Consumer Health in India

CONSUMER HEALTH IN INDIA

Euromonitor International

May 2014

C O N S U M E R H E A L T H I N I N D I A P a s s p o r t I

© E u r o m o n i t o r I n t e r n a t i o n a l

LIST OF CONTENTS AND TABLES

Executive Summary ..................................................................................................................... 1

Awareness of OTC Medicines Continues To Be Low ............................................................... 1 Health and Wellness Witnesses Strong Growth Among Urban Consumers ............................. 1 Competition Between Domestic and International Companies Remains Intense ..................... 1 Chemists/pharmacists Are the Leading Retail Channel in 2013 ............................................... 1 Sports Nutrition Is Expected To Lead Value Sales Growth Over the Forecast Period .............. 1

Key Trends and Developments .................................................................................................... 1

Herbal/traditional Medicines Continue To Dominate Consumer Health .................................... 1 Changing Urban Lifestyles Drive the Growth of Health and Wellness ...................................... 2 Retail Sales Via Unconventional Channels Witness Strong Growth in 2013 ............................ 3 Knowledge of OTC Options Continues To Be Low Among the Rural Population ..................... 3

Territory Key Trends and Developments ...................................................................................... 4

East and Northeast India .......................................................................................................... 4 North India ................................................................................................................................ 4 South India ............................................................................................................................... 5 West India ................................................................................................................................. 6

Rural Vs Urban Key Trends and Developments ........................................................................... 7 Market Indicators .......................................................................................................................... 8

Table 1 Consumer Expenditure on Health Goods and Medical Services: Value

2008-2013 .................................................................................................... 8 Table 2 Life Expectancy at Birth 2008-2013 ............................................................. 8

Market Data .................................................................................................................................. 8

Table 3 Sales of Consumer Health by Category: Value 2008-2013 .......................... 8 Table 4 Sales of Consumer Health by Category: % Value Growth 2008-2013 ......... 8 Table 5 Sales of Consumer Health by Region: Value 2008-2013 ............................. 9 Table 6 Sales of Consumer Health by Region: % Value Growth 2008-2013 ............ 9 Table 7 Sales of Consumer Health by Rural vs Urban: % Value 2013 ...................... 9 Table 8 NBO Company Shares of Consumer Health: % Value 2009-2013 ............... 9 Table 9 LBN Brand Shares of Consumer Health: % Value 2010-2013 ................... 10 Table 10 Distribution of Consumer Health by Format: % Value 2008-2013 .............. 11 Table 11 Distribution of Consumer Health by Format and Category: % Value

2013 ........................................................................................................... 12 Table 12 Forecast Sales of Consumer Health by Category: Value 2013-2018 ......... 14 Table 13 Forecast Sales of Consumer Health by Category: % Value Growth

2013-2018 .................................................................................................. 14 Table 14 Forecast Sales of Consumer Health by Region: Value 2013-2018 ............ 14 Table 15 Forecast Sales of Consumer Health by Region: % Value Growth

2013-2018 .................................................................................................. 15

Appendix .................................................................................................................................... 15

OTC Registration and Classification ....................................................................................... 15 Vitamins and Dietary Supplements Registration and Classification ........................................ 16 Self-medication/self-care and Preventative Medicine ............................................................. 17 Switches ................................................................................................................................. 17

Definitions ................................................................................................................................... 17 Sources ...................................................................................................................................... 18

Summary 1 Research Sources ...................................................................................... 18

C O N S U M E R H E A L T H I N I N D I A P a s s p o r t I I


C O N S U M E R H E A L T H I N I N D I A P a s s p o r t 1


CONSUMER HEALTH IN INDIA

EXECUTIVE SUMMARY

Awareness of OTC Medicines Continues To Be Low

The government of India does not identify OTC medicines separately. Any medicine which is

not included in the list of prescription medicines automatically becomes OTC. Due to the lack of

clear definitions, companies did not market their products as OTC. As a result, knowledge of

these products continued to be low in the semi-urban and rural areas, and consumers continued

to prefer home remedies for small ailments or consulted doctors for serious issues.

Health and Wellness Witnesses Strong Growth Among Urban Consumers

Urban consumers underwent a paradigm shift in the last two to three years, which by 2013

became quite strong. Consumers were more aware of the need to be healthy, fit and above all

slim. However, fast-paced lives, sedentary jobs and bad eating habits led consumers to achieve

their goals to be healthy by switching to vitamins and dietary supplements and weight

management products.

Competition Between Domestic and International Companies Remains Intense

In 2013, consumer health was dominated by domestic and international companies equally.

The top five companies witnessed cut throat competition as both domestic and international

companies marketed their brands aggressively, promoted via retail outlets and worked towards

expanding their distribution networks in order to maintain the leading positions.

Chemists/pharmacists Are the Leading Retail Channel in 2013

Chemists/pharmacists continued to dominate in 2013 as modern retailing is only present in

urban areas of the country. The strongest reach any retail channel had in tier II and tier III cities

and rural areas was chemists/pharmacists.

Sports Nutrition Is Expected To Lead Value Sales Growth Over the Forecast Period

Sports nutrition is expected to witness the strongest value growth at constant 2013 prices

over the forecast period of 2013-2018. The growth is expected due to increasing health and

wellness consciousness among consumers, which will lead to more consumers going to the

gym and consuming protein powders in order to get the results they want.

KEY TRENDS AND DEVELOPMENTS

Herbal/traditional Medicines Continue To Dominate Consumer Health

Indians continued to prefer herbal/traditional medicines in 2013 as most consumers have

been using these formulations for years as they‟ve been passed down from generation to

generation. Herbal/traditional products accounted for 40% of the total consumer health value

sales in 2013. Indians preferred these formulations because firstly, it‟s believed they have no or



very minimal side effects and secondly, the existence of well-established brands by companies

such as Emami Ltd, Dabur India Ltd, and Amrutanjan Health Care Ltd among others led

consumers to continue buying these products due to the longstanding trust in these brands.

Herbal/traditional dietary supplements remained the leading contributor to the consistently

strong performance of herbal/traditional products. Dabur Ltd was one of the leading companies

in herbal/traditional vitamins and dietary supplements with its two brands Dabur Chyawanprash

and Dabur Chyawanprakash Sugar Free. Chyawanprash is a sticky jam-like product which

consists of nearly 25-80 herbs and gooseberries. Most consumers take it daily as it is believed

to provide immunity from colds, cough and hay fever, have anti-ageing benefits, and improve

digestion and memory. Apart from dietary supplements, herbal/traditional products were also

preferred for topical analgesics, cold, cough and hay fever and digestive remedies. These

formulations are deep rooted in the Indian medicinal system and their years of consumption by

consumers ensured they continued to be preferred in 2013.

Outlook

Herbal/traditional remedies‟ preference over other standard medicines is likely to continue in

the forecast period as Indians trust these formulations. Indians in general prefer natural products

to standard or chemical formulations. Furthermore, the deep penetration of information

regarding these products, even to the most rural areas, ensures their popularity. Companies in

consumer health realise this stronghold that herbal/traditional formulations have over most

Indian consumers, and are likely to develop and focus on more natural products for various

ailments. However, the growing urban population with a higher income and a stronger need for

quick fixes pose a threat to herbal/traditional products in the forecasted years as these products

generally take time to show results and the fast-paced lives of most urban consumers might

lead them to switch to standard medicines.

Changing Urban Lifestyles Drive the Growth of Health and Wellness

Urban consumers in India in 2013 continued the paradigm shift regarding their lifestyle

choices. These changes primarily involved sedentary jobs, odd working hours, a lack of a proper

nutritious diet, and an increased desire to look good. Until three to four years ago Indians were

in general okay with carrying a few extra kilos. However, urban Indians were more concerned

than ever about their appearance and health in 2013. The growing per capita income of the

urban consumer base further allowed people to spend on products which helped them with

weight management, sports nutrition for body building and developing strong immunity among

others. Changing lifestyle choices also led to emergency contraceptives witnessing strong

growth in 2013. Growing urbanisation and increasing western influence on urban Indians led to

an increase in awareness and use of emergency contraception. The demand for these products

was primarily in metropolitan cities such as Mumbai, Delhi, Bangalore, Hyderabad, Kolkata and

Chennai. These products have become popular among urban consumers as they are widely

available OTC medicines, and they clearly state that if they are taken as an emergency

contraceptive only and not as an oral contraceptive they have minimal side effects.

Outlook

The forecast period is expected to be driven by the continued strong growth of sports nutrition

such as protein powders and weight management products, specifically weight loss

supplements and meal replacement slimming. Both sports nutrition and weight management in

2013 were comparatively small categories so they have great growth potential both in urban and

rural areas as the majority of consumers are unaware of their existence. As a result, there is a

huge untapped market for manufacturers and distributors to focus on in 2013-2018.



Furthermore, the need to look good and stay fit and slim will grow among urban consumers,

thereby fuelling the growth of these products more in the existing consumer groups.

Retail Sales Via Unconventional Channels Witness Strong Growth in 2013

Consumer health products continued to be primarily sold via chemists/pharmacies in 2013.

Chemists/pharmacies accounted for 64% of total retail sales in 2013. This was observed as the

sale of prescription medicines continued to contribute to the majority of medicinal sales, and the

long-established neighbourhood chemists/pharmacies remained the main retail channel opted

for by consumers to purchase any healthcare supplies. However, sports nutrition started to

carve a niche for itself via beauty specialist retailers in 2013, and this retail channel

consequently witnessed the strongest growth of 141%. Although in actual value terms the

channel continued to be really small, the growth experienced by sports nutrition sales via beauty

specialist retailers was a mark that companies started to branch out to other unconventional

channels in order to increase the reach of their distribution. This strong growth was primarily

driven by urban consumers, where these retail outlets are quite common. Furthermore,

companies started to focus on these retail outlets as consumers tend to prefer buying all their

health and beauty products in one shop.

Outlook

The retail scape for consumer health will continue to be dominated by chemists/pharmacists

in the forecast period. However, as the knowledge regarding OTC medicines increases among

the consumers, the retail sales of consumer health via beauty specialist retailers is expected to

grow strong. Furthermore, manufacturers will most likely increase their distribution network, by

increasing the availability of vitamins and dietary supplements and sports nutrition in this

unconventional and untapped retail channel for consumer health sales. The growth is expected

as urban consumers in 2013 started to prefer buying most of their beauty and healthcare

products together. This demand was realised by beauty specialist retailers which led them to

start adding more health and wellness products in their stores. However, in terms of actual

sales, chemist/pharmacies will continue to lead as these retail outlets have a much stronger

reach in semi-urban and rural areas in addition to urban areas.

Knowledge of OTC Options Continues To Be Low Among the Rural Population

OTC medicines in India in 2013 continued to be small at Rs135 billion. The total

pharmaceutical industry was sized at Rs721 billion in terms of value sales by AIOCD

Pharmasofttech AWACS Pvt Ltd and PWC. The low sales of OTC medicines in India were

primarily due to the lack of knowledge regarding the OTC status of medicines in the country.

Most consumers in India even in 2013 continued to prefer home remedies or herbal/traditional

medicines for small ailments, and prescription medicines from a doctor for more serious issues.

The primary reason for this is the lack of literacy in rural areas, which makes consumers wary of

taking OTC medicines, and a lack of knowledge about brands/formulations which have OTC

status. Even consumers in urban areas do not know which brands are classed as OTC as

manufacturers do not market/promote their products mentioning this. Furthermore, sales of

under-the-counter prescription medicines are quite high in India, with consumers often buying

prescription medicine without a doctor‟s prescription, thereby blurring the lines between what is

an actual OTC medicine, and what isn‟t.



Outlook

Consumer health is expected to grow at a value CAGR at constant 2013 prices of 7% in the

forecast period of 2013-2018. This growth will be driven by weight management and sports

nutrition. However, OTC is expected to grow at a CAGR of 3% in terms of constant value. OTC

medicines will only achieve their true potential when the government makes stringent laws to

stop under-the-counter sales of prescription medicines and educates consumers regarding the

OTC and Rx status of medicines.

TERRITORY KEY TRENDS AND DEVELOPMENTS

East and Northeast India

Trends

East and Northeast India witnessed growth of 13% in 2013. This was driven by the strong

growth of weight management, sports nutrition and herbal/traditional vitamins and dietary

supplements.

Long monsoons in East and Northeast India in 2013, which led to more colds and coughs

among consumers, helped drive the growth of growth of cold, cough and hay fever products.

They also increased skin conditions due to the dampness in the air and increased sales of

dermatologicals. Meanwhile, food habits including eating primarily oily and spicy food,

ensured growth of digestive remedies.

Competitive landscape

Dabur India Ltd and Emami Ltd continued to be two companies which had extremely strong

presence in East and Northeast India. Both companies were founded in West Bengal, and

hence have a longstanding presence and brand image in this region of the country.

Consumers in East and Northeast India continued to be strong followers of homeopathic and

herbal/traditional medicines. These medicines were hence tough competition for allopathic

medicines.

Prospects

East and Northeast India is expected to grow by a value CAGR at constant 2013 prices of 7%

over the forecast period. This is expected to be driven by sports nutrition, weight management

and herbal/traditional vitamins and dietary supplements.

The growth of modern retailing in East and Northeast India was slow compared with South or

North India. As a result, sales even in the forecast period are expected to be driven by

chemists/pharmacists only.

North India

Trends

In North India, consumer health witnessed growth of 13% in terms of current value in 2013.

The growth was driven by weight management, which grew strongly at 34% in terms of

current value followed by sports nutrition at 21%.

North India continued to be the biggest contributor to the total sales of consumer health in

2013 with a 30% share as North India has much longer and harsher weather conditions



meaning consumers are perennially suffering from colds, coughs, hay fever, digestion

disorders, and body pains among others.

Chemists/pharmacies continued to be the main channel for sales of medicines in North India.

Modern retailing outlets, such as beauty specialist retailers, hypermarkets and supermarkets,

continued to be less popular than traditional retail channels.


The major pharmaceutical units in the region are Ranbaxy, Panacea Biotec, Venus

Remedies, Ind-Swift, Ind-Swift Laboratories, Surya Pharma, Dabur Pharma, Jubilant

Organosys, Nectar Lifesciences, IOL Chemicals and Pharma.

The Himalaya Drug Co and Dabur India Ltd continued to be two of the most popular

companies in North India for daily OTC products.

Prospects

North India is expected to grow at a value CAGR at constant 2013 prices of 8% over the

forecast period. This is expected to be driven by sports nutrition and weight management.

Climatic conditions will continue to drive sales of consumer health in North India in the

forecast period. Demand for topical pain relief, and cough and cold remedies will continue to

be high due to seasonal factors.

North India has become a medical tourism hub with hospitals such as Medicity, Fortis, and

Apollo offering the best medical care. As a result, demand for healthcare products is pretty

high across the region.

South India

Trends

Non-store retailing witnessed strong growth and popularity in South India in 2013. Internet

retailing for consumer health became quite common in 2013 among consumers and the

majority of OTC medication manufacturers partnered with internet retailers such as

bigbasket.com, mygrahak.com, www.apollopharmacy.in, medplusbeauty.com,

healthkartplus.com and healthkart.com and other national and local ecommerce platforms to

reduce the dependency on offline channels.

Weight management and vitamins and dietary supplements witnessed double digit growth in

2013. Non-traditional OTC healthcare categories such as weight management and vitamins

and dietary supplements witnessed double digit growth of 24% and 12% respectively in terms

of current value sales. Fast moving corporate lifestyles, work-life stress, fatigue and

irregularities in food intake were the core drivers for non-traditional OTC healthcare products.

In 2013, the majority of herbal and ayurvedic manufacturers, including Dabur India Ltd, Shree

Baidyanath Ayurved Bhawan Ltd, Himalaya Drug Co, Pankajakasthuri Herbals India Pvt Ltd

and Kairali Ayurvedic Products Pvt Ltd, aggressively worked towards increasing their retail

distribution through modern retail outlets in cosmopolitan and tier II cities. Chained chemists,

such as Lifeken, Medplus and Trust, offered dedicated aisles for ayurvedic and herbal

products.


OTC healthcare in South India is highly fragmented with no clear dominant manufacturer

holding a strong position across more than two or three categories in 2013. Companies such



as Procter & Gamble Hygiene and Health Care Ltd, Dabur India Ltd and Ranbaxy

Laboratories Ltd amongst others continued to perform strongly in 2013.

Johnson & Johnson (India) Ltd and Dabur India Ltd are leading OTC healthcare

manufacturers and suppliers in Southern India. Johnson & Johnson (India) Ltd has a

dominant regional positioning across NRT gum, wound care and ear care, whilst Dabur India

Ltd remains a strong player across South India in digestive remedies, cough remedies and

vitamins and dietary supplements.

Prospects

Consumer health in South India is expected to grow at a value CAGR at constant 2013 prices

of 7% during the forecast period of 2013-2018. This is expected to be driven by other non-

herbal dietary supplements, weight loss supplements and sports nutrition products.

Websites such as Bigbasket.com, Healthkart.com, shopclues.com, Tradus.com and

otcpharmacy.com are expected to perform strongly in consumer health during the forecast

period. Fast-paced lifestyles, a consumer preference towards home delivery of grocery and

healthcare medication, and internet retailers expanding their online ayurvedic and herbal

product portfolios will drive the growth of non-store retailing in consumer health.

West India

Trends

West India consumer health witnessed value growth of 13% in 2013. This growth was driven

by meal replacement slimming, paediatric vitamins and dietary supplements and sports

nutrition.

The growth was driven by meal replacements slimming as the concept of looking good and

being healthy became extremely important amongst most consumers in India. The harsh

weather conditions, such as extremely hot summers and equally cold winters in states like

Rajasthan, helped drive the growth of vitamins and dietary supplements to improve immunity.


Herbal/traditional products manufacturers such as Dabur India Ltd, Emami Ltd and Ranbaxy

Laboratories Ltd amongst others continued to have a strong presence in West India. This was

observed as the use of products such as Chyawanprash, Hajmola, Zandu Balm and Revital

was quite prevalent among West India consumers.

Companies in cough, cold, allergy and hay fever, digestive remedies, and vitamins and

dietary supplements continued to perform better in 2013 due to the strong demand for these

products in West India.

Prospects

West India is expected to grow at a value CAGR at constant 2013 prices of 7% during the

forecast period of 2013-2018. This will be driven by sports nutrition, weight management and

herbal/traditional dietary supplements.

Taking herbal/traditional products to cure minor ailments remained very strong in West India

in 2013. This is expected to continue in the forecast years as well, thereby giving tough

competition to the growth of OTC allopathic medicines.

Retail distribution is expected to shift towards modern retail to a large extent. Consumers in

cities are most likely to switch to hypermarkets, supermarkets, beauty specialist retailers and



non-store retailing, such as direct selling and internet retailing, for the purchase of consumer

health products.

RURAL VS URBAN KEY TRENDS AND DEVELOPMENTS

Trends

65-70% of the Indian population were living in rural areas of the country in 2013. A vast

majority of the people living in these areas continue to rely on conventional treatments,

including siddha, ayurveda and homeopathy.

The growth of consumer health was driven almost only by urban consumers as urban

consumers had the knowledge regarding these brands and how they work. Also, most of the

vitamins and dietary supplements, sports nutrition and weight management products were

expensive, and therefore not accessible to the rural population. In addition, the rural

population still believed in using home remedies a lot more to cure minor ailments.

The main challenges for companies entering the rural market included communication

challenges, language barriers, lack of infrastructure, dominance of spurious drugs, lack of

adequate storage, etc.

Despite the challenges, traditional OTC healthcare products, such as analgesics, digestive

remedies, wound care and cough, cold and allergy, aggressively marketed and penetrated the

rural markets via small stock keeping units.

Home remedies still dominate urban and rural OTC healthcare. Even in 2013, consumers

preferred home remedies such as the daily consumption of almonds (weight management), oil

massage (analgesics) and the consumption of a mixture of milk and turmeric (cough

remedies).


Companies such as Ranbaxy Labs, Torrent Pharma, and Sanofi Aventis have attempted to

widen their reach into the pan-urban and rural markets by adding a dedicated sales force.

Sanofi, for instance, is reaching out to rural India through its „Prayas‟ initiative. The company

adopts a differentiated branding strategy in these markets by launching an extension of its

established brands at a lower price point.

Economy-priced herbal and ayurvedic products in small packaging have strong regional and

local penetration across rural India. Rural market leaders are offering small and economical

packaging to improve their target consumer base.

Prospects

The current low penetration represents a huge opportunity for the pharmaceutical companies

to expand in the rural markets, which is expected to be the growth driver for the domestic

consumer health companies in the forecasted years.

Rising income levels leading to more affordability, improving health infrastructure, and

increasing incidence of lifestyle diseases along with the use of health insurance are expected

to help the growth of consumer health in urban areas.

While players admit that there is huge potential for future expansion into the rural markets of

the country, a new model for distribution and delivery is required to actually achieve that feat.



MARKET INDICATORS

Table 1 Consumer Expenditure on Health Goods and Medical Services: Value 2008-2013

Rs bn 2008 2009 2010 2011 2012 2013 Pharmaceuticals, 683.9 749.1 821.3 901.4 990.4 1,079.3 medical appliances/ equipment Outpatient services 477.1 529.0 586.0 648.2 715.8 783.1 Hospital services 244.9 270.6 299.0 329.9 363.9 397.6 Total 1,405.9 1,548.7 1,706.2 1,879.5 2,070.1 2,260.1

Source: Euromonitor International from official statistics, trade associations, trade interviews

Table 2 Life Expectancy at Birth 2008-2013

years 2008 2009 2010 2011 2012 2013 Males 63.5 63.7 64.0 64.3 64.5 64.7 Females 66.8 67.2 67.5 67.7 68.0 68.3

Source: Euromonitor International from official statistics

MARKET DATA

Table 3 Sales of Consumer Health by Category: Value 2008-2013

INR million 2008 2009 2010 2011 2012 2013 OTC 37,076.6 42,138.2 46,803.5 51,801.0 58,270.1 64,129.8 Sports Nutrition 2,883.7 3,100.0 3,385.9 3,917.3 4,661.5 5,621.3 Vitamins and Dietary 28,009.4 31,357.3 35,714.2 41,176.9 47,064.5 53,227.7 Supplements Weight Management 1,097.2 1,917.6 3,725.5 6,870.3 9,517.3 11,852.9 Herbal/Traditional 27,476.9 30,801.2 34,694.2 38,884.8 44,310.2 50,107.0 Products Allergy Care - - - - - - Paediatric Consumer 1,371.4 1,788.7 2,229.4 2,915.6 3,487.2 3,896.6 Health Consumer Health 69,066.9 78,513.1 89,629.1 103,765.5 119,513.4 134,831.6

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Note: Sum of categories is greater than the market size because allergy care is a duplicate of categories found in cough, cold and allergy remedies, dermatologicals and eye care; paediatric consumer health is an aggregate of paediatric categories in OTC and vitamins and dietary supplements; and herbal/traditional products is an aggregate of herbal/traditional categories in OTC and vitamins and dietary supplements, except herbal/traditional medicinal teas and herbal/traditional smoking cessation aids.

Table 4 Sales of Consumer Health by Category: % Value Growth 2008-2013



% current value growth 2012/13 2008-13 CAGR 2008/13 Total OTC 10.1 11.6 73.0 Sports Nutrition 20.6 14.3 94.9 Vitamins and Dietary Supplements 13.1 13.7 90.0 Weight Management 24.5 61.0 980.2 Herbal/Traditional Products 13.1 12.8 82.4 Allergy Care - - - Paediatric Consumer Health 11.7 23.2 184.1 Consumer Health 12.8 14.3 95.2



Table 5 Sales of Consumer Health by Region: Value 2008-2013

INR million 2008 2009 2010 2011 2012 2013 East and Northeast India 12,855.7 14,691.9 16,868.0 19,582.1 22,732.6 25,756.7 North India 20,528.5 23,383.0 26,873.3 31,326.2 36,202.8 40,969.5 South India 18,551.2 20,975.7 23,787.3 27,368.3 31,360.7 35,108.7 West India 17,131.5 19,462.5 22,100.6 25,488.8 29,217.2 32,996.7 India 69,066.9 78,513.1 89,629.1 103,765.5 119,513.4 134,831.6


Table 6 Sales of Consumer Health by Region: % Value Growth 2008-2013

% current value growth 2012/13 2008-13 CAGR 2008/13 Total East and Northeast India 13.3 14.9 100.4 North India 13.2 14.8 99.6 South India 12.0 13.6 89.3 West India 12.9 14.0 92.6 India 12.8 14.3 95.2


Table 7 Sales of Consumer Health by Rural vs Urban: % Value 2013

Urban Rural Total India 70.2 25.7 95.8


Table 8 NBO Company Shares of Consumer Health: % Value 2009-2013



% retail value rsp Company 2009 2010 2011 2012 2013 Amway India Enterprises 8.6 8.9 9.2 9.5 9.9 Pvt Ltd Dabur India Ltd 7.6 7.9 7.9 8.0 8.3 Herbalife International 1.4 2.7 5.2 6.3 7.2 India Pvt Ltd Emami Ltd 6.0 6.3 6.6 6.9 7.1 Ranbaxy Laboratories Ltd 3.7 3.8 3.8 4.1 4.4 Procter & Gamble 5.8 5.5 5.3 3.3 3.2 Hygiene & Health Care Ltd Pfizer Ltd 3.2 3.1 3.0 2.9 2.8 Johnson & Johnson 3.6 3.6 3.3 3.1 2.6 (India) Ltd GlaxoSmithKline 2.6 2.5 2.4 2.3 2.2 Consumer Healthcare Ltd Heinz India Pvt Ltd 2.3 2.4 2.4 2.3 2.2 Neulife Nutrition Systems 1.7 1.7 1.7 1.8 1.9 Piramal Healthcare Ltd 1.0 2.2 2.2 2.2 1.9 PGT Healthcare - - - 1.8 1.8 Paras Pharmaceuticals Ltd 1.8 1.9 1.9 1.8 1.8 Himalaya Drug Co, The 1.9 1.8 1.7 1.6 1.7 GlaxoSmithKline 1.7 1.6 1.5 1.4 1.3 Pharmaceuticals Ltd Mankind Pharma Ltd 0.7 1.1 1.1 1.2 1.2 Abbott India Ltd 1.4 1.3 1.3 1.2 1.2 GlaxoSmithKline Asia 1.3 1.2 1.1 1.1 1.1 Pvt Ltd Cadbury India Ltd 1.1 1.1 1.1 1.1 1.1 Amrutanjan Health Care 1.2 1.1 1.1 1.1 1.1 Ltd Franco-Indian 1.1 1.0 1.0 1.0 1.0 Pharmaceuticals Pvt Ltd Merck (India) Ltd 1.2 1.1 1.0 0.9 0.9 Reckitt Benckiser 1.0 1.0 0.9 0.9 0.8 (India) Ltd Plethico 1.2 1.4 0.8 0.8 0.8 Pharmaceuticals Ltd Forever Living Products 0.6 0.6 0.7 0.7 0.8 India Pvt Ltd Cadila Pharmaceuticals 0.8 0.8 0.7 0.7 0.7 Ltd Piramal Enterprises Ltd - - - - 0.7 Novartis India Ltd 0.8 0.7 0.7 0.7 0.6 Guardian Lifecare Pvt Ltd 0.5 0.5 0.5 0.5 0.5 Others 34.0 31.0 29.9 28.9 27.2 Total 100.0 100.0 100.0 100.0 100.0


Table 9 LBN Brand Shares of Consumer Health: % Value 2010-2013

% retail value rsp Brand Company 2010 2011 2012 2013 Nutrilite Amway India Enterprises 8.6 8.8 9.0 9.3 Pvt Ltd



Himani Emami Ltd 3.8 4.0 4.3 4.4 Dabur Dabur India Ltd 3.2 3.3 3.5 3.8 Vicks Procter & Gamble 5.5 5.3 3.3 3.2 Hygiene & Health Care Ltd Revital Ranbaxy Laboratories Ltd 2.4 2.4 2.6 2.8 Herbalife Cell-U-Loss Herbalife International 0.9 1.9 2.3 2.6 India Pvt Ltd Glucon D Heinz India Pvt Ltd 2.4 2.4 2.3 2.2 Hajmola Dabur India Ltd 2.3 2.2 2.1 2.1 Herbalife ShapeWorks Herbalife International 0.8 1.4 1.7 2.0 India Pvt Ltd Herbalife Protein Herbalife International 0.7 1.5 1.8 2.0 Powder India Pvt Ltd Vicks PGT Healthcare - - 1.8 1.8 Optimum Nutrition Neulife Nutrition Systems 1.6 1.6 1.7 1.8 Zandu Emami Ltd 1.8 1.8 1.8 1.8 Glucose-D Dabur India Ltd 1.4 1.5 1.5 1.6 i-pill Piramal Healthcare Ltd 1.3 1.2 1.3 1.4 Iodex GlaxoSmithKline 1.6 1.5 1.4 1.4 Consumer Healthcare Ltd Unwanted 72 Mankind Pharma Ltd 1.1 1.1 1.2 1.2 Volini Ranbaxy Laboratories Ltd 0.9 0.9 1.0 1.1 Eno GlaxoSmithKline Asia 1.2 1.1 1.1 1.1 Pvt Ltd Halls Cadbury India Ltd 1.1 1.1 1.1 1.1 Moov Paras Pharmaceuticals Ltd 1.1 1.1 1.1 1.1 Amrutanjan Amrutanjan Health Care Ltd 1.1 1.1 1.1 1.1 Band-Aid Johnson & Johnson 1.4 1.3 1.2 1.1 (India) Ltd Becosules Pfizer Ltd 1.2 1.1 1.1 1.0 Benadryl Johnson & Johnson 1.2 1.1 1.1 1.0 (India) Ltd Dexorange Franco-Indian 1.0 1.0 1.0 1.0 Pharmaceuticals Pvt Ltd Digene Abbott India Ltd 1.1 1.0 1.0 0.9 Crocin GlaxoSmithKline 0.9 0.9 0.9 0.9 Consumer Healthcare Ltd Gelusil Pfizer Ltd 0.8 0.9 0.8 0.8 Liv 52 Himalaya Drug Co, The 0.9 0.8 0.8 0.8 Others 46.8 44.8 43.4 41.5 Total 100.0 100.0 100.0 100.0


Table 10 Distribution of Consumer Health by Format: % Value 2008-2013

% retail value rsp 2008 2009 2010 2011 2012 2013 Store-Based Retailing 89.1 87.1 84.8 81.3 79.2 77.8 - Grocery Retailers 12.3 12.1 11.6 11.4 11.3 11.2 -- Modern Grocery 3.3 3.2 3.2 3.3 3.4 3.4 Retailers --- Convenience Stores 0.0 0.0 0.0 0.0 0.0 0.0 --- Discounters 0.0 0.0 0.0 0.0 0.0 0.0 --- Forecourt Retailers 0.0 0.0 0.0 0.0 0.0 0.0 --- Hypermarkets 2.0 2.2 2.2 2.3 2.4 2.5 --- Supermarkets 1.3 1.1 1.0 1.0 1.0 1.0 -- Traditional Grocery 9.0 8.9 8.4 8.0 7.9 7.7



Retailers --- Food/drink/tobacco 0.0 0.0 0.0 0.0 0.0 0.0 specialists --- Independent Small 7.0 7.0 6.4 6.1 6.0 5.9 Grocers --- Other Grocery 1.9 1.9 1.9 1.9 1.9 1.9 Retailers ---- Healthfood shops 0.0 0.0 0.0 0.0 0.0 0.0 ---- Other Other 1.9 1.9 1.9 1.9 1.9 1.9 Grocery Retailers - Non-Grocery Retailers 76.8 75.0 73.2 69.9 67.9 66.6 -- Health and Beauty 74.5 72.9 71.3 68.0 66.0 64.6 Specialist Retailers --- Beauty Specialist 0.0 0.0 0.0 0.0 0.0 0.0 Retailers --- Chemists/Pharmacies 74.3 72.6 71.0 67.7 65.6 64.2 --- Optical Goods Stores 0.0 0.0 0.0 0.0 0.0 0.0 --- Parapharmacies/ 0.0 0.0 0.0 0.0 0.0 0.0 Drugstores --- Other Healthcare 0.2 0.2 0.2 0.3 0.3 0.4 Specialist Retailers -- Mixed Retailers 0.0 0.0 0.0 0.0 0.0 0.0 --- Department Stores 0.0 0.0 0.0 0.0 0.0 0.0 --- Mass Merchandisers 0.0 0.0 0.0 0.0 0.0 0.0 --- Variety Stores 0.0 0.0 0.0 0.0 0.0 0.0 --- Warehouse Clubs 0.0 0.0 0.0 0.0 0.0 0.0 -- Other Consumer 2.3 2.1 1.9 1.9 1.9 2.0 Health Non-Grocery Retailers Non-Store Retailing 10.9 12.9 15.2 18.7 20.8 22.2 - Vending 0.0 0.0 0.0 0.0 0.0 0.0 - Homeshopping 0.0 0.0 0.0 0.0 0.0 0.0 - Internet Retailing 0.7 0.7 0.7 0.7 0.8 0.8 - Direct Selling 10.2 12.2 14.5 18.0 20.1 21.4 Total 100.0 100.0 100.0 100.0 100.0 100.0


Table 11 Distribution of Consumer Health by Format and Category: % Value 2013

% retail value rsp OTC SN VDS WM HTP AC Store-Based Retailing 100.0 77.1 66.2 9.9 88.0 0.0 Grocery Retailers 17.1 0.0 6.8 3.9 14.4 0.0 Modern Grocery Retailers 3.5 0.0 3.6 3.9 3.8 0.0 Convenience Stores 0.0 0.0 0.0 0.0 0.0 0.0 Discounters 0.0 0.0 0.0 0.0 0.0 0.0 Forecourt Retailers 0.0 0.0 0.0 0.0 0.0 0.0 Hypermarkets 2.1 0.0 3.1 2.5 2.6 0.0 Supermarkets 1.4 0.0 0.5 1.4 1.2 0.0 Traditional Grocery 13.6 0.0 3.2 0.0 10.6 0.0 Retailers Food/drink/tobacco 0.0 0.0 0.0 0.0 0.0 0.0 specialists Independent Small Grocers 9.7 0.0 3.2 0.0 7.8 0.0 Other Grocery Retailers 3.9 0.0 0.0 0.0 2.7 0.0 Healthfood shops 0.0 0.0 0.0 0.0 0.0 0.0 Other Other Grocery 3.9 0.0 0.0 0.0 2.7 0.0



Retailers Non-Grocery Retailers 82.9 77.1 59.4 6.0 73.7 0.0 Health and Beauty 82.9 30.3 59.4 6.0 73.7 0.0 Specialist Retailers Beauty Specialist 0.0 1.0 0.0 0.0 0.0 0.0 Retailers Chemists/Pharmacies 82.9 23.6 59.4 4.5 73.7 0.0 Optical Goods Stores 0.0 0.0 0.0 0.0 0.0 0.0 Parapharmacies/Drugstores 0.0 0.0 0.0 0.0 0.0 0.0 Other Healthcare 0.0 5.7 0.0 1.5 0.0 0.0 Specialist Retailers Mixed Retailers 0.0 0.0 0.0 0.0 0.0 0.0 Department Stores 0.0 0.0 0.0 0.0 0.0 0.0 Mass Merchandisers 0.0 0.0 0.0 0.0 0.0 0.0 Variety Stores 0.0 0.0 0.0 0.0 0.0 0.0 Warehouse Clubs 0.0 0.0 0.0 0.0 0.0 0.0 Other Consumer Health 0.0 46.8 0.0 0.0 0.0 0.0 Non-Grocery Retailers Non-Store Retailing 0.0 22.9 33.8 90.1 12.0 0.0 Vending 0.0 0.0 0.0 0.0 0.0 0.0 Homeshopping 0.0 0.6 0.0 0.0 0.0 0.0 Internet Retailing 0.0 19.4 0.0 0.0 0.0 0.0 Direct Selling 0.0 2.9 33.8 90.1 12.0 0.0 Total 100.0 100.0 100.0 100.0 100.0 0.0 PCH Store-Based Retailing 74.5 Grocery Retailers 10.3 Modern Grocery Retailers 3.6 Convenience Stores 0.0 Discounters 0.0 Forecourt Retailers 0.0 Hypermarkets 2.9 Supermarkets 0.7 Traditional Grocery 6.8 Retailers Food/drink/tobacco 0.0 specialists Independent Small Grocers 5.8 Other Grocery Retailers 1.0 Healthfood shops 0.0 Other Other Grocery 1.0 Retailers Non-Grocery Retailers 64.1 Health and Beauty 64.1 Specialist Retailers Beauty Specialist 0.0 Retailers Chemists/Pharmacies 64.1 Optical Goods Stores 0.0 Parapharmacies/Drugstores 0.0 Other Healthcare 0.0 Specialist Retailers Mixed Retailers 0.0 Department Stores 0.0 Mass Merchandisers 0.0 Variety Stores 0.0 Warehouse Clubs 0.0 Other Consumer Health 0.0 Non-Grocery Retailers



Non-Store Retailing 25.5 Vending 0.0 Homeshopping 0.0 Internet Retailing 0.0 Direct Selling 25.5 Total 100.0


Key: OTC = over the counter; SN = sports nutrition; VDS = vitamins and dietary supplements; WM = weight management; HTP = herbal/traditional products; AC = Allergy Care; PCH = paediatric consumer health

Table 12 Forecast Sales of Consumer Health by Category: Value 2013-2018

INR million 2013 2014 2015 2016 2017 2018 OTC 64,129.8 66,905.3 69,402.0 71,651.7 73,616.7 75,292.2 Sports Nutrition 5,621.3 6,691.3 7,854.7 9,052.6 10,295.3 11,553.8 Vitamins and Dietary 53,227.7 58,471.5 63,945.7 69,567.2 76,009.5 81,716.6 Supplements Weight Management 11,852.9 13,430.1 15,128.4 16,988.7 19,093.6 21,469.5 Herbal/Traditional 50,107.0 54,286.7 58,581.4 62,869.7 66,805.8 70,244.3 Products Allergy Care - - - - - - Paediatric Consumer 3,896.6 4,272.8 4,665.3 5,054.2 5,433.8 5,808.6 Health Consumer Health 134,831.6 145,498.1 156,330.8 167,260.2 179,015.1 190,032.2

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources


Table 13 Forecast Sales of Consumer Health by Category: % Value Growth 2013-2018

% constant value growth 2013-18 CAGR 2013/18 TOTAL OTC 3.3 17.4 Sports Nutrition 15.5 105.5 Vitamins and Dietary Supplements 9.0 53.5 Weight Management 12.6 81.1 Herbal/Traditional Products 7.0 40.2 Allergy Care - - Paediatric Consumer Health 8.3 49.1 Consumer Health 7.1 40.9



Table 14 Forecast Sales of Consumer Health by Region: Value 2013-2018



INR million 2013 2014 2015 2016 2017 2018 East and Northeast India 25,756.7 27,890.2 30,007.0 32,110.4 34,189.7 36,244.5 North India 40,969.5 44,507.4 48,095.8 51,767.1 55,460.4 59,175.3 South India 35,108.7 37,562.7 40,099.6 42,674.7 46,071.8 48,705.0 West India 32,996.7 35,537.9 38,128.4 40,707.9 43,293.2 45,907.4 India 134,831.6 145,498.1 156,330.8 167,260.2 179,015.1 190,032.2


Table 15 Forecast Sales of Consumer Health by Region: % Value Growth 2013-2018

% constant value growth 2013-18 CAGR 2013/18 TOTAL East and Northeast India 7.1 40.7 North India 7.6 44.4 South India 6.8 38.7 West India 6.8 39.1 India 7.1 40.9


APPENDIX

OTC Registration and Classification

In India, the import, manufacture, distribution and sale of drugs is regulated by the Drugs and

Cosmetics Act and its subordinate legislation, the Drugs and Cosmetics Rules. The legislation

is enforced by the Central Government (Ministry of Health and Family Welfare) in New Delhi.

The regulation of drugs in India is based on their positioning in the lists of drugs included in

Schedules G, H, and K and X, which are appended to the Drugs and Cosmetics Act.

OTC products in India have no official definition. Instead, all the drugs that are not listed by

the Act as “prescription only drugs” are considered as non-prescription drugs (or OTC drugs).

The regulation of drugs in India is based on their positioning in the lists of drugs included in

Schedules G, H, and K and X, which are appended to the Drugs and Cosmetics Act. The

product categories highlighted by Schedules G, H, K and X are as follows:

Schedule X: products containing controlled ingredients, such as barbitals, methamphetamines

and narcotics. Schedule X drugs must be labelled “XRx” in red on the top left corner of the

packaging. They must also be labelled: “Warning: to be sold by retailer on the prescription of

a registered medical practitioner only.”

Schedule H: products restricted to prescription sales. However, topical schedule H products

may be sold OTC, with this including ibuprofen. Schedule H drugs have to be labelled “Rx” in

red on the top left corner, and must also carry the words: “Warning: to be sold by retailer on

the prescription of a registered medical practitioner only.”

Schedule G: products that can be sold without prescription. The product must carry the

following warning: “Caution. It is dangerous to take this preparation except under medical

supervision.” Antihistamines fall into this category.



Schedule K: products considered as “Household Remedies”, including analgesics, antacids,

gripe water and inhalant decongestants. These products can be sold by non-drug-licensed

stores (non-chemists) in villages with fewer than 1,000 inhabitants.

The Drug and Magic Remedies (Objectionable Advertisement) Act details a list of ailments for

which the advertising of remedies is not permitted. It also prohibits misleading advertisements

which, directly or indirectly, give false impressions regarding the true character of the drug,

make false claims, or are otherwise false or misleading in any particular respect. Currently

there is no specific law which prohibits the advertising of prescription drugs. However, drugs

falling in Schedules G, H, and X are currently not advertised to the public under a voluntary

commitment by the pharmaceutical industry in India.

Products registered as “Ayurvedic Medicines” can be sold by non-drug-licensed stores. Some

of the top consumer healthcare brands in India, including Vicks, Eno and Amrutanjan Pain

Balm, are registered as Ayurvedic Proprietary Medicines because of their plant-based natural

active ingredients. Unlike the prices of other drugs and supplements, which are closely

controlled by the National Pharmaceutical Pricing Authority, there are no price controls on

ayurvedic medicines. The Drugs (Prices Control) Order 1995 restricts the prices of 74 bulk

drugs and their formulations (estimated to cover 40% of the total pharmaceuticals market in

India), and is implemented by the National Pharmaceutical Pricing Authority.

There are no separate labelling requirements for OTC drugs. Under the Standards of Weights

and Measures Rules, most packaged consumer products are required to have the Maximum

Retail Price printed on the label.

Most products are only permitted to be sold via licensed pharmacies, thus

chemists/pharmacies dominate the retailing of consumer health products.

Chemists/pharmacies accounted for 64% of value sales in consumer health in 2013, whilst

parapharmacies/drugstores had negligible sales. This limited distribution inevitably results in

narrower access to consumer health products. It also results in a lack of price competition.

Many in the government want to make consumer health products more widely available to the

population as a whole, and to allow larger chained grocery outlets to enter the market, thus

driving down the prices of many products through their greater economies of scale. In

response, representatives of chemists/pharmacies point to concerns regarding the dangers of

self-medication and the damage that this increased competition would cause to the pharmacy

retail infrastructure in the country.

Vitamins and Dietary Supplements Registration and Classification

The manufacture and sale of vitamins is officially legislated under the Drugs and Cosmetics

Act 1945, with rules and regulations similar to those covering standard medical products. The

government is in talks with the Drug Controller General of India (DCGI) and Food Safety and

Standards Authority of India (FSSAI) to establish regulations which will make companies that

use medicinal ingredients for non-medicinal usage need permission from the DCGI for the

manufacturing and distribution of these products.

Vitamins also face strict price ceilings as the government considers vitamin supplements to be

essential in combating the widespread malnutrition amongst consumers who have low

purchasing power. The regulatory authorities are in the process of setting up new regulations

in order to make sure companies cannot sell drugs or any medicinal composition as a food

supplement as, in doing so, these companies avoid the price ceiling set for medicines in India.

The packaging of supplements did not witness any changes in 2013, and was primarily in

hard plastic bottles with the dosage, ingredients and pricing stated on the label.



Vitamins and dietary supplements are available via chemists/pharmacies, hypermarkets,

supermarkets and health and beauty specialists amongst store-based retailers. In non-store

retailing, these products are mainly sold via internet retailing and direct selling. No particular

regulations are applicable to the distribution channel.

Self-medication/self-care and Preventative Medicine

There was an increasing trend of consumers preferring to opt for self-medication in recent

years. This trend was prominent mostly amongst urban consumers who have hectic lifestyles

and are pressed for time. These consumers find it difficult to take time to visit a doctor for

common ailments such as headaches, joint pain, coughs, colds, fevers and digestive issues,

and prefer to self-medicate. The number of doctors in India is low compared with the

population, and results in long queues at clinics. This also acts as a deterrent for urban

consumers to visit a doctor for common ailments.

Previously, most families used traditional home remedies for common ailments. However, as

nuclear families have become the norm in urban areas, especially in metros, the commonly

used traditional home remedies are less frequently being passed on to the younger

generation. As a result, these consumers are opting for readily available OTC products for

common ailments. The trend of traditional home remedies is still prevalent in rural areas, with

consumers not having enough access to OTC products. Manufacturers are aiming to increase

the distribution and presence of such products in rural areas in order to make them available

to rural consumers. The trend of rural consumers shifting to OTC products will only increase

in the coming years.

Urban consumers also became more conscious about their health in recent years, and have

opted for preventive medication such as chyawanprash to increase their immunity. Demand

for these preventive medications is also on the rise due to consumers having hectic work

lives, and being unwilling to miss any working days. Manufacturers such as Emami, Dabur

India, GlaxoSmithKline Consumer Healthcare and Amrutanjan Health Care have recruited a

number of celebrities and sports stars to endorse their brands and increase awareness.

The prominent brand Zandu Pancharishta has the Indian cricket team captain MS Dhoni and

Padma Vibhushan Pandit Birju Maharaj as brand ambassadors. Sona Chandi Chyawanprash

has the popular Bollywood star Shahrukh Khan as its brand ambassador, Zandu Kesari Jivan

has Pandit Birju Maharaj as its brand ambassador and Dabur India‟s popular product Dabur

Chyawanprash also has the Indian cricket team captain MS Dhoni as its brand ambassador.

Aggressive promotions and branding measures by manufacturers have ensured there is

increased awareness of their brands and the benefits these products offer consumers.

Switches

There were no particular switches in 2013. However, in the forecast period more Rx

medicines might switch to OTC in order to reduce UTC sales of these drugs.

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

Svarjiksara (Shudh): Sodium bicarbonate

Nimbukalam (Shushkam): Citric acid



SOURCES Sources used during the research included the following:

Summary 1 Research Sources

Official Sources Aden Health Care

Ashoka Lifescience Ltd

Blueprint

Century Distributors

Department of Chemicals & Petrochemicals

Department of Family Welfare, India Government

Deys Medical Store Mfg Co

Draft National Policy on Indian System of Medicines

Eskag Pharma Pvt Ltd

KPMG

M S Life Drug House Pvt Ltd

Ministry of Health, Government of India

National Pharmaceutical Pricing Authority

Press Information Bureau

Skyways Health Care Pvt Ltd

Trade Associations Association of the European Self-Medication Industry (AESGP)

Confederation of Indian Industry (CII)

Health & Dietary Supplement Association of India

IBEF

Indian Drug Manufacturers Association

Organisation of Pharmaceutical Producers of India (OPPI)

World Self-Medication Industry (WSMI)

Trade Press Advertising & Marketing

AFAQS!

Asian Age, The

Bloomberg

Business India

Business Line

Business Standard

Business Today

Business Week

Business World



Chemical Weekly

Daily News & Analysis

Domain-b

Drug Today

Eastern Pharmacist

Economic Times, The

Equity Master

Express Pharma Pulse

Financial Express, The

Hindu Business Line

Hindustan Times

IBN Live

India Health News

India PRWire

India Today

Indiabiz News

Indian Express

MedGuide India

MyIris

Newspolitan.com

Outlook India

Pharma News

Pharmabiz.com

Press Trust of India

Rediff India Business News

Talk Delhi

The Economic Times

The Hindu

The Times of India

Thomson Reuters

Time World

Times of India

Tribune, The

Source: Euromonitor International

Date post:	27-Jan-2016
Category:	Documents
Upload:	vijayanvinesh
View:	13 times
Download:	4 times

Consumer Health in India

Documents