Q1 2017: Early analysis of the global OTC performance

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Nicholas Hall’s global OTC database, DB6, has just published its latest figures relating to the Q1 2017 performance of the OTC market, and below are some standout trends based on early analysis of the data. Over the coming weeks, our OTC INSIGHT research teams will be compiling the latest trend info at a regional and Top 20 country level, and we’ll alert you as soon as this analysis has been uploaded to the OTC DASHBOARD website.

1. Russia returns to higher growth (+18.2% MAT Q1 2017 vs +11.3% full-year 2016)

A key factor in the slightly improved performance of the global OTC market in the 12 months to end-March 2017 (+4.5%) vs full-year 2016 (+4.3%) was higher growth in Russia. While a modest upturn in the world’s No.1 OTC market, USA, was offset by decelerating growth for both No.2 market China and No.3 market Japan, it was the European countries – largely No.5 Russia, but also No.4 Germany – that accounted for the improved performance of the global OTC market in Q1 2017.

2. CCA growth at the heart of Europe’s revived fortunes in Q1 2017

Global CCA sales were up 4.7% in 2016, thanks to a strong end to the year, and this trend continued into the first quarter of 2017, with growth accelerating to 6.3% in the MAT Q1 2017 period. Europe was largely behind this upsurge, with CCA growth in Western Europe showing a marked improvement (+3.8%), while Central & Eastern Europe was the biggest source of dynamism (+17.8%), led by Russia and Poland. This trend extended to the rest of the northern hemisphere, with North America also reporting higher CCA growth (+4.4%) in the MAT Q1 2017 period, with Canada especially vibrant (+6.9%).

3. Global Top 5 stays the same, but J&J may overtake Sanofi by mid-year

While the Top 5 global OTC marketers – GSK, Bayer, Sanofi, J&J and Pfizer – remain fixed in position and adrift from the rest of the competition, the battle for the No.3 spot between Sanofi (+3.8%) and J&J (+4.1%) continues to intensify. On current trends, it looks as though J&J may overtake Sanofi by the end of Q2 2017, and we will confirm the outcome of this battle later in the year.

In the meantime, please check your weekly briefings and OTC DASHBOARD‘s Charts & Graphs archive for more early analysis of the Q1 2017 results over the coming weeks.

OTCs in Action Episode 59: Erasing painful memories in Russia

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“Our life is full of events, sometimes unintended and unpleasant. None of us are immune from falling, getting cut, being in an accident or having surgery. Fortunately, the modern level of medicine is that most of these situations are repairable. But the memory of the incident is likely to scar. Unfortunately, the scar does not always work carefully and quietly. If this happens to you, know that you are not alone. Pathological scars – a common problem. About 15% of people who have had any surgery or injury have unsightly scars. This means that over a million people are in need of treatment. Imoferaza cream will help you to adjust the appearance of the scar and make it inconspicuous.” (translated from Russian)

This week OTCs are in Action in Russia, where NPO Petrovax Pharm has launched Imoferaza to treat scarring with hyaluronidase enzyme technology. The product acts on the connective tissue that forms the basis of a scar. Applications described on the brand’s website include skin injuries, burns, tattoo removals, piercings, acne (post-acne) and make the preventive claim of “reduces the likelihood of unsightly scar”. The active ingredient is delivered in a cream formulation that soothes and softens skin while helping it retain moisture.

Although the technology is surely a benefit for Russian consumers, what caught OTCs in Action’s eye is the brand’s website graphics, which emphasise the emotional pain that can linger from scars:

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For more information on Nicholas Hall’s OTC INSIGHT regional journals, click the link below:

http://www.insight.nicholashall.com

OTCs in Action Episode 11: Stigma, statutes and OTCs stub out smoking

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Q: What’s the difference between the 1960s and the 2000s?

A: In the 2000s, a guy goes into a chemist shop and shouts, “Give me a box of condoms!” … and then whispers to the shop assistant, “Oh, and slip in a packet of cigarettes, too.”

Although smoking is stigmatised in many countries in the new millennium, tobacco use still kills approximately 6mn people each year, according to the World Health Organization. It is the leading global cause of preventable death and OTC smoking cessation products can help people quit. This week, OTCs in Action takes a look at recent government initiatives to extinguish smoking – and spotlights nicotine replacement therapy* sales trends in those countries.

Brazil’s National Anti-Smoking Law will take effect this month, prohibiting smoking in enclosed spaces; banning the promotion of tobacco products and requiring warnings to cover a significant part of cigarette packs. Nicholas Hall’s Global OTC Database DB6 reports mid-year sales of NRTs increased by 14% to US$20mn (MAT June 2014) in Brazil.

China is considering raising cigarette prices and taxes and the State Council has issued a draft regulation to ban indoor smoking, limit outdoor smoking and end tobacco advertising. China has more than 300mn smokers and cigarettes are very inexpensive. OTC sales of NRTs increased by 8% to US$25mn.

France unveiled plans to require plain cigarette packaging, increase prices for tobacco and ban smoking in cars containing children. Although the Government more than doubled reimbursement rates for NRTs for those aged between 20 to 25, sales of OTC NRTs declined by 6% to US$82mn, owing to increased use of generics and rising use of e-cigarettes.

India announced that health warnings covering at least 85% of cigarette packs will be mandatory by April 2015. Sales of OTC smoking control products increased by 22% to US$12mn. The diminutive sales figure reflects that fact that most tobacco consumption in India is in the form of chewing tobacco and paan.

Russia’s ban on smoking in most public paces enacted in 2013 was extended to include transportation and leisure-oriented locations last summer. An estimated 40% of Russian adults smoked in 2011 and cigarette prices are among the cheapest in the world. Sales of OTC smoking control products were up by 38% to US$20mn in the mid-year results.

In the brilliant 2005 film, Thank You for Smoking, tobacco executive BR says: “We don’t sell Tic Tacs, we sell cigarettes. And they’re cool, available and *addictive*. The job is almost done for us.”

Maybe not so cool or available anymore.

For more info, Nicholas Hall’s OTC INSIGHT publications for Latin America, Europe, Asia-Pacific and North America have just published market reports on the smoking control trends in their regions. http://www.insight.nicholashall.com

*Does not include e-cigarettes