OTC Healthcare in South Africa
Euromonitor International's OTC Healthcare in South Africa 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: 85 | 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
OTC value growth stifled by price regulations
Despite South Africa’s economy experiencing one of its best years ever in 2005, the government's much-contested medicine pricing regulations stifled value growth of the OTC healthcare industry. Even although the Act was amended by the government in late 2005, price caps on OTC pharmaceuticals continue to constrain value growth as single exit prices dictate the industry value of pharmaceuticals and price increases are only allowed once a year, with imposed price ceilings. Therefore any volume growth is disguised by flat pricing and manufacturers continue to expect that any future growth will be in line with inflation.
Bumper 2005 for Aspen Pharmacare
Domestic player Aspen Pharmacare enjoyed a bumper year in 2005 as its share price surged, giving it a relative advantage over other industry players hit by new laws regarding the control of medicine prices. This was because Aspen’s margins at factory level had not been eroded in the same fashion as drug retailers and pharmacists. Aspen's earnings climbed as the company secured the majority share of a R3 billion contract to supply generic AIDS drugs to the state. The company also won clearance to produce more generic drugs and increased volumes to cut costs. Aspen acquired Fine Chemicals Corporation and tied up with the Indian-based Matrix Laboratories to secure supplies of active ingredients for making medicines. Aspen's shares have risen every year since its initial listing on the JSE in 1998.
Chain pharmacies begin to take control of sales
The government’s pricing regulations severely impacted the retail distribution of OTC medication. The chemists/pharmacies channel, which is almost entirely dependent on the profit made from pharmaceutical sales, was losing share of the OTC healthcare industry to grocery outlets, which was not as heavily impacted by the pricing controls. As a result, many chemists/pharmacies had to close throughout South Africa and there is a definite trend towards large chained chemists/pharmacies, such as New Clicks, South Africa’s largest pharmacy chain. Other retailers such as Shoprite and Pick ‘n Pay are quickly following in New Click’s path by opening chained pharmacy outlets, further pressuring smaller neighbourhood pharmacies. Pick ‘n Pay entered with its Healthpharm franchise operation, and Shoprite with its company-owned Medi-rite stores.
NRT smoking cessation aids loses some momentum
Sales of NRT smoking cessation aids lost tremendous momentum year-on-year, dropping from double digit to on or below inflationary growth in 2005. Growth is also expected to continue falling rapidly in the forecast period. This declining growth trend was due to many factors not least of which were the pricing controls introduced by the government. This put a cap on the range which had previously been one of high value. The discontinuation of NRT inhalators, was also a factor. This range had experienced extremely strong growth in the past and had boosted overall industry growth rates. There was also the introduction of prescription drugs, such as Zyban, which were considered to be highly effective, causing customers to switch from OTC NRT smoking cessation aids.
Vitamins and dietary supplements experience growth
Vitamins and dietary supplements experienced strong growth in 2005. This was due to an increase in affluence and disposable income across all demographic groups which were more focused on healthier lifestyles as the products which helped fulfil this criterion became more affordable. Private medical insurance also started to provide discounts on vitamins, which further stimulated spending in vitamins and dietary supplements. Dietary supplements are also increasingly becoming part of the daily diet and health regimes for some consumers during the review period, ensuring the intake of essential nutrients in treating or preventing health problems. This was boosted by increase confidence in self-medication among consumers, especially concerning natural alternatives.
Tonics and bottled nutritive drinks, despite only representing a small value share of vitamins and dietary supplements, continued to show double digit growth in 2005.
Calming and sleeping products expected to be the highest-growing range in the forecast period
Although relatively small in terms of sales, calming and sleeping products is expected to see the highest growth in the forecast period. As the distribution of this range increases, consumers will come to rely more heavily on products within this range to cope with the stress of modern living and the assurance of a peaceful night’s sleep. Calming and sleeping products is threatened by natural alternatives for those who prefer to use products which they consider to be less harmful and addictive.
Table of contents
OTC HEALTHCARE IN SOUTH AFRICA : 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
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
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
Table 9 Penetration of Private Label by Sector 2001-2005
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 - SOUTH AFRICA
ADCOCK INGRAM LTD - OTC HEALTHCARE - SOUTH AFRICA
INDUSTRY LEADER IN SOUTH AFRICAN OTC PHARMACEAUTICALS
GENERIC BUSINESS OF PRIME IMPORTANCE TO ADCOCK INGRAM
ADCOCK INGRAM ACQUIRES 74% OF THE SCIENTIFIC GROUP
ADCOCK ACQUISITION OF DONMED GIVEN THE GO-AHEAD
ADCOCK INGRAM SECURES MCC ACCREDITATION FOR RESEARCH AND DEVELOPMENT FACILITY
Summary 1 Summary - Adcock Ingram: Operational Indicators 2004
ASPEN PHARMACARE (PTY) LTD - OTC HEALTHCARE - SOUTH AFRICA
ASPEN PHARMACARE THE LARGEST PHARMACEUTICAL COMPANY IN SOUTH AFRICA
ASPEN RECORDS BUMPER YEAR IN 2005
ASPEN CEMENTS ITS POSITION AS THE LARGEST GENERICS MANUFACTURER IN AFRICA
ASPEN PHARMACARE ACHIEVES SUCCESS IN ANTI-HIV PROGRAMME
ASPEN PHARMACARE CONTINUES TO SUPPORT BLACK EMPOWERMENT
ASPEN PHARMACARE'S DIVERSE PRODUCT PORTFOLIO
Summary 2 Summary - Aspen: Operational Indicators 2005
GLAXOSMITHKLINE SA (PTY) LTD - OTC HEALTHCARE - SOUTH AFRICA
WORLD-LEADING OTC CONSUMER HEALTHCARE PRODUCTS COMPANY
GLAXOSMITHKLINE HAS THE TOP-SELLING PRODUCTS IN SOUTH AFRICA
GSK GRANTS LICENSE TO CIPLA-MEDPRO IN SOUTH AFRICA FOR ANTI-RETROVIRALS
PFIZER INC - OTC HEALTHCARE - SOUTH AFRICA
COMPANY REVIEW
PFIZER’S DIFLUCAN PARTNERSHIP PROGRAMME (DPP) BOOSTED BY PARTNERSHIP
PFIZER RECALLS BEXTRA
ANALGESICS IN SOUTH AFRICA
SECTOR PERFORMANCE
2005 headlines
Analgesics continues strong growth
Adult analgesics
Child-specific analgesics
Topical analgesics/anaesthetic
Forecast performance
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
Table 16 Forecast Sales of Analgesics by Subsector: Value 2005-2010
Table 17 Forecast Sales of Analgesics by Subsector: % Value Growth 2005-2010
ANALGESICS BY HERBAL/STANDARD SPLIT
Table 18 Herbal vs Standard Topical Analgesics 2000/2005
COUGH, COLD AND ALLERGY (HAY FEVER) REMEDIES IN SOUTH AFRICA
SECTOR PERFORMANCE
2005 headlines
Good overall performance
Medicated confectionery enjoys high growth in 2005
Allergy care also enjoys strong growth
Cough remedies still the most in demand
Product innovation by leading manufacturers
Forecast performance
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 3 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
Oral decongestants drive sales
Salt water sprays become popular alternatives
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
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 SOUTH AFRICA
SECTOR PERFORMANCE
2005 headlines
Moderate sales continue
Laxatives lead the way
Indigestion and heartburn remedies display double digit growth
Diarrhoeal remedies continues to perform well
Product innovation in diarrhoeal remedies
Forecast performance
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 4 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
Table 36 Herbal vs Standard Digestive Remedies 2000/2005
OTHER INDIGESTION AND HEARTBURN REMEDIES PERFORMANCE
Other digestive and heartburn remedies experiences enormous growth
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 SOUTH AFRICA
SECTOR PERFORMANCE
2005 headlines
Industry maintains good growth rate
Antiparasitics/lice (head and body) treatments displays the strongest growth
Topical antifungals maintains high retail value and growth
Growth of hair loss products slows down
Boots maintains its lead in this fragmented industry
Medicated shampoos expected to grow slowest
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 5 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
Table 45 Herbal vs Standard Medicated Skin Care 2000/2005
ACNE TREATMENTS BRAND SHARES
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 SOUTH AFRICA
SECTOR PERFORMANCE
2005 headlines
Vitamins and dietary supplements experiences growth across the board
Vital Health Foods and Pharma Natura continue to lead
Tonics and bottled nutritive drinks grow at an impressive rate in 2005
Innovation in child-specific vitamins and dietary supplements stimulates growth
Stable growth for vitamins & dietary supplements expected
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 6 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
Consumers continue to prefer multivitamins
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
Consumers rely on dietary supplements
Performance-enhancing dietary supplements boost overall growth
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
NRT SMOKING CESSATION AIDS IN SOUTH AFRICA
NUMBER OF SMOKERS
Table 60
SECTOR PERFORMANCE
2005 headlines
Sales of NRT smoking cessation aids grow at inflationary level
Sales of NRT gum comprise the majority of sales of NRT smoking cessation aids
Pharmacia continues to lead with its Nicorette brand
Growth of NRT smoking cessation aids stunted by introduction of higher schedule drugs
Discontinuation of NRT inhalators impacts industry
Poor performance expected in NRT smoking cessation aids in the forecast period
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 SOUTH AFRICA
SECTOR PERFORMANCE
2005 headlines
Standard and allergy eye care share industry
Eye care industry highly fragmented
Forecast figures look set to improve
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 SOUTH AFRICA
SECTOR PERFORMANCE
ADULT MOUTHCARE IN SOUTH AFRICA
SECTOR PERFORMANCE
CALMING AND SLEEPING PRODUCTS IN SOUTH AFRICA
SECTOR PERFORMANCE
WOUND TREATMENTS IN SOUTH AFRICA
SECTOR PERFORMANCE
2005 headlines
Wound treatments maintain solid growth
Innovations continue to spur growth
Elastoplast maintains its lead, althouh private label growing steadily
Wound treatments expected to continue growing strongly in the forecast period
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
Summary 7 Summary - Wound Treatments: New Product Launches 2004-2005
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 SOUTH AFRICA
SECTOR PERFORMANCE