Otc Cough And Cold Remedies Market Forecast To Recover

Business Wire, April 30, 1995

London, 1994....--(BUSINESS WIRE)--In common with other OTC market sectors, the pace of growth of the cough and cold remedies market in Europe has also been very unevenl spread.

According to a new report by international market research publisher Frost & Sullivan, however, there is considerable potential for a recovery in market expansion.

Growth is largely driven by the uniform trend on the part of European governments to contain escalating costs by seeking to shift an increasing part of the health care bill towards the consumer.

The report says: "This 'push' on the part of governments in the form of delistings from reimbursement of prescription drugs, an increase in prescription charges and other patient payments, as well as an encouragement of switches of prescription products to OTC status, has been accompanied by a 'pull' from European consumers themselves, who are tending to increasingly make self-medication decisions for minor ailments."

Frost & Sullivan estimates the European market for OTC cough and cold remedies to have been worth $1.6 billion in 1993 and is predicted to reach $2.1 billion by the end of the study period in the year 2000.

In 1993, cough remedies displaced pharyngeal preparations - currently accounting for 23.7 per cent - to become the largest single category on the cough and cold remedies market, representing a 25.2 per cent share of the overall market.

Nasal decongestants presently account for the third highest share of 22.1 per cent, followed by cold remedies standing at 19.6 per cent.

The share of cold remedies is expected to show the largest relative gain by the year 2000; decongestants and cough remedies are also forecast to increase their respective shares by a considerable margin.

Germany has displaced France as the largest national market for OTC cough and cold remedies, with just under 33 per cent of the total. The rise in the German share is explained by the post- unification market growth onwards from 1990 as well as a sluggish pace of growth in France.

As with the OTC market in general, Germany and France together account for well over half of all European cough and cold remedy sales, with the UK and Italy accounting together for more than a one- fourth share.

By the year 2000, the share of the Italian market is predicted to show the most relative gain, largely the consequence of major health care reforms implemented in Italy in 1993, which will continue to dramatically increase the proportion of OTC products on the pharmaceutical market.

Frost & Sullivan reports: "The process of delisting has - and will continue to transform - a number of cough and cold remedies into fully-fledged OTC medicines."

"Within an increasingly competitive environment, these OTC brands are being tailored to take account of consumer tastes and preferences, and have benefited from significant advertising and promotional investment."

Although relatively mature, the OTC cough and cold remedies market has several niches that have not yet been adequately exploited, or in some cases even sufficiently explored. Sweden, for example, lacks dedicated cold remedies and is bound to see this anomaly rectified after its accession to the European Union.

In terms of suppliers, the market is dominated by Sterling Health/Sterling Midy, Procter & Gamble, Boots and Warner-Lambert (Parke-Davis).

The market is characterised by a strong presence on their respective home markets of domestic companies. In general, international companies have their presence restricted, geographically and to certain categories.

Frost & Sullivan is an international high-technology research firm. All Frost & Sullivan reports are based on extensive interviews with marketing and technical experts from selected companies in each market segment. Primary research is validated by thorough analysis of available secondary research. Frost & Sullivan is the leading publisher worldwide of high-technology research reports.

Code: 3076-52 Publication Date: 1994 Price: $3800

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