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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• 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 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

State subsidy and demand for branded products positively impacts sales

In the context of the review period, the OTC healthcare market experienced dynamic development in 2008. The government doubled its expenses on healthcare issues. The overall market encountered a wide influx of new brands in various price segments. More dynamic promotional activities on the part of distributors and advertising of branded products via booklets shifted consumer preference to more branded and higher-priced medicines. Saturation of the market changed the previous factor of price importance. Increasing disposable incomes enable Azerbaijan customers to choose those medicines which give quicker and better healing effects. However, cheaper segments have not lost their wide consumer base yet and, the prices of pharmaceutical products are still high for the majority of consumers. State control over the quality and registration of all imported medicines increased. Vitamins and dietary supplements also enjoyed a flow of innovations as the main driver of sales. Besides, distributors are expanding their networks nationwide, promoting the consumption culture for dietary supplements.

Resumption of pharmaceutical advertising

In 2008, pharmaceutical advertising experienced another revival following prohibition of advertising of medicines through TV. This time, advertising mainly carries educational messages to raise awareness among consumers about medical products that are harmless to take without prescription. The adverts mainly emphasise the herbal content of products and the fact that they take effect quickly without harming any other parts of the body. Since prohibition does not cover advertising through booklets which are distributed at pharmaceutical stores by the importing companies, this way of active propagation of certain brands with images, packaging, name of producer and pharmacological effects enjoyed a boom at the end of review period. It is assumed that TV advertising will resume most probably, at the end of 2008.

Multinationals control the market while locals emerge

In 2008, imports continued to lead sales. OTC healthcare market in Azerbaijan is really a distributing market. There are a large number of local distributors importing products from multinationals and both distributors and their partners are in the database of Ministry of Health of Azerbaijan. It is sometimes the case that the products of one international company can be imported by three or four local distributors. During the 2007-2008 period, many products of Turkish, Israeli and Indian origin entered the very competitive OTC healthcare market which is mainly controlled by Actavis Group, Ivax Corp, Krka dd, Sanofi-Aventis, Lek Pharmaceuticals dd and other Russian, Ukrainian, Italian, Spanish, Hungarian, Polish, Bulgarian and Slovenian producers. In parallel, local pharmaceutical manufacturers kept pace, mostly entering naproxen (Bioil Ltd) and topical germicides (Esqar Farm MMC). Although, some locals appeared in the market, there is huge influence from imports and the trend of imports’ high quality hampers the development of local products.

Distribution strictly through pharmaceutical stores

In Azerbaijan, there are only two types of pharmaceutical stores and their activity is under state legislation. UTC and OTC are sold only through pharmaceutical outlets: chemists/pharmacies and parapharmacies/drugstores. Since 2007, parapharmacies/drugstores which combine selling medicines (OTC and UTC), cosmetics, toiletries and personal hygiene products were popular in Baku and other key cities. In parallel, traditional chemists/pharmacies are gradually losing their status and share of sales.

OTC healthcare has strong future prospects

The future of OTC healthcare is expected to be characterised as prospective and dynamic in terms of value sales. The products across various price segments are expected to balance the market. Traditional sectors will continue to boost the overall performance of the market. The government will continue to spend a great deal on healthcare issues. It will develop the system for obligatory medical insurance planned to be introduced on a nationwide basis. Reforms of public health services will result in lower consumer expenditure on OTC healthcare medicines.

Table of contents

OTC HEALTHCARE IN AZERBAIJAN : MARKET INSIGHT

EXECUTIVE SUMMARY

State subsidy and demand for branded products positively impacts sales

Resumption of pharmaceutical advertising

Multinationals control the market while locals emerge

Distribution strictly through pharmaceutical stores

OTC healthcare has strong future prospects

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

De-listing or de-reimbursement

Advertising

Packaging and Labelling

Distribution

Generics

Switches

Summary 1 OTC Healthcare Switches 2005-2007

DEFINITIONS

Summary 2 Research Sources

ANALGESICS IN AZERBAIJAN

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 IN AZERBAIJAN

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 IN AZERBAIJAN

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 IN AZERBAIJAN

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 IN AZERBAIJAN

Headlines

Trends

Competitive Landscape

Prospects

Sector Data

Summary 3 Dietary Supplements: Brand Ranking by Positioning 2008

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 IN AZERBAIJAN

Headlines

Trends

switches

Competitive Landscape

Prospects

Sector Indicators

Table 51 Number of Smokers by Gender 2003-2008

Sector Data

Table 52 Sales of Smoking Cessation Aids by Subsector: Value 2003-2008

Table 53 Sales of Smoking Cessation Aids by Subsector: % Value Growth 2003-2008

Table 54 Smoking Cessation Aids Company Shares by Value 2004-2008

Table 55 Smoking Cessation Aids Brand Shares by Value 2005-2008

Table 56 Forecast Sales of Smoking Cessation Aids by Subsector: Value 2008-2013

Table 57 Forecast Sales of Smoking Cessation Aids by Subsector: % Value Growth 2008-2013

EYE CARE IN AZERBAIJAN

Headlines

Sector Data

Table 58 Sales of Eye Care by Subsector: Value 2003-2008

Table 59 Sales of Eye Care by Subsector: % Value Growth 2003-2008

Table 60 Eye Care Company Shares by Value 2004-2008

Table 61 Eye Care Brand Shares by Value 2005-2008

Table 62 Forecast Sales of Eye Care by Subsector: Value 2008-2013

Table 63 Forecast Sales of Eye Care by Subsector: % Value Growth 2008-2013

WOUND TREATMENTS IN AZERBAIJAN

Headlines

Sector Data

Table 64 Sales of Wound Treatments by Subsector: Value 2003-2008

Table 65 Sales of Wound Treatments by Subsector: % Value Growth 2003-2008

Table 66 Wound Treatments Company Shares by Value 2004-2008

Table 67 Wound Treatments Brand Shares by Value 2005-2008

Table 68 Forecast Sales of Wound Treatments by Subsector: Value 2008-2013

Table 69 Forecast Sales of Wound Treatments by Subsector: % Value Growth 2008-2013

EAR CARE IN AZERBAIJAN

Headlines

Sector Data

Table 70 Sales of Ear Care: Value 2003-2008

Table 71 Sales of Ear Care: % Value Growth 2003-2008

Table 72 Ear Care Company Shares by Value 2004-2008

Table 73 Ear Care Brand Shares by Value 2005-2008

Table 74 Forecast Sales of Ear Care: Value 2008-2013

Table 75 Forecast Sales of Ear Care: % Value Growth 2008-2013

ADULT MOUTH CARE IN AZERBAIJAN

Headlines

Sector Data

Table 76 Sales of Adult Mouth Care: Value 2003-2008

Table 77 Sales of Adult Mouth Care: % Value Growth 2003-2008

Table 78 Adult Mouth Care Company Shares by Value 2004-2008

Table 79 Adult Mouth Care Brand Shares by Value 2005-2008

Table 80 Forecast Sales of Adult Mouth Care: Value 2008-2013

Table 81 Forecast Sales of Adult Mouth Care: % Value Growth 2008-2013

CALMING AND SLEEPING PRODUCTS IN AZERBAIJAN

Headlines

Sector Data

Table 82 Sales of Calming and Sleeping Products: Value 2003-2008

Table 83 Sales of Calming and Sleeping Products: % Value Growth 2003-2008

Table 84 Calming and Sleeping Products Company Shares by Value 2004-2008

Table 85 Calming and Sleeping Products Brand Shares by Value 2005-2008

Table 86 Forecast Sales of Calming and Sleeping Products: Value 2008-2013

Table 87 Forecast Sales of Calming and Sleeping Products: % Value Growth 2008-2013

EMERGENCY CONTRACEPTION IN AZERBAIJAN

Headlines

Sector Data

OTC STATINS IN AZERBAIJAN

Headlines

OTC OBESITY IN AZERBAIJAN

Headlines

OTC TRIPTANS IN AZERBAIJAN

Headlines

HB CO LTD

Strategic Direction

Key Facts

Summary 4 HB Co Ltd: Key Facts

Summary 5 HB Co Ltd: Operational Indicators

Company Background

Production

Competitive Positioning

PLANETA COMPANY

Strategic Direction

Key Facts

Summary 6 Planeta Company: Key Facts

Summary 7 Planeta Company: Operational Indicators

Company Background

Production

Competitive Positioning

REPHARMA

Strategic Direction

Key Facts

Summary 8 Repharma: Key Facts

Summary 9 Repharma: Operational Indicators

Company Background

Production

Competitive Positioning