OTC Healthcare in Saudi Arabia
Euromonitor International's OTC Healthcare in Saudi Arabia 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: 89 | Publication date: Jun 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
Abnormal peak in sales because of price increases in 2005
The Saudi OTC healthcare market showed abnormal growth in value sales in 2005 because of price increases that affected many imported brands during the late part of the year. Current value sales jumped by 10% on 2004 to reach SR1,553 million. Towards the end of the review period, after two years of discussion and negotiations with local distributors/importers, the Saudi Ministry of Health approved the new pricing for many imported products from countries like Europe and specifically the UK as per latest exchange rates of the euro and sterling pound against the Saudi riyal.
Apart from price increases, sales continued to benefit from many positive growth factors including the continual increase in switches from Rx (prescription only) to OTC, new product developments, a high population growth rate and the high per capita income of many Saudis. Sales were also underpinned by increased expenditure on advertising through non-medical media, such as regional and satellite television stations, radio stations and local newspapers.
Vitamins and dietary supplments retains its position as the most dynamic sector in 2005
Cough, cold and allergy (hay fever) remedies, analgesics, digestive remedies, medicated skin care and vitamins and dietary supplements remained the main contributors to sales in 2005. Excluding NRT smoking cessation aids, which grew very well from a low base, vitamins and dietary supplements retained its position as the most dynamic sector in 2005 with sales growth exceeding 12% on 2005. In addition to price increases, movements in shares in favour of highly priced multinational brands, new product launches, particularly in dietary supplements and continued strong demand for many products like multivitamins, calcium and vitamin C in this lucrative sector were the main reasons behind this performance.
Acquisitions led to dramatic movements in shares in 2005
The year 2005 was also exceptional in terms of companies’ shares. Dramatic movements in shares occurred over 2004/2005 following the acquisition of Bristol-Myers Squibb’s portfolio of OTC brands by Novartis in 2005 and Bayer’s acquisition of the consumer division of F Hoffmann La Roche in 2004.
As a result of this and in terms of GBO, Novartis took on GlaxoSmithKline narrowed its sales lead as second ranking company in terms of market value sales in 2005. SPIMACO retained its leading position in this market in 2005 with good gains continued in the company’s sales during 2005.
Forecast period sales to grow at the sme healthy rate of the review period
Euromonitor International forecasts that sales of OTC healthcare will repeat the healthy growth seen over the review period, to increase by constant value CAGR 6% over the forecast period, with sales exceeding an impressive SR2 billion in 2010. Factors contributing to growth will include those that boosted sales in 2005, including continued increase in selling prices of many imported brands as well as some local brands, high population growth rate, increased per capita income and disposal, increased switching, advertising support and better distribution, particularly in outlets other than pharmacies, such as grocery outlets and healthfood shops.
Table of contents
OTC HEALTHCARE IN SAUDI ARABIA : MARKET INSIGHT
EXECUTIVE SUMMARY
OPERATING ENVIRONMENT
OTC Registration and Classification
Vitamins & Dietary Supplements Registration and Classification
Advertising
Packaging and Labelling
Distribution
De-listing or De-reimbursement
Traditional Remedies
Homeopathy
Generics
Consumer Expenditure on Health Goods and Medical Services
Table 1 Consumer Expenditure on Health Goods and Medical Services 2000-2005
Life Expectancy
Table 2 Life Expectancy at Birth 2000-2005
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
Table 5 OTC Healthcare Switches
Competitive Environment
Table 6 OTC Healthcare Company Shares by Retail Value 2001-2005
Table 7 OTC Healthcare Brand Shares by Retail Value 2002-2005
Retail Distribution
Table 8 Sales of OTC Healthcare by Distribution Format: % Analysis 2000/2005
Table 9 Sales of OTC Healthcare by Sector and Distribution Format: % Analysis 2005
Retailer Activity and Private Label Trends
Forecast Market Performance
Table 10 Forecast Sales of OTC Healthcare by Sector: Value 2005-2010
Table 11 Forecast Sales of OTC Healthcare by Sector: % Value Growth 2005-2010
DEFINITIONS
LOCAL COMPANY PROFILES - SAUDI ARABIA
GLAXO SAUDI ARABIA LTD - OTC HEALTHCARE - SAUDI ARABIA
COMPANY BACKGROUND
RECENT NEWS
Summary 1 Summary - Glaxo Saudi Arabia Ltd/GlaxoSmithKline: Operational Indicators 2004
PRODUCTION CAPACITY
JULPHAR GULF PHARMACEUTICALS - OTC HEALTHCARE - SAUDI ARABIA
COMPANY BACKGROUND
RECENT NEWS
Summary 2 Summary - Julphar: Operational Indicators 2004
PRODUCTION CAPACITY
SAUDI PHARMACEUTICAL INDUSTRIES & MEDICAL APPLIANCES CO (SPIMACO) - OTC HEALTHCARE - SAUDI ARABIA
COMPANY BACKGROUND
RECENT NEWS
Summary 3 Summary - SPIMACO: Operational Indicators 2004
PRODUCTION CAPACITY
TABUK PHARMACEUTICAL MANUFACTURING CO - OTC HEALTHCARE - SAUDI ARABIA
COMPANY BACKGROUND
RECENT NEWS
Summary 4 Summary - Tabuk Pharmaceutical Manufacturing Co: Operational Indicators 2004
PRODUCTION CAPACITY
ANALGESICS IN SAUDI ARABIA
SECTOR PERFORMANCE
2005 headlines
Price increases, better distribution and advertising boost sales at healthier rate in 2005
GlaxoSmithKline’s share down slightly due to withdrawal of batches of Panadol Extra
SPIMACO second with good gains achieved in 2005 from Fevadol and Sapofen
Strong presence for foreign multinationals: Parke-Davis, Ciba-Geigy and Janssen Cilag
Adult analgesics
Child-specific analgesics
Topical analgesics
Forecast performance: forecast period sales to slow down due to stability of unit prices and maturity in largest subsectors
Table 12 Sales of Analgesics by Subsector: Value 2000-2005
Table 13 Sales of Analgesics by Subsector: % Value Growth 2000-2005
Table 14 Analgesics Company Shares by Retail Value 2001-2005
Table 15 Analgesics Brand Shares by Retail Value 2002-2005
Summary 5 Summary - Analgesics: New Product Launches 2004-2005
Table 16 Forecast Sales of Analgesics by Subsector: Value 2005-2010
Table 17 Forecast Sales of Analgesics by Subsector: % Value Growth 2005-2010
TOPICAL ANALGESICS BY HERBAL/STANDARD SPLIT
Table 18 Herbal vs Standard Topical Analgesics 2000/2005
COUGH, COLD AND ALLERGY (HAY FEVER) REMEDIES IN SAUDI ARABIA
SECTOR PERFORMANCE
2005 headlines
Value sales peaked in 2005 due to price increases, switching and new product launches
Switching, high incidence of allergy and high unit prices boost sales of systemic antihistamines/allergy remedies
Pharyngeal preparations retains its position as the most dynamic subsector in 2005
New innovations continued to stimulate sales of combination products in 2005
Medicated confectionery boosted by mainstream products with sales up steadily in 2005
SPIMACO confirms its leading position and gains share in 2005
Novartis benefits from withdrawals and gains share with Otrivin, Otrinol and Orofar
Strong presence for multinationals
Forecast performance: Sales to continue to grow at the same healthy rate, driven by the same factors of the review period
Table 19 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: Value 2000-2005
Table 20 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: % Value Growth 2000-2005
Table 21 Cough, Cold and Allergy (Hay Fever) Remedies Company Shares by Retail Value 2001-2005
Table 22 Cough, Cold and Allergy (Hay Fever) Remedies Brand Shares by Retail Value 2002-2005
Summary 6 Summary - Cough, Cold and Allergy (Hay Fever) Remedies: New Product Launches 2004-2005
Table 23 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: Value 2005-2010
Table 24 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 25 Herbal vs Standard Cough, Cold and Allergy (Hay Fever) Remedies 2000/2005
DECONGESTANTS PERFORMANCE
Decongestants is a major contributor to cough, cold and allergy (hayfever) remedies with sales up massively in 2005 due to price increases
Nasal sprays remain the most popular and dynamic decongestants in 2005
Rubs and inhalants continued losing share while strips/plasters remained negligible
Table 26 Sales of Decongestants by Type: Value 2000-2005
Table 27 Sales of Decongestants by Type: % Value Growth 2000-2005
CHILD-SPECIFIC COUGH, COLD AND ALLERGY (HAY FEVER) REMEDIES PERFORMANCE
High demand due to demographic and environmental factors
Table 28 Sales of Child-specific Cough, Cold and Allergy (Hay Fever) Remedies by Type: Value 2000-2005
Table 29 Sales of Child-specific Cough, Cold and Allergy (Hay Fever) Remedies by Type: % Value Growth 2000-2005
DIGESTIVE REMEDIES IN SAUDI ARABIA
SECTOR PERFORMANCE
2005 headlines
Sales benefit from price increases and showed much healthier growth in 2005
Indigestion and heartburn remedies continued to drive sales and growth in 2005
H2 blockers are the most popular among indigestion and heartburn remedies
New launches of OTC-positioned products continued to boost sales of proton-pump inhibitors
Laxatives benefit from the continual increase in the number of pilgrims and obesity sufferers
Diarrhoeal remedies and IBS treatments are quite mature thanks to multinationals and locals
Child-specific digestive remedies small, dominated by diarrhoeal remedies
Julphar retains its leading position achieved in 2004
Glaxo regains share with its Zantac, benefiting from shortage in supply for some competitors
Forecast performance: forecast period sales to show healthier growth due to further stability/increase in unit prices
Table 30 Sales of Digestive Remedies by Subsector: Value 2000-2005
Table 31 Sales of Digestive Remedies by Subsector: % Value Growth 2000-2005
Table 32 Digestive Remedies Company Shares by Retail Value 2001-2005
Table 33 Digestive Remedies Brand Shares by Retail Value 2002-2005
Summary 7 Summary - Digestive Remedies: New Product Launches 2004-2005
Table 34 Forecast Sales of Digestive Remedies by Subsector: Value 2005-2010
Table 35 Forecast Sales of Digestive Remedies by Subsector: % Value Growth 2005-2010
DIGESTIVE REMEDIES BY HERBAL/STANDARD SPLIT
Herbal-based digestive remedies unpopular but gain shares with Nature’s Way Inc
Table 36 Herbal vs Standard Digestive Remedies 2000/2005
OTHER INDIGESTION AND HEARTBURN REMEDIES PERFORMANCE
Sales peaked in 2005 due to price increases in some brands
Antacids drive sales and growth over the review period
Julphar maintains leadership in 2005, facing no major competition from any other company
Table 37 Sales of Other Indigestion and Heartburn Remedies by Type: Value 2000-2005
Table 38 Sales of Other Indigestion and Heartburn Remedies by Type: % Value Growth 2000-2005
MEDICATED SKIN CARE IN SAUDI ARABIA
SECTOR PERFORMANCE
2005 headlines
Sales grow at much healthier rate due price increases but growth is hindered by topical germicidals/antiseptics
Demographic factors boost sales of nappy rash and acne treatments
Acne treatment by format
Antipruritics sales overlap with topical allergy remedies/antihistamines
Massive penetration of cosmetic skin care products prevents the development of emollients/therapeutic moisturisers
Medicated shampoos is most dynamic in 2005 because of strategic price change for Nizoral
Highly fragmented sector with little movement in shares
Reckitt Benckiser maintains leadership and share thanks to continued support of Dettol
Glaxo second, marginal decline in its share of 2005
Janssen Cilag regains share in 2005 because of price increase of Nizoral
Forecast performance: Same healthy performance to continue
Table 39 Sales of Medicated Skin Care by Subsector: Value 2000-2005
Table 40 Sales of Medicated Skin Care by Subsector: % Value Growth 2000-2005
Table 41 Medicated Skin Care Company Shares by Retail Value 2001-2005
Table 42 Medicated Skin Care Brand Shares by Retail Value 2002-2005
Summary 8 Summary - Medicated Skin Care: New Product Launches 2004-2005
Table 43 Forecast Sales of Medicated Skin Care by Subsector: Value 2005-2010
Table 44 Forecast Sales of Medicated Skin Care by Subsector: % Value Growth 2005-2010
MEDICATED SKIN CARE BY HERBAL/STANDARD SPLIT
Herbal-based medicated skin care products are very minimal due to high prices
Table 45 Herbal vs Standard Medicated Skin Care 2000/2005
ACNE TREATMENTS BRAND SHARES
Multinational brands dominate sales but face increased threats from newcomers
Table 46 Acne Treatments Brand Shares by Retail Value 2002-2005
HAIR LOSS TREATMENTS BRAND SHARES
Table 47 Hair Loss Treatments Brand Shares by Retail Value 2002-2005
VITAMINS AND DIETARY SUPPLEMENTS IN SAUDI ARABIA
SECTOR PERFORMANCE
2005 headlines
Sales peak in 2005 due to price increases, new launches and strong demand for vitamins
Vitamins drive sales in 2005 with massive growth seen in sales due to price increases and movements in shares
Growing demand for dietary supplements thanks to new launches and improved distribution among healthfood shops
Child-specific products shows dynamic growth in 2005, albeit from lower base
Tonics and bottled nutritive drinks remain very niche and unpopular
Dramatic changes in shares due to recent acquisitions
F Hoffmann La Roche loses its leading position due to shortage in supply following its acquisition by Bayer
Novartis’ share up massively with Bristol-Myers Squibb’s range of vitamins
Lederle/Whitehall and Boehringer Ingelheim benefit from acquisitions and climb to the leading positions in 2005
Forecast performance: Sales to slow down as emerging subsectors become more established
Table 48 Sales of Vitamins and dietary supplements by Subsector: Value 2000-2005
Table 49 Sales of Vitamins and dietary supplements by Subsector: % Value Growth 2000-2005
Table 50 Vitamins and dietary supplements Company Shares by Retail Value 2001-2005
Table 51 Vitamins and dietary supplements Brand Shares by Retail Value 2002-2005
Summary 9 Summary - Vitamins and dietary supplements: New Product Launches 2004-2005
Table 52 Forecast Sales of Vitamins and dietary supplements by Subsector: Value 2005-2010
Table 53 Forecast Sales of Vitamins and dietary supplements by Subsector: % Value Growth 2005-2010
VITAMINS PERFORMANCE
Multivitamins drive sales and growth in 2005 due to multiple uses
Vitamin C and B are most popular single vitamins while others remain very niche
Folic acid vs other B vitamins
Pharmaton and Centrum climb to the leading positions, benefiting from shortage in supply seen for Supradyn and Theragran
Table 54 Sales of Vitamins by Type: Value 2000-2005
Table 55 Sales of Vitamins by Type: % Value Growth 2000-2005
Table 56 Vitamins Brand Shares by Retail Value 2002-2005
DIETARY SUPPLEMENTS PERFORMANCE
Sales peak in 2005 due to emergence of many products and improved distribution
Calcium supplements drive dietary supplements, large consumption seen among pregnant and elderly women
Sales of ginseng and royal jelly lose ground to more potent remedies for impotency
Fish oils popular thanks to Seven Seas, steady growth continues in 2005 due to improved distribution
Cal-C-Vita and Ginsana on top, but lose share to new rivals
Table 57 Sales of Dietary Supplements by Type: Value 2000-2005
Table 58 Sales of Dietary Supplements by Type: % Value Growth 2000-2005
Table 59 Dietary Supplements Brand Shares by Retail Value 2002-2005
Table 60 Dietary Supplements by Positioning: % Retail Value Analysis 2005
NRT SMOKING CESSATION AIDS IN SAUDI ARABIA
NUMBER OF SMOKERS
Government Anti-Smoking Measures
Table 61
SECTOR PERFORMANCE
2005 headlines
Sales remained low and highly concentrated
Sales up in 2005 due to price increases of Nicorette and Nicotinell
Forecast performance: Sales to grow at healthier rate, to be driven by promotional campaigns and new launches
Table 62 Sales of NRT Smoking Cessation Aids by Subsector: Value 2000-2005
Table 63 Sales of NRT Smoking Cessation Aids by Subsector: % Value Growth 2000-2005
Table 64 NRT Smoking Cessation Aids Company Shares by Retail Value 2001-2005
Table 65 NRT Smoking Cessation Aids Brand Shares by Retail Value 2002-2005
Table 66 Forecast Sales of NRT Smoking Cessation Aids by Subsector: Value 2005-2010
Table 67 Forecast Sales of NRT Smoking Cessation Aids by Subsector: % Value Growth 2005-2010
EYE CARE IN SAUDI ARABIA
SECTOR PERFORMANCE
2005 headlines
Sales continued to benefit from increased laser operations and usage of contact lenses
Standard eye care is the most popular while allergy eye care most dynamic in 2005
Ciba Vision takes on Alcon and leads sales in 2005
Jamjoom Pharma and Riyadh Pharma grow steadily in 2005
Forecast performance: sales to continue to accelerate benefiting from latest developments
Table 68 Sales of Eye Care by Subsector: Value 2000-2005
Table 69 Sales of Eye Care by Subsector: % Value Growth 2000-2005
Table 70 Eye Care Company Shares by Retail Value 2001-2005
Table 71 Eye Care Brand Shares by Retail Value 2002-2005
Summary 10 Summary - Eye Care: New Product Launches 2004-2005
Table 72 Forecast Sales of Eye Care by Subsector: Value 2005-2010
Table 73 Forecast Sales of Eye Care by Subsector: % Value Growth 2005-2010
EAR CARE IN SAUDI ARABIA
SECTOR PERFORMANCE
Sales grow in line with price increases in imported brands
Multinational brands lead sales while low-priced brands continue to gain share
ADULT MOUTHCARE IN SAUDI ARABIA
SECTOR PERFORMANCE
Sales grow steadily due to improved distribution and increased advertising
SPIMACO leads and continues surpassing multinational brands
CALMING AND SLEEPING PRODUCTS IN SAUDI ARABIA
SECTOR PERFORMANCE
Sales emerge following the introduction of herbal-based products
WOUND TREATMENTS IN SAUDI ARABIA
SECTOR PERFORMANCE
2005 headlines
Sales grow poorly but advanced in 2005 because of more stability in unit prices
Sticking plasters more dynamic thanks to wide distribution and product diversification
3M’s share stagnant, Johnson & Johnson’s up due to product diversification
Forecast performance: forecast period sales to continue to recover in value terms due to price increases
Table 74 Sales of Wound Treatments by Subsector: Value 2000-2005
Table 75 Sales of Wound Treatments by Subsector: % Value Growth 2000-2005
Table 76 Wound Treatments Company Shares by Retail Value 2001-2005
Table 77 Wound Treatments Brand Shares by Retail Value 2002-2005
Table 78 Forecast Sales of Wound Treatments by Subsector: Value 2005-2010
Table 79 Forecast Sales of Wound Treatments by Subsector: % Value Growth 2005-2010
EMERGENCY CONTRACEPTION IN SAUDI ARABIA
SECTOR PERFORMANCE