Global CHC market up 3.9% in 2019

CHCINACTION

Figures released by Nicholas Hall’s sales database DB6 show that in 2019 the global CHC market maintained its growth trajectory, increasing by 3.9%. Growth in USA improved, driven by a strong performance in CCA. Systemic cold & flu (+6.2%) performed particularly well, owing to higher incidence of pathologies.

Latin America was the best-performing region (+9.4%) with both Brazil and Mexico advancing by high single digits. Growth in Europe slowed to 2.6% with slight improvements in Germany, Italy and UK held back by decline in France and low growth in former powerhouse Russia. Asia-Pacific remained weak (+4.1%) with flat sales in Japan and Australia offsetting high single-digit growth in India. Leading APAC market China grew by 5.1%.

Analgesics was the fastest-growing category with a rise of 4.7%. VMS slowed to 3.5%, partly owing to a consumer shift to e-commerce. Derma (+3.1%) was the weakest category albeit with an improvement on its 2018 performance. 

Country

YE 2019 sales ($bn)

19/18%

USA

34.4

3.2

China

26.2

5.1

Japan

8.1

0.5

Germany

5.5

2.3

Russia

5.4

1.0

France

4.4

-1.2

Italy

4.2

3.0

Brazil

3.8

9.1

India

3.5

8.2

UK

3.0

3.0

GLOBAL CHC

141.5

3.9

The broader CHC market, encompassing all channels and CBD, increased by 4.3%. Direct sales declined owing to tighter regulations and negative consumer perception. Internet & Mail order slowed slightly as marketers adjusted to the inception of the E-commerce law in China (although still achieved growth of 12.4%). Meanwhile the nascent CBD market was the fastest-growing of all categories with sales up by 44.2%. 

Nicholas Hall’s Abroad Thoughts from Home: 2019 was somewhat disappointing, with growth of under 4% for the second year running. As before, our industry suffered from a lack of switches and the tailing off of expansion in the Emerging Markets, with weak results in Asia, although Brazil and India are notable bright spots.

All eyes will be on 2020 and the impact that Covid-19 will have on the CHC market. My colleague Celine Waller writes: “The DB6 team is currently reviewing early indications of market performance [some of which are reviewed in this week’s edition] and analysing to what extent the reported boost to immune supplements, paracetamol and antiseptics (among other categories) will be sustained throughout the year and whether it will be offset by a slowdown in other categories.”

The latest DB6 figures and general industry performance over 2019 will be reviewed in a special webinar session hosted by Nicholas, taking place on 29 April. To find out more or to register, please contact elizabeth.bernos@NicholasHall.com.

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