OTC Healthcare in South Korea
Euromonitor International's OTC Healthcare in South Korea 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: 111 | Publication date: May 2009
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 mouth care; 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; OTC triptans; Vitamins and dietary supplements; Wound treatments
Executive summary
Continued slowdown in 2008
Sales growth in the OTC healthcare market slowed in 2008, which was constrained by the increasing maturity of some product categories, and the lower performance of vitamins. After it was reported that most drinking vitamin C products contained excessive benzene, sales of all drinking vitamin C products were seriously affected, leading to negative current value sales growth from 2005 and it started recovering since 2007 but the growth rate has been marginal. Although the government is trying to change the regulations to convert some OTC healthcare products to quasi-drugs, the slowdown of growth in the OTC healthcare market is expected to continue during the forecast period.
More OTC products are expected to switch to quasi-drugs
The conversion of some OTC healthcare products to quasi-drugs, especially for digestive remedies and products for intestinal disorders, was expected to be completed in December 2008 but with the strong opposition from the association of pharmacists group, it has been delayed. The Ministry of Health, Welfare and Family Affairs has set out a detailed roadmap for switching OTC healthcare products to quasi-drugs, and started to prepare for the revision in May 2008. In June 2008, the Ministry released plans to finalise the basic data collection for the conversion of OTC healthcare products to quasi-drugs, and organised the category configuration committee, with the participation of civic groups and medical industry representatives to select the items. The government’s movement of switching OTC healthcare products to quasi-drugs was disclosed to the public in early 2008, and if its plans are realised, then the OTC healthcare market will be affected in a positive way. However, the continued slowdown is not expected to be seized with the strong preference to consult doctors for Korean consumers.
Fast growth of the Rx market hinders growth of OTC healthcare
Rapid sales growth of Rx products continued to hinder the growth of most OTC healthcare categories, and this trend has continued since 2006. After medical reform in 2000, pharmaceutical companies focused more on the Rx market, strengthening their marketing activities amongst hospitals and doctors. At the same time, the OTC market has become less attractive for pharmaceutical companies, due to significant marketing costs and stagnant consumer demand. As a result, there were fewer new product launches in OTC healthcare, and consumer marketing activities were limited to some leading brands. Moreover, local consumers increasingly preferred to consult a doctor, even for minor ailments for re-imbursement from insurance, and consumer confidence in terms of self-medication became even lower.
Active movement in new product developments and the acquisition of patents
As the competition between manufacturers became increasingly fierce during the review period, the main concern of manufacturers in the OTC healthcare market has become the development of new products and promoting their brands. International venture capital such as Novartis Venture Fund started to invest in South Korean pharmaceutical companies from October 2008, so the mood for new product development and research and development activity is very active. In 2007, Korea developed 15 types of new drugs, and it is estimated to rank 14th in the patent technology field.
Product margins for pharmacists affect sales of OTC products
One of the negative features prevailing in the South Korean OTC healthcare market is that the margins given to chemists/pharmacies affect sales of OTC healthcare products. This should be eliminated in near future; however, the practice has affected pharmacists’ recommendations of products to customers. Pharmacists have a tendency to recommend products which provide them with higher margins, so that regardless of the quality and the function of the products, high margin products are often recommended to customers. Customers want to purchase effective products, but pharmacists tend to recommend high margin products for their own gain.
Table of contents
OTC HEALTHCARE IN SOUTH KOREA : MARKET INSIGHT
EXECUTIVE SUMMARY
Continued slowdown in 2008
More OTC products are expected to switch to quasi-drugs
Fast growth of the Rx market hinders growth of OTC healthcare
Active movement in new product developments and the acquisition of patents
Product margins for pharmacists affect sales of OTC products
KEY TRENDS AND DEVELOPMENTS
Manufacturers’ efforts in research and the acquisition of patents
Economy slowdown affects OTC healthcare in Korea
More OTC healthcare products are expected to switch to quasi-drugs
Distribution channels are more diverse during the review period
Suppliers appease pharmacists with high margins
MARKET INDICATORS
Table 1 Consumer Expenditure on Health Goods and Medical Services 2003-2008
Table 2 Life Expectancy at Birth 2003-2008
MARKET DATA
Table 3 Sales of OTC Healthcare by Sector: Value 2003-2008
Table 4 Sales of OTC Healthcare by Sector: % Value Growth 2003-2008
Table 5 OTC Healthcare Company Shares by Value 2004-2008
Table 6 OTC Healthcare Brand Shares by Value 2005-2008
Table 7 Sales of OTC Healthcare by Distribution Format: % Analysis 2003-2008
Table 8 Sales of OTC Healthcare by Sector and Distribution Format: % Analysis 2008
Table 9 Forecast Sales of OTC Healthcare by Sector: Value 2008-2013
Table 10 Forecast Sales of OTC Healthcare by Sector: % Value Growth 2008-2013
APPENDIX
OTC Registration and Classification
Vitamins & Dietary Supplements Registration and Classification
Self-medication and Preventative Medicine
Generics
Switches
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - SOUTH KOREA
DAEWOONG PHARMACEUTICAL CO LTD - OTC HEALTHCARE - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Daewoong Pharmaceutical Co Ltd: Key Facts
Summary 3 Daewoong Pharmaceutical Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 4 Daewoong Pharmaceutical Co Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 5 Daewoong Pharmaceutical Co Ltd: Competitive Position 2008
DONG WHA PHARMACEUTICAL INDUSTRIAL CO LTD - OTC HEALTHCARE - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Dong Wha Pharmaceutical Industrial Co Ltd: Key Facts
Summary 7 Dong Wha Pharmaceutical Industrial Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 8 Dong Wha Pharmaceutical Industrial Co Ltd: Production Statistics
COMPETITIVE POSITIONING
Summary 9 Dong Wha Pharmaceutical Industrial Co Ltd: Competitive Position 2008
DONG-A PHARMACEUTICAL CO LTD - OTC HEALTHCARE - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Dong-A Pharmaceutical Co Ltd: Key Facts
Summary 11 Dong-A Pharmaceutical Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 12 Dong-A Pharmaceutical Co Ltd: Production Statistics
COMPETITIVE POSITIONING
Summary 13 Dong-A Pharmaceutical Co Ltd: Competitive Position 2008
KWANG DONG PHARM CO LTD - OTC HEALTHCARE - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Kwang Dong Pharm Co Ltd: Key Facts
Summary 15 Kwang Dong Pharm Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 16 Kwang Dong Pharm Co Ltd: Production Statistics 2008
COMPETITIVE POSITIONING
Summary 17 Kwang Dong Pharm Co Ltd: Competitive Position 2008
SK CHEMICALS CO LTD - OTC HEALTHCARE - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 18 SK Chemicals Co Ltd: Key Facts
Summary 19 SK Chemicals Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 20 SK Chemicals Co Ltd: Production Statistics
COMPETITIVE POSITIONING
Summary 21 SK Chemical Co Ltd: Competitive Position 2008
ANALGESICS IN SOUTH KOREA
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 11 Sales of Analgesics by Subsector: Value 2003-2008
Table 12 Sales of Analgesics by Subsector: % Value Growth 2003-2008
Table 13 Herbal vs Standard Topical Analgesics 2003-2008
Table 14 Topical Analgesics by Format: % Value Breakdown 2004-2008
Table 15 Analgesics Company Shares by Value 2004-2008
Table 16 Analgesics Brand Shares by Value 2005-2008
Table 17 Forecast Sales of Analgesics by Subsector: Value 2008-2013
Table 18 Forecast Sales of Analgesics by Subsector: % Value Growth 2008-2013
COUGH, COLD AND ALLERGY (HAY FEVER) REMEDIES IN SOUTH KOREA
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 19 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: Value 2003-2008
Table 20 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: % Value Growth 2003-2008
Table 21 Sales of Decongestants by Type: Value 2003-2008
Table 22 Sales of Decongestants by Type: % Value Growth 2003-2008
Table 23 Sales of Child-specific Cough, Cold and Allergy (Hay Fever) Remedies by Type: Value 2003-2008
Table 24 Sales of Child-specific Cough, Cold and Allergy (Hay Fever) Remedies by Type: % Value Growth 2003-2008
Table 25 Herbal vs Standard Cough, Cold and Allergy (Hay Fever) Remedies 2003-2008
Table 26 Cough, Cold and Allergy (Hay Fever) Remedies Company Shares by Value 2004-2008
Table 27 Cough, Cold and Allergy (Hay Fever) Remedies Brand Shares by Value 2005-2008
Table 28 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: Value 2008-2013
Table 29 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: % Value Growth 2008-2013
DIGESTIVE REMEDIES IN SOUTH KOREA
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 30 Sales of Digestive Remedies by Subsector: Value 2003-2008
Table 31 Sales of Digestive Remedies by Subsector: % Value Growth 2003-2008
Table 32 Herbal vs Standard Digestive Remedies 2003-2008
Table 33 Digestive Remedies Company Shares by Value 2004-2008
Table 34 Digestive Remedies Brand Shares by Value 2005-2008
Table 35 Forecast Sales of Digestive Remedies by Subsector: Value 2008-2013
Table 36 Forecast Sales of Digestive Remedies by Subsector: % Value Growth 2008-2013
MEDICATED SKIN CARE IN SOUTH KOREA
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 37 Sales of Medicated Skin Care by Subsector: Value 2003-2008
Table 38 Sales of Medicated Skin Care by Subsector: % Value Growth 2003-2008
Table 39 Herbal vs Standard Medicated Skin Care 2003-2008
Table 40 Acne Treatments by Format: % Value Breakdown 2004-2008
Table 41 Medicated Skin Care Company Shares by Value 2004-2008
Table 42 Medicated Skin Care Brand Shares by Value 2005-2008
Table 43 Acne Treatments Brand Shares by Value 2005-2008
Table 44 Hair Loss Treatments Brand Shares by Value 2005-2008
Table 45 Forecast Sales of Medicated Skin Care by Subsector: Value 2008-2013
Table 46 Forecast Sales of Medicated Skin Care by Subsector: % Value Growth 2008-2013
VITAMINS AND DIETARY SUPPLEMENTS IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 47 Dietary Supplements: Brand Ranking by Positioning 2008
Table 48 Sales of Vitamins and Dietary Supplements by Subsector: Value 2003-2008
Table 49 Sales of Vitamins and Dietary Supplements by Subsector: % Value Growth 2003-2008
Table 50 Folic Acid v Other B Vitamins 2004-2008
Table 51 Dietary Supplements by Positioning 2006-2008
Table 52 Vitamins and Dietary Supplements Company Shares by Value 2004-2008
Table 53 Vitamins and Dietary Supplements Brand Shares by Value 2005-2008
Table 54 Vitamins Brand Shares by Value 2005-2008
Table 55 Dietary Supplements Brand Shares by Value 2005-2008
Table 56 Forecast Sales of Vitamins and Dietary Supplements by Subsector: Value 2008-2013
Table 57 Forecast Sales of Vitamins and Dietary Supplements by Subsector: % Value Growth 2008-2013
NRT SMOKING CESSATION AIDS IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR INDICATORS
Table 58 Number of Smokers by Gender 2003-2008
SECTOR DATA
Table 59 Sales of Smoking Cessation Aids by Subsector: Value 2003-2008
Table 60 Sales of Smoking Cessation Aids by Subsector: % Value Growth 2003-2008
Table 61 NRT Gum Flavours: % Value Breakdown 2006-2008
Table 62 Smoking Cessation Aids Company Shares by Value 2004-2008
Table 63 Smoking Cessation Aids Brand Shares by Value 2005-2008
Table 64 Forecast Sales of Smoking Cessation Aids by Subsector: Value 2008-2013
Table 65 Forecast Sales of Smoking Cessation Aids by Subsector: % Value Growth 2008-2013
EYE CARE IN SOUTH KOREA
HEADLINES
SECTOR DATA
Table 66 Sales of Eye Care by Subsector: Value 2003-2008
Table 67 Sales of Eye Care by Subsector: % Value Growth 2003-2008
Table 68 Standard Eye Care by Type: % Value Breakdown 2007-2008
Table 69 Eye Care Company Shares by Value 2004-2008
Table 70 Eye Care Brand Shares by Value 2005-2008
Table 71 Forecast Sales of Eye Care by Subsector: Value 2008-2013
Table 72 Forecast Sales of Eye Care by Subsector: % Value Growth 2008-2013
EAR CARE IN SOUTH KOREA
HEADLINES
ADULT MOUTH CARE IN SOUTH KOREA
HEADLINES
SECTOR DATA
Table 73 Sales of Adult Mouth Care: Value 2003-2008
Table 74 Sales of Adult Mouth Care: % Value Growth 2003-2008
Table 75 Adult Mouth Care Company Shares by Value 2004-2008
Table 76 Adult Mouth Care Brand Shares by Value 2005-2008
Table 77 Forecast Sales of Adult Mouth Care: Value 2008-2013
Table 78 Forecast Sales of Adult Mouth Care: % Value Growth 2008-2013
CALMING AND SLEEPING PRODUCTS IN SOUTH KOREA
HEADLINES
SECTOR DATA
Table 79 Sales of Calming and Sleeping Products: Value 2003-2008
Table 80 Sales of Calming and Sleeping Products: % Value Growth 2003-2008
Table 81 Calming and Sleeping Products Company Shares by Value 2004-2008
Table 82 Calming and Sleeping Products Brand Shares by Value 2005-2008
Table 83 Forecast Sales of Calming and Sleeping Products: Value 2008-2013
Table 84 Forecast Sales of Calming and Sleeping Products: % Value Growth 2008-2013
WOUND TREATMENTS IN SOUTH KOREA
HEADLINES
SECTOR DATA
Table 85 Sales of Wound Treatments by Subsector: Value 2003-2008
Table 86 Sales of Wound Treatments by Subsector: % Value Growth 2003-2008
Table 87 Wound Treatments Company Shares by Value 2004-2008
Table 88 Wound Treatments Brand Shares by Value 2005-2008
Table 89 Forecast Sales of Wound Treatments by Subsector: Value 2008-2013
Table 90 Forecast Sales of Wound Treatments by Subsector: % Value Growth 2008-2013
EMERGENCY CONTRACEPTION IN SOUTH KOREA
HEADLINES