OTC Healthcare in the Czech Republic
Euromonitor International's OTC Healthcare in the Czech Republic 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: 104 | Publication date: Nov 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
Impact of global financial crisis on the economy
The Czech economy performed well in 2008, continuing the positive trend of past several years. GDP grew faster than the EU average, which helped the Czech Republic affirm its international economic position. In the last quarter of 2008, however, signs of the global crisis showed and started to affect business. The last three months of the year proved to be the most difficult with 70% of companies reporting that they have noticed the effect of the global economic and financial crisis. Banks tightened rules for giving loans and companies lost some orders and thus had to implement cost-cutting measures such as reduced production output, decrease of salaries or downsizing. It is anticipated that the economy will slow down and the global economic crisis will affect its development throughout 2009 and in 2010. As healthcare products are indispensable at all times, the OTC healthcare market will only see a limited negative effect. Sales of OTC healthcare in the premium price range and products such as slimming aims, smoking cessation aids, sports and other nutrition may be less dynamic during the crisis. Sales in the other categories of OTC healthcare, i.e. products which can replace prescription drugs or target common illnesses such as cold, flu or digestive problems, are expected to continue their steady and strong growth.
Mandatory fees yield some positive changes
The OTC healthcare market received a major boost thanks to new legislation introduced in January 2008. The law introduced mandatory fees for a physician’s visit as well as a fee for obtaining a prescription. This system gave patients a new reason to not visit a physician and opt for self-medication instead. As a result, OTC healthcare became a convenient alternative, offering both time and financial savings. The scheme has proved successful from another point of view as well. The collected fees and amounts saved on prescription reimbursements have yielded substantially higher budgets for insurance companies which can be used, for example, for expensive treatments of serious health conditions that otherwise are delayed as funds must be raised. Additionally, a lower number of doctor visits have allowed physicians to dedicate more time to individual patients and provide better quality care. Unfortunately, there has been a strong negative reaction by the public as well as several political parties. The fiercest debates were about mandatory fees for children and seniors which are perceived as unreasonable. The legislation is going to be amended for this reason but otherwise it is expected the system will remain in place and effective.
OTC healthcare market continues dynamic growth
In 2008, the OTC healthcare market continued the dynamic growth recorded in previous years. Sales increased by 7% in current value terms. OTC healthcare is becoming ever more popular as it meets all the key criteria consumers currently seek. The key factor is undoubtedly convenience and OTC healthcare products offer exactly that. Consumers have easy access to the products nationwide thanks to an extensive distribution network including all pharmacies and other sales channels such as drugstores and grocery stores. Pharmacies lead sales because consumers can ask staff for advice and help with finding the right remedy instead of consulting their doctor. Price is an omnipresent aspect influencing consumer choices and since patients must now pay at least CZK60 for prescription drugs, OTC healthcare has gained a competitive edge and is perceived as more affordable. In addition, disposable incomes have been rising in recent years and consumers were not only able to buy standard OTC medication but also premium OTC healthcare products and even remedies that are substantially more expensive than prescription drugs.
Domestic manufacturers dominate market
There are not many markets where Czech companies are the leading players with a significant share. The OTC healthcare market, however, is dominated by three local companies which together hold nearly 30% of the entire market. These major players are Zentiva, Walmark and Ivax Pharmaceuticals. They benefit from well established brands that customers know and trust, lower prices thanks to production plants located in the Czech Republic and very wide product portfolios in both OTC healthcare and nutritionals. All three corporations posted good results in 2008 and enjoy a positive outlook going forward. Sales of OTC healthcare products are growing at a dynamic pace, progressively taking share from prescription drugs and gaining popularity among consumers of all ages and income groups.
Changing lifestyles drive demand for OTC healthcare
The OTC healthcare market is affected strongly by lifestyle trends. Continuous dynamic growth of the market can currently be attributed to two major changes observed among Czech consumers. One of them is a more responsible approach to personal health, placing importance on physical and mental fitness and also prevention. This reflects in a healthier diet with higher intake of vitamins and minerals, physical activity and relaxation, preference for herbal and natural remedies over prescription drugs as well as taking precautions instead of waiting for symptoms and ensuing treatment. At the same time, the fast pace of life, unhealthy working conditions but also demand for convenience and comfort cause what could be called the “side effects” of modern living. These include the often-discussed stress which brings on depression, sleeping disorder, weight fluctuation, digestive problems, skin problems, hair loss etc. Environmental damage causes allergies, rashes and generally weakens the immune system. The prolonged use of computers, watching TV and driving cause eye irritation or headaches. These are just a few examples of the many ailments which became common and widespread. OTC healthcare offers solutions and treatments for conditions arising from both these trends and the products are therefore practically guaranteed robust growth and an increasing number of consumers. Unlike other markets, healthcare products will never face a shortage of customers.
Positive outlook for forecast period
Over the forecast period, OTC healthcare is predicted to post consistent strong growth across all categories. Overall sales are expected to grow at a healthy compound annual growth rate (CAGR) of 3%. Demand for OTC medication is expected to become stronger as this market is relatively new and Czech people have by no means yet discovered its full potential. It is anticipated that domestic manufacturers will retain their leading positions, but the market will become more competitive thanks to the expanding product portfolios of multinational companies and new market entrants. Several categories of OTC healthcare are currently niches with strong potential to become mainstream in terms of value sales and market share. The positive development is set to be mostly driven by a wider selection of products than prescription drugs. At the same time, the prices of OTC healthcare products will equal the prices of prescription drugs firstly because insurance companies continually lower their subsidises and secondly, the increasingly competitive OTC healthcare market will motivate manufacturers to lower prices.
Table of contents
OTC HEALTHCARE IN THE CZECH REPUBLIC : MARKET INSIGHT
EXECUTIVE SUMMARY
Impact of global financial crisis on the economy
Mandatory fees yield some positive changes
OTC healthcare market continues dynamic growth
Domestic manufacturers dominate market
Changing lifestyles drive demand for OTC healthcare
Positive outlook for forecast period
KEY TRENDS AND DEVELOPMENTS
Mandatory fees boost sales of OTC healthcare products
Fast-paced lifestyle increases demand for OTC healthcare products
Strong growth of child-specific OTC healthcare products
Pharmacies become an interesting specialised store
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 Penetration of Private Label by Sector 2003-2008
Table 8 Sales of OTC Healthcare by Distribution Format: % Analysis 2003-2008
Table 9 Sales of OTC Healthcare by Sector and Distribution Format: % Analysis 2008
Table 10 Forecast Sales of OTC Healthcare by Sector: Value 2008-2013
Table 11 Forecast Sales of OTC Healthcare by Sector: % Value Growth 2008-2013
APPENDIX
OTC Registration and Classification
Vitamins and Dietary Supplements Registration and Classification
Generics
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - CZECH REPUBLIC
HERBACOS BOFARMA SRO - OTC HEALTHCARE - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Herbacos Bofarma sro: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 3 Herbacos Bofarma sro: Competitive Position 2008
VITAR SRO - OTC HEALTHCARE - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Vitar sro: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 Vitar sro: Competitive Position 2008
WALMARK AS - OTC HEALTHCARE - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Walmark as: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
ZENTIVA AS - OTC HEALTHCARE - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Zentiva as: Key Facts
Summary 8 Zentiva as: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
ANALGESICS IN THE CZECH REPUBLIC
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 12 Sales of Analgesics by Subsector: Value 2003-2008
Table 13 Sales of Analgesics by Subsector: % Value Growth 2003-2008
Table 14 Herbal vs Standard Topical Analgesics 2003-2008
Table 15 Topical Analgesics by Format: % Value Breakdown 2004-2008
Table 16 Analgesics Company Shares by Value 2004-2008
Table 17 Analgesics Brand Shares by Value 2005-2008
Table 18 Forecast Sales of Analgesics by Subsector: Value 2008-2013
Table 19 Forecast Sales of Analgesics by Subsector: % Value Growth 2008-2013
COUGH, COLD AND ALLERGY (HAY FEVER) REMEDIES IN THE CZECH REPUBLIC
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 20 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: Value 2003-2008
Table 21 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: % Value Growth 2003-2008
Table 22 Sales of Decongestants by Type: Value 2003-2008
Table 23 Sales of Decongestants by Type: % Value Growth 2003-2008
Table 24 Sales of Child-specific Cough, Cold and Allergy (Hay Fever) Remedies by Type: Value 2003-2008
Table 25 Sales of Child-specific Cough, Cold and Allergy (Hay Fever) Remedies by Type: % Value Growth 2003-2008
Table 26 Herbal vs Standard Cough, Cold and Allergy (Hay Fever) Remedies 2003-2008
Table 27 Cough, Cold and Allergy (Hay Fever) Remedies Company Shares by Value 2004-2008
Table 28 Cough, Cold and Allergy (Hay Fever) Remedies Brand Shares by Value 2005-2008
Table 29 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: Value 2008-2013
Table 30 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: % Value Growth 2008-2013
DIGESTIVE REMEDIES IN THE CZECH REPUBLIC
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 31 Sales of Digestive Remedies by Subsector: Value 2003-2008
Table 32 Sales of Digestive Remedies by Subsector: % Value Growth 2003-2008
Table 33 Herbal vs Standard Digestive Remedies 2003-2008
Table 34 Digestive Remedies Company Shares by Value 2004-2008
Table 35 Digestive Remedies Brand Shares by Value 2005-2008
Table 36 Forecast Sales of Digestive Remedies by Subsector: Value 2008-2013
Table 37 Forecast Sales of Digestive Remedies by Subsector: % Value Growth 2008-2013
MEDICATED SKIN CARE IN THE CZECH REPUBLIC
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 38 Sales of Medicated Skin Care by Subsector: Value 2003-2008
Table 39 Sales of Medicated Skin Care by Subsector: % Value Growth 2003-2008
Table 40 Herbal vs Standard Medicated Skin Care 2003-2008
Table 41 Acne Treatments by Format: % Value Breakdown 2004-2008
Table 42 Medicated Skin Care Company Shares by Value 2004-2008
Table 43 Medicated Skin Care Brand Shares by Value 2005-2008
Table 44 Acne Treatments Brand Shares by Value 2005-2008
Table 45 Hair Loss Treatments Brand Shares by Value 2005-2008
Table 46 Forecast Sales of Medicated Skin Care by Subsector: Value 2008-2013
Table 47 Forecast Sales of Medicated Skin Care by Subsector: % Value Growth 2008-2013
VITAMINS AND DIETARY SUPPLEMENTS IN THE CZECH REPUBLIC
HEADLINES
TRENDS - VITAMINS
TRENDS – DIETARY SUPPLEMENTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
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 THE CZECH REPUBLIC
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
SWITCHES
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 THE CZECH REPUBLIC
TRENDS
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 THE CZECH REPUBLIC
TRENDS
SECTOR DATA
Table 73 Sales of Ear Care: Value 2003-2008
Table 74 Sales of Ear Care: % Value Growth 2003-2008
Table 75 Ear Care Company Shares by Value 2004-2008
Table 76 Ear Care Brand Shares by Value 2005-2008
Table 77 Forecast Sales of Ear Care: Value 2008-2013
Table 78 Forecast Sales of Ear Care: % Value Growth 2008-2013
ADULT MOUTH CARE IN THE CZECH REPUBLIC
TRENDS
SECTOR DATA
Table 79 Sales of Adult Mouth Care: Value 2003-2008
Table 80 Sales of Adult Mouth Care: % Value Growth 2003-2008
Table 81 Adult Mouth Care Company Shares by Value 2004-2008
Table 82 Adult Mouth Care Brand Shares by Value 2005-2008
Table 83 Forecast Sales of Adult Mouth Care: Value 2008-2013
Table 84 Forecast Sales of Adult Mouth Care: % Value Growth 2008-2013
CALMING AND SLEEPING PRODUCTS IN THE CZECH REPUBLIC
TRENDS
SECTOR DATA
Table 85 Sales of Calming and Sleeping Products: Value 2003-2008
Table 86 Sales of Calming and Sleeping Products: % Value Growth 2003-2008
Table 87 Calming and Sleeping Products Company Shares by Value 2004-2008
Table 88 Calming and Sleeping Products Brand Shares by Value 2005-2008
Table 89 Forecast Sales of Calming and Sleeping Products: Value 2008-2013
Table 90 Forecast Sales of Calming and Sleeping Products: % Value Growth 2008-2013
WOUND TREATMENTS IN THE CZECH REPUBLIC
TRENDS
SECTOR DATA
Table 91 Sales of Wound Treatments by Subsector: Value 2003-2008
Table 92 Sales of Wound Treatments by Subsector: % Value Growth 2003-2008
Table 93 Wound Treatments Company Shares by Value 2004-2008
Table 94 Wound Treatments Brand Shares by Value 2005-2008
Table 95 Forecast Sales of Wound Treatments by Subsector: Value 2008-2013
Table 96 Forecast Sales of Wound Treatments by Subsector: % Value Growth 2008-2013
EMERGENCY CONTRACEPTION IN THE CZECH REPUBLIC
TRENDS