OTC Healthcare

click cart icon to view contents of your shopping cart

OTC Healthcare in Pakistan

Euromonitor International's OTC Healthcare in Pakistan 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.

Get immediate access to strategic market analysis when you buy reports online

EXECUTIVE SUMMARY

TABLE OF CONTENTS

Print this page • E-mail a friend

Tables: 12 | Publication date: Mar 2007

Cost:

GBP600.00

Back to > Previous page > OTC Healthcare homepage > Pakistan homepage

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

Impressive OTC healthcare performance over review period

The OTC healthcare market in Pakistan experienced impressive growth over the review period. Growth was driven by continuous improvements in terms of product selections, particularly in cough, cold and allergy (hay fever) remedies. Many consumers still believe in homeopathic treatments in Pakistan, but most switched to allopathic treatments over the review period, which also improved the market’s growth rate. The spread of education and health awareness are the main factors forcing this change in the country. There has also been a considerable increase in the number of allopathic doctors in Pakistan. Previously only homeopathic doctors were available in remote areas, but these days there are more doctors available even in remote areas, and consumers are better able to understand the difference between homeopathic treatments and allopathic treatments.

Sales of cough, cold and allergy (hay fever) remedies influenced by weather

Vitamins demonstrated a strong performance over the review period. This was due to increasing health awareness, as well as increasingly busy lifestyles and longer working hours among Pakistani consumers, particularly in urban areas.

Sales of cough, cold and allergy (hay fever) remedies also showed an impressive performance over the review period, highly influenced by brand loyalty. Weather has a very strong influence on demand for cough, cold and allergy (hay fever) remedies products, because the weather remains very hot in summer at 40-50 degrees Celsius, but is unpredictable in autumn and spring. However, it is generally observed that sales of all OTC healthcare products peak during the summer due to the extremely hot conditions.

Ministry of Health taking measures to encourage manufacturers

The Health Ministry of Pakistan has made every possible effort to improve the performance of pharmaceutical companies. However, the government imposed sales tax on medicines in 1997/1998, which led to protests from pharmaceutical companies because already high retail prices were increased, making medicines more expensive and sometimes unaffordable. As a result, the government had to lift the taxes from medicines just a few months after their introduction, and there is now no tax on medicines in Pakistan. However, all pharmaceutical companies have to pay 1% of their annual profits to a “central research fund” held by the Health Ministry of Pakistan. Most imported pharmaceutical-related raw materials are subject to a 10% customs duty, but they are also exempt from payment of GST.

Brand loyalty among Pakistani consumers remains high

Brand loyalty increased sales throughout the OTC healthcare market in Pakistan over the review period. This was even true in rural areas, where poorly educated or illiterate people identified their preferred brands by packaging designs and colours if they were unable to read brand names. Drugstores and pharmacies also play a major role in sales of brands, advising customers which products may help alleviate their condition. Often, consumers continue to buy brands recommended to them by pharmacists for many years, provided they prove effective.

Government controls prices of healthcare products

The government strictly controls prices of all drugs, which is a major concern for the pharmaceuticals market in Pakistan. Already high prices became even higher when the government imposed VAT on all pharmaceutical products, but it was lifted within a short time as a result of protests by pharmaceuticals companies. During the review period, some medicines were only available on the black market at vastly inflated prices, while others were withdrawn from the official market due to the strict price controls imposed by the government. Under these circumstances, both local and foreign-owned manufacturers have proved unable to generate the profits needed for capital investment. All companies have to notify increases in price to the Ministry of Health, and prices will be increased only if the Ministry of Health authorises and approves the increase.

OTC HEALTHCARE IN PAKISTAN : MARKET INSIGHT

EXECUTIVE SUMMARY

OPERATING ENVIRONMENT

OTC Registration and Classification

Vitamins and Dietary Supplements Registration and Classification

Advertising

Packaging and Labelling

Distribution

Traditional Remedies

Homeopathy

Generics

Consumer Expenditure on Health Goods and Medical Services