OTC Healthcare in Israel
Euromonitor International's OTC Healthcare in Israel market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 121 | Publication date: May 2009
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- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Adult mouth care; Allergy care; Analgesics; Calming and sleeping products; Child-specific OTC healthcare; Cough; cold and allergy (hay fever) remedies; Digestive remedies; Ear care; Emergency contraception; Eye care; Medicated skin care; NRT Smoking cessation aids; OTC obesity; OTC statins; OTC triptans; Vitamins and dietary supplements; Wound treatments
Executive summary
2008 continues positive growth rates similar to the review period
As over the review period 2008 saw relatively fast growth rates in the OTC healthcare market in Israel. In value terms, growth was even faster in 2008 than the review period average due to price hikes and higher inflation. The relatively fast growth rates are not equally spread among all product sectors however. During 2008 the main growth sectors/subsectors were proton pump inhibitors (thanks to a new revolutionary product development), emergency contraception (thanks to marketing efforts targeted at younger people), hair loss treatments (thanks to men becoming more aware of their appearance) and laxatives (thanks to an advanced dairy market in Israel and easy-to-use solutions).
Demand for more specific treatments leads to new innovations and launches
2008 saw growing demand for products that treated specific ailments only rather than products that dealt with a variety of symptoms. This demand was due to consumers becoming increasingly aware of health issues and knowledgeable about self-medication. As a result, combination products that gained massive success throughout the review period, such as strong brands Acamol, Nurofen and Dexamol, launched symptom-specific brands such as Acamol Tsinun, Nurofen Liquid and Dexamol Cold. During 2008 Acamol launched Acamol Tsinun Flu which is an even more specific product for treating flu. These types of products make it easier for consumers to self-medicate and to choose directly without consulting chemists/pharmacists or doctors.
Private label benefits from unique market structure
The popularity of private label is increasing thanks to developments in the product range, packaging and labelling. OTC private label products are perceived as good value-for-money products with consumers showing considerable confidence in them (much more so than in food and beverages). Another factor that is boosting private label activity is the sick funds (HMOs) which launched their own very competitive private label brands.
Private label products, especially those of the sick funds, have a huge impact on the competitive level of the market in Israel because of its unusual market structure; most OTC drugs can be purchased more cheaply with a doctor’s prescription. The doctors and chemists/pharmacists are encouraged to recommend the sick funds’ products. Companies are trying to overcome this challenge through marketing efforts that will increase awareness of their brands, and by innovating new products that are easier to self-medicate (and therefore consumers do not need to consult with chemists/pharmacists or doctors) or that are more difficult to manufacture as private label products (Acamol Tsinun Flu for example).
GSL revolution did not bring expected results
Three years after the GSL revolution that allowed a list of OTC products to be sold outside chemists/pharmacies or parapharmacies/drugstores, the industry is increasingly pessimistic about the long-term success of the action taken. Consumers are not aware of the GSL list, and typically do not know what brands are on the list. As GSL products are mainly sold through parapharmacies/drugstores and chemists/pharmacies (grocery retailers started to sell them in 2005/2006 but most have since stopped), they are usually on the same shelves as regular OTC drugs, or even, next to the same product of the same brand, but in a different pack size with a higher unit price.
Parapharmacies/drugstores were responsible for over 41% of OTC healthcare sales in Israel in 2008, which is actually a lower share than prior to the GSL revolution. Shares held by grocery retailers and chemists/pharmacies in 2008 were also lower than before the GSL revolution. These two indicators suggest that there are other channels that are developing, namely healthfood shops and Internet retailing.
Economic slowdown aside, some sectors are expected to see strong growth
The economic slowdown is expected to hit the Israeli market in 2009. The first signs were seen in late 2008, much later than many European countries or the US. While OTC drugs are not often significantly affected by recessions, as they enjoy steady demand, it is expected that the review period’s fast growth rates will not be duplicated in the near future.
The changes that are likely to occur over the forecast period are more behavioural in nature. Consumers who tend to self-medicate (and are willing to spend more doing so) might change their habits and spend extra time visiting a doctor in order to get a cheaper drug. Moreover, parapharmacies/drugstores as distribution channels may suffer a slowdown as they are perceived as more expensive. Sectors/subsectors that are not expected to see slowdowns are proton pump inhibitors, emergency contraception, child-specific products, mainly ibuprofen, and hair lost treatments. These products represent either strong lifestyle choices that will not be affected by the economic slowdown, or products that are perceived as essential.
Table of contents
OTC HEALTHCARE IN ISRAEL : MARKET INSIGHT
EXECUTIVE SUMMARY
2008 continues positive growth rates similar to the review period
Demand for more specific treatments leads to new innovations and launches
Private label benefits from unique market structure
GSL revolution did not bring expected results
Economic slowdown aside, some sectors are expected to see strong growth
KEY TRENDS AND DEVELOPMENTS
Unusual market structure with OTC drugs falling in the “health basket”
Increased private label activity
Specific drugs answer consumer demand for specification
GSL revolution failed to impact the retail market as expected
Economic slowdown is expected only in 2009
MARKET INDICATORS
Table 1 Consumer Expenditure on Health Goods and Medical Services 2003-2008
Table 2 Life Expectancy at Birth 2003-2008
MARKET DATA
Table 3 Sales of OTC Healthcare by Sector: Value 2003-2008
Table 4 Sales of OTC Healthcare by Sector: % Value Growth 2003-2008
Table 5 OTC Healthcare Company Shares by Value 2004-2008
Table 6 OTC Healthcare Brand Shares by Value 2005-2008
Table 7 Penetration of Private Label by Sector 2003-2008
Table 8 Sales of OTC Healthcare by Distribution Format: % Analysis 2003-2008
Table 9 Sales of OTC Healthcare by Sector and Distribution Format: % Analysis 2008
Table 10 Forecast Sales of OTC Healthcare by Sector: Value 2008-2013
Table 11 Forecast Sales of OTC Healthcare by Sector: % Value Growth 2008-2013
APPENDIX
OTC Registration and Classification
Vitamins and Dietary Supplements Registration and Classification
Self-medication and Preventive Medicine
Generics
Switches
Summary 1 OTC Healthcare Switches 2005-2007
DEFINITIONS
Summary 2 Research Sources
LOCAL COMPANY PROFILES - ISRAEL
DEXXON LTD - OTC HEALTHCARE - ISRAEL
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Dexxon Ltd: Key Facts
Summary 4 Dexxon Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 Dexxon Ltd: Competitive Position 2008
NEW-PHARM DRUGSTORES LTD - OTC HEALTHCARE - ISRAEL
STRATEGIC DIRECTION
KEY FACTS
Summary 6 New-Pharm Drugstores Ltd: Key Facts
Summary 7 New-Pharm Drugstores Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
REKAH PHARMACEUTICAL PRODUCTS LTD - OTC HEALTHCARE - ISRAEL
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Rekah Pharmaceutical Products Ltd: Key Facts
Summary 9 Rekah Pharmaceutical Products Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 Rekah Pharmaceutical Products Ltd: Competitive Position 2008
SUPER-PHARM (ISRAEL) LTD - OTC HEALTHCARE - ISRAEL
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Super Pharm Israel Ltd: Key Facts
Summary 12 Super Pharm Israel Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
TEVA PHARMACEUTICAL INDUSTRIES LTD - OTC HEALTHCARE - ISRAEL
STRATEGIC DIRECTION
KEY FACTS
Summary 13 Teva Pharmaceutical Industries Ltd: Key Facts
Summary 14 Teva Pharmaceutical Industries Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 15 Teva Pharmaceutical Industries Ltd: Competitive Position 2008
TRIMA ISRAEL PHARMACEUTICAL PRODUCTS MAABAROT LTD - OTC HEALTHCARE - ISRAEL
STRATEGIC DIRECTION
KEY FACTS
Summary 16 Trima Israel Pharmaceutical Products Maabarot Ltd: Key Facts
Summary 17 Trima Israel Pharmaceutical Products Maabarot Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 18 Trima Israel Pharmaceutical Products Maabarot Ltd Competitive Position 2008
ANALGESICS IN ISRAEL
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 12 Sales of Analgesics by Subsector: Value 2003-2008
Table 13 Sales of Analgesics by Subsector: % Value Growth 2003-2008
Table 14 Herbal vs Standard Topical Analgesics 2003-2008
Table 15 Topical Analgesics by Format: % Value Breakdown 2004-2008
Table 16 Analgesics Company Shares by Value 2004-2008
Table 17 Analgesics Brand Shares by Value 2005-2008
Table 18 Forecast Sales of Analgesics by Subsector: Value 2008-2013
Table 19 Forecast Sales of Analgesics by Subsector: % Value Growth 2008-2013
COUGH, COLD AND ALLERGY (HAY FEVER) REMEDIES IN ISRAEL
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 20 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: Value 2003-2008
Table 21 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: % Value Growth 2003-2008
Table 22 Sales of Decongestants by Type: Value 2003-2008
Table 23 Sales of Decongestants by Type: % Value Growth 2003-2008
Table 24 Sales of Child-specific Cough, Cold and Allergy (Hay Fever) Remedies by Type: Value 2003-2008
Table 25 Sales of Child-specific Cough, Cold and Allergy (Hay Fever) Remedies by Type: % Value Growth 2003-2008
Table 26 Herbal vs Standard Cough, Cold and Allergy (Hay Fever) Remedies 2003-2008
Table 27 Cough, Cold and Allergy (Hay Fever) Remedies Company Shares by Value 2004-2008
Table 28 Cough, Cold and Allergy (Hay Fever) Remedies Brand Shares by Value 2005-2008
Table 29 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: Value 2008-2013
Table 30 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: % Value Growth 2008-2013
DIGESTIVE REMEDIES IN ISRAEL
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 31 Sales of Digestive Remedies by Subsector: Value 2003-2008
Table 32 Sales of Digestive Remedies by Subsector: % Value Growth 2003-2008
Table 33 Herbal vs Standard Digestive Remedies 2003-2008
Table 34 Digestive Remedies Company Shares by Value 2004-2008
Table 35 Digestive Remedies Brand Shares by Value 2005-2008
Table 36 Forecast Sales of Digestive Remedies by Subsector: Value 2008-2013
Table 37 Forecast Sales of Digestive Remedies by Subsector: % Value Growth 2008-2013
MEDICATED SKIN CARE IN ISRAEL
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 38 Sales of Medicated Skin Care by Subsector: Value 2003-2008
Table 39 Sales of Medicated Skin Care by Subsector: % Value Growth 2003-2008
Table 40 Herbal vs Standard Medicated Skin Care 2003-2008
Table 41 Acne Treatments by Format: % Value Breakdown 2004-2008
Table 42 Medicated Skin Care Company Shares by Value 2004-2008
Table 43 Medicated Skin Care Brand Shares by Value 2005-2008
Table 44 Acne Treatments Brand Shares by Value 2005-2008
Table 45 Hair Loss Treatments Brand Shares by Value 2005-2008
Table 46 Forecast Sales of Medicated Skin Care by Subsector: Value 2008-2013
Table 47 Forecast Sales of Medicated Skin Care by Subsector: % Value Growth 2008-2013
VITAMINS AND DIETARY SUPPLEMENTS IN ISRAEL
HEADLINES
TRENDS - VITAMINS
TRENDS – DIETARY SUPPLEMENTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 48 Dietary Supplements: Brand Ranking by Positioning 2008
Table 49 Sales of Vitamins and Dietary Supplements by Subsector: Value 2003-2008
Table 50 Sales of Vitamins and Dietary Supplements by Subsector: % Value Growth 2003-2008
Table 51 Folic Acid v Other B Vitamins 2004-2008
Table 52 Dietary Supplements by Positioning 2006-2008
Table 53 Vitamins and Dietary Supplements Company Shares by Value 2004-2008
Table 54 Vitamins and Dietary Supplements Brand Shares by Value 2005-2008
Table 55 Vitamins Brand Shares by Value 2005-2008
Table 56 Dietary Supplements Brand Shares by Value 2005-2008
Table 57 Forecast Sales of Vitamins and Dietary Supplements by Subsector: Value 2008-2013
Table 58 Forecast Sales of Vitamins and Dietary Supplements by Subsector: % Value Growth 2008-2013
NRT SMOKING CESSATION AIDS IN ISRAEL
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR INDICATORS
Table 59 Number of Smokers by Gender 2003-2008
SECTOR DATA
Table 60 Sales of Smoking Cessation Aids by Subsector: Value 2003-2008
Table 61 Sales of Smoking Cessation Aids by Subsector: % Value Growth 2003-2008
Table 62 NRT Gum Flavours: % Value Breakdown 2006-2008
Table 63 Smoking Cessation Aids Company Shares by Value 2004-2008
Table 64 Smoking Cessation Aids Brand Shares by Value 2005-2008
Table 65 Forecast Sales of Smoking Cessation Aids by Subsector: Value 2008-2013
Table 66 Forecast Sales of Smoking Cessation Aids by Subsector: % Value Growth 2008-2013
EYE CARE IN ISRAEL
HEADLINES
SECTOR DATA
Table 67 Sales of Eye Care by Subsector: Value 2003-2008
Table 68 Sales of Eye Care by Subsector: % Value Growth 2003-2008
Table 69 Standard Eye Care by Type: % Value Breakdown 2007-2008
Table 70 Eye Care Company Shares by Value 2004-2008
Table 71 Eye Care Brand Shares by Value 2005-2008
Table 72 Forecast Sales of Eye Care by Subsector: Value 2008-2013
Table 73 Forecast Sales of Eye Care by Subsector: % Value Growth 2008-2013
EAR CARE IN ISRAEL
HEADLINES
SECTOR DATA
Table 74 Sales of Ear Care: Value 2003-2008
Table 75 Sales of Ear Care: % Value Growth 2003-2008
Table 76 Ear Care Company Shares by Value 2004-2008
Table 77 Ear Care Brand Shares by Value 2005-2008
Table 78 Forecast Sales of Ear Care: Value 2008-2013
Table 79 Forecast Sales of Ear Care: % Value Growth 2008-2013
ADULT MOUTH CARE IN ISRAEL
HEADLINES
SECTOR DATA
Table 80 Sales of Adult Mouth Care: Value 2003-2008
Table 81 Sales of Adult Mouth Care: % Value Growth 2003-2008
Table 82 Adult Mouth Care Company Shares by Value 2004-2008
Table 83 Adult Mouth Care Brand Shares by Value 2005-2008
Table 84 Forecast Sales of Adult Mouth Care: Value 2008-2013
Table 85 Forecast Sales of Adult Mouth Care: % Value Growth 2008-2013
CALMING AND SLEEPING PRODUCTS IN ISRAEL
HEADLINES
SECTOR DATA
Table 86 Sales of Calming and Sleeping Products: Value 2003-2008
Table 87 Sales of Calming and Sleeping Products: % Value Growth 2003-2008
Table 88 Calming and Sleeping Products Company Shares by Value 2004-2008
Table 89 Calming and Sleeping Products Brand Shares by Value 2005-2008
Table 90 Forecast Sales of Calming and Sleeping Products: Value 2008-2013
Table 91 Forecast Sales of Calming and Sleeping Products: % Value Growth 2008-2013
WOUND TREATMENTS IN ISRAEL
HEADLINES
SECTOR DATA
Table 92 Sales of Wound Treatments by Subsector: Value 2003-2008
Table 93 Sales of Wound Treatments by Subsector: % Value Growth 2003-2008
Table 94 Wound Treatments Company Shares by Value 2004-2008
Table 95 Wound Treatments Brand Shares by Value 2005-2008
Table 96 Forecast Sales of Wound Treatments by Subsector: Value 2008-2013
Table 97 Forecast Sales of Wound Treatments by Subsector: % Value Growth 2008-2013
EMERGENCY CONTRACEPTION IN ISRAEL
HEADLINES
SECTOR DATA
Table 98 Sales of Emergency Contraception: Value 2003-2008
Table 99 Sales of Emergency Contraception: % Value Growth 2003-2008
Table 100 Emergency Contraception Company Shares by Value 2004-2008
Table 101 Emergency Contraception Brand Shares by Value 2005-2008
Table 102 Forecast Sales of Emergency Contraception: Value 2008-2013
Table 103 Forecast Sales of Emergency Contraception: % Value Growth 2008-2013