Bibliography

Theme area
Public-private mix
Author
Euromonitor International
Title of publication OTC Healthcare in South Africa
Date of publication
2008
Publication type
Electronic Source
Publication details
Euromonitor International
Publication status
Published
Language
English
Keywords
over-the-counter, OTC, retail value, pharmaceuticals, drugs, price controls, South Africa
Abstract
This growth over 2008 within OTC was impressive as many other industries within South Africa are experiencing declines in growth due to the tough economic conditions, attributed to increasing costs of raw materials, inflation, distribution and exchange rate fluctuations. A handful of companies dominated OTC healthcare sales within South Africa at the end of the review period. South African company Adcock Ingram was the leading player. Adcock leads OTC pharmacy sales with its range of well established brands, such as Panado, Corenza C, Syndol, Betapyn, Pynstop) and Adco-generic products within analgesics and cold and cough medicines. Other active companies include Aspen Pharmacare, Johnson & Johnson, Reckitt Benckiser Pharmaceuticals and GlaxoSmithKline. Price regulations in 2006 resulted in lower price increases compared with other fast-moving consumer goods within the current economic climate. Price regulations established by the department of health initiated the “single exit price” (SEP) in April 2004. SEP entails that the manufacturer or importer must set a price at which a particular medicine shall be sold to any person other than the State. The government also set a limit on future price increases and confirms the allowed percentage increase annually. No price increases was allowed over 2003-6. In May 2008 the annual price increase was capped at 6.5%, and the government allowed a 6.5% increase on medicine prices during 2008. Increasing raw materials’ prices and distribution costs and changing exchange rates resulted in tighter profit margins for manufacturers. A declining growth rate expected over the forecast period will be due to the consumer trend from self-medication to prevention. Increasing focus on health and wellness and costs related to illness will result in the increasing adoption of the “prevention is better than cure” ethos. Consumers are more educated and an increasing number realise the benefits of living a healthy lifestyle. Immune system-boosting supplements are expected to dominate in terms of future performance.
Country
South Africa
Publisher
Euromonitor International