OTC Healthcare in the United Kingdom
Euromonitor International's OTC Healthcare in the United Kingdom 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: 113 | Publication date: Aug 2007
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; OTC triptans; Vitamins and dietary supplements; Wound treatments
Executive summary
Sales up in 2006
Value sales of OTC healthcare rose a further 3% in 2006, compared to 2% in 2005. Previous poor performance of cough, cold and allergy remedies began to turn around in 2006, despite being subject to the continued EDLP (every day low prices) strategies of leading multiple grocers. Following the abolition of retail price maintenance (RPM) in 2001, grocery multiples are continuing to reduce prices on a wide range of OTC products, but rising demand has offset this negative influence on value sales overall.
Key drivers of growth
Vitamins and dietary supplements, along with medicated skin care and child-specific products saw particularly high value gains in 2006. In each case, greater consumer awareness of issues concerning health and wellness supported sales. In dietary supplements, for example, media coverage espousing the virtues of fish oils helped stimulate demand. More dynamic growth was evident in less developed sectors, with OTC statins and emergency contraception seeing value growth of 38% and 13% respectively.
Consolidation continues
The OTC healthcare market is characterised by a distinct shift towards consolidation. By far the most significant development during the review period was the acquisition by Reckitt Benckiser of Boots Healthcare International, finalised in February 2006 in line with its strategic focus on its retail pharmacy business. This acquisition has given Reckitt Benckiser popular UK brands Optrex (eye care), E45 and Clearasil (both medicated skin care). In addition to this, in June 2006, Pfizer Inc announced its intention to sell its Consumer Healthcare division to Johnson & Johnson. The deal creates one of the world’s largest healthcare companies.
Legislation to accelerate reclassification of OTC status
Legislation has proved important in shaping sales across the OTC healthcare market. In May 2006 the government published its first Better Regulation of Over the Counter Medicines Initiative (BROMI) report. The recommendations aim to reduce time spent on administration and divert funds back into speeding up the reclassification process to enable more products to reach OTC status sooner.
Multiple grocers fight for OTC share
The major distribution trend in the OTC healthcare market during the review period was growth in sales through grocery outlets, which has brought chemists and pharmacies in line to face more direct and fierce competition. The increasing trend towards purchasing OTC via supermarkets was accelerated by the abolition of RPM, which meant that chains such Asda, Tesco and Sainsbury’s slashed the prices of key OTC brands, such as Nurofen, Lemsip and Rennie, and promoted multiple purchase offers. As a result, newly formed Alliance Boots lodged a complaint with the Medicines and Healthcare Products Regulatory Agency (MHRA) about Tesco’s multiple purchase offers on Resolve and Resolve Extra products. In response, the MHRA agreed with all major retailers to adhere to the spirit of the 1998 restrictions on pack sizes for analgesics.
Trouble ahead?
Over the forecast period the market for OTC products is predicted to continue to grow in value, at a CAGR of around 1%. Keener pricing, especially through major multiples, is likely to continue pressure on prices, especially in what are rapidly becoming the commodity sectors of cough, cold and allergy remedies, and analgesics. There could, however, be a bright future in terms of OTC obesity products, which have already been switched in the Australian market and, in the current climate of “fat Britain”, could well underpin more substantial growth in the market should they similarly move out of Rx status in the UK.
Table of contents
OTC HEALTHCARE IN THE UNITED KINGDOM : MARKET INSIGHT
EXECUTIVE SUMMARY
KEY TRENDS AND DEVELOPMENTS
Convenience Shoppers
Children
Ageing Population
Self care and self medication
MARKET INDICATORS
Table 1 Consumer Expenditure on Health Goods and Medical Services 2001-2006
Table 2 Life Expectancy at Birth 2001-2006
MARKET DATA
Table 3 Sales of OTC Healthcare by Sector: Value 2001-2006
Table 4 Sales of OTC Healthcare by Sector: % Value Growth 2001-2006
Table 5 OTC Healthcare Company Shares by Retail Value 2002-2006
Table 6 OTC Healthcare Brand Shares by Retail Value 2003-2006
Table 7 Penetration of Private Label by Sector 2002-2006
Table 8 Sales of OTC Healthcare by Distribution Format: % Analysis 2001/2006
Table 9 Sales of OTC Healthcare by Sector and Distribution Format: % Analysis 2006
Table 10 Forecast Sales of OTC Healthcare by Sector: Value 2006-2011
Table 11 Forecast Sales of OTC Healthcare by Sector: % Value Growth 2006-2011
APPENDIX
OTC Registration and Classification
Vitamins & Dietary Supplements Registration and Classification
Generics
Consumer Expenditure on Health Goods and Medical Services
Table 12 Consumer Expenditure on Health Goods and Medical Services 2001-2006
DEFINITIONS
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - UNITED KINGDOM
BAYER PLC - OTC HEALTHCARE - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Bayer Plc: Key Facts
Summary 3 Bayer Plc: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Bayer Plc: Competitive Position 2006
ERNEST JACKSON LTD - OTC HEALTHCARE - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Ernest Jackson Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 6 Ernest Jackson Ltd: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 7 Ernest Jackson Ltd: Competitive Position 2006
GLAXOSMITHKLINE PLC - OTC HEALTHCARE - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 8 GlaxoSmithKline Plc: Key Facts
Summary 9 GlaxoSmithKline Plc: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 GlaxoSmithKline: Competitive Position 2006
JOHNSON & JOHNSON MSD - OTC HEALTHCARE - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Johnson & Johnson MSD: Key Facts
Summary 12 Johnson & Johnson MSD: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 13 Johnson & Johnson MSD: Competitive Position 2006
NOVARTIS CONSUMER HEALTH UK LTD - OTC HEALTHCARE - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Novartis Consumer Health UK Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 15 Novartis Consumer Health UK Ltd: Competitive Position 2006
PROCTER & GAMBLE LTD - OTC HEALTHCARE - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 16 Procter & Gamble UK: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 17 Procter & Gamble UK: Competitive Position 2006
RECKITT BENCKISER PLC - OTC HEALTHCARE - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 18 Reckitt Benckiser UK Ltd: Key Facts
Summary 19 Reckitt Benckiser UK Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 20 Reckitt Benckiser Plc: Competitive Position 2006
SEVEN SEAS LTD - OTC HEALTHCARE - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 21 Seven Seas Ltd: Key Facts
Summary 22 Seven Seas Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 23 Seven Seas Ltd: Competitive Position 2006
SSL INTERNATIONAL PLC - OTC HEALTHCARE - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 24 SSL International Plc: Key Facts
Summary 25 SSL International Plc: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 26 SSL International Plc: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 27 SSL International Plc: Competitive Position 2006
WYETH CONSUMER HEALTHCARE LTD - OTC HEALTHCARE - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 28 Wyeth Consumer Healthcare: Key Facts
Summary 29 Wyeth Consumer Healthcare: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 30 Wyeth Consumer Healthcare: Production Statistics 2006
COMPETITIVE POSITIONING
Table 13 Summary4 Wyeth Consumer Healthcare: Competitive Position 2006
ANALGESICS IN THE UNITED KINGDOM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 14 Sales of Analgesics by Subsector: Value 2001-2006
Table 15 Sales of Analgesics by Subsector: % Value Growth 2001-2006
Table 16 Herbal vs Standard Topical Analgesics 2001/2006
Table 17 Analgesics Company Shares by Retail Value 2002-2006
Table 18 Analgesics Brand Shares by Retail Value 2003-2006
Table 19 Forecast Sales of Analgesics by Subsector: Value 2006-2011
Table 20 Forecast Sales of Analgesics by Subsector: % Value Growth 2006-2011
COUGH, COLD AND ALLERGY (HAY FEVER) REMEDIES IN THE UNITED KINGDOM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 21 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: Value 2001-2006
Table 22 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: % Value Growth 2001-2006
Table 23 Sales of Decongestants by Type: Value 2001-2006
Table 24 Sales of Decongestants by Type: % Value Growth 2001-2006
Table 25 Sales of Child-specific Cough, Cold and Allergy (Hay Fever) Remedies by Type: Value 2001-2006
Table 26 Sales of Child-specific Cough, Cold and Allergy (Hay Fever) Remedies by Type: % Value Growth 2001-2006
Table 27 Herbal vs Standard Cough, Cold and Allergy (Hay Fever) Remedies 2001/2006
Table 28 Cough, Cold and Allergy (Hay Fever) Remedies Company Shares by Retail Value 2002-2006
Table 29 Cough, Cold and Allergy (Hay Fever) Remedies Brand Shares by Retail Value 2003-2006
Table 30 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: Value 2006-2011
Table 31 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: % Value Growth 2006-2011
DIGESTIVE REMEDIES IN THE UNITED KINGDOM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 32 Sales of Digestive Remedies by Subsector: Value 2001-2006
Table 33 Sales of Digestive Remedies by Subsector: % Value Growth 2001-2006
Table 34 Herbal vs Standard Digestive Remedies 2001/2006
Table 35 Digestive Remedies Company Shares by Retail Value 2002-2006
Table 36 Digestive Remedies Brand Shares by Retail Value 2003-2006
Table 37 Forecast Sales of Digestive Remedies by Subsector: Value 2006-2011
Table 38 Forecast Sales of Digestive Remedies by Subsector: % Value Growth 2006-2011
MEDICATED SKIN CARE IN THE UNITED KINGDOM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 39 Sales of Medicated Skin Care by Subsector: Value 2001-2006
Table 40 Sales of Medicated Skin Care by Subsector: % Value Growth 2001-2006
Table 41 Herbal vs Standard Medicated Skin Care 2001/2006
Table 42 Medicated Skin Care Company Shares by Retail Value 2002-2006
Table 43 Medicated Skin Care Brand Shares by Retail Value 2003-2006
Table 44 Acne Treatments Brand Shares by Retail Value 2003-2006
Table 45 Hair Loss Treatments Brand Shares by Retail Value 2003-2006
Table 46 Forecast Sales of Medicated Skin Care by Subsector: Value 2006-2011
Table 47 Forecast Sales of Medicated Skin Care by Subsector: % Value Growth 2006-2011
VITAMINS AND DIETARY SUPPLEMENTS IN THE UNITED KINGDOM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 48 Sales of Vitamins and Dietary Supplements by Subsector: Value 2001-2006
Table 49 Sales of Vitamins and Dietary Supplements by Subsector: % Value Growth 2001-2006
Table 50 Sales of Vitamins by Type: Value 2001-2006
Table 51 Sales of Vitamins by Type: % Value Growth 2001-2006
Table 52 Vitamins and Dietary Supplements Company Shares by Retail Value 2002-2006
Table 53 Vitamins and Dietary Supplements Brand Shares by Retail Value 2003-2006
Table 54 Vitamins Brand Shares by Retail Value 2003-2006
Table 55 Sales of Dietary Supplements by Type: Value 2001-2006
Table 56 Sales of Dietary Supplements by Type: % Value Growth 2001-2006
Table 57 Dietary Supplements Brand Shares by Retail Value 2003-2006
Table 58 Forecast Sales of Vitamins and Dietary Supplements by Subsector: Value 2006-2011
Table 59 Forecast Sales of Vitamins and Dietary Supplements by Subsector: % Value Growth 2006-2011
NRT SMOKING CESSATION AIDS IN THE UNITED KINGDOM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR INDICATORS
Table 60 Number of Smokers by Gender 2001-2006
SECTOR DATA
Table 61 Sales of Smoking Cessation Aids by Subsector: Value 2001-2006
Table 62 Sales of Smoking Cessation Aids by Subsector: % Value Growth 2001-2006
Table 63 Smoking Cessation Aids Company Shares by Retail Value 2002-2006
Table 64 Smoking Cessation Aids Brand Shares by Retail Value 2003-2006
Table 65 Forecast Sales of Smoking Cessation Aids by Subsector: Value 2006-2011
Table 66 Forecast Sales of Smoking Cessation Aids by Subsector: % Value Growth 2006-2011
EAR CARE IN THE UNITED KINGDOM
OVERVIEW
ADULT MOUTHCARE IN THE UNITED KINGDOM
OVERVIEW
CALMING AND SLEEPING PRODUCTS IN THE UNITED KINGDOM
OVERVIEW
WOUND TREATMENTS IN THE UNITED KINGDOM
OVERVIEW
SECTOR DATA
Table 67 Sales of Wound Treatments by Subsector: Value 2001-2006
Table 68 Sales of Wound Treatments by Subsector: % Value Growth 2001-2006
Table 69 Wound Treatments Company Shares by Retail Value 2002-2006
Table 70 Wound Treatments Brand Shares by Retail Value 2003-2006
Table 71 Forecast Sales of Wound Treatments by Subsector: Value 2006-2011
Table 72 Forecast Sales of Wound Treatments by Subsector: % Value Growth 2006-2011
EMERGENCY CONTRACEPTION IN THE UNITED KINGDOM
OVERVIEW
SECTOR DATA
Table 73 Sales of Emergency Contraception by Subsector: Value 2001-2006
Table 74 Sales of Emergency Contraception by Subsector: % Value Growth 2001-2006
Table 75 Forecast Sales of Emergency Contraception by Subsector: Value 2006-2011
Table 76 Forecast Sales of Emergency Contraception by Subsector: % Value Growth 2006-2011
OTC STATINS IN THE UNITED KINGDOM
OVERVIEW
SECTOR DATA
Table 77 Sales of OTC Statins by Subsector: Value 2004-2006
Table 78 Sales of OTC Statins by Subsector: % Value Growth 2004-2006
Table 79 Forecast Sales of OTC Statins by Subsector: Value 2006-2011
Table 80 Forecast Sales of OTC Statins by Subsector: % Value Growth 2006-2011
OTC TRIPTANS IN THE UNITED KINGDOM
OVERVIEW
SECTOR DATA
Table 81 Sales of OTC Triptans by Subsector: Value 2006
Table 82 Forecast Sales of OTC Triptans by Subsector: Value 2006-2011
Table 83 Forecast Sales of OTC Triptans by Subsector: % Value Growth 2006-2011