OTC
OTC Healthcare

OTC Healthcare in Morocco

Morocco

Euromonitor International's OTC Healthcare in Morocco 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: 82  |  Publication date: Jul 2006
Cost: 
GBP1200.00

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  • Get insight into trends in market performance
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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

Implementation of mandatory health insurance and reform of the pharmacy code set to modernise the pharmaceutical sector in Morocco

Implementation of a long awaited universal health insurance scheme finally began in 2005, although the system is not expected to be fully operational until later in 2006. The first stage of the project aims to increase coverage of the active population from its present level of 17% to 34%, equivalent to over 10 million people. The second stage of the scheme will be to extend health insurance cover to the self employed, which will increase coverage to around 50% of the population.

The pharmaceutical market saw little real growth in over the review period. However, the introduction of the universal health insurance scheme should stimulate demand for pharmaceutical products, although generics is likely to be the greatest growth area.

The regulatory environment for companies operating in the Moroccan pharmaceutical market is set to improve through the adoption of a new pharmacy code which, once officially ratified, will replace outdated legislation passed in 1960. A law regulating intellectual property rights was ratified in June 2004. Morocco has a well-developed pharmaceutical manufacturing industry, which in the 1990s covered 80% of the country's product needs. In recent years, however, the local industry has lost ground in the face of increasing competition from imported products, the bulk of which are supplied by France.

OTC sales achieve 7% growth in 2005

Although relatively small, the Moroccan medical market offers considerable potential for further expansion, particularly now that the long awaited introduction of a universal health insurance scheme finally appears to be getting off the ground. The Moroccan pharmaceutical industry grew considerably in size and volume. With only eight production sites in 1965, in 2005 the sector had 27 production sites, catering for about 70% of local needs with around 180 million units.

Sales of OTC medicines in Morocco remain low in comparison with other consumer goods. OTC health products in particular registered sales worth Dh2.6 billion in 2005, up 7% over the previous year. The main OTC sectors in Morocco are analgesics and cough, cold and allergy remedies with sales of Dh529 and Dh614 million respectively in 2005. Digestive remedies and medicated skin care grew considerably over the last couple of years of the review period to reach Dh449 and Dh500 million respectively, with digestive remedies growing at the same pace as the OTC sector overall.

Despite large potential due to still low penetration, growth rates are waning. This is largely explained by the need for further economic development, low purchasing power and traditional habits. High prices particularly impinge on sales of products that are still considered as unnecessary, such as vitamins, dietary supplements and smoking cessation aids.

Government spending will drive sales of OTC products

Though health care expenditure seems small compared to international standards (4.6% of Morocco’s GDP), there was a yearly increase of 10% since 1999. The budget allocated to healthcare increased from $400 million in 1999 to $700 million in 2005. In 2005, Government expenditures amounted to $131 million for procurement of medical equipment and $121 million for other public hospitals expenditure. To meet the population growth rate (1.4%) and the growing demand domestically for modern and western health care standards, the Ministry of Health plans an annual budget increase of 13% to implement its 2003-2007 Action Plan. Under this plan, the Ministry will build four new hospitals, upgrade 120 existing hospitals with modern equipment, increase hospital in-patient capacity, improve hospital operations, and automate the system. In addition, Law 65//00 concerning mandatory health care coverage (Assurance Maladie Obligatoire “AMO”) was implemented in August 2005. This new law will increase health insurance cover from 20% to 40% in the next six months with the aim of rapidly reaching 80%. All of this will have an impact on OTC sales, as consumption of OTC products will not just be confined to medium and high income classes, but will also extend to other, less privileged, categories.

Generics growth

Generics are mostly imported from low income countries such as India, China and Egypt or produced locally under licence from major MNCs. Generally, they are around 70 to 90% cheaper than the branded equivalents, according to local NGOs. In some cases they can be 200 to 300% cheaper than brands made in the West. Given the low purchasing power and the rate of medical insurance, generics are becoming widespread in Morocco. Their consumption, which was limited to 10-15%, rose to 20% of the total commercialised medicines. This is a source of worry for many Moroccan NGOs, who believe that clauses accepted by Morocco in its FTA agreement with the US are significantly more constraining than those signed by other countries. They feel that, if ratified, the agreement will lead to the eventual death of the Moroccan generics industry, which employs thousands of people and enables the Ministry of Health to realise a saving of more than Dh200 million each year according to trade press. It would also mean a slowdown in terms of access to medicines for Moroccan patients.

Sales limited to upper and middle classes

The health sector in Morocco is among the top priorities for the government in its economic and social plans. Awareness of health issues, coupled with economic improvements generally, are also expected to boost sales and access to medication. However, despite rising disposable income in Morocco, overall OTC is hindered by extremely high prices that make OTC products unaffordable to the majority of the population, thereby stifling growth. High prices, partly due to large importation costs, mean that only middle- to upper-income Moroccans can actually afford these products. As a consequence, upper-income urban consumers continued to drive OTC sales in Morocco in 2005, as they were the only ones who were aware of such products and could afford to buy them, leaving rural dwellers far outside the consumer base.

There is also a major divide in terms of access to healthcare services and products between urban and rural locations. Rural areas remain critically underdeveloped despite ongoing government attempts to link rural areas to electricity supplies and provide clean water. Lack of awareness, knowledge, and access to medical facilities, as well as widespread poverty, ensure that rural dwellers cannot buy OTC products. In cases of illness, rural Moroccans treat themselves with traditional remedies.

International agreements hamper sales

The US–Morocco Free Trade Agreement (FTA) that came into force on 1 January 2006 will delay generic competition. The agreement obligates countries to establish special monopoly protections for pharmaceutical regulatory data. These monopoly protections are not required under the World Trade Organisation's Agreement on Trade-Related Aspects of Intellectual Property Rights (WTO's TRIPS). The impact of these measures will lead to delays in compulsory licensing. Under the terms of the agreement, countries would be required to provide five years of data protection from the moment a product was given regulatory approval in their country (Article 15.10.1). This amounts to an effective five-year bar on compulsory licensing from the time of marketing approval. Countries must also grant five years data exclusivity protections to brand-name companies if their product has received marketing approval anywhere in the world – even if the brand-name company has not introduced the product in their country (Article 15.10.1). Regulatory data monopolies must be granted for the marketing approval data submitted for all "new pharmaceutical products". Under TRIPS, the requirement of data protection applies only to data submitted for new chemical entities. Under the FTA, data protection must be granted for any new product containing a chemical entity not previously approved in the country – even if it is not actually new (Article 15.10.1).

Moroccan pharmaceutical companies think that while it is true that the US–Morocco FTA will not affect pricing on older, first-line medicines that are already being produced generically, the new rules will increasingly affect the price of newer medicines, especially as drug companies increase their patent filings in Morocco, as they seek extensions of patent terms and enforce data rights for newer medicines. Consumers will need, and are entitled to, affordable access to newer medicines at less than monopoly prices. Opponents to the agreement agree that by gaining longer patents and additional data exclusivity rights, big drug companies can continue to exclude, or at the very least delay, entry by generic competitors, thereby keeping the price of medicines artificially high.

Cough, cold and allergy remedies takes the lion’s share of sales

Being the most dynamic in 2005, cough, cold and allergy remedies took the lion’s share of sales with 23% of total OTC value sales. A very cold winter in Morocco as well as rising concerns about allergies resulting from high levels of air pollution in cities such as Casablanca, particularly among children and elderly people, boosted cough, cold and allergy remedies sales, which reached Dh614 million that year.

Digestive remedies continued to grow in 2005, albeit at a slower rate than previous years, and accounted for 17% of OTC sales. The prevalence of heavy foods in the Moroccan diet and a lack of hygiene in public food preparation contributed to the prevalence of digestive complaints. A greater willingness to self-medicate for digestive problems than for other types of ailments helped boost sales of digestive remedies.

Table of contents

OTC HEALTHCARE IN MOROCCO : MARKET INSIGHT

EXECUTIVE SUMMARY

Implementation of mandatory health insurance and reform of the pharmacy code set to modernise the pharmaceutical sector in Morocco

OTC sales achieve 7% growth in 2005

Government spending will drive sales of OTC products

Generics growth

Sales limited to upper and middle classes

International agreements hamper sales

Cough, cold and allergy remedies takes the lion’s share of sales

OPERATING ENVIRONMENT

OTC Registration and Classification

Most of the UTC market is OTC

Vitamins and Dietary Supplements Registration and Classification

Advertising

Packaging and Labelling

Distribution

De-listing or De-reimbursement

Traditional Remedies

Homeopathy

Generics: Divergent views, similar concerns

Consumer Expenditure on Health Goods and Medical Services

Table 1 Consumer Expenditure on Health Goods and Medical Services 1999-2003

Life Expectancy

Table 2 Life Expectancy at Birth 1999-2003

OTC HEALTHCARE SALES

Market Performance

Table 3 Sales of OTC Healthcare by Sector: Value 2000-2005

Table 4 Sales of OTC Healthcare by Sector: % Value Growth 2000-2005

Switches

Competitive Environment

Table 5 OTC Healthcare Company Shares by Retail Value 2001-2005

Table 6 OTC Healthcare Brand Shares by Retail Value 2002-2005

RETAIL DISTRIBUTION

Retail distribution trends

The direct circuit: laboratory – pharmacy

The indirect circuit: laboratory – wholesaler – pharmacy

Table 7 Sales of OTC Healthcare by Distribution Format: % Analysis 2000/2005

Table 8 Sales of OTC Healthcare by Sector and Distribution Format: % Analysis 2005

Retailer Activity and Private Label Trends

FORECAST MARKET PERFORMANCE

Forecast headlines

Table 9 Forecast Sales of OTC Healthcare by Sector: Value 2005-2010

Table 10 Forecast Sales of OTC Healthcare by Sector: % Value Growth 2005-2010

DEFINITIONS

LOCAL COMPANY PROFILES - MOROCCO

COOPER MAROC - OTC HEALTHCARE - MOROCCO

COMPANY BACKGROUND

COOPER MAROC INCREASES MARKETING ROADSHOWS IN EUROPE

Summary 1 Cooper Maroc: Operational Indicators 2004

PRODUCTION CAPACITY

Summary 2 Cooper Maroc: Production Statistics 2005

LAPROPHAN SA - OTC HEALTHCARE - MOROCCO

COMPANY BACKGROUND

RECENT NEWS

Laprophan stregthens its distribution and market position in Africa and the Middle East

Summary 3 Laprophan S.A.: Operational Indicators 2004

PRODUCTION CAPACITY

MAPHAR, LABORATOIRES - OTC HEALTHCARE - MOROCCO

COMPANY BACKGROUND

MAPHAR LABORATORIES A LEADER IN THE FORMATION OF MIS

SOTHEMA - OTC HEALTHCARE - MOROCCO

COMPANY BACKGROUND

RECENT NEWS

Sothema to launch a production facility in Senegal

Summary 4 Sothema: Operational Indicators 2004

PRODUCTION CAPACITY

ANALGESICS IN MOROCCO

SECTOR PERFORMANCE

2005 headlines

Forecast performance

Table 11 Sales of Analgesics by Subsector: Value 2000-2005

Table 12 Sales of Analgesics by Subsector: % Value Growth 2000-2005

Table 13 Analgesics Company Shares by Retail Value 2001-2005

Table 14 Analgesics Brand Shares by Retail Value 2002-2005

Table 15 Forecast Sales of Analgesics by Subsector: Value 2005-2010

Table 16 Forecast Sales of Analgesics by Subsector: % Value Growth 2005-2010

Topical Analgesics by Herbal/Standard Split

Table 17 Herbal vs Standard Topical Analgesics 2000/2005

COUGH, COLD AND ALLERGY (HAY FEVER) REMEDIES IN MOROCCO

SECTOR PERFORMANCE

2005 headlines

Above average sector performance in 2005

Difficult weather, social and economic conditions increase prevalence of cold and allergies

Antihistamines/allergy remedies achieve highest growth

Cooper Maroc achieves sector leadership thanks to its portfolio of products

Forecast performance

Antihistamines/allergy remedies the most dynamic during the forecast period

Decongestants to be the second most dynamic subsector

Table 18 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: Value 2000-2005

Table 19 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: % Value Growth 2000-2005

Table 20 Cough, Cold and Allergy (Hay Fever) Remedies Company Shares by Retail Value 2001-2005

Table 21 Cough, Cold and Allergy (Hay Fever) Remedies Brand Shares by Retail Value 2002-2005

Table 22 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: Value 2005-2010

Table 23 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: % Value Growth 2005-2010

Cough, Cold and Allergy (Hay Fever) Remedies by Herbal/Standard Split

Table 24 Herbal vs Standard Cough, Cold and Allergy (Hay Fever) Remedies 2000/2005

Decongestants Performance

Table 25 Sales of Decongestants by Type: Value 2000-2005

Table 26 Sales of Decongestants by Type: % Value Growth 2000-2005

Child-specific Cough, Cold and Allergy (Hay Fever) Remedies Performance

Table 27 Sales of Child-specific Cough, Cold and Allergy (Hay Fever) Remedies by Type: Value 2000-2005

Table 28 Sales of Child-specific Cough, Cold and Allergy (Hay Fever) Remedies by Type: % Value Growth 2000-2005

DIGESTIVE REMEDIES IN MOROCCO

SECTOR PERFORMANCE

2005 headlines

Excessive eating and unhygienic eating environments contribute to digestive remedies growth

Child-specific digestive remedies and motion sickness remedies see healthy growth

Laboratoires Maphar still leads in digestive remedies

Forecast performance

Diarrhoeal remedies to achieve healthy growth during the forecast period

Motion sickness and child-specific digestive remedies impacted by size of market

Table 29 Sales of Digestive Remedies by Subsector: Value 2000-2005

Table 30 Sales of Digestive Remedies by Subsector: % Value Growth 2000-2005

Table 31 Digestive Remedies Company Shares by Retail Value 2001-2005

Table 32 Digestive Remedies Brand Shares by Retail Value 2002-2005

Table 33 Forecast Sales of Digestive Remedies by Subsector: Value 2005-2010

Table 34 Forecast Sales of Digestive Remedies by Subsector: % Value Growth 2005-2010

Digestive Remedies by Herbal/Standard Split

Table 35 Herbal vs Standard Digestive Remedies 2000/2005

Other Indigestion and Heartburn Remedies Performance

Table 36 Sales of Other Indigestion and Heartburn Remedies by Type: Value 2000-2005

Table 37 Sales of Other Indigestion and Heartburn Remedies by Type: % Value Growth 2000-2005

MEDICATED SKIN CARE IN MOROCCO

SECTOR PERFORMANCE

2005 headlines

Antipruritics achieve highest turnover

Topical antifungals sees healthy growth

Laboratoires Maphar the uncontested market leader

Forecast performance

Table 38 Sales of Medicated Skin Care by Subsector: Value 2000-2005

Table 39 Sales of Medicated Skin Care by Subsector: % Value Growth 2000-2005

Table 40 Medicated Skin Care Company Shares by Retail Value 2001-2005

Table 41 Medicated Skin Care Brand Shares by Retail Value 2002-2005

Table 42 Forecast Sales of Medicated Skin Care by Subsector: Value 2005-2010

Table 43 Forecast Sales of Medicated Skin Care by Subsector: % Value Growth 2005-2010

Medicated Skin Care by Herbal/Standard Split

Table 44 Herbal vs Standard Medicated Skin Care 2000/2005

Acne Treatments Brand Shares

Table 45 Acne Treatments Brand Shares by Retail Value 2002-2005

Hair Loss Treatments Brand Shares

Table 46 Hair Loss Treatments Brand Shares by Retail Value 2002-2005

VITAMINS AND DIETARY SUPPLEMENTS IN MOROCCO

SECTOR PERFORMANCE

2005 headlines

Multivitamins top sales of vitamins and dietary supplements

Child-specific vitamins and dietary supplements’ sales on the rise

Laboratoires Roche still the uncontested market leader

Forecast performance

Table 47 Sales of Vitamins and Dietary Supplements by Subsector: Value 2000-2005

Table 48 Sales of Vitamins and Dietary Supplements by Subsector: % Value Growth 2000-2005

Table 49 Vitamins and Dietary Supplements Company Shares by Retail Value 2001-2005

Table 50 Vitamins and Dietary Supplements Brand Shares by Retail Value 2002-2005

Table 51 Forecast Sales of Vitamins and Dietary Supplements by Subsector: Value 2005-2010

Table 52 Forecast Sales of Vitamins and Dietary Supplements by Subsector: % Value Growth 2005-2010

Vitamins Performance

Table 53 Sales of Vitamins by Type: Value 2000-2005

Table 54 Sales of Vitamins by Type: % Value Growth 2000-2005

Table 55 Vitamins Brand Shares by Retail Value 2002-2005

Dietary Supplements Performance

Table 56 Sales of Dietary Supplements by Type: Value 2000-2005

Table 57 Sales of Dietary Supplements by Type: % Value Growth 2000-2005

Table 58 Dietary Supplements Brand Shares by Retail Value 2002-2005

Table 59 Dietary Supplements by Positioning: % Retail Value Analysis 2005

NRT SMOKING CESSATION AIDS IN MOROCCO

NUMBER OF SMOKERS

Number of smokers remains fairly stable year on year

Many research studies focus on social and economic effects of smoking

Lack of information behind the large number of smokers

Smoking identified by the Moroccan Ministry of Health as major cause of death

Table 60 Number of Smokers by Gender 2000-2005

SECTOR PERFORMANCE

2005 headlines

High prices and lack of awareness behind sluggish sales

Forecast performance

Table 61 Sales of NRT Smoking Cessation Aids by Subsector: Value 2000-2005

Table 62 Sales of NRT Smoking Cessation Aids by Subsector: % Value Growth 2000-2005

Table 63 NRT Smoking Cessation Aids Company Shares by Retail Value 2001-2005

Table 64 NRT Smoking Cessation Aids Brand Shares by Retail Value 2002-2005

Table 65 Forecast Sales of NRT Smoking Cessation Aids by Subsector: Value 2005-2010

Table 66 Forecast Sales of NRT Smoking Cessation Aids by Subsector: % Value Growth 2005-2010

EYE CARE IN MOROCCO

SECTOR PERFORMANCE

2005 headlines

Forecast performance

Table 67 Sales of Eye Care by Subsector: Value 2000-2005

Table 68 Sales of Eye Care by Subsector: % Value Growth 2000-2005

Table 69 Eye Care Company Shares by Retail Value 2001-2005

Table 70 Eye Care Brand Shares by Retail Value 2002-2005

Table 71 Forecast Sales of Eye Care by Subsector: Value 2005-2010

Table 72 Forecast Sales of Eye Care by Subsector: % Value Growth 2005-2010

EAR CARE IN MOROCCO

SECTOR PERFORMANCE

Slow growth impacted by high prices

ADULT MOUTHCARE IN MOROCCO

SECTOR PERFORMANCE

CALMING AND SLEEPING PRODUCTS IN MOROCCO

SECTOR PERFORMANCE

WOUND TREATMENTS IN MOROCCO

SECTOR PERFORMANCE

2005 headlines

Providence and Pfizer the leaders in wound treatments

Forecast performance

Table 73 Sales of Wound Treatments by Subsector: Value 2000-2005

Table 74 Sales of Wound Treatments by Subsector: % Value Growth 2000-2005

Table 75 Wound Treatments Company Shares by Retail Value 2001-2005

Table 76 Wound Treatments Brand Shares by Retail Value 2002-2005

Table 77 Forecast Sales of Wound Treatments by Subsector: Value 2005-2010

Table 78 Forecast Sales of Wound Treatments by Subsector: % Value Growth 2005-2010

EMERGENCY CONTRACEPTION IN MOROCCO

SECTOR PERFORMANCE

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