The mid-year update from DB6 shows the global retail market advanced by 8.2% in the 12 months to end-June 2022. In terms of geographies, Europe (+11.6%) held its position as fastest-growing region globally with many key markets maintaining double-digit growth, driven by sustained significant increases in the cough, cold & allergy category (+32.6%), as well as a continued gains in analgesics (+11.1%). Largest market Germany improved moderately over MAT Q1 2022 (+10.8%), with remaining Big 5 Western European markets similarly displaying robust advances, notably Spain (+16.7%). Russia’s growth remains strong in this reporting period, driven by price rises — its conflict with Ukraine beginning formally at end-February 2022
Americas (+10.2%) was the second-fastest growing region globally; the US market slowed slightly from unprecedented MAT Q1 2022 growth to 9.2% — still growing well ahead of the global rate and advancing by over $3.3bn vs year-ago, driven by a 37%+ improvement in CCA, and notable growth in analgesics (+8.8%). In Latin America, leading market Brazil surged (+17.4%) with strong increases observed across most major categories; cough, cold & allergy (+49.9%) analgesics (+16.4%) and dermatologicals (+11.7%) being the most noteworthy.
Asia-Pacific (+4.3%) maintained its comparatively muted growth, with largest market China (+3.3%) slowing in view of continuing lockdown restrictions, as well as pharmacy sales restrictions on particular products, primarily impacting cough & cold categories and systemic analgesics. A continued positive increase for No.2 ranked Japan (+1.4%), aided by a dynamic systemic analgesic performance (+19.3%), has helped to offset the slight slowing in China; combined, these markets have a share of almost 70% of total regional sales.
Nicholas Hall Writes: As I hinted last week, MAT Q2 results for the global CHC industry went far beyond expectations. The industry held up well during the two years of the pandemic, with all-channel growth of 6.1% and 6.5% in 2020 and 2021. The assumption was that growth would start to slow and align more closely with the 5-year CAGR of 5.4%. But Q1 confounded that forecast and, looking just at the store retail sector, our combined efforts were rewarded with 9.0% growth at constant currencies. Surely that couldn’t last! Who says? As the latest results attest, growth is still buoyant at 8.2% and presumably will be a lot higher when e-Commerce is added. If only we had the data, but nobody does, although we are working very hard to bridge that gap!!
Another shock to the system is how well Europe performed, with the leading countries delivering double-digit growth, or very close to it in the case of France. Of course, it helps that cough, cold & allergy surged in the first half of 2022, but that alone does not explain the spectacular rate of growth overall, which has for example put Germany 0.6% ahead of where it was in 2019!
Log on to hear from Nicholas and experts from Bayer, Havas Health and more at our Asia-Pacific e-Conference on 23 November! You can expect insights into sustainability, the Go-To-Market model and self-care collaborations. This online event will also include the presentation of our Regional CHC Creative Marketing Award. For more information, or to register, please contact elizabeth.bernos@NicholasHall.com.