 2000-2005
Table 4 Retail Sales of OTC Healthcare by Sector: % Value Growth 2000-2005
3.2 Switches
3.3 Competitive Environment
Table 5 OTC Healthcare Company Shares by Retail Value 2001-2005
Table 6 OTC Healthcare Brand Shares by Retail Value 2002-2005
3.4 Leading Company Profile: Azerfarma
3.5 Leading Company Profile: Herba-Flora
3.6 New Product Developments
3.7 Retail Distribution
Table 7 Retail Sales of OTC Healthcare by Distribution Format: % Analysis 2000/2005
Table 8 Retail Sales of OTC Healthcare by Sector and Distribution Format: % Analysis 2005
3.8 Retailer Activity and Private Label Trends
3.9 Forecast Market Performance
Table 9 Forecast Retail Sales of OTC Healthcare by Sector: Value 2005-2010
Table 10 Forecast Retail Sales of OTC Healthcare by Sector: % Value Growth 2005-2010
4. DEFINITIONS