OTC healthcare achieves continued positive retail value growth in 2008
Despite the global economic slowdown, diminished consumer purchasing power and a slump in the morale of consumers OTC healthcare achieved continued positive retail value growth in 2008 as health and wellness remained a priority among the Portuguese. One of the factors from which OTC healthcare benefited was a ban on smoking in the workplace and in public spaces, which prompted many smokers to reduce their consumption of cigarettes. Analgesics also continued to drive retail value sales of OTC healthcare in 2008, as it remained the largest category in terms of retail value sales.
Ageing population and self-medication boost demand for OTC healthcare
Owing to the increasingly ageing Portuguese population, demand for OTC healthcare increased further in 2008. Ageing is a leading factor behind a wide range of diseases and as ageing consumers wish to live longer and age gracefully, demand for products in OTC healthcare has risen. There is strong demand for hair loss treatments, calming and sleeping products and also dietary supplements to prevent heart disease. On the other hand, consumers faced increasingly hectic lifestyles in 2008 and thus self-medication was a convenient alternative to having to spend time and money on visiting a doctor for minor ailments. Analgesics, in particular, has benefited from the trend of self-medication among consumers.
Trend of self-medication benefits popular brands
There are more than 100 companies operating in OTC healthcare in Portugal, some of which are domestic and the leaders of which are multinational players. Multinational players benefit from the preference among consumers for self-medication as this prompts them to opt for well-known brands, the results of which have been proven.
Increased distribution promotes growth of OTC healthcare
Following the liberalisation of the sale of medicinal products in OTC healthcare, the distribution landscape in OTC healthcare changed, as the focus was taken away from chemists/pharmacies. The number of distribution outlets for OTC healthcare increased and this helped to boost sales. In 2008, approximately 678 distribution outlets other than chemists/pharmacies outlets offered medicinal products in OTC healthcare. Nevertheless chemists/pharmacies remained the leading channel of distribution for OTC healthcare in 2008.
Constant value growth of OTC healthcare to remain positive
OTC healthcare is expected to continue to achieve positive constant value growth over the forecast period, driven by demand for NRT smoking cessation aids as more smokers in Portugal attempt to stop smoking and turn to products in OTC healthcare to help them. However, analgesics is expected to remain the largest category of OTC healthcare in terms of retail value sales over the forecast period, as the trend of self-medication is expected to increase further in Portugal and to continue to have a positive impact on OTC healthcare.
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