SOUTH AFRICAN COLD AND FLU REMEDY INDUSTRY LANDSCAPE REPORT COMPILED: FEBRUARY 2018
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1 SOUTH AFRICAN COLD AND FLU REMEDY INDUSTRY LANDSCAPE REPORT COMPILED: FEBRUARY 2018
2 COMPANY OVERVIEW Insight Survey is a South African B2B market research company with more than 10 years experience, focusing on business-to-business (B2B) and industry market research to ensure smarter, more-profitable business decisions are made with reduced investment risk. We offer B2B and Industry market research solutions to help you to successfully improve or expand your business, enter new markets, launch new products or better understand your internal or external environment. At Insight Survey, we believe in the advantage marketing research gives business leaders to fully understand their industry, facilitate business development strategy, highlight company performance, and nurture industry growth.
3 COMPETITIVE INTELLIGENCE Our bespoke Competitive Business Intelligence Research can help give you the edge in a global marketplace, empowering your business to overcome industry challenges quickly and effectively, and enabling you to realise your potential and achieve your vision. From strategic overviews of your business s competitive environment through to specific competitor profiles, our customized Competitive Intelligence Research is designed to meet your unique needs. Competitor Pricing Research OUR RESEARCH SOLUTIONS Store Visits and Store Checks Competitor Interviews Customer Interviews Company Website Analysis Governmental Held Records
4 HEALTHCARE INDUSTRY REPORT CLIENTS Our Healthcare Industry Landscape reports have been purchased by global and South African companies: 4
5 REPORT OVERVIEW The South African Cold and Flu Remedy Industry Landscape Report (108 pages) provides a dynamic synthesis of industry research, examining the local and global Cold and Flu Remedy industry (including Cough and Allergy Remedies) from a uniquely holistic perspective, with detailed insights into the entire value chain from manufacturing to retailing, market size trends, industry trends, industry drivers & challenges, competitor and pricing analysis. SOME KEY QUESTIONS THE REPORT WILL HELP YOU TO ANSWER: For the Global Cold and Flu Remedy Industry Section: What are the current market dynamics of the Global Cold and Flu Remedy industry? What are the Global Cold and Flu Remedy industry trends, drivers, and challenges? For the South African Cold and Flu Remedy Industry Section: What are the current market dynamics (market environment, size, value, volumes) of the SA Cold and Flu Remedy industry? Who are the key manufacturing players in the SA Cold and Flu Remedy industry? What are the South African industry trends, drivers and challenges? For the South African Retail and Pricing Analysis Section: Who are the key retail players (retail pharmacies, in-store retail pharmacies, hospital-based pharmacies and general pharmacies) in the SA Cold and Flu Remedy industry? What are the prices of the most frequently purchased Cold and Flu Remedies across SA retail outlets? 5
6 SCREENSHOTS FROM REPORT 108 page report filled with detailed charts, graphs, tables and insights 6
7 SAMPLE FROM REPORT: KEY GLOBAL MARKETS OVERVIEW (NORTH AMERICA) 40% 35% 30% 25% 20% 15% 10% 5% 0% 1. North America (US and Canada) The Cold and Cough Remedies market is now considered the most competitive OTC category in North America achieving revenue of US$8.9 billion in Furthermore, as can be seen in the graph below, the Cold and Cough segment represented the largest segment in the North American OTC Pharmaceutical market, contributing 36.5% to total market revenue in TOTAL MARKET REVENUE OF OTC PHARMACEUTICALS IN NORTH AMERICA, BY SEGMENT 2017 (IN PERCENTAGE) 36.5% Cold & Cough Remedies 22.1% Vitamins & Minerals 21.5% 12.4% 7.5% Analgesics Skin Treatment Digestives & Intestinal Remedies Source: The Pharma Letter; Statista-Graph; Statista-US; Statista Canada; Statista; Future Market Insights Revenue for the North American OTC Pharmaceutical market amounted to US$24 billion in 2018 and is expected to grow at a CAGR of 2.3% over the period More specifically, the revenue for the Cold and Cough Remedies segment in the United States amounted to US$ 8.4 billion in 2018 and is expected to record a CAGR of 2.5% over the period Globally, the United States generated the most revenue in the Cold and Cough segment and has an average revenue per person of US$25.69 in However, the Cold and Cough Remedies segment in Canada attained revenue of US$513 million in 2018 and is expected to record a CAGR of 0.1% over the same period. Canada generated a per capita revenue of US$13.92 in The Oral Syrups segment dominated the North American Cold and Cough market in terms of revenue in 2016 and had an attractiveness index of 1.5 over the forecast period Furthermore, this segment is expected to grow at a CAGR of 1.9% over the forecast period to reach more than US$3 billion by Image Source: UKR Invest; Quora 7
8 SAMPLE FROM REPORT: SA INDUSTRY TRENDS Widening product range and rise of online purchasing Growth in Antihistamines (Allergy remedies) Cold and Flu products are becoming increasingly available to purchase online as e-commerce platforms continue to develop and expand. In support of this, it is estimated that South African online spend in general is forecast to grow to over R53 billion by South African consumers are continuing to become more aware of the safety and convenience of online shopping as e-commerce offerings increase, and in turn increasingly choosing e-commerce platforms for everyday purchases such as OTC Cold and Flu products. This trend, along with a widening product range, will contribute to continuous growth within the Cold and Flu market. Antihistamine products performed well in 2017, witnessing further double-digit current value growth, which is set to continue over the period Growth within this category is being fueled by increasing consumer awareness of allergies and how to tackle them. Consumers are now more capable of diagnosing their symptoms and looking for the right medication thanks to improved access to information. Furthermore, South Africa has a high prevalence of HIV, and affected consumers are more prone to allergies because of a weakened immune system which implies that they are also more likely to demand antihistamine products. Affected consumers in urban areas are also more keen to manage their condition and by extension be more likely to demand antihistamines or allergy products. In addition to this, increased urbanisation and rising pollution have further contributed to the number of allergies in the country. There is also a seasonal component to antihistamines, with demand peaking during the hay fever season. Source: Khni.Kerry; Euromonitor; Itnewsafrica; Fin24; Fitnessmag; Mckinsey Image Source: Clker; Linkedin 8
9 SAMPLE FROM REPORT: SA MARKET SIZE: COLD AND FLU DISTRIBUTION CHANNELS As illustrated in the graph below, 74.9% of all Cough, Cold and Allergy remedies are distributed through Non-Grocery Specialists while 25.1% are distributed through Grocery Retailers. Non-Grocery Specialists mainly include chemists/pharmacies and drugstores/paraphamacies. The table below illustrates the distribution of Cold and Flu remedies according to outlet types for 2012 and In 2017, 21.1% of all Colds and Flu remedies were distributed via Supermarkets (an increase from 18.5% in 2012), while 66.9% were distributed via Chemists/Pharmacies (a decrease from 68.5% in 2012). CHANNEL DISTRIBUTION FOR COUGH, COLD AND ALLERGY (HAY FEVER) REMEDIES: 2017 Channel Distribution (2012 and 2017) By Outlet Type Revenue Share (%) (2012 and 2017) Revenue Share (ZAR Million) (2012 and 2017) Store-Based Retailing (Total) 100.0% 100.0% 2, ,894.1 Grocery Retailers 24.0% 25.1% , % Modern Grocery Retailers 23.0% 23.8% ,164.0 Convenience Stores 0.3% 0.4% Hypermarkets 4.1% 2.4% Supermarkets 18.5% 21.1% ,030.8 Grocery Retailers Non-Grocery Specialists Traditional Grocery Retailers 1.0% 1.4% Other Grocery Retailers 1.0% 1.4% Healthfood shops 1.0% 1.4% % Source: Euromonitor Non-Grocery Specialists 76.0% 74.9% 2, ,663.9 Health and Beauty Specialist Retailers Image Source: Enhanced Care; Iconfinder; Thenounproject 76.0% 74.9% 2, ,663.9 Chemists/Pharmacies 68.5% 66.9% 1, ,274.6 Drugstores/parapharmacies 7.5% 8.0%
10 SAMPLE FROM REPORT: SA MANUFACTURER OVERVIEW: ASCENDIS HEALTH Ascendis Health Limited is a multinational health and care brands company, based in South Africa and listed on the JSE since ASCENDIS HEALTH COLD AND FLU REMEDY BRANDS/ PRODUCTS Since 2013, Ascendis has achieved impressive success, largely driven by niche offerings such as sports nutrition supplements, pet care products and derma-cosmeceutical skin care products. The company operates within four segments, namely; Consumer Brands, Pharma-Med, Phyto-Vet as well as International. Betta Immune Sinucon C Solal Immufend Vitaforce Ultra Immune Ascendis Health currently has more than 10 brands sitting in the number 1 position of the South African market, with a further 15 dominating the rankings in second position. Within the South African Cold and Flu product portfolio, there has been an expansion of products due to the integration of several key businesses in 2016 and The most significant was that of Akacia, which provide brands such as Sinucon C. Domestic challenges are, however, turning Ascendis Health s focus towards international acquisitions due to the lack of low income consumer spending in South Africa. During 2017, 43% of the group s revenue was generated outside of South Africa, compared to 22% for 2016, indicating a continued diversification strategy away from South Africa. Source: Ascendis Health Annual Report 2017; Moneyweb Image Source: Ascendis 10
11 SAMPLE FROM REPORT: PRICING ANALYSIS: COLD AND FLU REMEDIES BRAND AND SIZE Advil Colds & Sinus 20 tab R65.95 N/A N/A N/A N/A Airborne 10 tab R58.95 R54.95 N/A N/A N/A Airmune 10 tab R59.95 R59.95 R59.95 R69.99 R69.99 Alcophyllex 200ml R21.95 N/A N/A N/A N/A Aspen One-Day-Flu Care 100ml R49.95 R49.95 N/A R44.99 N/A Benylin Wet Cough Mucus Relief 50ml R31.95 R31.95 R39.95 R34.99 R ml R49.95 R41.95 R59.95 R36.99 R59.99 Bionorica Bronchipret 100ml N/A R92.95 N/A N/A N/A 20 cap R R R N/A R79.99 Bionorica- Sinupret 100ml R R92.95 R94.95 N/A N/A 11 This pricing analysis was conducted at retail stores and supermarkets during w/c 5 February 2018
12 TABLE OF CONTENTS 1. Executive Summary (3 pages): 1.1 Global Industry Snapshot 1.2 South African Industry Snapshot 1.3 Industry Drivers and Restraints 2. Global Cold and Flu Remedy Industry (13 pages): 2.1 Global Industry Overview: Pharmaceutical Market: WORLD PHARMACEUTICAL MARKET CAGR FORECAST BY REGION GROUP BETWEEN 2017 & 2021* (Graph) 2.2 Global Industry Overview: OTC Pharmaceutical Market: GLOBAL OTC PHARMACEUTICAL MARKET SIZE (US$ BILLION): 2016 & 2021* (Graph) 2.3 Global Industry Market Environment: Cold and Flu Market: GLOBAL MARKET SHARE OF OTC DRUGS, BY THERAPEUTIC AREA (2016) (Graph) 2.4 Global Key Markets Overview: Regional: TOP 10 REVENUE OF THE OTC PHARMACEUTICALS MARKET WORLDWIDE BY COUNTRY IN 2017 (IN BILLION US DOLLARS) (Graph) 2.5 Global Key Markets Overview: North America: TOTAL MARKET REVENUE OF OTC PHARMACEUTICALS IN NORTH AMERICA, BY SEGMENT 2017 (IN PERCENTAGE) (Graph) 2.6 Global Key Markets Overview: Europe: TOTAL MARKET REVENUE OF OTC PHARMACEUTICALS IN EUROPE, BY SEGMENT 2017 (IN PERCENTAGE) (Graph) 2.7 Global Key Markets Overview: Asia Pacific and Latin America: TOTAL MARKET REVENUE OF OTC PHARMACEUTICALS IN LATIN AMERICA, BY SEGMENT 2017 (IN PERCENTAGE) (Graph) 2.8 Global Industry Trends 2.9 Global Industry Drivers 2.10 Global Industry Challenges 12
13 TABLE OF CONTENTS 3. South African Cold and Flu Remedy Industry (55 pages): 3.1 South African Cold and Flu Remedy Industry Overview (17 pages) South African Industry Overview: HEADLINE PHARMACEUTICAL SALES: 2016 & 2021* (IN US$ BILLION) (Graph) South African Industry Market Size: Cold and Flu Industry ( ): VALUE OF SA COUGH, COLD AND ALLERGY (HAY FEVER) REMEDIES MARKET: (IN ZAR MILLION); COUGH, COLD AND ALLERGY CAGR AND TOTAL GROWTH ( & *) (IN PERCENTAGE) (Graph and Table) South African Industry Market Size: Cold and Flu Market ( : By Category): VALUE OF SA COUGH, COLD AND ALLERGY (HAY FEVER) REMDEIES MARKET BY CATEGORY: (IN ZAR MILLION) (Graph) South African Industry Market Size: Cold and Flu Industry (Forecast: ): VALUE OF SA COUGH, COLD AND ALLERGY (HAY FEVER) REMEDIES MARKET: 2017 & 2022* (IN ZAR MILLION); VALUE OF SA COUGH, COLD AND ALLERGY REMEDIES MARKET, BY SEGMENT (2018*-2022*) (Graph and Table) South African Industry Market Size: Cold and Flu Market Volumes ( *): VOLUME OF SA COUGH, COLD AND ALLERGY (HAY FEVER) REMEDIES MARKET, BY SEGMENT ( *) (Table) South African Market Environment: Top Cold and Flu Companies: TOP 10 COUGH, COLD AND ALLERGY (HAY FEVER) REMEDIES COMPANIES IN SOUTH AFRICA: 2017 (REVENUE SHARE IN ZAR MILLION); TOP 10 COUGH, COLD AND ALLERGY (HAY FEVER) COMPANIES REVENUE SHARE (2012 VS 2017) (Graph and Table) South African Market Environment: Top Cold and Flu Companies (Per Category): TOP COUGH, COLD AND ALLERGY (HAY FEVER) REMEDY COMPANIES (PER CATEGORY) IN 2017 (Table) South African Market Environment: Top Cold and Flu Brands: TOP 10 COUGH, COLD AND ALLERGY (HAY FEVER) REMEDIES BRANDS IN SOUTH AFRICA: 2017 (REVENUE SHARE IN ZAR MILLION); TOP 10 COUGH, COLD AND ALLERGY (HAY FEVER) BRANDS REVENUE SHARE (2012 & 2017) (Graph and Table) South African Market Environment: Top Cold and Flu Brands (Per Category): TOP 3 COUGH, COLD AND ALLERGY (HAY FEVER) REMEDY BRANDS (PER CATEGORY) IN 2017 (Table) South African Market Environment: Cold and Flu Distribution Channels: CHANNEL DISTRIBUTION FOR COUGH, COLD AND ALLERGY (HAY FEVER) REMEDIES: 2017; CHANNEL DISTRIBUTION (2012 AND 2017) BY OUTLET TYPE (Graph and Table) South African Industry Trends South African Industry Drivers South African Industry Challenges 13
14 TABLE OF CONTENTS 3.2 South African Cold and Flu Remedy Manufacturer and Distributor Overview (44 pages) Actor Pharma Adcock Ingram: Overview: ADCOCK INGRAM SALES BY CUSTOMER CHANNEL: 2017 (Graph) Ascendis Health: Overview: ASCENDIS HEALTH REVENUE ACCORDING TO DIVISIONS: 2017 (Graph) Aspen Pharmacare: Overview: ASPEN REVENUE CONTRIBUTION BY THERAPEUTIC CATEGORY: 2017 (Graph) Austell Bayer: Overview: BAYER S EUROPE/MIDDLE EAST/ AFRICA REGIONAL SALES FOR Q (IN EURO BILLION) (Graph) Boiron (Lebron Health) Brunel Laboratoria Cipla: CIPLA REVENUE CONTRIBUTION BY REGION FOR THE YEAR ENDED (PERCENTAGE) (Graph) Inova Pharmaceuticals Johnson & Johnson: JOHNSON & JOHNSON WORLDWIDE CONSUMER SALES: 2016 VS 2017 (IN US BILLION) (Graph) Kalbe Merck Mondelez 14
15 TABLE OF CONTENTS 3.2 South African Cold and Flu Remedy Manufacturer Overview Continued (38 pages) Nativa Pfizer: PFIZER REVENUE BY DIVISION FOR THE THIRD QUARTER OF 2017 (IN US BILLION) (Graph) Pharma Dynamics Procter & Gamble: PROCTER & GAMBLE NET SALES BY DIVISION FOR THE YEAR ENDED 30 JUNE 2017 (PERCENTAGE) (Graph) Reckitt Benckiser: RECKITT BENCKISER REVENUE BY DIVISION FOR THE THIRD QUARTER OF 2017 (IN MILLION POUNDS) (Graph) Reitzer Pharmaceuticals SA Natural Products Tara Pharmaceuticals 15
16 TABLE OF CONTENTS 4. South African Cold and Flu Remedy Retail Analysis (17 pages): 4.1 SA Cold and Flu Remedy Retail Overview (2 pages) SA Retail Overview: NUMBER OF STORES PER PHARMACY: 2018; COLD AND FLU REMEDY PRODUCT PRICE ANALYSIS FEBRUARY 2018 (Graph & Table) 4.2 South African Retail Pharmacies (8 pages) Clicks: Overview: PERCENTAGE CONTRIBUTION TO TOTAL SALES OF CLICKS PER HEALTH AND BEAUTY SALES CATEGORY (YEAR ENDED 31 AUGUST 2017) (Graph) Clicks: Cold and Flu Remedy Brands/Products Dischem: Overview: DIS-CHEM CATEGORY PERCENTAGE MARKET SHARE (HALF YEAR 2018) (Graph) Dischem: Cold and Flu Remedy Brands/Products Durbell: Overview In-Store Retail Pharmacies: MediRite, Pick n Pay Pharmacy, Spar Pharmacy Hospital-based Pharmacies: Mediclinic Pharmacy, Netcare Pharmacy Independent Pharmacies: Link, Alpha Pharm 16
17 TABLE OF CONTENTS 4. South African Cold and Flu Remedy Retail Analysis Continued (17 pages): 4.3 Cold and Flu Remedy Pricing Analysis (7 pages) (conducted w/c 5 February 2018) Cold and Flu Remedy Brands: Advil Colds & Sinus, Airborne, Airmune, Alcophyllex, Aspen One-Day-Flu Care, Benylin Wet Cough Mucus Relief, Bionorica Bronchipret, Bionorica Sinupret, Borstol, Cal-C-Vita Plus, Cepacol, Corenza C, Dilinct, Drixine, Echinaforce, Efferflu C, Expigen, Flutex Cough Mixture Honey, Flugon Cough Syrup, Flugon Throat Spray, Grippon, Hot Toddy, L.C.C, Lennon, Linctagon, Med-Lemon, Medi-Keel A, Oscillococcinum, Prospan, Salex Sailine Drop Spray, Sinucon C, Sinutab Nasal Spray, Solal Immufend Cold & Flu, Solphyllex, Strepsils, Vicks, Vitaforce Children s Cold & Flu Remedy, Viral Guard, Viral Guard Throat Spray, Woods, Zam-Buk Cold and Flu Remedy Promotions (Clicks) Comparative Pricing at Retail Outlets: Clicks, Dis-Chem, Durbell, MediRite, Pick n Pay Pharmacy. 17
18 ORDER FORM ORDERING INSTRUCTIONS (1.) Complete the order form and back to (2.) An invoice will be generated and ed (3.) The report will be ed upon receipt of payment or when proof of payment has been provided (4.) All prices exclude 14 % VAT. COMPANY DETAILS Company Name: Physical Address: Town/City: Country: Purchaser Name: (name to appear on invoice) Purchaser address: Telephone number: CONFIRMATION: I/we wish to order this publication (please tick) Postal Code: VAT number: Title of Publication Total Ex Vat Tick Box South African Cold and Flu Remedy Industry Landscape Report 2018: Full Report R25,000 South African Cold and Flu Remedy Industry Landscape Report 2018: One Section R9,000 ACKNOWLEDGEMENT I am authorised to order this publication on behalf of the company and agree to the payment terms. Client (Print Name) Signature Capacity Date 18
19 CONTACT DETAILS Telephone: Physical Address: Contact: Website: CAPE TOWN +27 (0) Unit 5, Building 12, The Estuaries Century City Cape Town JOHANNESBURG +27 (0) Wedgewood Link Bryanston Johannesburg,
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