Table of Contents
Consumer Health in Kenya - Industry Overview
EXECUTIVE SUMMARY
Weakening shilling threatens to slow down economic growth
Self-medicating gaining popularity amongst more highly informed public
GlaxoSmithKline continues to lead
Rise of the middle class in the wake of global recession
High fuel and production costs threaten to curtail value sales growth
KEY TRENDS AND DEVELOPMENTS
Political and economic changes boost Kenya’s performance
Urbanisation helps drive sales of consumer health
Rising health awareness boosts growth
Self-medication grows with increased awareness and availability
MARKET INDICATORS
Table 1 Consumer Expenditure on Health Goods and Medical Services 2006-2011
Table 2 Life Expectancy at Birth 2006-2011
MARKET DATA
Table 3 Sales of Consumer Health by Category: Value 2006-2011
Table 4 Sales of Consumer Health by Category: % Value Growth 2006-2011
Table 5 Consumer Health Company Shares 2007-2011
Table 6 Consumer Health Brand Shares 2008-2011
Table 7 Sales of Consumer Health by Distribution Format: % Analysis 2006-2011
Table 8 Sales of Consumer Health by Category and Distribution Format: % Analysis 2010
Table 9 Forecast Sales of Consumer Health by Category: Value 2011-2016
Table 10 Forecast Sales of Consumer Health by Category: % Value Growth 2011-2016
APPENDIX
OTC registration and classification
DE-LISTING OR DE-REIMBURSEMENT
ADVERTISING
PACKAGING
LABELLING
DISTRIBUTION
VITAMINS AND DIETARY SUPPLEMENTS REGISTRATION AND CLASSIFICATION
GENERICS
DEFINITIONS
SOURCES
Summary 1 Research Sources
Consumer Health in Kenya - Company Profiles
Biodeal Laboratories Ltd in Consumer Health (Kenya)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 3 Biodeal Laboratories Ltd: Competitive Position 2011
Cosmos Ltd in Consumer Health (Kenya)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 Cosmos Ltd: Competitive Position 2011
Adult Mouth Care in Kenya - Category Analysis
HEADLINES
TRENDS
Adult mouth care grew by 6% in 2011. The growth is mainly due to the increasing number of expatriates who are quite keen in buying these products.
SWITCHES
COMPETITIVE LANDSCAPE
Biodeal Laboratories retained its position as market leader, holding a 21% value share with its Clomzole brand. Contrary to what is observed in several other consumer health categories, this local company is stronger than its multinational competitors in the adult mouth care market because it offers a wide variety of products that are cheaper and hence appeal to a larger consumer base.
PROSPECTS
Improving healthcare and aggressive marketing by makers of oral healthcare products means people are more conscious about their oral health and are proactively protecting it. That is expected to boost sales in this category.
CATEGORY DATA
Table 11 Sales of Adult Mouth Care: Value 2006-2011
Table 12 Sales of Adult Mouth Care: % Value Growth 2006-2011
Table 13 Adult Mouth Care Company Shares 2007-2011
Table 14 Adult Mouth Care Brand Shares 2008-2011
Table 15 Forecast Sales of Adult Mouth Care: Value 2011-2016
Table 16 Forecast Sales of Adult Mouth Care: % Value Growth 2011-2016
Analgesics in Kenya - Category Analysis
HEADLINES
TRENDS
The analgesics market has grown by 8% from KES6.6 billion in 2010 to KES7.1 billion in 2011. Growth is, however, expected to slow in the coming years as the weakening shilling threatens to raise fuel and production costs in the country which would force manufacturers to raise prices come January 2012 and also lower consumers’ purchasing power.
SWITCHES
COMPETITIVE LANDSCAPE
GlaxoSmithKline East Africa led the market for systemic analgesics with a 54% value share in 2011 on the strength of its Hedex and Panadol brands. Panadol controls a market share of 38%, followed by Hedex with 17%. Rohto Pharmaceuticals led in topical analgesics/anaesthetic with a 71% value share due to its Deep Heat (31% share), Deep Relief (20%) and Deep Freeze (20%) brands, with their sustained quality and efficient distribution. Furthermore, the company achieved a two percentage point increase in its retail value share in topical analgesics/anaesthetic due to its solid reputation in the segment and a very loyal consumer base.
PROSPECTS
The market for analgesics is set to grow, given that the tendency of consumers to self-medicate is set to increase. Growth rates, however, will be hampered by the weakening shilling, which threatens to raise fuel and production costs.
CATEGORY DATA
Table 17 Sales of Analgesics by Category: Value 2006-2011
Table 18 Sales of Analgesics by Category: % Value Growth 2006-2011
Table 19 Analgesics Company Shares 2007-2011
Table 20 Analgesics Brand Shares 2008-2011
Table 21 Forecast Sales of Analgesics by Category: Value 2011-2016
Table 22 Forecast Sales of Analgesics by Category: % Value Growth 2011-2016
Calming and Sleeping in Kenya - Category Analysis
HEADLINES
TRENDS
Calming and sleeping products registered 5% current value and volume growth in 2011, the result of increasingly hectic lifestyles, stress and stress-induced insomnia.
SWITCHES
COMPETITIVE LANDSCAPE
Bio-Health so far dominates the calming and sleeping product market with a share of 42% due to its strong presence in the market with three well-performing brands to boot: Neurotone, Passiflora and Valerian; thus the company has a visible advantage over competitors which each have fewer brands, if not just one, released on the market
PROSPECTS
Calming and sleeping products are expected to undergo a little decline , with the category registering a -1% CAGR
CATEGORY DATA
Table 23 Sales of Calming and Sleeping: Value 2006-2011
Table 24 Sales of Calming and Sleeping: % Value Growth 2006-2011
Table 25 Calming and Sleeping Company Shares 2007-2011
Table 26 Calming and Sleeping Brand Shares 2008-2011
Table 27 Forecast Sales of Calming and Sleeping: Value 2011-2016
Table 28 Forecast Sales of Calming and Sleeping: % Value Growth 2011-2016
Cough, Cold and Allergy (Hay Fever) Remedies in Kenya - Category Analysis
HEADLINES
TRENDS
The weakening shilling is set to cause both fuel and production costs to increase, which will cause prices of these types of remedies to rise. This is likely to hamper growth of the market. Nonetheless, growth of cough, cold and allergy (hay fever) remedies accelerated by 5% in 2011, reaching 2.3 billion.
SWITCHES
COMPETITIVE LANDSCAPE
GlaxoSmithKline East Africa accounted a 50% value share in cough, cold and allergy (hay fever) remedies market due to its Ventolin (15%), Fluconase (12%), Flixotide (11%) and Beonase (12%) brands. This can be attributed to the company’s strong marketing activity, including below-the-line communication such as in-store branding and effective management of the distribution chains. Furthermore, the company’s retail value share in this category is strong because its products tend to cost more than those of its competitors.
PROSPECTS
The weakening shilling currently brings with it higher fuel, production and distribution costs to companies operating in this category, cutting into their profit margins, and they will have no choice but to push the added costs of inflation to consumers should this situation persist into the forecast period. This threatens to impact negatively on sales, and thus compromise forecast growth projections.
CATEGORY DATA
Table 29 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Category: Value 2006-2011
Table 30 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Category: % Value Growth 2006-2011
Table 31 Cough, Cold and Allergy (Hay Fever) Remedies Company Shares 2007-2011
Table 32 Cough, Cold and Allergy (Hay Fever) Remedies Brand Shares 2008-2011
Table 33 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Category: Value 2011-2016
Table 34 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Category: % Value Growth 2011-2016
Digestive Remedies in Kenya - Category Analysis
HEADLINES
TRENDS
Indigestion and heartburn remedies is the best-selling digestive remedy category with volume sales of 49 million units and also registered the highest current value growth in 2011. This is attributable, amongst other things, to their popularity especially during festive seasons such as Christmas and New Year’s, as well as other celebratory events such as graduation parties, weddings.
SWITCHES
COMPETITIVE LANDSCAPE
GlaxoSmithKline East Africa continues to lead in digestive remedies with a 28% value share covering is Actal Antacid (12%), Eno (6%) and Zantac (10%) brands. Aggressive marketing and continuous media publicity as well as the strength of the brands in its stable are the reasons for the company’s strength in this category.
PROSPECTS
The weakening shilling has dampened hopes of sales growth for digestive remedies as it brings with it rising fuel and production costs, which as it stands has significantly cut into company profit margins. If the situation is not resolved soon, companies will have to push back by raising prices and this can be expected to have a negative effect on sales.
CATEGORY DATA
Table 35 Sales of Digestive Remedies by Category: Value 2006-2011
Table 36 Sales of Digestive Remedies by Category: % Value Growth 2006-2011
Table 37 Digestive Remedies Company Shares 2007-2011
Table 38 Digestive Remedies Brand Shares 2008-2011
Table 39 Forecast Sales of Digestive Remedies by Category: Value 2011-2016
Table 40 Forecast Sales of Digestive Remedies by Category: % Value Growth 2011-2016
Ear Care in Kenya - Category Analysis
HEADLINES
TRENDS
2011 current value growth was twice as high as the CAGR registered over the review period. The review period witnessed poor growth for ear care due to the economic crisis occasioned by the post-election violence of 2008. Performance of ear care improved in 2011 and is looking up.
SWITCHES
COMPETITIVE LANDSCAPE
Biodeal Laboratories leads in ear care, controlling an 11% value share. This is due to the fact that Biodeal has released multiple, relatively well-performing brands into the market, whose market shares collectively make up the majority.
PROSPECTS
As the economy grows, more Kenyans improve their financial standing and move into the middle class. As this happens, they have access to better healthcare, especially ear care, and are thus less prone to ear problems. This does not bode well for ear care growth as people will consume fewer of these products.
CATEGORY DATA
Table 41 Sales of Ear Care: Value 2006-2011
Table 42 Sales of Ear Care: % Value Growth 2006-2011
Table 43 Ear Care Company Shares 2007-2011
Table 44 Ear Care Brand Shares 2008-2011
Table 45 Forecast Sales of Ear Care: Value 2011-2016
Table 46 Forecast Sales of Ear Care: % Value Growth 2011-2016
Emergency Contraception in Kenya - Category Analysis
HEADLINES
TRENDS
Sales of emergency contraception in Kenya remain virtually negligible, with 169,000 units sold in 2011. Contraception such as condoms is widely promoted. Abortion remains illegal in Kenya.
COMPETITIVE LANDSCAPE
The market for emergency contraception is still dominated by international brands, in this case Postinor-2 from Richter Gedeon Nyrt and Microgynon from Schering-Plough, due to their wide popularity amongst consumers as well as effective marketing strategies. Their products, in addition to being priced slightly higher than generic products, tend to have a strong market presence.
PROSPECTS
Kenya’s first manufacturer of condoms, East Africa Latex Manufacturers (EALM), began operating in 2011 and is targeting a production of 180 million condoms per year. If it can achieve a figure close to this target then wide availability of locally produced condoms may negatively impact sales of emergency contraception.
CATEGORY DATA
Table 47 Sales of Emergency Contraception: Value 2006-2011
Table 48 Sales of Emergency Contraception: % Value Growth 2006-2011
Table 49 Emergency Contraception Company Shares 2007-2011
Table 50 Emergency Contraception Brand Shares 2008-2011
Table 51 Forecast Sales of Emergency Contraception: Value 2011-2016
Table 52 Forecast Sales of Emergency Contraception: % Value Growth 2011-2016
Eye Care in Kenya - Category Analysis
HEADLINES
TRENDS
Eye care is fairly nascent in Kenya. This can be attributed to the high cases of allergic reactions that form the basis of most eye diseases and infections. For many people, the use of spectacles is prohibiting and they opt for contact lenses, which are more prone to causing infections.
SWITCHES
COMPETITIVE LANDSCAPE
Allergan Pharmaceutical led the market for eye care products with a value share of 10% due to the fact that it has released multiple brands into the market, whose shares collectively form the majority
PROSPECTS
The market for eye care products is expected to decline, registering a -3% CAGR, over the forecast period.
CATEGORY DATA
Table 53 Sales of Eye Care by Category: Value 2006-2011
Table 54 Sales of Eye Care by Category: % Value Growth 2006-2011
Table 55 Standard Eye Care by Format: % Value Breakdown 2007-2011
Table 56 Standard Eye Care by Positioning 2007-2011
Table 57 Eye Care Company Shares 2007-2011
Table 58 Eye Care Brand Shares 2008-2011
Table 59 Forecast Sales of Eye Care by Category: Value 2011-2016
Table 60 Forecast Sales of Eye Care by Category: % Value Growth 2011-2016
Herbal/Traditional Products in Kenya - Category Analysis
HEADLINES
TRENDS
Herbal/traditional dietary supplements accounted for more than half of all sales in this category in 2011 and saw the highest current value growth of 8% due to the perception of their direct benefits to individual consumer health. Furthermore, this category’s growth has overtaken that of local remedies due to the looming uncertainty concerning the latter’s products’ authenticity, given that this category – despite efforts to regulate it by the Pharmacy and Poisons Board – is still prone to quacks and charlatans posing as professional herbalists.
COMPETITIVE LANDSCAPE
Haw Par led sales in this category with KES80 million in sales and a value share of 12% in 2011. Its relatively strong brands and presence with Tiger Balm in herbal/traditional analgesics are responsible for this. Second ranked Dr. Shimitas saw the biggest value sales growth in the category, up by 25%.
PROSPECTS
The market for herbal/traditional products is expected to undergo considerable growth with a 5% current CAGR in tandem with a growing health-conscious middle class populace
CATEGORY DATA
Table 61 Sales of Herbal/Traditional Products: Value 2006-2011
Table 62 Sales of Herbal/Traditional Products: % Value Growth 2006-2011
Table 63 Herbal/Traditional Products Company Shares 2007-2011
Table 64 Herbal/Traditional Products Brand Shares 2008-2011
Table 65 Forecast Sales of Herbal/Traditional Products: Value 2011-2016
Table 66 Forecast Sales of Herbal/Traditional Products: % Value Growth 2011-2016
Medicated Skin Care in Kenya - Category Analysis
HEADLINES
TRENDS
Self-medication is a common practice for Kenyan consumers as it is viewed as a cheap and quick way to deal with minor ailments, such as skin diseases for instance. Consumers are willing to use medicated skin care products to self-medicate especially if it is to be used for a mild skin rash, such as dermatophytosis. Consumers are also likely to self-medicate when they suffer from acne. This ailment is very common, especially amongst teenagers and young consumers. Most opt for products in cream format as these are perceived to be more cost effective and less harsh than products in soap format
SWITCHES
COMPETITIVE LANDSCAPE
J Uriach & Cia dominated the market for medicated shampoo with a 70% value share in 2011, whilst Glenmark Pharmaceutical controlled the largest share in topical antifungals an 11% share. In vaginal antifungals Elys Chemicals held the largest share of 45%, and Derma Nova/ UK led in hair loss treatments with a share of 31%.
PROSPECTS
Companies can be expected to continue to promote their products through professionals in the field such as dermatologists and pharmacists. We also expect that there will be product innovations in terms of scents and variants to cater for varied tastes in the market. With an increased focus on improved skin and flawless beauty, the health of the skin, especially amongst women will be an area of focus, which bodes well for this category.
CATEGORY DATA
Table 67 Sales of Medicated Skin Care by Category: Value 2006-2011
Table 68 Sales of Medicated Skin Care by Category: % Value Growth 2006-2011
Table 69 Medicated Skin Care Company Shares by Value 2007-2011
Table 70 Medicated Skin Care Brand Shares 2008-2011
Table 71 Hair Loss Treatments Brand Shares 2008-2011
Table 72 Forecast Sales of Medicated Skin Care by Category: Value 2011-2016
Table 73 Forecast Sales of Medicated Skin Care by Category: % Value Growth 2011-2016
Sports Nutrition in Kenya - Category Analysis
HEADLINES
TRENDS
Sports nutrition sales are dominated by protein powder. The increase in sales can be attributed to more education and self-awareness. More young people are practicing sports such as rugby as a hobby or part-time job, which has affected the level of growth. It is no longer for a particular group of professionals only.
COMPETITIVE LANDSCAPE
Universal Nutrition continues to lead the market for sports nutrition with its Creatine Monohydrate brand and a 40% value share. This is due to its sustained strong market presence as well as a reputation for providing quality.
PROSPECTS
A growing middle class means more and more people have access to motor vehicles, which may make them less willing to be active and join the gym. This will mean fewer sales for products in this category.
CATEGORY DATA
Table 74 Sales of Sports Nutrition: Value 2006-2011
Table 75 Sales of Sports Nutrition: % Value Growth 2006-2011
Table 76 Sports Nutrition Company Shares 2007-2011
Table 77 Sports Nutrition Brand Shares 2008-2011
Table 78 Forecast Sales of Sports Nutrition: Value 2011-2016
Table 79 Forecast Sales of Sports Nutrition: % Value Growth 2011-2016
Vitamins and Dietary Supplements in Kenya - Category Analysis
HEADLINES
TRENDS
Paediatric vitamins and dietary supplements form the category that displayed the highest growth rate in 2011, up by 10%. This can be attributed to the growing popularity of vitamins and dietary supplements amongst health-conscious consumers, usually of middle- and higher-class families, who consider these essential additives to their children’s diet.
VITAMINS
DIETARY SUPPLEMENTS
COMPETITIVE LANDSCAPE
GlaxoSmithKline East Africa led in value sales of paediatric vitamins and dietary supplements with a total share of 47% in 2011, due to the strong market presence of its Scott’s Emulsion Cod Liver Oil and Scott’s Multivite Syrup brands, as well as its aggressive marketing strategies. Seven Seas Healthcare, on the other hand, led dietary supplements with a 9% value share, due to the success of its Seven Seas Cod Liver Oil and Seven Seas Glucosamine+ brands and to its longstanding tradition of continuous advertising over the years; the company is well trusted by Kenyans due to its good reputation. Medley Pharmaceuticals led in multivitamins with a 28% value share whilst Jamieson Laboratories maintained its lead in the market for single vitamins with an 11% share
PROSPECTS
The market for vitamins and dietary supplements is expected to experience undergo considerable growth within the forecast period, with an 4% CAGR in value terms, in line with the increase in the number of health-conscious consumers noticeable in Kenya.
CATEGORY DATA
Table 80 Sales of Vitamins and Dietary Supplements by Category: Value 2006-2011
Table 81 Sales of Vitamins and Dietary Supplements by Category: % Value Growth 2006-2011
Table 82 Dietary Supplements by Positioning 2007-2011
Table 83 Vitamins and Dietary Supplements Company Shares 2007-2011
Table 84 Vitamins and Dietary Supplements Brand Shares 2008-2011
Table 85 Vitamins Brand Shares 2008-2011
Table 86 Dietary Supplements Brand Shares 2008-2011
Table 87 Forecast Sales of Vitamins and Dietary Supplements by Category: Value 2011-2016
Table 88 Forecast Sales of Vitamins and Dietary Supplements by Category: % Value Growth 2011-2016
Weight Management in Kenya - Category Analysis
HEADLINES
TRENDS
Kenyan society is not particularly harsh or prejudicial against plus-sized men and women. Traditionally carrying more weight has been perceived as a sign of wealth and curvy women are considered attractive.
COMPETITIVE LANDSCAPE
Health & Performance Products International with its Mass Loser brand still continues to dominate the weight loss supplement market with a 54% value share.
PROSPECTS
Value sales are expected to increase at a 3% current CAGR over the forecast period. This is especially due to a mushrooming health-conscious middle and upper class that can sustain expenditures on weight management products. Similarly, obesity is a lifestyle condition associated with this cross-section of the population especially, which despite the economic situation in the country is growing, and thus proving to be capable of sustaining sales growth for weight management products.
CATEGORY DATA
Table 89 Sales of Weight Management by Category: Value 2006-2011
Table 90 Sales of Weight Management by Category: % Value Growth 2006-2011
Table 91 Sales of Weight Management by Category: Value 2009-2011
Table 92 Sales of Weight Management by Category: % Value Growth 2009-2011
Table 93 Weight Management Company Shares 2007-2011
Table 94 Weight Management Brand Shares 2008-2011
Table 95 Forecast Sales of Weight Management by Category: Value 2011-2016
Table 96 Forecast Sales of Weight Management by Category: % Value Growth 2011-2016
Wound Care in Kenya - Category Analysis
HEADLINES
TRENDS
First aid kits are accorded due importance, particularly due to a lot of sporting activity such as amongst high schools and universities, as well as disaster management. Organisations such as the St. John Ambulance and the Red Cross particularly form a constant market for first aid kits.
COMPETITIVE LANDSCAPE
Ray Pharmaceuticals led wound care again in in 2011 with a value share of 66%. It offers a wide range of consistently well-performing products which has helped the company sustain control over this large market share.
PROSPECTS
The desire of consumers to have a multitude of first aid-related materials in one kit to minimise inconvenience is a key factor in this category. We are likely to see more products being pushed in that format, as opposed to standalone items on store shelves.
CATEGORY DATA
Table 97 Sales of Wound Care by Category: Value 2006-2011
Table 98 Sales of Wound Care by Category: % Value Growth 2006-2011
Table 99 Wound Care Company Shares 2007-2011
Table 100 Wound Care Brand Shares 2008-2011
Table 101 Forecast Sales of Wound Care by Category: Value 2011-2016
Table 102 Forecast Sales of Wound Care by Category: % Value Growth 2011-2016