Consumer Health in Malaysia

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Overview

Discover the latest market trends and uncover sources of future market growth for the Consumer Health industry in Malaysia with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Consumer Health industry in Malaysia, our research will save you time and money while empowering you to make informed, profitable decisions.

When you purchase this report, you also get the data and the content from these category reports in Malaysia for free:

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• Tourism Flows Domestic
• Tourism Flows Inbound
• Tourism Flows Outbound
• Tourist Attractions
• Transportation
• Travel Accommodation
• Trvel Retail
• Trvel Retail
• Trvel Retail
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The Consumer Health in Malaysia market research report includes:

• Analysis of key supply-side and demand trends
• Detailed segmentation of international and local products
• Historic volumes and values, company and brand market shares
• Five year forecasts of market trends and market growth  
• Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

• What is the market size of Consumer Health in Malaysia?
• What are the major brands in Malaysia?
• What are the main trends in OTC Healthcare?

Why buy this report?

• Gain competitive intelligence about market leaders
• Track key industry trends, opportunities and threats
• Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Consumer Health market research database.

Sample Analysis

EXECUTIVE SUMMARY

Consumer health maintains strong performance in 2010

In the midst of the economic recovery, consumer health posted another year of positive performance for 2010, even though at a slower pace than the year before. The economic recovery brought about a much needed renewed sense of optimism in the country. This meant Malaysians were working harder and longer than ever and self-medicating remained more popular than before. The H1N1 outbreak raised consumer health awareness as more consumers purchased products such as topical germicidals/antiseptics to keep themselves clean and vitamins and dietary supplements to keep themselves healthy.

Private label remained insignificant in consumer health

Private label was expected to post a strong performance during the recession, however it did not happen as Malaysians remained loyal to premium brands. Private label in sticking plasters/adhesive bandages, such as Guardian, were the best performing among the different product categories. Others such as analgesics and medicated skin care remained unpopular among Malaysians as they were deemed to be inferior in quality without a trusted brand name or company behind with consumers thus remaining sceptical of these products.

International manufacturers continue to dominate

The last year of the review period proved another good year for international manufacturers such as Amway, Herbalife and GlaxoSmithKline Consumer health took top spot in terms of value sales in consumer health care. Domestic manufacturer Cosway stood its ground against the large international players and managed to rank in fifth position. Direct selling remained hugely popular in Malaysia, with four out of the top six manufacturers in consumer health care being direct sellers.

Store-based retailing is the largest contributor to sales

Store-based retailing remained the largest contributor to consumer health product sales. One-stop retail stores such as Watsons and parapharmacies had been expanding their operations and launching new outlets all across Malaysia. The growth of direct sellers remained strong in 2010 and with their wide array of products and strong distribution networks they were achieving higher sales than ever. New direct selling companies marketed their products as environmentally-friendly products, such as Melaluca, which also rapidly gained in popularity.

Positive outlook for consumer health expected over the forecast period

A strong performance of consumer health is expected to continue over the forecast period albeit at a slower pace than 2010. Growth will be slowed by more mature categories such as adult mouth care and digestive remedies. Product categories such as vitamins and mineral supplements and weight management are expected to be the fastest growing in consumer health care as consumers are now more health and image conscious than ever. The rise in self-medication is also expected to increase as consumers will be educated and thus, more confident to self-medicate for minor ailments.

Influenza A (H1N1) raises health awareness among consumers

The World Health Organization officially declared the Influenza A (H1N1) to be officially in the post-pandemic period. This meant that people from all age groups in many countries have developed some immunity to the H1N1 virus and there were no signs of large and unusual breakouts in most countries. The invasion of the virus was relentless in 2009-2010 and many Malaysians caught off guard contracted the virus, usually transmitted via sneezing or coughing. Death toll from official sources was around 92 and reported cases to be around 14,000. Many of the victims were found to possess a weak immune system and therefore were more susceptible to the H1N1 virus.

Current Impact

Over the 2009-2010 period, the paranoia and fear of the virus were rampant prompting many Malaysians to turn to buying topical germicidals and antiseptics to keep themselves clean and vitamins and dietary supplements to build up their general health and immune systems. The government also constantly reminded Malaysians to remember to wash their hands often, cover their mouths when sneezing and coughing and to be mindful of their own personal hygiene at all times in an attempt to slow down the spread of the virus.

Vitamin C was the most popular choice among consumers in vitamins and dietary supplements as the product is known to help prevent colds and flu. This encouraged brands such as GNC and Appeton to rush into the category and launch new vitamin C products. The demand for vitamin C products led to a strong performance in the product in 2010. Multivitamins commonly used for general health also saw an increase in value sales in 2010 as consumers rushed in to purchase these products for general health wellbeing. In dietary supplements, sales of products known to build immunity and help combat cold and flu such as spirulina and echinacea also recorded strong growth in 2010.

In topical germicidals/antiseptics, players such as Dettol aggressively marketed their products through various media channels, in a bid to entice consumers to purchase their products to keep their families safe from harmful viruses in the air and on surfaces. Reckitt Benckiser’s Dettol benefiting from strong brand loyalty saw an increase in its value sales and value share due to the brand being synonymous with eradicating germs and bacteria. Consumers previously ignoring such products began purchasing them as the fear of H1N1 gripped the nation. Thus the value sales of topical germicidal/antiseptics resulted in a surge in value growth in 2010.

Outlook

Consumer health remains highly fragmented, especially in vitamins and dietary supplements. Therefore, it is important for manufacturers to undertake stronger and more intensive branding and marketing activities to raise brand awareness and build on their value share. Over the forecast period, manufacturers are expected to develop new products with better formulation to better boost the immune system and aid in the prevention of cold and flu and other viruses.

Government campaigns highlighting the importance of healthy lifestyles and maintaining good personal hygiene are also expected over the forecast period. It is possible that there will be instances of newer and potentially deadlier viruses appearing as a result of deteriorating environmental conditions, especially in Third World countries, and consumers will be relying on products such as vitamins and dietary supplements to boost their immune systems.

Future Impact

The rise in health and personal hygiene awareness of consumers due to the H1N1 virus motivated many Malaysians to start consuming and using OTC healthcare products and many will continue buying such products with the prevention is better than cure mentality. The globalisation of the world and general deterioration of the air quality and the surroundings provides a hospitable environment for new viruses to form and spread quickly. One good example will be the H1N1 and the NDM-1 “superbug” that spread around the world in 2009-2010.

Therefore, demand for consumer health products that prevent and cure such viruses will likely see positive growth over the forecast period as the number of new viruses and bugs continue to develop and spread. The increase in self-medication among Malaysians will also lead to growth of consumer health.

Private label remained insignificant due to brand loyalty

As the economy recovers and the unemployment rate fell in 2010, some Malaysians who had previously switched over to private label amidst the 2009 recession will be looking to switch back to premium brands. Brand loyalty remained strong in Malaysia with most consumers unwilling to switch to other brands easily as they were unsure if private label could be trusted or not.

Despite the lower pricing of private label, its demand remained low as consumers perceived private label as being lower in quality with lower levels of research and development lacking a strong company name behind the products. Retailer chains such as Guardian carry a wide range of private label products, ranging from decongestant rubs to plasters and although such products are much lower priced than premium brands, sales remained slow due to consumers being somewhat sceptical of private label.

Current Impact

Malaysians were more willing to go for private label in categories such as sticking plasters as the level of quality usually was not much lower than that of premium brands, such as Hansaplast and Elastoplast. The high price differential of private label compared to premium brands is another factor that led to the switch over. For example a pack of 50 Guardian branded water resistant plasters cost RM5.9 whereas a smaller 20 piece box of Hansaplast water resistant plaster costs RM3.2. As a result, consumers were very willing to switch over to private label in 2010 thus leading to increased sales of private label in sticking plasters.

The Influenza A (H1N1) prompted some private label to start selling products such as germicidal/antiseptic, to provide consumers with tight budgets with an alternative to more costly premium brands such as Dettol. Sales however, remained low as Malaysians were not prepared to take chances with private label as they were deemed to be of a lower quality in important areas such as personal hygiene and prevention against a potentially deadly virus. Private label in categories such as nappy (diaper) rash treatments, analgesics and cough, cold and allergy (hay fever) remedies also saw slow growth in 2010 as consumers turned to well-established brands to keep their loved ones healthy and germ free.

Outlook

Private label is expected to record the strongest growth in wound care as this category remains one of the few in which that consumers were more indifferent towards differences in private label, such as Guardian plasters and Hansaplast. Plasters from Guardian incorporated cute cartoon characters such as Doraemon on their packaging in a bid to attract parents to buy the product for their children at essentially lower prices for similar cartoon character designed plasters from premium brands Hansaplast and Elastoplast. Topical germicidal/antiseptic is another area that could see growth over the forecast period as consumers were more willing to use private label products for minor problems as they remained unconvinced about private label, especially those that are actually consumed.

Therefore, it is likely that private label sales will experience growth for categories such as wound care and medicated skin care and lesser growth for private label products in analgesics, cough, cold and allergy (hay fever) remedies or digestive remedies over the forecast period.

Future Impact

Self-medication will continue to rise as consumers will be increasingly aware of consumer health products and be more confident to use them. Private label usage will continue to grow and retailers such as Guardian and Watsons are likely to release a wider range of store brand products. Such private label has the advantage of a wide distribution channel through dozens of retail stores nationwide, freedom of pricing and freedom of shelf placement in stores. Private label such as Guardian can choose to display their store brand products on prominent shelves in the stores and price them so as to entice consumers to give them a try.

Consumer health has proven to be somewhat recession-proof with consumers demonstrating high levels of brand loyalty for the more well-established and trusted brands. An average consumer usually tries out a product and if he/she finds it suitable for their needs, they will usually stick with it over the long term. However, lower income families with a shoestring budget, might opt for private label products in categories such as medicated skin care.

Government ups its efforts to reduce the number of smokers

The number of smokers in Malaysia stands at around 4.1 million with males making up 96% of the smoker population and females 4% and the growing figures are not showing signs of slowing down. Even the success of the government’s anti-smoking campaigns remained somewhat unclear since they started several years ago. The government decision to ban 14-stick cigarette packs in 2010 in order to curb teenage smoking and hit smokers hard in the pocket was well received in Malaysia. The price increase of cigarettes from RM9.70 to RM10 was another step taken by the government to try and reduce the number of smokers in Malaysia.

Current Impact

The government’s decision to discourage smoking in Malaysia will have the greatest impact on NRT smoking cessation aids. Steps taken by the government include the “Anti-Smoking Quit Campaign” (Tak Nak), a rise in prices of cigarettes and the ban on 14-stick cigarette packs in Malaysia. The decision to ban smoking in work places and offices that are installed with central air-conditioning systems in the private sector was also warmly received by office managers. Even states such as Penang are considering turning the state into a “smoke free” state by allocating designated areas where people can smoke.

Smoking is most apparent in adult males with underage and teenage smokers also slowly picking up the bad habit. Often, the habit of smoking starts as a result of peer pressure with children being exposed to bad influences. Some smokers also have the illusion of smoking being cool and attractive to the opposite sex as it conveys a bad boy image, others claimed that the nicotine in cigarettes keeps them alert and energised.

Growth of such NRT smoking cessation aids had been relatively high ever since these products were introduced into Malaysia and the category posted 12% current value growth in 2010. NRT lozenges remained the most popular format with current value growth of 23% in 2010. NRT gum was the second most popular format in terms of current value growth in 2010 and it remained the largest format in NRT smoking cessation aids.

Outlook

Over the forecast period, the number of smokers will continue to rise as well as the demand for NRT smoking cessation aids. Curbing smoking through price increases and anti-smoking campaigns may be successful but the government will indirectly encourage another problem - the rise in demand for illicit contraband cigarettes. Estimates on contraband cigarettes’ presence are unknown but stand in the hundreds of millions. Unless the government is able to find ways to curb the growth of contraband cigarettes, its efforts to reduce the number of smokers in the country will continue to be in vain.

New product launches by the two main players in NRT smoking cessation aids over the forecast period, will take the form of new formats, new flavours for existing formats or new innovative products. The popularity of Nicorette’s Mini Lozenges in the US and Nicorette’s Icy White Gum in the UK could see those products launched in Malaysia.

Future Impact

The demand for NRT smoking cessation aids will largely depend on the success of the government’s measures to combat smoking since NRT smoking cessation aids are classified as Class C poisons and advertising is highly restricted to medical professionals or licensed pharmacists. Whether the government can find a way to resolve the vicious cycle of curbing smoking only to find consumers turning to alternative ways to continue smoking will remain to be seen. If unable to do so, its policies over the years will be self-defeating and in vain.

Thus, growth prospects in NRT smoking cessation aids will continue to be rosy whether helping smokers of premium brands to quit or smokers of contraband to quit. It will be a win-win situation for the two major players, Nicorette and Nicotinell.

Companies widen marketing efforts to include social networking websites

The growth in social networking websites such as Facebook, My Space and Twitter at the end of the review period was nothing short of phenomenal. Such websites provide a platform for keeping in touch with family and friends and the sharing of information. Facebook alone has around 500+ million users in the world, equivalent to 7% of the Earth’s population. Companies around the world including those in OTC healthcare have been making use of this amazing growth of social networking websites to their advantage and creating pages and groups on such websites to effectively advertise their products.

Current Impact

Companies in consumer health are starting to make use of social networking websites in order to advertise their products. Almost all the large international manufacturers created Facebook pages as a way to keep in touch with the customers, such as updating them about the latest product offerings, promotions and giveaways. Brands such as Oxy created a Facebook page to allow visitors to upload pictures of their happiest moments onto its photograph album. For domestic companies, however, the practice of advertising on social networking websites remained low.

The marketing of products on Facebook remained highly effective. One advantage of making use of Facebook and other social networking websites as marketing tools is that the service is totally free and relatively easy to set up and could potentially be viewed by millions of users over the internet.

Outlook

Over the forecast period, more businesses are expected to start creating Facebook pages or groups to communicate with their customers as more and more Malaysians own a Facebook account. Companies making use of Facebook as an advertising tool include Kordel’s, GlaxoSmithKline, GNC and Yu Yan Sang and many others are expected to follow suit. Domestic businesses should also see the importance of social networking websites advertising and follow their international counterparts and set up their own company profile pages.

Younger generation Malaysians now tend to spend much more time online compared to time spent in front of the TV. Thus, advertising on online via social networking websites will be a good way to get in touch with the younger generations. Older generations of Malaysians however, remained largely unaware of such online social networking websites. Traditional methods of marketing, such as television advertisements, newspaper advertisements and radio will remain effective on these types of consumers over the forecast period.

Future Impact

Over the forecast period, more companies are expected to advertise their products online via social networking websites such as Facebook, My Space or even Twitter for free instead of investing heavily in advertisements in other more traditional marketing channels. Websites, such as Facebook, also allow manufacturers to obtain feedback from customers about their products and gain invaluable first-hand information.

Manufacturers of products such as glucosamine and herbal/traditional products aimed at the elderly are expected to continue advertising through traditional media such as television as the older generation tends to spend much more time in front of the television and almost none on social networking websites. Products targeting younger consumers, however, such as acne treatments and other general OTC healthcare products, are being advertised on social networking websites, as exemplified currently by Oxy.

Ageing population remains a cause of worry for the nation

Malaysia as with many other countries is facing the worrying problem of an ageing population. Malaysians aged 65+ are expected to increase from 1.3 million in 2010 to 1.7 million in 2015. An ageing population can be seen as an achievement in government health policies and socioeconomic development. Nevertheless it does pose challenges for society to adapt, to ensure the health needs of older people are fulfilled, making sure their security is not undermined and ensuring they are not left behind by society.

The greatest worry of old age aged remained the likelihood of succumbing to chronic diseases, such as heart disease, strokes, cancer and problem bones including joint pains. Most baby boomers in Malaysia will most likely be retiring over the forecast period and these retirees will be the ones that manufacturers will target, by releasing a wide range of old age-related OTC healthcare products to suit their needs.

Current Impact

The growth trend for old age-related products will begin to be noticeable in consumer health. One popular product for old age, glucosamine experienced 6% current value growth in 2010. Glucosamine essentially is a product that is highly effective in relieving osteoarthritis pain, promoting healthy cartilage, increasing the production of synovial fluid, and repairing joints. At the end of the review period, brands such as 21st Century Products also released new and innovative products, including Vegesamine 500mg, a glucosamine derived from vegetable matter and not from shellfish. They were actively promoting the fact that vegetable derived glucosamine is far superior to shellfish-derived glucosamine in terms of safety, purity, efficacy, and potency.

Another product that has been doing well in consumer health in 2010 is co-enzyme Q10. This product helps the body with cell growth and protects the cells in the body from damage that could sometimes lead to one of the largest killers in Malaysia - cancer. Co-enzyme Q10 has been actively picked up by consumers, especially senior citizens in the country, as a supplement to help them keep cancer at bay. Thus the current value growth of co-enzyme Q10 was strong in 2010, posting 8% from the year before.

Calcium is another supplement that caters to the needs of an ageing population as it helps ward off problems such as osteoporosis. Calcium loss leading to brittle bones and teeth is a massive concern among the elderly. This category, despite being relatively mature, remained hugely popular in Malaysia, with current value growth of 7% recorded in calcium supplements. The leader in calcium supplements, Nutrilite made use of multi-level marketing and its wide distribution network to promote and market its products to the masses and it has been hugely successful.

Apart from vitamins and dietary supplements, growth in products such as analgesics, especially topical analgesics/anaesthetic, were also strong and can be partly attributed to the elderly buying herbal/traditional products such as Tiger Balm and Axe Brand Medicated Oil to relieve muscle aches and joint pains.

Outlook

Over the forecast period, manufacturers are expected to continue releasing products that cater to the needs of the elderly in Malaysia. The baby boomers in Malaysia will start retiring in large numbers over the forecast period. The incentive to enjoy their retirement in comfort and good health will encourage them into purchasing vitamins and dietary supplements to boost their general wellbeing.

Manufacturers should, over the forecast period, find ways to capture the brand loyalty of the elderly population in Malaysia. Brand loyalty remains strong especially among the elderly as most would rather stick to a brand with which they are familiar and which satisfies their needs. Product categories, such as vitamins and dietary supplements and analgesics, should continue to register strong performances over the forecast period as those are the products that the elderly commonly look for to boost their health and relieve aches and pains.

Future Impact

Product awareness of products such as co-enzyme Q10, with four key players taking up the majority of value share remained somewhat lows compared to products such as glucosamine. As such this is definitely an area in which manufacturers could consider releasing new products, but with improved formulation and added value. Manufacturers are likely to actively market this product to the elderly in Malaysia along the lines of prevention against cancer - the nation’s number one killer.

The outlook for calcium supplements meanwhile had taken a hit as studies by the University of Auckland, New Zealand on 12,000 patients have found that taking calcium supplements without co-administered vitamin D could increase chances of heart attacks by a staggering 30%. Overseas countries had already been slightly affected, with some consumers opting for other forms of calcium intake, such as from fruit, vegetables, milk and meat. Malaysia meanwhile, remains relatively unaffected by the research findings. However, more conclusive findings should be available in the forecast period and it could potentially decide the fate of calcium supplements.

Demand for products that help relieve aches and pains should also be high in the forecast period. Product categories such as topical analgesics/anaesthetic should also see an increase in sales. More new product variants and formats by leading and well-established players, such as Ameltz Yoko Yoko, Tiger Balm and Kwan Loong Medicated Oil, are expected as they will actively try to build on their value shares among the elderly in Malaysia.

MARKET INDICATORS

MARKET DATA

APPENDIX

OTC Registration and Classification

• All drugs in a pharmaceutical dosage form must be registered with The Drug Control Authority (DCA) prior to being manufactured, imported, sold or supplied. This encompasses pharmaceutical products that contain scheduled poisons as defined in the Poisons Act 1952; pharmaceutical products that do not contain scheduled poisons; traditional medicines; and homeopathic medicines. The Drug Control Authority requires all manufacturers, importers and wholesalers to register their products. Products have to meet strict evaluation standards in order to obtain a licence.

• In 2008, the Ministry of Health held preliminary investigations into the functions between doctors’ clinics and pharmacists in the dispensing of medicines. If the Ministry of Health approved this new system, it is expected to further strengthen chemists/pharmacies’ distribution share for consumer health in Malaysia. Hence, new openings of chemists/pharmacies throughout the country in the forecast period are expected. This is because it is crucial for chemists/pharmacies to be near clinics in order for medications prescribed by doctors to be dispensed to consumers. However, Malaysia is still facing a shortage of chemists/pharmacies in certain parts of the country. As a result, the separation of dispensing systems between doctors’ clinics and pharmacists had not been implemented up to 2009. Hence, this new system is expected to take a longer time to come into effect.

• The Malaysia pharmaceutical industry has the capability to produce almost all dosage forms, including sterile preparations, soft gelatin capsules, time-release medication and powders for reconstitution. The Malaysian Organisation of Pharmaceutical Industries reported that the Malaysian pharmaceutical industry can now produce almost 80% of the various categories in the Malaysian Essential Drugs List. Generic pharmaceuticals comprise about 35% or RM1.2 billion of the domestic pharmaceutical industry. Some of the major local generic pharmaceutical manufacturers include YSP Industries, Raza Pharmaceuticals and Pharmaniaga. Due to the economic downturn consumers are also switching to generic medicine, largely prescription drugs, to cut costs. Moreover, due to rising material costs, the prices of branded or patented drugs jumped 12% to 15% in 2008, while generic medicine increased from only 3% to 5%. In the midst of an economic slowdown, generic medicine was appealing to consumers, as it saved them the cost of buying branded medicine.

• In Malaysia, the advertising of pharmaceuticals and consumer health products is greatly restricted. All classes of pharmaceuticals can be advertised directly to consumers, except for A, B and C categories of scheduled poisons. Advertising and especially marketing within this group is geared towards doctors and pharmacies. Otherwise, advertising is permissible for the other products such as non-poison products. The advertisement of drugs in Malaysia is governed by the Medicine Advertisement Act. It requires that all advertisements on medicine and health products and services are to be registered with the Medicines and Advertisement Board and approved advertisements will have a Kemeterian Kesihatan Lembaga Iklan Ubat (KKLIU) approval number.

• Packaging for child-specific products in the shape or form of toys, cartoon characters or which are sold together with toys or gifts is not permissible. However, toys, cartoons and colourful pictures can be depicted on product packaging. Starting on 1 April 2004, the Drug Control Authority required all liquid cough mixtures fixed at a maximum of 120ml +/- 10ml pack size. This is pertinent to liquid cough preparations for both local consumption and exports. However, this new guideline is not applicable to traditional liquid medicine cough preparations and liquid cough preparations containing Pholcodeine.

• In Malaysia, all registered products for distribution and sale in Malaysia must carry the words “dilulus oleh Kemeterian Kesihatan” or “dilulus oleh KKM” on the immediate label. This is to help consumers identify which products are registered with Malaysia’s DCA. In addition, registration holders are also encouraged to print the DCA holographic logo on the label for easier identification. Since the US Food and Drug Administration (FDA) panel of advisers suggested that OTC cough and cold medicines should not be used for children younger than six years old in 2007 because they had not been proved to be effective and can be harmful to children, Malaysia’s DCA decided to limit the use of cough and cold products in children. It also made it compulsory that all prescription oral liquid preparations containing antihistamines, antitussives and decongestants must display warnings of “Not to be used for children under two years of age” and “To be used with caution and on doctor’s/pharmacist’s advice for children aged two to six” on both the labels and package inserts.

• In Malaysia, prescription medicines comprise patented and generic drugs, the sale and transaction of which are confined to doctors and registered pharmacists. On the other hand, OTC non-poisons and herbal/traditional products may be sold by non-professional outlets such as supermarkets, convenience stores, petrol forecourts and Chinese medical halls to the general public.

Vitamins and Dietary Supplements Registration and Classification

• In Malaysia, there is no special class grouping for vitamins and dietary supplements as they are regulated as non-poison OTC, or in some cases as traditional medicines, depending on their indications for use. Hence, under the Control of Drugs and Cosmetics Regulations 1984, all drugs in a pharmaceutical dosage form, including dietary and herbal supplements, must be registered with the Drug Control Authority. All vitamins and dietary supplements and traditional medicines require a Free Sale Certificate and Good Manufacturing Practice Certificate.

• Advertising for vitamins and dietary supplements in Malaysia is governed by the Medicine Advertisement Act. It requires that all advertisements for vitamins and dietary supplements are to be registered with the Medicines and Advertisement Board and an approved advertisement will have a Kemeterian Kesihatan Lembaga Iklan Ubat (KKLIU) approval number. The advertising of vitamins and dietary supplements is not allowed to have excessive or unsupported claims about treating serious illness such as hypertension and diabetes made in advertisements by manufacturers or distributors to the public. This is because the Medicines (Advertisement and Sale) Act 1956 does not allow any advertisements claiming cures of 20 diseases, including diabetes, hypertension, heart disease, renal disease, cancer, drug addiction and AIDS. As reported by the Medical Advertisement Board, advertising for vitamins and dietary supplements should only contain sufficient and necessary information that can be used by the consumer to make an informed choice.

• Vitamins and dietary supplements products with differences only in their packaging materials or pack sizes can be registered in a single application for product registration.

• Malaysia has mandatory labelling requirements for dietary supplements and traditional medicines, which include the need to state the names and locations of manufacturers or the agents responsible for the manufacture, in case of product recall, as well as for the purpose of monitoring safety. All registered products for distribution and sale in Malaysia must also carry the words “dilulus oleh Kemeterian Kesihatan” or “dilulus oleh KKM” on the immediate label. This is to help consumers identify which products are registered with Malaysia’s DCA. In addition, registration holders are also encouraged to print the DCA holographic logo on the label for easier identification.

• Vitamins and dietary supplements, being categorised as OTC, traditional medicines as well as health and food supplements, may be sold by non-professional outlets such as supermarkets, convenience stores, petrol forecourts and Chinese medical halls to the general public. Direct selling is the leading channel in distribution of vitamins and dietary supplements in Malaysia.

Self-medication/self-care and Preventative Medicine

Self-medication continues to rise in Malaysia, especially for minor ailments as education by the government and manufacturers increased consumer confidence to perform self-medication. This is especially evident in products in analgesics, cough, cold and allergy (hay fever) remedies, digestive remedies, medicated skin care, slimming products, eye care, vitamins and dietary supplements. However, the spread of the potentially deadly H1N1 pandemic around the world and in Malaysia in 2009-2010 led to a drop in self-medication for ailments such as cold, flu and fevers as consumers preferred to visit a doctor to obtain professional medical advice instead of self-medicating. This was especially true in 2009 when the sales growth of child-specific consumer products such as cough/cold remedies fell from 6% in 2008 to 5% in 2009. However sales for this product is starting to pick up again as parents are starting to self-medicate their children once again and sales in 2010 saw growth of 6%.

Products such as child-specific vitamins and dietary supplements also saw a rise in sales in 2010 as parents started buying more vitamins and dietary supplements for their children. Growth was especially strong in product categories such as vitamin C and multivitamins as they help prevent the common cold and flu and also build up immunity and general health. As a result, child-specific vitamins and dietary supplements registered 6% current value growth in 2010.

Switches

No switches are found in 2009/ 2010 as existing players had already established a strong presence in the review period, seeing Rx players facing little incentives to switch and vice-versa.

DEFINITIONS

This report analyses the market for Consumer Health in Malaysia. For the purposes of the study, the market has been defined as follows:

• Analgesics

• Cough, Cold And Allergy (Hay Fever) Remedies

• Digestive Remedies

• Medicated Skin Care

• NRT Smoking Cessation Aids

• Eye Care

• Ear Care

• Adult Mouth Care

• Calming and Sleeping Products

• Wound Care

• Emergency Contraception

• OTC Triptans

• Vitamins and Dietary Supplements

• Weight Management

• Sports Nutrition

• Herbal/Traditional Products

Explanations of words and/or terminology used in this report are as follows:

• Influenza A (H1N1) – The Influenza A (H1N1) virus is a subtype of influenza A virus and was the most common cause of human influenza (flu) in 2009.

Sources used during research include the following:

STRATEGIC DIRECTION

• Over the forecast period, Hoe Pharmaceuticals is expected to continue focusing on its overseas expansion efforts. It will also further seek to secure a leading position within the local consumer health environment through a series of marketing campaigns to reinforce brand awareness among Malaysians.

KEY FACTS

COMPANY BACKGROUND

• Hoe Pharmaceuticals is a wholly-owned subsidiary of Goldis Berhad and was incorporated in 1996. The company started operating in Malaysia since 1979 and was referred to as “The King of Creams” due to its reputable standing in dermatological products.

• The company undertakes the manufacture, marketing and distribution of pharmaceutical and dermatological products. Sales are solely attributed to its medicated skin care products such as Ellgy and A Bruzzy within the Malaysian OTC consumer health market.

• Hoe Pharmaceuticals’s resounding success with Ellgy Plus overseas saw it receive a special award from the Ministry of Trade.

PRODUCTION

• Hoe Pharmaceuticals is headquartered in Petaling Jaya, Selangor. The company’s manufacturing plant is located in Port Klang, Selangor, with a built-up area of 9,000 sq m and it manufactures consumer health products as well as cosmetics and toiletries products.

• Hoe Pharmaceuticals exports to over 40 countries. It area of operation now includes Asia, Africa, the Middle East and the EU.

COMPETITIVE POSITIONING

• Hoe Pharmaceuticals is a relatively small company with a presence only in medicated skin care and thus, accounts for less than a 1% value share in overall consumer health during 2010.

• Hoe Pharmaceuticals experienced growth in value share for medicated skin care in 2010 compared to 2009. This is due to its strong distribution network and an increase in demand for A-Lices following the discontinuation of Jacutin.

• Hoe Pharmaceuticals’s products such as Neucare, T3, A-Lices, Moz-bite are all positioned in more mature and less dynamic areas with relatively low growth rates.

• The company manufactures more than 100 consumer health and ethical products, with the majority of the company’s sales generated by medicated skin care within Malaysian consumer health.

• In Malaysia, the company positioned its consumer health products as standard brands that are targeted at the masses with affordable retail prices. Hoe Pharmaceuticals is typically a follower of the larger players in consumer health.

STRATEGIC DIRECTION

• Over the forecast period, Hovid is expected to extend its production and manufacturing capacity and build a new overseas plant by 2013 to cope with the demand for its products. The company has also indicated its intention to gain a foothold in China, following its tie-up with drinks manufacturer, Drinho to produce herbal tea for sale in China from mid 2010.

KEY FACTS

COMPANY BACKGROUND

• Hovid Sdn Bhd is a wholly-owned subsidiary of Hovid Bhd, a publicly listed company on the Main Board of the Kuala Lumpur Stock Exchange.

• Hovid is involved in the manufacture and development of generic drugs, dietary supplements and consumer products. It is also involved in sales and distribution of medical supplies, pharmaceutical and consumer products, multi-level marketing of health and wellness products, in addition to operating retail outlets that sell healthfood products, supplements and herbal products.

• Besides Malaysia, Hovid has exposure in more than 40 countries worldwide.

PRODUCTION

• Hovid is headquartered in the state of Perak, Malaysia and has four production sites - two located in Ipoh, Perak and the other two in Chemor, Perak.

• In Malaysia, Hovid also has two research and development centres. According to trade sources, the company’s research and development centre that is based in the University of Sains, Malaysia, concentrates on pre-formulation studies, drug characterisation and product development. Meanwhile, another research and development centre, which is located in its manufacturing plant in Perak, focuses on product development as well as product launching stages.

• Hovid exports over 300 products to more than 40 countries worldwide with a presence in all five major continents.

COMPETITIVE POSITIONING

• Hovid commands a very low value share of less than 1% in consumer health for Malaysia. This is given its limited product portfolio, specialising mostly in vitamins and dietary supplements. That said, Hovid possesses a significant presence in pharmaceutical ethical drugs and some presence in areas such as beauty and personal care.

• The majority of Hovid’s products are positioned in the more mature and less dynamic areas. However, its products such as child-specific vitamins and dietary supplements and glucosamine remained one of the highest growing categories.

• Hovid possesses a wide array of health care products. Its portfolio consists of over 300 types of pharmaceutical products with a fantastic distribution and sales network.

• In Malaysia, Hovid positioned its consumer health products as standard brands that are targeted at the masses with affordable retail prices.

• Hoe Pharmaceuticals is typically a follower of the larger players in consumer health. However, the company received an innovative product award from the Industry Excellence Awards in 2004 with its TOCOVID Suprabio brand.

STRATEGIC DIRECTION

• Over the forecast period, Pharmaniaga Bhd has indicated plans to invest RM300 million to develop 92 new products. The company also intends to strengthen its presence in South East Asia by entering countries such as Thailand and Vietnam. Entry into Europe and the Middle East remains a long-term plan for the company.

KEY FACTS

COMPANY BACKGROUND

• Pharmaniaga is a publicly listed company on the Main Board of Bursa Malaysia Securities Bhd. Core businesses and activities include logistics, manufacturing, research and development, marketing and medical planning, equipment and distribution.

• Subsidiaries of Pharmaniaga in Malaysia include Pharmaniaga Logistics, Pharmaniaga International Corporation, Pharmaniaga Biomedical, Pharmaniaga Marketing, Pharmaniaga Biovention, Pharmaniaga Manufacturing Berhad, Pharmaniaga Research Centre Sdn Bhd, Pharmaniaga LifeScience and Safire Pharmaceuticals.  

• Early 2011 saw conglomerate Boustead Holdings acquire Pharmaniaga from UEM Group for RM534 million or RM5.75 per share, a 12.7% premium over Pharmaniaga’s last traded price.

PRODUCTION

• Pharmaniaga owns and operates two manufacturing plants in Bangi and Puchong, Selangor. The plant in Bangi manufactures solid dosage form products such as tablets and capsules, while the Puchong plant that will only be fully operational in early 2011, will manufacture small volume injectable products and high-margin products for exports to developed countries.

• Pharmaniaga manufactures its products in Malaysia and exports to countries in the Asia Pacific region such as Myanmar, Cambodia, Indonesia, Papua New Guinea and Singapore.

• Pharmaniaga manufactures analgesics, cough, cold and allergy (hay fever) remedies, digestive remedies, medicated skin care as well as vitamins and dietary supplements. However, its value share in the local consumer health care market remains low.

• Apart from its local distribution, Pharmaniaga owns a 55% stake in PT Millennium Pharmacon International, a subsidiary distribution company in Indonesia. Pharmaniaga also operates one sales and marketing office in Vietnam as a platform for the company to penetrate the Indochina region as well as agents in Myanmar, Sri Lanka, Cambodia, Thailand and Laos.

COMPETITIVE POSITIONING

• Pharmaniaga had a negligible presence in consumer health during 2010, following its discontinuation of ibuprofen.

• While Pharmaniaga’s presence in over-the-counter products is limited, the company is a large manufacturer of generics as well prescription products.

STRATEGIC DIRECTION

• Total Health Concept Sdn Bhd is expected to continue developing vitamins and dietary supplements over the forecast period to cater to the growing demand for such products, as a result of the increase in health consciousness among Malaysians.

KEY FACTS

COMPANY BACKGROUND

• Total Health Concept is a privately-owned local company that has been operating in Malaysia since 1995. The company was incorporated into the Holista group of companies in 1995.

• The company is mainly involved in the manufacture, marketing and distribution of health supplements through its flagship brand name Total Health Concept. The company also distributes imported products and is partnered with third party products.

PRODUCTION

• Total Health Concept’s headquarters are located in the state of Selangor, Malaysia. Consumer health products sold by the company in Malaysia are mostly imported.

COMPETITIVE POSITIONING

• Total Health Concept accounted for less than a 1% value share within consumer health in 2010, although it ranked 19th within vitamins and dietary supplements.

• Total Health Concept’s value share growth remained strong in 2010, with its key brand and largest contributor to its revenue, Pristine in Omega-3 Fish Oil performing well and experiencing a strong current value growth of 15% in 2010.

• Total Health Concept is positioned in the more mature and less dynamic areas of consumer health. Products such as gingko, fish oils, lecithin and spirulina are all extremely mature products of which consumers have knowledge.

• Total Health Concept mainly specialises in dietary supplements. Therefore, the company markets a rather narrow product portfolio, largely concentrated on dietary supplements such as gingko biloba, spirulina, lecithin and fish oils.

• Total Health Concept positions its consumer health products as standard brands that are targeted at the masses at affordable retail prices.

• Total Health Concept is typically a follower of the larger players. However, its largest brand Pristine made use of a process called OMATECH™ which is a molecular distillation procedure to eliminate toxins from its Pristine Omega-3Fish Oil at molecular level.

STRATEGIC DIRECTION

• Over the forecast period YSP Industries will look to have its manufacturing facility in Vietnam up and running by 2011 to support its overseas expansion plans within Vietnam and other Southeast Asian countries.

KEY FACTS

COMPANY BACKGROUND

• YSP Industries is a wholly-owned subsidiary of YSP Southeast Asia Holding Bhd. In 2004, the company was listed on the Main Board of Bursa Securities Malaysia Bhd. YSP Southeast Asia Holding on the other hand is owned by Yung Shin Pharmaceutical Industries, a publicly listed company on the Taiwan Stock Exchange.

• YSP Industries’s activities include the manufacture, import, export and trading of pharmaceutical (prescription and non prescription), and veterinary medicines (livestock and aquatic). YSP Industries is involved in analgesics, medicated skin care, digestive remedies as well as vitamins and dietary supplements in OTC consumer health in Malaysia.

• The company’s Shine vitamins and health supplements have recorded encouraging sales since 2008. Hence, YSP Southeast Asia Holding launched a loyalty card programme in September 2009 called “Shine Club Membership Card” that allows customers to accumulate points when they purchase Shine products at participating outlets. Subsequently, customers can use the accumulated points to redeem other products within the Shine product range or other valuable gifts.

PRODUCTION

• YSP Industries is headquartered in Kuala Lumpur, while its manufacturing plant is located in Kajang, Selangor.

• The company expanded its manufacturing plant in Bangi by setting up two new blocks of buildings to house a new production line to manufacture sterile products such as injectables and eye drops. According to trade sources published in February 2009, the new production line will only start operating in one to two years due to safety measures. With the expanded manufacturing plant and new production line, the company is also expected to produce 10-20 new products every year.

• YSP Industries operates regional offices in Singapore, Philippines, Cambodia, Vietnam, Myanmar, Thailand, Indonesia and Brunei. The company exports its products to countries including the US, Europe, Australia and New Zealand.

• In addition to manufacturing its own products, YSP Industries also manufactures products for other pharmaceutical and healthcare companies as well as veterinary and aquatic products in Malaysia.

COMPETITIVE POSITIONING

• YSP Industries is ranked second in ibuprofen and their topical antifungals ranked eighth. They are essentially a rather small player in consumer health with value share of less than 1%.

• Growth of the YSP Ibuprofen was highly encouraging in 2010, following the discontinuation of brands such as Perofen. In terms of topical antifungals, growth had been stagnating for Econazine over the review period.

• YSP Industries is positioned in the more mature and less dynamic areas. Products such as ibuprofen and topical antifungals are all extremely mature products that consumers have knowledge of.

• YSP Industries specializes in a wide range of products in the pharmaceutical (prescription and non prescription), and veterinary medicines (livestock and aquatic) categories. They are also expected to produce 10-20 new products every year in the forecast period.

• In consumer health in Malaysia, YSP Industries positioned its consumer health products as standard brands that are targeted at the masses with affordable retail prices.

HEADLINES

• Adult mouth care sees 3% current value growth to reach sales of RM7 million in 2010

• Reckitt Benckiser leads adult mouth care in 2010 with a 35% value share

• Adult mouth care is expected to post a constant value CAGR of 1% over the forecast period

TRENDS

• Adult mouth care registered higher current value growth in 2010 compared to the previous year. As the economy recovers, stress and lack of rest from longer working hours as well as unhealthy eating habits all contributed to the growth of adult mouth care in 2010. However, as a result of the lack of marketing efforts from existing players in the sector, consumer awareness remained stagnant. Therefore, a large number of consumers still rely on traditional methods to ease mouth ulcers and inflammation.

• Adult mouth care saw a 3% current value growth to reach RM7 million sales in 2010. Product awareness remained low due to lack of product education from both the government and manufacturers. A lack of product innovation and new product development also led to the stagnant nature of this sector.

• Unit prices of adult mouth care remained relatively similar in 2010 with only Difflam from iNova Pharmaceuticals experiencing slight price increases in 2010.

• In general, problems such as mouth ulcers and inflammation are considered minor problems among Malaysians. A wide range of home treatments include applying salt and rubbing garlic on the ulcer, drinking “cooling” herbal tea, staying away from deep fried and spicy food to help ulcers and inflammation heal by themselves. Therefore, a large number of consumers did not see the need to spend money on adult mouth care products.

• Bonjela by Reckitt Benckiser and Bactidol and Orased by Johnson & Johnson continued dominating adult mouth care in 2010 with value shares of 35% and 31% respectively. Due to the well-established nature of their brands in Malaysia, their dominance is expected to continue over the forecast period.

• There are no official data on UTC sales in Malaysia. As OTC adult mouth care is widely available and at affordable prices, UTC sales are insignificant for this sector. Consumers purchasing OTC adult mouth care also tend to follow the advice provided by pharmacists.

• Adult mouth care is expected to register a constant value CAGR of 1% over the forecast period. Potential for the product is forecast to remain low and manufacturers tend to be less willing to spend money to advertise products or invest in new product developments.

CATEGORY DATA

HEADLINES

• Analgesics records current value growth 6% to reach RM187 million in 2010

• Director-General of Health Tan Sri Dr Ismail Merican warns of the danger of self-medication in 2010

• Topical analgesics/anaesthetics posted the strongest current value growth in 2010

• The environment remains highly competitive especially in topical analgesics/anaesthetics in 2010

• Over the forecast period, analgesics is expected to register a constant value CAGR of 3%

TRENDS

• Self-medication remained on the rise in 2010 as Malaysians were well informed about analgesics. Director-General of Health Tan Sri Dr Ismail Merican issued warnings about the dangers of self-medication and advised doing it only for minor ailments and to seek medical treatment if unsure.

• Analgesics performed better in 2010 with current value growth of 6%. Longer working hours as the economy recovers was common as businesses sales started to pick up once again. The hectic lifestyles, long hours in front of the computer caused problems such as headaches, muscle aches and joint pains. Thus, more consumers purchased analgesics and self-medicated over the year.

• Topical analgesics/anaesthetics recorded the strongest current value growth in 2010 with brands such as Salonpas and Counterpain undertaking a wide array of marketing activities. The economic recovery in 2010 also meant consumers were now more willing to spend than before.

• Retail prices of acetaminophen, aspirin, ibuprofen and child-specific acetaminophen were generally higher in 2010 compared to 2009. There was, however, little or no change in the pricing of topical analgesics/anaesthetics in 2010.

• Acetaminophen recorded the second strongest current value growth in 2010 of 6%. The economic recovery and improving sales meant work related stress remains at a high in Malaysia. Leader, Panadol is still leading the way in relieving headaches and pains in Malaysia. Significant marketing efforts were also undertaken by Panadol.

• Formats such as balm, oil and ointment remained the most popular format in topical analgesics/anaesthetics in 2010. Cream/gel remained the second most popular format for topical analgesics/anaesthetics in 2010 due to its convenience. Patches showed an increase in popularity in 2010, attributed to well-received products such as Salonpas-HI. Spray and lotion remained small but manufacturers are stepping up efforts to encourage the purchase of such formats. Spray is still most popular with sports people preferring the non-messy format although the high price is still a deterrent.

• In 2010, child-specific acetaminophen contributed the greatest increase to value sales of child-specific analgesics. Syrup remained the most preferred format because of the ease of consumption. The official end of the H1N1 crisis declared by WHO meant parents began self-medicating their children once again. As a result, child-specific analgesics saw better current value growth in 2010 than in 2009.

• Malaysia does not possess a very significant demand for UTC/BTC and semi-ethical analgesics as the usual OTC analgesics usually suffice. Therefore, the effect on sales of OTC and ethical products are minimal.

• Brand positioning and tradition greatly influence consumer buying decisions. For example, herbal/traditional topical analgesics/anaesthetics are well marketed along the lines of boosting the original traditional formula, which are popular among younger and older generations. Nonetheless, consumers generally prefer to take a pharmacist’s recommendation on pharmacy-only products such as ibuprofen or stronger ingredients.

SWITCHES

• There were no switches in 2009-2010, as leaders such as Panadol and Ammeltz Yoko Yoko continue to enjoy the lion’s share and dominate sales of analgesics, rendering it extremely difficult for new competitors to gain a foothold in analgesics.

COMPETITIVE LANDSCAPE

• GlaxoSmithKline Consumer Health remained the leader in analgesics, with a 41% value share in 2010. Panadol’s stellar performance was due to its wide range of products, ranging from Panadol Soluble, Panadol Menstrual to Panadol for Children, catering to the needs of consumers.

• Haw Par Healthcare saw the largest increase in value share in 2010 as a result of the wide range of products available such as rubs, plasters, patches, ointment and sprays. Tiger Balm remained a highly trusted brand in Malaysia with a long heritage.

• International manufacturers such as GlaxoSmithKline continue to dominate Consumer health in Malaysia with their well-established brand names and a wide array of marketing activities. CCM Pharmaceuticals is the largest domestic manufacturer in Malaysia with brand names such as Milidon, Uphamol, Eye Glo and Sloan’s.

• GlaxoSmithKline launched the Panaflex Pain Relief Patch in October 2010. It is a medicated patch based on a unique hydro gel technology, aimed to provide consumers suffering from muscle and joint pain with a complete solution in alleviating their pain. Although the Panadol brand is highly trusted, market penetration remained low as topical analgesics/anaesthetic remains highly competitive with many established players.

• GlaxoSmithKline continued to invest heavily to promote its Panadol brand in 2010. Television advertisements for Panadol Actifast highlighted the fact that the product absorbs twice as fast in the relief of headaches, fever and aches. It also claimed that the product is gentle on the stomach. The company also advertised its product Panadol Soluble in conjunction with Medifact and claimed that it is fast absorbing and easy to dissolve.

• Hisamitsu Pharmaceutical’s Salonpas and Bristol-Myers Squibb’s Counterpain aggressively marketed their products and can be seen at major sporting events providing free samples to athletes in order to encourage them to use their products and to build brand loyalty. Smaller topical analgesic/anaesthetic brands such as Hoe Hin Pak Fah Yeo and Wong Cheung-Wah Yu Yee Oil also actively promoted their products via television advertisements.

• Malaysians tend to prefer to purchase premium brands such as Panadol and Tiger Balm for analgesics. Therefore, it is difficult for private label to gain a strong foothold in consumer health in 2010. However, local manufacturers such as YSP Industries, which manufactures generic systemic analgesics, such as YSP Ibuprofen, are experiencing high levels of growth.

PROSPECTS

• Rising healthcare costs continue to be a problem for Malaysians therefore self-medication is expected to continue to rise over the forecast period. The ageing population, pains and aches attributed to prolonged working hours and the rise in popularity of exercising among Malaysians will continue to contribute positively to the sales of analgesics over the forecast period.

• Analgesics is likely to see a better performance over the forecast period than the previous five years in constant value terms. Consumers are slowly becoming more informed about OTC healthcare products, and this should lead to a further rise in self-medication. Therefore, a variety of new products over the forecast period targeted towards pain and aches from old age, exercise and work are likely to be introduced.

• Medical bills rising at a much faster rate than inflation rates remained a huge concern in the country. Unless drastic measures are taken by the government to curb the soaring prices, the demand for consumer health in Malaysia will continue to rise.

• Topical analgesics/anaesthetic is expected to be the strongest performing product over the forecast period. Growth potential is strong and Panadol’s entrance into topical analgesics/anaesthetic should bring about increased levels of advertising and marketing among players.

• Over the forecast period, pricing is expected to continue rising for acetaminophen, aspirin, ibuprofen and child-specific acetaminophen as a result of the changing lifestyles and demographics of Malaysians. However, topical analgesics/anaesthetic should see either very slight or no price increases due to the competitive nature of the environment.

• Panadol’s Panaflex Pain Relief Patch should see healthy levels of growth as it remains one of the most trusted brands in Malaysia, synonymous with pain relief and some consumers will look at switching over from other brands such as Tiger Balm and Salonpas in order to try out the new product.

CATEGORY DATA

HEADLINES

• OTC calming and sleeping products were not available as OTC in Malaysia as synthetic sleeping medication is classified as a Class B poison, which can only be prescribed by a registered medical practitioner.

TRENDS

• It is highly likely that OTC calming and sleeping products will remain a Class B poison over the forecast period due to the potentially harmful ingredients in such products.

HEADLINES

• Cough, cold and allergy (hay fever) records current value growth of 4% to reach RM264 million in 2010

• World Health Organization declares the H1N1to be in the post-pandemic period in 2010

• Nasal sprays and child-specific cough/cold remedies posted the strongest current value growth

• The environment remains highly competitive especially in medicated confectionery in 2010

• Over the forecast period, cough, cold and allergy (hay fever) is expected to register a constant value CAGR 2%

TRENDS

• The World Health Organization announced that the H1N1 influenza virus has moved into the post-pandemic period. Cases and outbreaks as a result of the H1N1virus are expected to continue to occur around the world. Some consumers were still opting to visit a doctor for flu such as symptoms.

• Cough, cold and allergy (hay fever) posted growth of 4% in current value terms in 2010, higher than the 3% recorded in 2009. This was as a result of the H1N1 pandemic as consumers were now slowly moving back to self-medicating for ailments such as cough, cold and flu instead of visiting a doctor.

• Nasal sprays accounted for the strongest current value growth in 2010. The popularity of nasal sprays stems from its ability to quickly relieve congestion and the relative ease of usage. However, 357 Nasal Spray manufactured by Qiandongnan Likaqing Tec was found to contain scheduled poison, dexamethasone and was discontinued by the Drug Control Authority (DCA).

• Retail prices of cough, cold and allergy (hay fever) products did not see much change in 2010 compared to 2009. However, there were slight increases in the prices of nasal sprays with Otrivin nasal spray and Iliadin Spray 005% both retailing at higher prices.

• Cough/cold remedies was the most popular child-specific product, posting one of the strongest current value growths for the category in 2010. Syrup remained the most popular format for child specific cough/cold remedies due to the ease of consumption. Parents are once again more willing to self-medicate their children with OTC cough/cold remedies following the easing of the H1N1 pandemic.

• Herbal/traditional products posted a current value growth of 6% in 2010, contributing around 76% of value sales of cough, cold and allergy (hay fever) remedies. This was due to the performance of medicated confectionaries, the largest category in cough, cold and allergy (hay fever) remedies which posted current value growth 4%. Well-established brands such as Fisherman’s Friend and Kingto Nin Jiom Pei Pa Koa remained highly popular among consumers in Malaysia.

• The most popular format of decongestant in Malaysia remained decongestant rubs. Trusted and established decongestant rubs, such as Vicks Vaporub, remained the leaders in Malaysia. Inhalant decongestants is the second most popular format within decongestants, while oral decongestants, nasal sprays and nasal decongestant drops remained the least popular formats in Malaysia.

• Malaysians, on the whole, prefer to seek professional treatment when suffering from allergies rather than self-medicate with OTC products. Most Malaysians try to seek a fast and safe way to get rid of their allergies as they have such an impact on their everyday lives.

• In Malaysia, brand positioning remains one of the key factors influencing buying decisions. Traditional brands with a long heritage such as Kingto Nin Jiom Pei Pa Koa and Hacks, tend to be positioned and marketed along the lines of maintaining their trusted and effective traditional formula that have been around for generations. Traditional brands with a long heritage and history therefore, still hold a considerable influence in cough, cold and allergy (hay fever).

• There are no official records of numbers on UTC sales for cough, cold and allergy (hay fever) remedies sales in Malaysia. The abuse of cough syrups containing codeine by teenagers and drug addicts remained a large problem in Malaysia. Such activity usually involves mixing a cocktail of soft drinks and cough syrups.

SWITCHES

• There were no switches in 2009/2010. Popular brands such as Woods Peppermint and Kingto Nin Jiom Pei Pa Koa continued performing well in cough, cold and allergy (hay fever).

COMPETITIVE LANDSCAPE

• Medicated confectionery remained the largest contributor to the value sales in cough, cold and allergy (hay fever), contributing about 55% in 2010. Brands such as Fisherman’s Friend and Ricola, are the largest players in medicated confectionery and contributed 14% and 12% value shares respectively in cough, cold and allergy (hay fever) remedies during 2010.

• Ricola saw the highest increase in value share during 2010 in cold, cough and allergy (hay fever) remedies. The company launched new flavours for its products such as Mountain Breeze, Eucalyptus and Cranberry, which were well received.

• Global manufacturers with higher budgets for advertising and research and development such as Fisherman’s Friend and Ricola continued to dominate cough, cold and allergy (hay fever) remedies in 2010 with a combined value share of around 50% in medicated confectionery.

• GlaxoSmithKline advertised its Breathe Right nasal decongestant plasters on television in 2010. The advertisement highlighted the fact that Breathe Right helps to provide relief from congestion and snoring. The company also sponsored 1,500 units of Breathe Right nasal strips for the participants of the Ipoh Starwalk and the Subang Jaya Municipal Council-New Straits Times Carnival and 10km Run 2010.

• Cadbury Confectionery’s medicated confectionery, Halls released a new Fruitti sweet with the centre of the sweet filled with a range of new flavours such as fresh lime, raspberry and tropical fruit. Nin Jiom Herbal Candy also advertised its product via television.

• Malaysians tend to prefer to purchase premium brands such as Woods Peppermint and Kingto Nin Jiom Pei Pa Koa as they are deemed to be of higher quality because of their brand size and popularity. Therefore, it was difficult for private label to gain a foothold in the sector in 2010. However, for more minor ailments, generic drugs were still acceptable to most consumers.

PROSPECTS

• Over the forecast period, consumers will gain more knowledge about OTC cough, cold and allergy (hay fever) remedies and slowly increasing their reliance on self-medication. Coupled with the seasonal flu season, lingering isolated cases of H1N1 and a general worsening of air quality around urban areas, demand for OTC cough, cold and flu remedies will see a performance boost.

• Cold, cough and allergy (hay fever) is likely to see a better performance over the forecast period than the review period in constant value terms. Consumers are generally more concerned about cough, cold and flu (hay fever) symptoms after the H1N1 scare and are more willing to purchase OTC medications to self-medicate and avoid taking any chances.

• Over the forecast period, nasal sprays and cough remedies are expected to post the strongest performances. Nasal decongestant drops and oral decongestants are expected to post the lowest growth due to the maturity and lack of new product development from existing players.

• The Drug Control Authority (DCA) of Malaysia placed some restrictions on the usage of cough and cold medicine among children in 2009. Children under two years of age are not allowed to use such products and may only be used with caution for children aged between two and six after seeking advice from a doctor or a pharmacist.

• Rising prices of raw materials and production costs will see the unit prices of cough, cold and allergy (hay fever) remedies increase over the forecast period. The strong growth of cough, cold and flu (hay fever) will see manufacturers invest more in product development and churn out newer and better products.

• There is a growing popularity for nasal decongestants that prevents snoring. Products such as GlaxoSmithKline’s Breathe Right nasal decongestant plasters have been undertaking an immense amount of advertising and giveaways. The brand can be seen on television advertisements during prime hours and major sporting events to provide giveaways. Some other products that help prevent snoring are Chefaro’s anti-snoring spray, and Silent and Snore No More Nasal Spray by Co- Pharma.

CATEGORY DATA

HEADLINES

• Digestive remedies posts 4% current value growth to reach RM65 million sales in 2010

• Digestive disorders are among the top 10 chronic disorders causing mortality in Malaysia

• Antacids posted the strongest current value growth of 4% in 2010

• GlaxoSmithKline leads digestive remedies in 2010 with an 18% value share

• Over the forecast period, digestive remedies is expected to register a constant value CAGR of 1%

TRENDS

• As a result of sedentary lifestyles and unhealthy eating habits among Malaysians, Deputy Health Minister Datuk Rosnah Abdul Rashid Shirlin mentioned that digestive disorders have been one of the top killers in Malaysia with gastrointestinal cancers becoming more common.

• Digestive remedies saw current value growth of 4% in 2010, higher than the 3% recorded in 2009. Stressful lifestyles, irregular meals, bad eating habits and the increasing popularity of eating out remained the key reasons for gastrointestinal problems in Malaysia.

• Antacids was the fastest growing category in digestive remedies. Reckitt Benckiser’s Gaviscon led the way in advertising, marketing efforts and brand growth in 2010. The brand accounted for 14% of the value share in antacids.

• The prices of antacids for brands such as ENO and Gaviscon saw slightly higher prices in 2010. The rising popularity and increased reliance on digestive remedies, such as antacids, were the key factors for the price increases of such products.

• The syrup format remained the most popular in child-specific indigestion and heartburn remedies in 2010. Woodward’s Gripe Water maintained the lion’s share of the category, with a 79% value share. The company also engaged in promotions such as free flashlight ear picks with every purchase.

• Herbal/traditional products contributed 17% of value sales in digestive remedies in 2010. Such products are most apparent in diarrhoeal remedies with leader Po Chai Pills taking a 43% value share in 2010. Growth of the product was badly affected by the recall of Po Chai Pills in Singapore even though the Malaysian batch was deemed to be safe.

• Antacids remained the most popular and promising category in digestive remedies in Malaysia. Much of this was thanks to the marketing efforts of the leading players such as ENO and Gaviscon over the years and the strong product knowledge among Malaysians.

• One of the major health concerns remained the increasingly unhealthy diet, hectic and sedentary lifestyles of Malaysians on the whole, leading to gastrointestinal problems. Consumers are also increasing their reliance on digestive remedies and exploring alternative natural remedies in 2010.

• Probiotics are gaining popularity in Malaysia with hospitals prescribing them in capsules to patients with diarrhoea. Probiotics are most commonly prescribed to patients experiencing diarrhoea after receiving antibiotics and patients with acute gastroenteritis or more commonly known as food poisoning.

• Herbal/traditional remedies accounted for a very small value share in digestive remedies in 2010, with the largest player being Li Chung Shing Tong with its Po Chai Pills. However, natural remedies are becoming more popular with natural products such as Herbalife’s Herbal Aloe Concentrate launched in 2010.

• Brand positioning is the most important aspect that influences consumer decisions. Highly trusted and international brands such as ENO, Gaviscon and Actal remained the most popular choices in Malaysia. Traditional brands, such as Po Chai Pills and Chi’kit Teck Aun Pills are marketed along the lines of boosting the original traditional formulas, trusted by generations.

• Consumption for digestive remedies tends to peak during the warmer months and around festive seasons with binge eating and drinking.

• Malaysians suffering from Irritable Bowel Syndrome (IBS) tend to prefer to visit a physician over consuming OTC healthcare products. Products for IBS are classified as prescription medicine and unavailable in OTC consumer health in Malaysia.

• There are no official data on the UTC figures for digestive remedies in Malaysia. Nonetheless, UTC sales of digestive remedies remained fairly low in 2010. UTC sales remained insignificant as a result of OTC products being widely available at affordable prices.

SWITCHES

• There were no switches in digestive remedies in 2009-2010. OTC remained the preferred target for manufacturers instead of Rx due to the larger target audience.

COMPETITIVE LANDSCAPE

• GlaxoSmithKline remained the leader in digestive remedies with an 18% value share in 2010. The company continued to invest heavily in advertising and promotional efforts as well as new product developments for its Eno brand in 2010. For example, the company placed a promotional banner, “All you can eat RM0.70” in local food outlets that sell Eno at the counter.

• Reckitt Benckiser posted the highest increase in value share in 2010. This was due to intensive marketing efforts by the company for its Gaviscon brand. Television advertisements were aired during peak viewing times and coupled with new variant releases in 2009 such as Gaviscon Cool Liquid, Gaviscon Double Action Tablets and Gaviscon Liquid Sachets, the company increased its sales levels in 2010.

• International manufacturers continued to lead in 2010 with brands such as ENO, Gaviscon and Actal dominating digestive remedies. Domestic manufacturers remained small in digestive remedies, unable to compete in terms of budget or product innovation.

• Reckitt Benckiser advertised its Gaviscon brand on television, focusing on the effectiveness of Gaviscon and its ability to get to the root of the problem and relieve indigestion within three minutes.

• Private label in digestive remedies in Malaysia remained small in 2010 with an insignificant contribution. Consumers tend to stay away from generic digestive remedies and opt for more established brands unless recommended by pharmacists.

PROSPECTS

• The Malaysia Health Promotion Board will actively continue to promote healthy eating campaigns such as “Less Sugar Intake” campaign, discouraging the consumption of food containing too much salt and unhealthy fat and instead consuming more fruit and vegetables and engaging in more exercise. However, Malaysians are generally food-loving and with the huge variety of different food available in the country, the temptation for consumers to indulge might be too hard to resist. Consequently, demand for digestive remedies such as indigestion and heartburn remedies will still be strong.

• Digestive remedies is likely to see better growth rates over the forecast period than the previous five years in constant value terms. Consumers are slowly becoming more informed about OTC healthcare products, and this should lead to a further rise in self-medication. A variety of new products is also expected over the forecast period as a result of the adverse lifestyles of Malaysians leading to a growth in demand of digestive remedies.

• Substitutes for digestive remedies such as probiotics yoghurt and detox products are expected to pose the largest threat to digestive remedies over the forecast period. Such products are marketed along the lines of being a much healthier alternative to digestive remedies with a natural formula.

• Antacids is expected to be the best performer over the forecast period. Demand for antacids will continue to grow as healthy lifestyles and eating habits start to deteriorate. Key players such as ENO, Gaviscon and Actal are also expected to launch new products over the forecast period and continue undertaking large levels of marketing activities.

• Unit prices of digestive remedies are expected to increase over the forecast period, as a result of the strong growth in demand and the possibility of new product developments in the forecast period.

• The growth in popularity of 24-hour eateries in Malaysia and the habit of consuming late night snacks will remain strong. Well-established brands with a wide range of product variants to cater to every need such as Gaviscon by Reckitt Benckiser and Eno by GlaxoSmithKline are highly likely to see strong growth over the forecast period.

CATEGORY DATA

HEADLINES

• Ear care posts current value growth of 2% and value sales of RM5 million in 2010. The ear care sector remained small in Malaysia as consumers preferred to consult professional medical advice when having ear problems. Self-medicating for ear problems remained somewhat unpopular among Malaysians.

• Ear care is an extremely mature product with low growth potential, thus its performance had been quite stagnant in 2010. International brands, such as Bristol-Myers Squibb with its Kenacomb and Norgine with Waxsol also pulled out of ear care.

• UTC sales of ear care remained marginal in 2010. Consumers preferred to seek professional medical advice instead of self-medicating with OTC or UTC products as such products were deemed riskier.

• The Cerumol brand by Laboratories For Applied Biology (LAB) remained the leader in ear care with a 73% value share in 2010 with Neo-deca by CCM Berhad in second position with a value share of 8%. The withdrawal of brands such as Waxsol and Kenacomb enabled the remaining brands to gain a larger share of ear care sales in 2010.

TRENDS

• Ear care is expected to post a CAGR of 1% in constant value terms over the forecast period. Ear care is an extremely mature product category and the lack of product knowledge among consumers, the lack of product education by the government and a general absence of product innovation and development among existing players combined will lead to a weakening performance of this product category.

CATEGORY DATA

HEADLINES

• Eye care clocks 5% current value growth to reach RM34 million sale in 2010

• Standard eye care posts the strongest current value growth of 5% in 2010

• GlaxoSmithKline leads in 2010 with a 32% value share

• Eye care is set to register a constant value CAGR of 2% over the forecast period

TRENDS

• Demand for eye care products continued to rise due to the fatigue caused by longer hours spent working in an air conditioned office and in front of computers. A reduction in air quality around urban areas caused by higher volumes of traffic and forest fires from neighbouring countries continued to prompt Malaysians to purchase eye care products to relieve their irritable eyes.

• Due to factors such as longer working hours as the economy recovers, contamination of the eyes as a result of increasing levels of pollution, eye care achieved value growth of 5% in 2010, higher than the 4% value growth posted in 2009.

• Within eye care, standard eye care remained the largest in terms of both value growth and value sales in 2010.

• Dry eyes, the largest eye problem facing Malaysians, accounted for the largest portion in standard eye care, with dry eye drops making a 64% contribution to value sales. Consumers with red eye problems on the other hand, prefer to seek professional medical advice as it is deemed to be a much more serious problem. Eye wash remained a small format, with Optrex Eye Lotion being the only eyewash widely available in Malaysia. Products such as eye ointment remained unavailable in Malaysia as it is not a consumer health product.

• Unit prices for both standard eye care and allergy eye care remained relatively stagnant in 2010 as retailers and/or manufacturers opted to keep prices at around the same level.

• Allergy eye care posted growth of 2% and value sales of RM4 million in 2010 and remained slow growing compared to standard eye care. Consumers are generally more confident in self-medicating for problems such as dry eyes or even red eyes. However, when it comes to eye allergies, most Malaysians prefer not to take the risk of self-medicating and seek professional medical advice instead.

SWITCHES

• There were no switches in eye care in 2010.

COMPETITIVE LANDSCAPE

• GlaxoSmithKline remained the leader in eye care with a 32% value share in 2010. The key brand for GlaxoSmithKline is Eye Mo. Despite being a long established, GlaxoSmithKline continued to invest in the brand with television commercials regularly. This helps reinforce brand recall in the consumer’s minds.

• Reckitt Benckiser was second largest in eye care with a 21% value share in 2010 whereby it accounted for the strongest increase in value share over 2009.This was due to the rising popularity of its Optrex brand.

• International brands such as Eye Mo and Optrex continued to dominate eye care. However, local manufacturers such as CCM Pharmaceuticals with its Eye Glo brand managed to hold its own in eye care as well, with a 12% value share in 2010.

• There were no new product launches in 2010 and consumers became indifferent to the different variants of eye care products from the leading brands. Competition in eye care remained highly concentrated with six major players making up more than 80% of eye care.

• Eye care is forecast to post a constant value CAGR of 2% over the forecast period. Eye irritation will only continue worsening in Malaysia as working hours increase and the quality of air deteriorates. The price of laser surgeries is also expected to decline over the forecast period, prompting more consumers to undergo surgery and reduce their reliance on contact lenses.

CATEGORY DATA

HEADLINES

• Herbal/traditional products gains 6% in current value terms to reach RM858 million in 2010

• The popularity of herbal/traditional products is on the rise in Malaysia

• Herbal/traditional tonics and bottled nutritive drinks posts the strongest current value growth in 2010

• Cerebos remains the leader with a 12% value share in 2010

• Herbal/traditional products is expected to post a constant value CAGR of 3% over the forecast period

TRENDS

• Herbal/traditional products remained extremely popular in Malaysia. These products were deemed to be kinder to the human body because of the natural ingredients. Manufacturers are slowly expanding their product portfolio in this product category. For example VitaHealth recently introduced the VitaHealth Cordyceps Extract, a herbal/traditional product to boost the overall health and wellbeing of the human body.

• Herbal/traditional products recorded marginally lower current value growth in 2010 of 6% compared to the year before. A lack of marketing efforts affected the performance of more mature products such as gingko biloba, St John’s wort and garlic and thus contributed to the slowdown in performance. Herbal/traditional products were also starting to appeal to the younger generation as these products are now easier to consume than ever.

• Herbal/traditional tonics and bottled nutritive drinks recorded the strongest current value growth of 12% in 2010, with brands such as Brand’s undertaking intensive marketing campaigns in 2010 and contributing to the high growth rate.

• Unit prices of herbal/traditional products in 2010 remained around the same level as in 2009. Following the launch of products such as Parsi Yen Bird’s Nest by Lo Hong Ka Products and Brand’s InnerShine Quince Essence in 2009 and the subsequent price increase in the herbal/traditional sector due to rising costs, many manufacturers opted to maintain the prices of their products in 2010.

• The practice of consuming traditional/herbal products such as Chinese medicine had been synonymous with the Chinese in Malaysia for many decades. Many Chinese, especially the older generation, remained loyal to Chinese traditional medicine as they deem it to be less invasive and with fewer side effects than its Western counterpart. The consumption of traditional/herbal products rose during the H1N1 pandemic as consumers purchased products such as spirulina, echinacea and tonics to boost their overall health and immune systems.

• Herbal/traditional products remained the most popular with the older generation but with the new formats of herbal/traditional such as pills, capsules and drinks, it made consuming such products easier than ever. As a result, younger consumers began picking up such products.

• Brand heritage remains important in herbal/traditional products and manufacturers with a strong heritage such as Brand’s, Kingto Nin Jiom Pei Pa Kao and Tiger Balm are often associated with quality, product efficacy and backed up by claims of decades of successful traditional formulas.

• The unit prices of herbal/traditional products were generally lower than standard OTC products. With the growth in usage and availability of standard OTC products, herbal/traditional products could end up being more expensive over the forecast period.

• The contribution of grocery retailers to sales of herbal/traditional products remained small as those were not the channels consumers visited when wanting to purchase herbal/traditional products. Consumers usually tend to purchase these products in retail stores such as Watsons, Guardian, AEON Wellness and Giant.

• Direct selling remained the largest distribution channel in herbal/traditional products. Companies such as Amway and Elken were the largest players in vitamins and dietary supplements and they operate through multi-level marketing and direct selling. As such, this led to direct selling being the largest distribution channel in Malaysia for herbal/traditional products.

• Tonics and bottled nutritive drinks were the only available child-specific herbal/traditional products available in Malaysia. Cerebos was the largest manufacturer of child-specific herbal/traditional products in Malaysia. Its key product for children was the Brand’s Alphamynd Essence of Chicken for Juniors with DHA & Vitamin B, which aids brain and body development.

COMPETITIVE LANDSCAPE

• Cerebos remained the leader in herbal/traditional products. The company undertook intensive marketing campaigns such as advertising on television, newspapers and magazines. The company also promoted its Brand’s High Achiever Awards and encouraged students to submit their entries for a chance to be one of the recipients of its high achievers award.

• Cerebos achieved the largest growth in value share in 2010 and remained one of the fastest growing companies in herbal/traditional products. This again was attributed to its relentless marketing efforts in multiple media channels. The second best performer in terms of value sales growth was Haw Par Healthcare and Nu Skin in third place.

• International companies remained dominant in herbal/traditional products, with the top five companies taking up one-third of the value share in herbal/traditional products. This was due to their well-established brand names and intensive marketing campaigns in Malaysia. The best performing domestic company was Hacks and with its popular Hacks brand managed to muster a 2% value share in this category.

• VitaHealth launched its VitaHealth Cholexlim in 2010. The product basically supports weight loss in a healthy manner, promotes cardiovascular health and boosts liver health. Herbal ingredients included green tea, coleus foorskohli, and garcinia cambogia. Sales are expected to be slow growing unless the company undertakes advertising for this product and highlights its desirable features compared to other combination products.

• One of the newest entrants in the direct selling industry Melaleuca Southeast Asia performed extremely well in 2010. The company’s attractive packaging designs for its products were a large selling point. The labels were well designed and complemented with graphics of plants and leaves. The company also made use of words such as “Nutra” “Eco” “Botanical” and “Herbal” to capture the attention of consumers. Some of its herbal products include Replenex, NutraView and Florify.

• Private label remained small in 2010 as they are deemed as lower quality and not helped by the widespread availability of premium brands. There were no signs of generics in herbal/traditional products as consumers consider well-established brand names highly important in herbal/traditional products.

PROSPECTS

• Herbal/traditional products is expected to post a stronger performance over the forecast period as consumers are beginning to prefer such products due to their natural ingredients. As consumer awareness and health consciousness increases due to the government and manufacturers’ education, advertisements and campaigns, more consumers will start consuming herbal/traditional products over the forecast period.

• Herbal/traditional products is expected to perform better in constant value terms over the forecast period than in the previous five years. Consumer awareness is improving and most people are more than confident in using herbal/traditional products. There is also a trend towards consuming and using natural and organic products in Malaysia. Thus, manufacturers are expected to come up with new and innovative products with better formulation over the forecast period in order to attract younger consumers to start using such products.

• Increasing demand and consumer awareness in herbal/traditional products, coupled with new innovative products with better formulations expected in herbal/traditional products, are expected to increase unit prices over the forecast period. Raw materials and manufacturing costs are also expected to drive up the prices of herbal/traditional products.

CATEGORY DATA

HEADLINES

• Medicated skin care posted 6% current value growth to reach RM113 million sales in 2010

• The influenza A (H1N1) virus raised awareness among consumers and boosted manufacturers’ profits in 2010

• Acne treatments posted the strongest current value growth of 9% in 2010

• Reckitt Benckiser leads medicated skin care in 2010 with a 26% value share

• Over the forecast period, medicated skin care is expected to register a constant value CAGR of 3%

TRENDS

• Following the outbreak of the Influenza A (H1N1) virus around the world in 2009, health authorities encouraged the use of topical germicides/antiseptics and advised citizens to exercise good personal hygiene in order to keep the virus at bay.

• Post-pandemic status by the World Health Organization (WHO) did not necessarily mean the scare was over, as isolated and cluster cases in Malaysia remained and consumers continued purchasing topical germicides/antiseptics such as Dettol believing prevention is better than cure.

• Medicated skin care grew faster in 2010 compared to 2009. The influenza A (H1N1) virus and the surge in numbers of dengue cases in Malaysia contributed to growth of products such as topical germicidals/antiseptic and antipruritics. For example, the state of Johor alone experienced more than a 60% rise in dengue cases according to the Johor Health Department.

• Acne treatments saw the fastest growth in medicated skincare in 2010. The rise in consumer image consciousness, hot and humid weather, unhealthy eating habits, and stressful and sedentary lifestyles continued contributing to the growth in demand for acne treatments as outbreaks are more common than before.

• Unit prices of medicated skin care remained relatively constant in 2010 with some products increasing their prices and some lowering their prices. Following a spate of price increases in 2009 as a result of rising raw material costs, manufacturers were less inclined to increase the prices of their products again.

• Child-specific medicated skin care remained insignificant in 2010 as Malaysian parents, generally did not mind using products such as antipruritics and topical germicidals/antiseptics that do not cater to any specific age groups. Most did not see the need for child-specific medicated skin care products and thus, manufacturers were not very eager to release child-specific products.

• Herbal/traditional products remained minuscule within medicated skin care. There were hardly any players involved in herbal/traditional medicated skin care. Moov Insect Repellent Spray with Melaleuca oil and Pinetarsol with pine tar by Ego Pharmaceuticals are some examples of such products in medicated skin care.

• Malaysians are generally willing to self-medicate for milder skin conditions such as hair loss, acne, nappy rash, insect bites and the cleansing of wounds. In slightly more serious cases such as fungal infections and haemorrhoids, consumers tend to seek advice from pharmacists or professional medical treatment from a doctor.

• Brand positioning remained important as popular brand names from large international manufacturers such as Dettol, Oxy and Nizoral continued their domination within medicated skin care.

• There are no official data on UTC figures for medicated skin care in Malaysia. Nonetheless, UTC sales of medicated skin care remained fairly low in 2010. UTC sales remained insignificant as a result of OTC products being widely available at affordable prices.

• Cosmetics products remained direct competitors of medicated skin care products including feminine hygiene products such as Carefree, anti-dandruff shampoos from Head & Shoulders, acne treatments from Clean & Clear and lip balms from manufactures such as L’occitane en provence. The line between such cosmetics products and OTC healthcare products became increasingly hazy to consumers in 2010.

SWITCHES

• There were no switches in medicated skincare in 2009-2010. OTC remained the preferred target for manufacturers instead of Rx due to the larger target audience.

COMPETITIVE LANDSCAPE

• Reckitt Benckiser and Johnson & Johnson remained the largest players in medicated skin care in 2010 with value shares of 26% and 22% value shares respectively. This is largely attributed to well-established brands such as Dettol and Burnol from Reckitt Benckiser and Regaine and Gyno-Pevaryl from Johnson & Johnson.

• International manufacturers dominated medicated skin care in 2010 with companies such as Reckitt Benckiser and Johnson & Johnson taking up more than half of the value share. Domestic manufacturers such as Hoe Pharmaceuticals and CCM Pharmaceuticals were the leading domestic manufacturers of medicated skin care in 2010, with brands such as T3, A-Lices and Dermoplex.

• Botáni Australia launched its Botáni Rescue Acne Aid Cream during 2010. It is being marketed as being benzoyl peroxide-free, has the ability to kill 99.99% of acne causing bacteria and is non-drying and non-abrasive. The impact on the category will be insignificant as the product is not yet available in chain retail stores but instead only through the internet.

• Rohto-Mentholatum undertook a large scale advertising campaign for its Oxy brand in 2010. Oxy also created a Facebook page encouraging anyone to send in pictures of their happiest memories and featured a cash prize of RM3,000 among others.

• Private label remained small in medicated skin care and exposures are pretty much subdued to only topical germicidals/antiseptic as many consumers are indifferent to the product offerings. Giant and Jusco as well as chain chemists/pharmacists such as Guardian also actively promoted their topical germicidals/antiseptics in the light of the rise in demand for such products due to the H1N1 virus.

PROSPECTS

• Medicated skin care will continue growing over the forecast period as consumer preference for self-medication increases. New product developments and innovations are expected as manufacturers will be eager to gain a larger value share as skin conditions due to lifestyle, stress and pollution will worsen in Malaysia.

• Forecast remains rosy for OTC medicated skin care: Skin conditions are becoming more prevalent and consumers are becoming more educated about self-medication. Leaders such as Reckitt Benckiser and Johnson & Johnson will be expected to lead the marketing and research and development efforts in medicated skin care over the forecast period.

• Competition from cosmetic skin care products will be the largest threat to OTC medicated skin care, especially for acne treatment. Meanwhile, hair loss and dandruff treatments will see the largest threat from specialised hair salons such as Yun Nam Hair Care.

• Acne treatment is expected to have the strongest constant value growth over the forecast period. The rise in image consciousness among Malaysians and especially teenagers will continue to contribute to the growth of acne treatment products. Well-established brands such as Oxy will be expected to continue dominating with a wide array of marketing activities over the forecast period.

• Unit prices of medicated skin care are expected to increase over the forecast period, as a result of the strong growth in demand and the possibility of new product developments in the forecast period.

• Consumer health manufacturers are expected to stave off competition from cosmetics by increasing their range of products. For example, in acne treatment, a wider range of treatments such as whitening and blackhead treatments are expected from manufacturers in consumer health.

CATEGORY DATA

HEADLINES

• Sports nutrition gains 4% in current value terms to reach RM10 million in 2010

• Sports nutrition products remain the most popular with hardcore gym-goers, athletes and bodybuilders

• Powder format is still the most popular with an 89% value share in 2010

• Victoria House leads with a 39% value share in 2010

• Over the forecast period, sports nutrition is expected to register a constant value CAGR of 2%

TRENDS

• The customer base of sports nutrition in Malaysia remained small with awareness of such products mostly limited to male hardcore gym-goers, personal trainers, athletes and bodybuilders. The unit prices of sports nutrition are considerably high which made it even harder to go mainstream and entice more consumers to try out the product.

• Sports nutrition posted higher current value growth in 2010 than in the previous year. The rising gym memberships in Malaysia exposed more consumers to sports nutrition products, mostly upon recommendation by their gym trainers or fellow gym-goers. The increase in popularity of convenient ready-to-drink protein drinks is another reason why sports nutrition saw better growth in 2010.

• Sports nutrition achieved unit price growth in 2010 due to the increased raw material costs. The Malaysian Ringgit exchange rate also declined against most major currencies and since the majority of sports nutrition products were imported from foreign countries, prices remained high.

• Health food shops such as GNC remained the largest distribution channel for GNC’s sports nutrition products in 2010. The second most important distribution channels were the fitness centres and gyms as those were the places that targeted consumers usually congregate. Sales of sports nutrition products through non-specialist channels, such as Guardian, Watson’s and Giant, remained somewhat small in 2010.

• Gym memberships increased in 2010. Fitness First, Celebrity Fitness and True Fitness, undertook intensive advertising and recruitment. Fitness First offered a free seven-day trial whereas Celebrity Fitness offered a free 14-day trial. Fitness First has about 38,000 members in 12 locations around Malaysia and Celebrity Fitness has around 48,000 members in eight locations around Malaysia.

• Protein powder remained the largest and best-selling format in sports nutrition in 2010. Flavours such as chocolate, strawberry and berry were introduced to entice more consumers into giving the product a try. Bars began gaining in popularity due to their ease of consumption. The ready-to-drink protein format also saw growth pick up as it is still the most convenient format and enables consumption on the go.

• Different types of sports nutrition include pre-workout, muscle-recovery, muscle-building and post-workout. Protein, creatine and L-carnitine are some of the more common types of ingredient found in sports nutrition. Protein helps to repair and rebuild muscles and this ingredient remained the most popular among consumers. Creatine helps provide energy to muscles and L-carnitine increases the use of fat as energy.

COMPETITIVE LANDSCAPE

• Victoria House remained the leader in sports nutrition in 2010 thanks to its wide range of products and distribution channels with the brand becoming synonymous with sports nutrition. Its products can also be spotted at gyms, such as Celebrity Fitness

• Victoria House registered the largest increase in value share in 2010. The company continued its aggressive expansion plans, adding four more outlets in 2010 to bring its total number of outlets in Malaysia to 54. The brand’s exposure is extremely high with outlets in the largest shopping malls in Malaysia.

• Almost all the brands sold in the country are fully imported from international manufacturers in countries such as New Zealand and the US. Brands such as GNC, Nutra-life, Weider Pro and 21st Century continued dominating sports nutrition. Local manufacturers had little motivation to participate in this category with the number of strong and well-established international brands dominating over the review period.

• Nutra-Life Health & Fitness launched its L-Carnitine Tartrate 500g in Malaysia in 2010. The company emphasised the product’s ability to cater to a number of different needs in one solution. The product claimed to be suitable for people wanting to: lose weight; promote their heart and brain health; alleviate stress; or boost their energy.

• Private label was not present in sports nutrition because consumers of such products usually have strong product knowledge before consuming and most prefer to purchase highly trust brands such as GNC, Nutra-Life and Weider Pro to cater to their fitness needs.

• Direct selling remained small in sports nutrition with direct sellers such as Nu Skin and Shaklee Products offering products in 2010. Other direct selling companies preferred to focus on products in vitamins and dietary supplements, weight management and other beauty care products. Internet retailing was also on the rise in sports nutrition, with retailers such as Ego Nutrition and Supplements2day being the most popular online retailers among consumers. Both of these retailers carried a much wider range of products at attractive prices from brands that are not so well known in Malaysia such as PrimaFORCE, Nutrex and Muscletech.

PROSPECTS

• As the rise in image and health consciousness in Malaysia increases, fitness centres are expected to continue expanding their number of outlets in Malaysia over the forecast period. For example, Celebrity Fitness will continue to acquire smaller fitness centres and open new outlets as part of its usual expansion strategy. Fitness First will also be scouting for good locations with a good flow of potential customers to establish more of its fitness clubs over the forecast period.

• Sports nutrition is expected to post a constant value CAGR of 2% over the forecast period. Gym memberships and image consciousness are on the rise and Malaysians are generally taking more notice of their health following the outbreak of the influenza A (H1N1). As the economy recovers over the forecast period, Malaysians will have higher disposable incomes to take up gym memberships and will try out sports nutrition products to complement their exercise regimes.

• According to industry sources, the largest threat to the growth of sports nutrition brands, such as GNC, Weider Pro and Nutra-Life remained the increasing popularity of individuals importing sports nutrition products into Malaysia as a part time job which they then sell online or to their fellow gym goers at prices lower than the market. These small-time importers will cut into the profits of the larger brands in Malaysia.

• Unit prices are expected to increase over the forecast period as new innovations and new products with better formulation and active ingredients will be developed. Increasing raw material and production costs as well as inflation are also expected to affect the unit pricing of sports nutrition products.

• Over the forecast period sports nutrition should see a greatly increased range of products. Key players will look to bring in more products as the demand for sports nutrition will grow in line with rising gym membership and health consciousness in Malaysia. More marketing and promotional efforts will also be expected as the brands will start tackling the rise in small-time importers of sports nutrition that are cutting into their profits.

CATEGORY DATA

HEADLINES

• Vitamins and dietary supplements gains 6% in current value terms to reach RM1.3 billion in 2010

• The influenza A (H1N1) virus raises awareness among consumers and boosts profits for manufacturers in 2010

• Tonics and bottled nutritive drinks posts the strongest current value growth of 11% in 2010

• Amway leads with a 16% value share in 2010

• Over the forecast period, vitamins and dietary supplements is expected to register a constant value CAGR of 4%

TRENDS

• The influenza A (H1N1) virus was declared to be in the post-pandemic period in 2010 by the World Health Organization (WHO). Even though the threat of H1N1 had been lowered, there were still cases of the virus in Malaysia and as a result, consumers began consuming more vitamins than ever to boost their immune systems.

• Current value growth of vitamins was 6% in 2010 compared to the 5% current value growth in 2009. Consumers were more health conscious than ever with many purchasing vitamins to boost their immune systems and adopting a prevention-is-better-than-cure mentality.

• Vitamin C, with a current value growth of 10% in 2010 was the best performer in vitamins. As vitamin C is a good product to boost the immune system and aids in the prevention of cold and flu symptoms, the outbreak of H1N1 prompted many consumers to start consuming vitamin C on a regular basis.

• Unit prices remained relatively stagnant in 2010 with some brands raising their prices of vitamins, some lowering their prices and some maintaining the same prices as in 2009. Following the launch of a few new products in vitamins in 2009 to take advantage of the H1N1 panic, there were no noticeable new products launched in 2010.

• More companies set up online stores for to facilitate purchases of their supplements and online stores include 21st Century Products and VitaHealth. Direct selling companies such as Amway also performed well in vitamins in 2010, taking one-quarter of value share in vitamins. Both of these non-store retailing methods enable wider distribution and provide ease of shopping for consumers.

• Multivitamins posted the second strongest performance in 2010, with current value growth of 7%. Consumers have been purchasing multivitamins more than ever to boost their overall health and strengthen their immune systems. Brands such as Beroocca also undertook intensive advertising for its multivitamins with television advertisements.

• Child-specific vitamins and dietary supplements performed strongly in 2010 with 6% growth in current value terms in 2010. Parents want the best for their children and, therefore, deemed such products to be a basic necessity in a growing child. Single vitamins such as vitamin C and multivitamins remained the most popular choices for parents.

• Even though the threat of H1N1 was lowered in 2010, consumers were consuming more dietary supplements than ever in order to boost their immune systems and general wellbeing. Products such as echinacea, cod liver oil and spirulina commonly used to boost immune systems experienced strong sales growth in 2010.

• Dietary supplements posted a similar current value growth rate of 6% in 2010 as in the previous year. Demand for dietary supplements was still high as a result of factors ranging from the ageing population, boosting immunity and to alleviating menopause symptoms. The economic recovery also provided consumers with job security and higher levels of disposable income to spend on dietary supplements.

• Within dietary supplements, omega 3-6-9 (fish and non fish) saw the highest current value growth in 2010 at 10%. Omega 3-6-9 is quite simply the most researched dietary supplement in the world. With benefits including reducing the risk of cardiovascular disease, combating high cholesterol, aiding brain development, improving complexion and many others, more and more Malaysians are starting to consume omega 3-6-9 on a regular basis.

• Within dietary supplements, some of the more popular products include: calcium supplements which help with bone health; cod liver oil and echinacea that boost immunity; other fish oils and omega 3-6-9 that help prevent heart-related diseases; ginkgo biloba to promote mental acuity; evening primrose oil to help alleviate menopause symptoms and glucosamine that helps joint health.

• Some products in dietary supplements faced competition from non OTC consumer healthcare products. One example was probiotics facing huge competition from popular and well-established probiotic drinking yoghurt brands such as Vitagen and Yakult that promote a good digestive system. Products such as Horlicks from GlaxoSmithKline claim to contain twice the amount of calcium as an ordinary glass of milk. The Milo brand from Nestlé was advertised as a good source of daily intake of multivitamins and minerals. Other products include MonaVie’s range of drinks consisting of vitamins and dietary supplements, antioxidants, phytonutrients, in addition to other healthy ingredients such as Wellmune, plant-based glucosamine, and plant sterols. These products all represent threats to the OTC dietary and supplements sector in Malaysia.

• Combination dietary supplements, consisting of herbal/traditional products and non-herbal products were the largest contributors to dietary supplements in 2010. Such combination products were popular among Malaysians as they were able to obtain a wide range of dietary supplements from a single product.

• Products meant for general health remained the most popular and this positioning accounted for 60% of sales in 2010, highlighting the importance of general health and wellbeing among Malaysians. Furthermore, with the ageing population and the desire to prevent bone loss and joint pains during old age, younger consumers are starting to consume products such as calcium supplements and glucosamine when they are young. These factors contributed to the growth in bone and joint health products in 2010. The rising popularity of products such as fish oils and co-enzyme Q10 contributed to the growth of heart health products in 2010 as more Malaysians were faced with worsening heart health due to an unhealthy diet and sedentary lifestyles.

• Cod liver oil and probiotics remained the most common dietary supplements targeted at children. Cod liver oil and other fish oil contains Omega 3, DHA and iron help brain development in children, boost immunity against infections such as colds and cough and aid in developing strong teeth and bones during children’s growing years. Probiotics, on the other hand, helps boost a child’s intestinal health. One of the key players in child dietary supplements is GlaxoSmithKline with its Scott’s Emulsion brand.

• Tonics and bottled nutritive drinks remained highly popular in Malaysia. The category registered current value growth of 11% to reach value sales of RM161 million in 2010. Within tonics and bottled nutritive drinks, essence of chicken bottled nutritive drinks remained popular. Consumers often drink this product to help relieve fatigue and increase mental alertness. Brand’s undertook a series of intensive marketing campaigns in 2010 to boost demand for its products. The company was the main sponsor of a news programme on one of Malaysia’s television channels. Brand’s also organised a promotion with the theme “Brand’s High Achiever 2011”, encouraging students to participate by sending in a cut out stamp of a Brand’s six pack product and score among the top few students in the examinations to win an attractive prize. Other players such as Eu Yan Sang and Lo Hong Ka also undertook high levels of marketing activities and contributed to the growth of tonics and bottled nutritive drinks in 2010.

COMPETITIVE LANDSCAPE

• Amway remained the leader in vitamins and dietary supplements in 2010 with a value share of 16%. The company produces a wide array of products ranging from a combination of dietary supplements, royal jelly, vitamins, protein powder to mineral supplements. Amway’s main strength includes its wide range of products, nationwide distribution capabilities and its strength in its multi-level marketing system.

• Amway posted the largest increase in value sales in 2010. This can be attributed to its wide portfolio of vitamins and dietary supplements, which, during the influenza A (H1N1) epidemic, recorded extremely rosy sales figures in multiple product categories. The popularity of direct selling is also on the rise in Malaysia and the Direct Selling Association of Malaysia (DSAM) predicted that sales by members of the DSAM increased by 33% in 2010.

• International manufacturers, including Amway and Cerebos, continued their domination in vitamins and dietary supplements in 2010. Cosway ranked third followed closely by Elken with 7% and 6% value shares respectively.

• VitaHealth launched its Natural Coenzyme Q10 50000 in 2010, a dietary supplement that aids general health maintenance and wellbeing. The selling point of this product is that the trans isomer in its content, which is similar to the naturally occurring form, means it can be absorbed more easily by the human body. The new product’s impact on the category will be minimal for the time being unless more marketing efforts are conducted to highlight the key differences between the product and other co-enzyme Q10 products.

• The Cerebos brand called Brand’s, advertised with a series of television advertisements. One involved advertising its “Brand’s High Achievers Award” and encouraged students to sign up.

• Private label sales were negligible in vitamins and dietary supplements. The category is highly competitive with a huge number of competitors and wide range of products available at reasonable prices. As such, there was not much motivation for private label to enter vitamins and dietary supplements.

PROSPECTS

• Health consciousness remained on the rise in Malaysia as a result of marketing efforts by manufacturers and the government’s emphasis on the importance of adopting a healthy lifestyle. Furthermore, the influenza A (H1N1) virus and the more recent but less threatening superbug NDM-1demonstrated the importance of maintaining a healthy immune system. Demand for vitamins and dietary supplements will further increase over the forecast period as consumers will start paying more notice to their general health and wellbeing.

• Over the forecast period, vitamins and dietary supplements is expected to continue posting strong growth. The rise in consumer awareness was due to marketing activities, healthier diet and lifestyles encouraged by the government and the ageing population, all of which will contribute to the growth of vitamins and dietary supplements in the forecast period.

• The largest threats to the forecast period growth are expected to be from manufacturers of food and drinks products fortified with vitamins and dietary supplements. Examples include Dragon Fruit Enzyme drink by Sunberry, which consists of enzymes that aid digestion and boost overall wellbeing and also Collagen Drink by Total Image which consists of vitamins and minerals to help with detoxification and which helps the skin. The rise in image and health consciousness of Malaysians also led to a rise in popularity of juice bars such as Boost Juice Bars and Juice Works around Malaysia providing a wide range of healthy fruit and vegetable juices.

• Tonics and bottled nutritive drinks is expected to post the best performance over the forecast period in vitamins and dietary supplements. Tonics and nutritive drinks manufacturers are slowly moving towards manufacturing beauty related tonics in a bid to take advantage of the image consciousness of Malaysians and raise their sales. Key players in tonics and bottled nutritive drinks also have a tendency to undertake a wide array of marketing activities in order to attract consumer interests.

• The unit prices of vitamins and dietary supplements are expected to increase over the forecast period. Rising raw material and manufacturing costs, costly new product research and development and a general rise in demand for products will be the main contributing factors to the rise in unit prices.

• Over the forecast period, players in vitamins and dietary supplements are expected to undertake advertising activities targeted towards informing consumers about the active ingredients in their products. Products in vitamins and dietary supplements on the whole contain a higher dosage of active ingredient, with higher concentration and are a much more effective and efficient way of obtaining the required intake compared to fortified food and drinks.

CATEGORY DATA

HEADLINES

• Weight management gains 10% to reach sales of RM349 million in 2010

• Obesity rates in Malaysia show no signs of slowing down in 2010

• Meal replacement slimming posts the strongest current value growth of 13% in 2010

• Herbalife Products leads in 2010 with a 31% value share

• Over the forecast period, weight management is expected to register a constant value CAGR of 6%

TRENDS

• The Ministry of Health conducted a survey involving 10,000 primary school students and revealed that 24% of those children between six and 12 years old were either overweight or obese. Malaysians were essentially eating themselves to obesity and chronic heart disease, diabetes and high blood pressure. The increasing popularity of 24-hour eating establishments such as “mamak stalls” and sedentary nine-to-five working hours in offices are the largest contributors to obesity among Malaysians. Thus, demand for weight management products will continue to rise due to the escalating obesity rates and rise of image consciousness among Malaysians.

• Current value growth of 10% in 2010 was lower than the 13% in the previous year. Product knowledge and awareness was already well established and the growth rate of weight management although still high will slowly decline over the forecast period. Demand for weight loss salons such as Marie France Bodyline and London Weight Management also undertook aggressive marketing campaigns such as offering free trials, television advertisements and newspapers advertisements. Gym memberships were also on the rise in 2010 as gyms such as Fitness First actively employed free seven-day trial promotions to entice consumers to join.

• Meal replacement slimming remained the highest growing in weight management with a current value growth of 13% in 2010. This category remained very popular due to the high vitamin and mineral content and the ease of consumption, allowing users to consume on the go. Some Malaysians however, remained unsure of the way a meal replacement should be consumed with some consuming meal replacements together with main meals, defeating the purpose of the product.

• Unit prices of weight management products remained relatively consistent in 2010. The highly competitive nature made it slightly difficult for manufacturers to increase the prices of their products as consumers have a tendency to switch to cheaper brands. However for more premium brands with a better proven track record, consumers did not mind paying extra to ensure results.

• Weight loss supplements was the second fastest growing and largest contributor to weight management in 2010. These products remained the easiest to consume and also encompassed the widest range of products and formats from NH Detoxlim from Multi Herbs Pharmaceutical to Fabuloss 5 from 21st Century Products.

• Malaysians generally consider being slim and fit as beautiful and healthy, especially if facial features do not disappoint. This accounts for the success of weight management products and beauty salons in Malaysia as more and more consumers are trying to get into shape.

• Direct selling remained the most popular and common distribution channel for weight management products in 2010. On the other hand, internet retailing remained small in 2010, with major players opting not to sell their products online because consumers preferred a face to face interaction to better understand the product. Grocery retailers tend to carry cheaper forms of slimming products such as slimming teas but not meal replacements as the prices of such products remained high. Thus, grocery retailers’ contribution to sales of weight management products remained fairly low.

• Sales of other slimming products in Malaysia remained insignificant. Formats such as creams which tones and firms rather than weight loss include Body Specific Slimming Cream by Total Image. Patches also accounted for an extremely small portion of sales as the format remained unpopular among Malaysians.

• OTC obesity products are classified as Class B poisons in Malaysia, which can only be prescribed by a registered medical practitioner. Brands such as Reductil by Abbott Laboratories and Acomplia by Sanofi-Aventis are available in Malaysia as prescription only. However because of a series of heart attacks and strokes linked with Reductil, it was banned in Europe earlier in 2010. However, the product is still available in Malaysia.

COMPETITIVE LANDSCAPE

• Herbalife Products led in 2010 with a value share of 31% in 2010 and also posted the largest increase in value share. The company’s ShapeWorks weight management programme remained a large hit with Malaysians due to the positive reviews of the product in other countries, coupled with the confidence it instils in consumers because of the size of the company.

• Multi Herbs Pharmaceutical and Total Image Regional took second and third positions respectively in value sales in weight management in Malaysia. Their well-established brands such as NH Detoxlim by Multi Herbs Pharmaceutical and the eponymous Total Image were widely available with good reviews from ex-users. Other international companies included Amway, Cosway and Nutra-Life Health & Fitness.

• Word-of-mouth remained a key strategy for direct sellers to gain better awareness among consumers and players in weight management have the tendency to employ local celebrities to advertise their products for them. One good example was NH Detoxlim’s decision to hire Mila to promote its Natural Clenx Tea.

PROSPECTS

• Despite the Malaysian government continuously promoting healthier diet through campaigns and even drawing up the Malaysian Dietary Guidelines (MDG) 2010 in a bid to improve the health of Malaysians, eating habits will be difficult to change. Coupled with sedentary lifestyles and longer working hours of Malaysians, obesity will continue to increase over the forecast period.

• Weight management is expected to continue recording a positive performance over the forecast period. A rise in image and health consciousness among Malaysians will prompt many consumers to consider losing weight. New product developments and innovations are expected from key players in weight management to take advantage of the growth in this category.

• There are essentially a number of threats that could affect the growth in weight management. The rise in gym memberships and the range of services offered in gyms are constantly improving. For instance, other than providing personal gym trainers, gyms nowadays offer free yoga, pilates, aerobics and dance classes in a bid to attract more members. If not for the lack of time, consumers will still prefer to lose weight through exercising compared to consuming weight loss supplements and facing the potential side effects. The intensive marketing efforts of popular beauty salons, such as Marie France Body Line and London Weight Management, will also threaten the growth of weight management products in Malaysia.

• Meal replacement slimming will mostly likely remain the fastest growth category in weight management over the forecast period, with a constant value CAGR of 8%. Meal replacement products are expected to grow in popularity as they are deemed to have fewer side effects, are easier to consume and consist of a wide range of daily nutrition intake requirements.

• Unit prices of weight management are expected to increase over the forecast period as a result of the growing demand for such products and the research and development of new and improved weight management products.

CATEGORY DATA

HEADLINES

• Wound care posts 4% current value growth in 2010

• First aid kits posts the strongest current growth of 6% in 2010 in wound care

• Beiersdorf leads with a 58% value share

• Wound care is expected to post a constant value CAGR of 2% over the forecast period

TRENDS

• Consumers are switching over to cheaper private label, as they perceived little difference between private label such as Guardian and branded products including Hansaplast for sticking plasters. Transparent, fashion, water resistant and cartoon character-based plasters remained popular, not only in branded products but also private label such as Watsons and Guardian which were launched in attractive designs.

• Wound treatments recorded 4% current value growth in 2010. The government’s campaigns on healthier lifestyles and the rise in popularity of sports due to the growing image and health consciousness among Malaysians drove up demand for wound care products. More Malaysians are exercising than before and more are demanding plasters to look more fashionable instead of the old fashioned brown coloured, plain design.

• Retail value sales of first aid kits remained low in Malaysia. Most Malaysian homes still do not possess a standard first aid kit but rather separate assortments of consumer health products. Quite a number of consumers did not see the need to purchase a first aid kit and many chose to use the standard first aid kits for their cars in their homes as well. A typical standard first aid kit for the home include items such as sterilised cotton gauze swab, sterilised cotton wool and gauze pad, plasters, bandages, triangle bandages, scissors, thermometer, tweezers, safety pins and a range of external and internal medicine.

• Premium brands such as Hansaplast and Elastoplast were quiet in terms of new product launches and new product developments during 2010. Guardian Pharmacy, on the other hand, joined forces with Animation International to gain a license to use the popular cartoon character Doraemon on the packaging for its plasters in a bid to attract parents to purchase the products for their children.

• Beiersdorf remained the leader in wound care in 2010 with a value share of 58%. This was as a result of the wide availability, wide range of products and the well-established nature of its Elastoplast and Hansaplast brands. Smith & Nephew ranked second with a 14% value share in 2010. However, Smith & Nephew’s interests lie in other wound treatments, such as post operation wound care, and therefore does not pose a threat to Beiersdorf and its value share.

• Private label is gaining in popularity as it also offers a comprehensive range of product variants. The perceived differences of such private label compared to premium brands were low and the lower prices of private label enticed many consumers to switch over from premium brands For example, Guardian Pharmacy’s private label fabric plasters were priced at RM2.9 for 20 pieces whereas Hansaplast by Beiersdorf was priced at RM3.59 for a similar 20-piece box.

• Wound care is expected to post a CAGR of 2% in constant value terms over the forecast period. Sticking plasters is likely to contribute the most to this growth. This will mainly due to the growing demand for higher-value ranges that feature cartoon characters or colourful designs, as well as contemporary types of sticking plasters with skin care functions or in assorted sizes and shapes that cater to the demands of different consumers. It is also likely to see private label include decorative plasters to compete with competitors. Other wound treatments is expected to see slow growth, as consumers will only use products such as bandages, gauze and surgical tape when necessary.

CATEGORY DATA

For each category and subcategory you will receive the following data in Excel format:

From Passport

• Market sizes
• Company shares
• Brand shares
• Distribution
• Analysis by format
• Analysis by positioning
• Analysis by type
• Herbal/traditional vs standard
• Pricing
• Smoking population - number of adult smokers
• Smoking prevalence - % of adult population

Market size details:

• Retail volume
• Retail volume % growth
• Retail volume per capita
• Retail value retail selling price % growth
• Retail value retail selling price local currency, USD, EUR, GBP, CHF, JPY
• Retail value retail selling price per capita local currency, USD, EUR, GBP, CHF, JPY
• Retail value retail selling price real (constant 2008) prices % growth
• Retail value retail selling price real (constant 2008) prices local currency, USD, EUR, GBP, CHF, JPY
• Retail value retail selling price real (constant 2008) prices per capita local currency, USD, EUR, GBP, CHF, JPY
• Retail value manufacturer selling price % growth
• Retail value manufacturer selling price local currency, USD, EUR, GBP, CHF, JPY
• Retail value manufacturer selling price per capita local currency, USD, EUR, GBP, CHF, JPY
• Retail value manufacturer selling price real (constant 2008) prices % growth
• Retail value manufacturer selling price real (constant 2008) prices local currency, USD, EUR, GBP, CHF, JPY
• Retail value manufacturer selling price real (constant 2008) prices per capita local currency, USD, EUR, GBP, CHF, JPY
• Retail value retail selling price nominal (current) prices % growth
• Retail value retail selling price nominal (current) prices local currency, USD, EUR, GBP, CHF, JPY
• Retail value retail selling price nominal (current) prices per capita local currency, USD, EUR, GBP, CHF, JPY
• Retail value manufacturer selling price nominal (current) prices % growth
• Retail value manufacturer selling price nominal (current) prices local currency, USD, EUR, GBP, CHF, JPY
• Retail value manufacturer selling price nominal (current) prices per capita local currency, USD, EUR, GBP, CHF, JPY

Global insight and local knowledge

With 40 years’ experience of developed and emerging markets, Euromonitor International’s research method is built on a unique combination of specialist industry knowledge and in-country research expertise.

This approach is what enables us to achieve our goal of building a market consensus view of size, shape and trends across the full distribution universe of each category. We factor in whichever channels are relevant, from large-scale grocery to direct sellers, from discount stores to local mom-and-pop outlets.

Industry specialists

Each industry we cover is managed by an Industry Manager and team of Industry Analysts who research and report on their specialist categories all year round.

Our collaborative approach to research means that these industry teams are in constant dialogue with industry players and opinion formers. The planning of our research programmes reflects latest market trends and industry events. In completing each update project, this provides invaluable input to the testing, review and finalisation of our data.

The specialist in-house teams bring together findings from all stages of the annual research process. They work closely with in-country analysts, assess and challenge data and exercise final editorial control over the publication of new data and analysis.

Country and regional analysts

Our in-country analyst network is managed by country and regional analysts in our offices around the world. Working closely with each in-country team, the regional research management team ensures that all country researchers are well schooled in best practices, from the information collected in store checks, to the dialogue we build in trade surveys. Our country analysts ensure that national reports explain the data trends and provide clear insights into the local market’s dynamics.

In-country research network

To deliver fresh insights every year in countries all around the world, we believe the strongest approach is to use analysts on the ground. They bring fluency in local language, physical proximity to the best sources, an ability to engage directly with local industry contacts, and an awareness of how the products and services we study are advertised, sold and consumed. These are essential parts of our ability to report incisively on these markets.

Our research methods

Each Euromonitor International industry report is based on a core set of research techniques:

Desk research

With industry events, corporate activity, trends and new product introductions tracked year round by our industry team, desk research provides a starting point for the in-country research programme. Our in-country researchers will access the following sources:

• National statistics offices governmental and official sources
• National and international trade press
• National and international trade associations
• Industry study groups and other semi-official sources
• Company financials and annual reports
• Broker reports
• Online databases
• The financial, business and mainstream press

Accessing sources is only the first step. The ability to interpret and reconcile often conflicting information across multiple sources is a key aspect of the added value we provide.

Store checks

Store checks are an integral part of our methods for product industries. Carried out on the ground across a relevant mix of channels, the information gained provides first-hand insights into the products we are researching, specifically:

• Place: We track products in all relevant channels, selective and mass, store and non-store
• Product: What are innovations in products, pack sizes and formats?
• Price: What are brand price variations across channels, how do private label’s prices compare to those of branded goods?
• Promotion: What are marketing and merchandising trends, offers, discounts and tie-ins?

Findings are cross-referenced with brand share data analysis. The results, combined with the findings of desk research, provide a strong basis for identifying key areas of questioning to take forward into our trade survey.

Trade survey

Interaction with global players at corporate HQ and regional levels is complemented by unique local data and insights from our in-country trade surveys around the world. Through the high profile of the Euromonitor International brand, we are able to talk directly to a wide range of sources and therefore inform our analysis with the knowledge and opinions of the leading operators in the market.

Trade surveys allow us to:

• Fill gaps in available published data per company
• Generate a consensus view of the size, structure and strategic direction of the category
• Access year-in-progress data where published sources are out of date
• Evaluate the experts’ views on current trends and market developments

In building our composite industry view, we engage with a variety of personnel in key players at all points of the supply chain: materials suppliers, manufacturers, distributors, retailers and service operators. We also interview desk research sources: industry associations; study groups; and third party observers from the trade and financial press.

Our objective is to engage in conversation with trade sources in which we exchange ideas and views on the industry, sharing our work-in-progress findings on supply/demand dynamics and potential. This dialogue enhances both parties’ understanding of the local market. The scope and reach of our trade survey also serves to eliminate bias (intentional and unintentional) from any single source.

Company analysis

At a global level, our company research combines our mix of industry interaction and use of secondary sources such as annual accounts, broker reports, financial press and databases. From a data perspective, the aim is to build “top-down” estimates of major players’ total global and regional sales.

At a country level, in line with local reporting requirements, we access annual accounts, national-specific company databases and local company websites. These are all invaluable sources as we build a view of each domestic player’s size and position within very specific categories of the industry.

Forecasts

Data projections and future performance analysis are key elements of Euromonitor International’s market intelligence. Working with historic trends of 15 years or more, a key aspect of our trade survey is to engage industry insider views of the next five years. Will volumes maintain their historic trend? Will price increases or falls of recent years continue, accelerate or slow down? Will increasing demand for one product cannibalise sales of another?

Forecasts represent many of the essential conclusions we have reached about the current state of the market, how it works and how it behaves under different macro and micro conditions. Our written analysis will state the assumptions and the trade opinion behind whether our predictions are optimistic or pessimistic, so that clients can use our statistical forecasts with confidence.

Data validation

All data is subjected to an exhaustive review process, at country, regional and global levels.

The interpretation and review of sources and data inputs forms a central part of the collaboration between industry teams and country researchers. Numbers are delivered to regional and global offices with an audit trail of sources and calculations to allow for a thorough evaluation of data sense and integrity.

Upon completion of the country review phase, data is then reviewed on a comparative basis at regional and then at a global level. Comparative checks are carried out on per capita consumption and spending levels, growth rates, patterns of category and subcategory breakdowns and distribution of sales by channel. Top-down estimates are reviewed against bottom-up regional and global market and company sales totals.

Where marked differences are seen between proximate country markets or ones at similar developmental levels, supplementary research is conducted in the relevant countries to confirm and/or amend those findings. This process ensures international comparability across the database, that consistent category and subcategory definitions have been used and that all data has been correctly tested. We make sure that possible discrepancies between different published sources have been reconciled and that our interpretation of opinion and expectation from each country’s trade sources has been applied to form a coherent international pattern.

Market analysis

Another integral part of all our research programmes is that all Euromonitor International data is accompanied by clear written analysis. From a research perspective, this explains and substantiates data findings. From a client perspective, this offers unique insights into local consumption trends, routes to market, brand preferences, channel dynamics and future trends.

Our country level analysis also provides invaluable input into the ability of our central industry specialist teams to marry local insights with strategic conclusions on the direction of the market regionally and globally.