OTC Healthcare in 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
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
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market is set to improve through the adoption of a new pharmacy code which, once officially ratified, will replace outdated legislation passed in 1960.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