Table of Contents
Consumer Health in Latvia - Industry Overview
Recovery brings optimism
Improved economic situation benefits value sales
More intense competition, but with different effects on consumer health
Regulation limits changes in distribution
Positive growth expected with few threats to growth
KEY TRENDS AND DEVELOPMENTS
Economic factors as major driving force
International brands lead the sales
Herbal/traditional products grow faster
Less regulation benefits vitamins and dietary supplements
Private label has potential for growth
Table 1 Consumer Expenditure on Health Goods and Medical Services 2006-2011
Table 2 Life Expectancy at Birth 2006-2011
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 Penetration of Private Label by Category 2006-2011
Table 8 Sales of Consumer Health by Distribution Format: % Analysis 2006-2011
Table 9 Sales of Consumer Health by Category and Distribution Format: % Analysis 2010
Table 10 Forecast Sales of Consumer Health by Category: Value 2011-2016
Table 11 Forecast Sales of Consumer Health by Category: % Value Growth 2011-2016
OTC registration and classification
Vitamins and dietary supplements registration and classification
Self-medication/self-care and preventative medicine
Summary 1 OTC Healthcare Switches 2009-2011
Summary 2 Research Sources
Consumer Health in Latvia - Company Profiles
Grindeks AS in Consumer Health (Latvia)
Summary 5 Grindeks AS: Production Statistics 2011
Summary 6 Grindeks AS: Competitive Position 2011
Olainfarm AS in Consumer Health (Latvia)
Summary 9 Olainfarm AS: Production Statistics 2011
Summary 10 Olainfarm AS : Competitive Position 2011
Silvanols Ltd in Consumer Health (Latvia)
Summary 13 Silvanols Ltd: Competitive Position 2011
Adult Mouth Care in Latvia - Category Analysis
Adult mouth care is small and products are used on advice of a dentist. It is difficult for medicated mouth care products to compete with cosmetics/everyday use mouth care products, as they are available mainly through chemists/pharmacies and parapharmacies/drugstores. As a result, no significant changes in trends were observed in 2011.
Arcam GmbH continued to lead adult mouth care in 2011. Company’s sales share in 2011 was 37% due to performance of its Lacalut brand. This brand is well-established and highly-recognised, and its performance is due to its promotion by dentists.
No significant changes are expected in the forecast period and dentists will continue to play an important role in adult mouth care products. It is stable as it is driven by the number of dental health problems. Adult mouth care is strongly reliant on dentists, who provide advice on medicated mouth care, as consumer awareness remains low. In addition, in Latvia people are less disposed towards dental-related mouth care compared to consumers in Western countries. However, there is potential that in the future medicated mouth care might have higher growth rates if higher consumer attention will result in stronger marketing activities.
Table 12 Sales of Adult Mouth Care: Value 2006-2011
Table 13 Sales of Adult Mouth Care: % Value Growth 2006-2011
Table 14 Adult Mouth Care Company Shares 2007-2011
Table 15 Adult Mouth Care Brand Shares 2008-2011
Table 16 Forecast Sales of Adult Mouth Care: Value 2011-2016
Table 17 Forecast Sales of Adult Mouth Care: % Value Growth 2011-2016
Analgesics in Latvia - Category Analysis
In 2011, the preference for multi-purpose products significantly affected consumer decisions in analgesics in Latvia. In addition, changing attitudes towards cheaper products, especially the largest category of acetaminophen, and continuation of improving economic situation after significant economic downturn in 2008-2009, allowed more expensive categories to benefit in 2011. This contributed to the better performance of combination and ibuprofen products.
Bayer AG maintained its leading position in 2011 with 10% value share. The major success of this company derives from the performance of Aspirin and Saridon products. Ibumetin by Nycomed Group was the leading brand with 8% value share in 2011. Ibumetin 400 is in ibuprofen category, which is one of the most dynamic. Product's success was also due to high awareness of the brand, supported by effective promotion campaigns over review period. Although promotional activities for this product decreased in 2010-2011, it continued to be representative of ibuprofen products.
Over the forecast period analgesics is expected to have 1% CAGR growth. The universality of analgesics and its ability to reduce pain in line with other treatment will support growth. However, decreasing population and already wide application of these products will limit higher growth.
Table 18 Sales of Analgesics by Category: Value 2006-2011
Table 19 Sales of Analgesics by Category: % Value Growth 2006-2011
Table 20 Analgesics Company Shares 2007-2011
Table 21 Analgesics Brand Shares 2008-2011
Table 22 Forecast Sales of Analgesics by Category: Value 2011-2016
Table 23 Forecast Sales of Analgesics by Category: % Value Growth 2011-2016
Calming and Sleeping in Latvia - Category Analysis
In Latvia, there was faster growth for standard calming and sleeping products in 2011. The shift towards more expensive and higher quality products was the major contributor to growth in 2011.The trend of younger consumers using calming and sleeping products was also observed in 2011. In Latvia this trend intensified during the economic crisis in 2009-2010. Considering that younger generation was exposed to the negative economic factors in addition to slowly recovery, significant number of younger people continued facing financial problems and high unemployment rate. Prolonged unemployment and other financial issues cause more stress among younger population as higher level of mortgage loans and other credits were prevalent in this consumer group. Nevertheless, middle aged and elderly population remained major consumer segments in Latvia for calming and sleeping due to health conditions related to ageing.
Lek Pharmaceuticals was the leading company in calming and sleeping due to performance of its Persen brand in 2011. Company became the leader after the Corvalol brand was changed to Rx status and Validolum started to be positioned as dietary supplement in 2009.
Continuing trend of expansion of the consumer base is expected over forecast period in Latvia. Higher growth is expected among products that appeal to the younger population as opposed to the elderly, which will remain major consumers. It is expected that younger generation will return to consumption of calming and sleeping again and would rather buy brands they already know. The consumption of products that are popular among elderly population will decline with time due to age boundaries. In addition, younger population prefer to buy higher quality products, which are more expensive compared to what elderly consumers can afford, but improving economic situation should provide wider consumer base over forecast period. This is also relevant to mild natural products, such as teas, which started to gain wider acceptance and popularity.
Table 24 Sales of Calming and Sleeping: Value 2006-2011
Table 25 Sales of Calming and Sleeping: % Value Growth 2006-2011
Table 26 Calming and Sleeping Company Shares 2007-2011
Table 27 Calming and Sleeping Brand Shares 2008-2011
Table 28 Forecast Sales of Calming and Sleeping: Value 2011-2016
Table 29 Forecast Sales of Calming and Sleeping: % Value Growth 2011-2016
Cough, Cold and Allergy (Hay Fever) Remedies in Latvia - Category Analysis
Cough, cold and allergy (hay fever) remedies had value growth in 2011. However, the number of influenza cases did not change significantly compared to 2010. Fluctuating temperature in summer resulted in higher sales performance of nasal sprays and inhalant decongestants. Allergy-related products also had higher growth rates, but this was due to the improved economic situation compared to 2009-2010, rather than growing allergy cases.
In 2011 Novartis AG continued to lead with 12% value share which increased by three percentage points compared to 2010. This was due to the success of its Theraflu, Vibrocil and Tavegyl brands. Theraflu has the largest share overall in cough, cold and allergy (hay fever) remedies, while Tavegyl has the highest share of antihistamines/allergy remedies. The success of Novartis AG is defined by its long presence on the market and customer recognition. This company also has the strongest advertising support.
In cough, cold and allergy (hay fever) remedies, a higher preference for combination products is expected throughout the forecast period resulting in it having the highest CAGR of 3% to reach LVL6 million. On the other hand, increasing consciousness regarding possible long term health impacts of standard OTC remedies will result in further growing share of herbal/traditional cough, cold and allergy (hay fever) remedies. Products containing dextromethorphan, pseudophedrine and acetaminophen are likely to be switched to Rx medication during first half of forecast period.
Table 30 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Category: Value 2006-2011
Table 31 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Category: % Value Growth 2006-2011
Table 32 Cough, Cold and Allergy (Hay Fever) Remedies Company Shares 2007-2011
Table 33 Cough, Cold and Allergy (Hay Fever) Remedies Brand Shares 2008-2011
Table 34 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Category: Value 2011-2016
Table 35 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Category: % Value Growth 2011-2016
Digestive Remedies in Latvia - Category Analysis
In 2011 digestive remedies had substantial 9% growth to reach LVL5 million. The major driving forces were an increase in average unit price driven by inflation, and willingness of customers to purchase more expensive products compared to previous year. There were no special outbreaks of disease that would influence digestive remedies in Latvia in 2011.
Berlin-Chemie/Menarini Baltic SIA maintains its leading position as well as its 19% value share in digestive remedies in 2011. This share was achieved by good performance of such brands as Mezym Forte, Espumisan and Raniberl. No-Spa, produced by Sanofi-Aventis, on the other hand is the leading brand with 11% value share of digestive remedies in 2011. These brands benefit from their long presence and customer loyalty to big and well-known brands in Latvia.
Growth over the forecast period will depend on economic performance in Latvia. The dynamics of the economy will influence the average price and affect performance either of more expensive remedies in case of economic growth or towards cheaper products in case of stagnation. Another aspect that might impact performance and growth is possibility of switch of some Rx H2 blockers and proton pump inhibitors to OTC status.
Table 36 Sales of Digestive Remedies by Category: Value 2006-2011
Table 37 Sales of Digestive Remedies by Category: % Value Growth 2006-2011
Table 38 Digestive Remedies Company Shares 2007-2011
Table 39 Digestive Remedies Brand Shares 2008-2011
Table 40 Forecast Sales of Digestive Remedies by Category: Value 2011-2016
Table 41 Forecast Sales of Digestive Remedies by Category: % Value Growth 2011-2016
Ear Care in Latvia - Category Analysis
In Latvia OTC ear care was small in 2011 as consumers usually visit the doctor when they have ear problems. This affected the sales of ear care products to treat infection or inflammation, as doctor might advise as Rx rather than OTC products. Products that clean the ear or soften ear wax were not considered by majority of consumers as a preventive measure in Latvia. Latvian consumers also tended to visit doctor in case of ear wax blocking the ear. In 2011 anti-inflammatory and pain reducing ear drops continued to lead sales.
ICN Polfa Rzeszow SA maintained its leadership in ear care with 14% market share in 2011. Company’s share solely relies on the performance of its Otinum brand. Its performance was partly driven by the product's positioning in anti-inflammatory and pain reducing ear care products.
Ear care is expected to remain limited in demand due to occasional consumer need for these products, especially in anti-inflammatory and pain relief ear care products. Products to clean the ear, products that soften ear wax and those that relieve swimmer’s ear will contribute to moderate growth, but this is not expected to be significant.
Table 42 Sales of Ear Care: Value 2006-2011
Table 43 Sales of Ear Care: % Value Growth 2006-2011
Table 44 Ear Care Company Shares 2007-2011
Table 45 Ear Care Brand Shares 2008-2011
Table 46 Forecast Sales of Ear Care: Value 2011-2016
Table 47 Forecast Sales of Ear Care: % Value Growth 2011-2016
Emergency Contraception in Latvia - Category Analysis
Emergency contraception witnessed sales growth in 2011. The government was not successful in improving the birth rate, which could have affected development of emergency contraception in 2011. The birth rate remained stable and total population was decreasing in Latvia, which explained growth of emergency contraception.
Emergency contraception is solely represented by Richter Gedeon Nyrt with 100% value share. There are two brands offered by this company in Latvia. Postinor-2 is in Latvia since products were introduced and consists of two units per package which are consumed per contraception course. Escapelle consists of one unit but contains double the same active ingredient.
The continuation of existing trend is expected over forecast period. The government is not expected to be able to affect birth rate significantly over forecast period, making different contraception tools attractive for consumers in Latvia, among which emergency contraception could be an option.
Table 48 Sales of Emergency Contraception: Value 2006-2011
Table 49 Sales of Emergency Contraception: % Value Growth 2006-2011
Table 50 Emergency Contraception Company Shares 2007-2011
Table 51 Emergency Contraception Brand Shares 2008-2011
Table 52 Forecast Sales of Emergency Contraception: Value 2011-2016
Table 53 Forecast Sales of Emergency Contraception: % Value Growth 2011-2016
Eye Care in Latvia - Category Analysis
Eye care sales were driven by performance of standard eye care products in 2011. The most common symptoms that these products treated were dry eye and red eye. The considerable share of sales was due to a stable base of consumers with permanent eye-related problems. Further growth was supported by products for tired or red eyes, which were used by people using optical lenses and those experiencing eye overload at work.
In Latvia Santen Oy maintains its leading position in eye care with 18% value share in 2011. Company’s performance is defined by success of such brands as Oftagel, Artelac and Lecrolyn. Visine by Pfizer Consumer Healthcare Ltd is the leading brand with 16% value share. The success of Visine was due to strong advertising support throughout review period.
Over forecast period further development of existing brands is expected. The potential for new entrants is in allergy eye care, where sales were insignificant in 2011. Consumers in Latvia are also expected to start searching for alternatives to antihistamines/allergy remedies (systemic) products.
Table 54 Sales of Eye Care by Category: Value 2006-2011
Table 55 Sales of Eye Care by Category: % Value Growth 2006-2011
Table 56 Standard Eye Care by Format: % Value Breakdown 2007-2011
Table 57 Standard Eye Care by Positioning 2007-2011
Table 58 Eye Care Company Shares 2007-2011
Table 59 Eye Care Brand Shares 2008-2011
Table 60 Forecast Sales of Eye Care by Category: Value 2011-2016
Table 61 Forecast Sales of Eye Care by Category: % Value Growth 2011-2016
Herbal/Traditional Products in Latvia - Category Analysis
Herbal/traditional products had faster growth than standard products in Latvia in 2011. Herbal/traditional products were present in almost all of consumer health and were more active in terms of new launches and developments compared to standard products.
Rigas Farmaceitiska Fabrika A/S continued to lead herbal/tradition products sales in Latvia with 15% value share in 2011. Company has long experience in herbal/traditional remedies and a number of well-established, successful brands in Latvia. Its product portfolio included products such as Sausa Mikstura Pret Klepu, Baldriana Tinktura and Fenhela Teja. Sausa Mikstura Pret Klepu is also the leading brand with 7% of sales in 2011.
Over forecast period herbal/traditional products is expected to continue to grow as consumer preference for this type of products is expected to grow based increasing awareness of the environment. In addition, general perception of herbal/traditional products as products with fewer side effects is expected to remain in Latvia over forecast period.
Table 62 Sales of Herbal/Traditional Products: Value 2006-2011
Table 63 Sales of Herbal/Traditional Products: % Value Growth 2006-2011
Table 64 Herbal/Traditional Products Company Shares 2007-2011
Table 65 Herbal/Traditional Products Brand Shares 2008-2011
Table 66 Forecast Sales of Herbal/Traditional Products: Value 2011-2016
Table 67 Forecast Sales of Herbal/Traditional Products: % Value Growth 2011-2016
Medicated Skin Care in Latvia - Category Analysis
Medicated skin care had overall growth in 2011 based on improving economic situation in Latvia. Growth was achieved as consumers became more willing to spend on skin disease treatment, especially those who were suffering from mild forms of skin problems. In addition, lower number of discount promotions compared to 2010 was another factor that affected growth.
Novartis AG continued to lead medicated skin care in Latvia with 19% value share in 2011. Company’s Lamisil brand was a major contributor to this performance with 14% value share of total medicated skin care. Lamisil brand has a long enough presence in Latvia and established good brand perception through proper marketing activities while being developed in Latvia. This product has wide presence in all pharmacy networks and high brand awareness associated with antifungals.
The economic environment in Latvia will be the major factor affecting growth over forecast period. Price fluctuations are another factor directly related with economic environment. Developments in paediatric medicated skin care, topical allergy remedies and hair loss treatment are expected in the second half of the forecast period.
Table 68 Sales of Medicated Skin Care by Category: Value 2006-2011
Table 69 Sales of Medicated Skin Care by Category: % Value Growth 2006-2011
Table 70 Medicated Skin Care Company Shares by Value 2007-2011
Table 71 Medicated Skin Care 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
NRT Smoking Cessation Aids in Latvia - Category Analysis
In 2011, tobacco products continued to increase in price, which were already high. This contributed to a growth rate of NRT smoking cessation aids, as more people wanted to stop smoking. The trend of decreasing smoking population in Latvia could be observed since 2000. In Latvia NRT smoking cessation aids is small and mainly represented by NRT patches and NRT gum.
Pharmacia & Upjohn and Novartis AG are the only significant players with 74% and 12% value share respectively in 2011. Pharmacia & Upjohn benefits due to well-established Nicorette brand represented by two products Nicorette 10mg plasters and Nicorette Freshmint. The companies were the first two to enter the market in Latvia and benefit from lack of competition.
Over forecast period NRT smoking cessation aids is expected to grow as the number of people wanting to stop smoking is expected to grow due to concerns about increased prices of tobacco products and development of health and wellness trend over the forecast period. Smoking prevalence in Latvia decreased in 2011 compared to previous year and was 43% for male and 15% for female population. On average over the forecast period, smoking is expected to decrease to 41% for male and 13% for female population by 2016. The leading companies in 2011 are expected to continue to lead, however if a new, strong entrant were to appear, strong marketing support would be essential to acquire significant market share.
Table 74 Number of Smokers by Gender 2006-2011
Table 75 Sales of NRT Smoking Cessation Aids by Category: Value 2006-2011
Table 76 Sales of NRT Smoking Cessation Aids by Category: % Value Growth 2006-2011
Table 77 NRT Gum Flavours: % Value Breakdown 2006-2011
Table 78 NRT Smoking Cessation Aids Company Shares 2007-2011
Table 79 NRT Smoking Cessation Aids Brand Shares 2008-2011
Table 80 Forecast Sales of NRT Smoking Cessation Aids by Category: Value 2011-2016
Table 81 Forecast Sales of NRT Smoking Cessation Aids by Category: % Value Growth 2011-2016
Sports Nutrition in Latvia - Category Analysis
Sports nutrition was a small category in Latvia in 2011 and relied mostly on athletes as its core consumers, while general consumers contributed to the faster growth rate. It only started to appeal to mass consumers towards the end of the review period, and was strongly reliant on number of people taking up sport. Widest acceptance of these products was among people who attend gyms and fitness centres, while other sport types were reluctant to use products in this category in Latvia.
Weider Global Nutrition LLC continued to lead sports nutrition with 22% value share in 2011. Company has well-established, widely known brands such as CFM Whey Protein, Premium Whey Pro and Weider Mega Mass which are protein products. Company has long presence in Latvia and was able to maintain strong relationship with distributors.
Sports nutrition is expected to increase its popularity among mass consumers over forecast period. This will allow it to maintain further growth throughout the forecast period. There are two major factors expected to lead this trend. Firstly, growing awareness regarding sports nutrition driven by health and wellness trend. Secondly, more common positioning of products for active and sporting lifestyle rather than maintaining focus towards athletes only.
Table 82 Sales of Sports Nutrition: Value 2006-2011
Table 83 Sales of Sports Nutrition: % Value Growth 2006-2011
Table 84 Sports Nutrition Company Shares 2007-2011
Table 85 Sports Nutrition Brand Shares 2008-2011
Table 86 Forecast Sales of Sports Nutrition: Value 2011-2016
Table 87 Forecast Sales of Sports Nutrition: % Value Growth 2011-2016
Vitamins and Dietary Supplements in Latvia - Category Analysis
The sales of vitamins and dietary supplements grew through major grocery retailers and direct selling in 2011. Wide availability and improved consumer confidence brought consumers back, who stopped buying vitamins and dietary supplements products during bad economic climate in Latvia in 2009-2011. While number of internet-based retailers is increasing, and a number of these appeared in 2011, this channel remained limited and underdeveloped. Purchase of vitamins and products for general health support is common through general grocery retailers and chemists/pharmacies, while dietary supplements consumed for specific health-related issues were usually bought through direct selling.
In 2011 Grindeks AS led with 6% value share. However, vitamins and dietary supplements is very competitive and companies such as Whitehall-Cyanamid, Contract Pharmacal Corp A/S, Axellus A/S, Dansk Droge A/S and Roche Holding AG had 5% each. Grindeks AS only slightly outperformed its major rivals, as it benefited from a well-established name in herbal/traditional products and its products were perceived to be of good quality at a competitive price in Latvia.
Dietary supplements is expected to witness slightly faster growth over the forecast period. This expectation is based upon the growing education of Latvian consumers about daily diets and possible role of dietary supplements in human metabolism. However, vitamins is expected to continue to have the higher sales value by the end of forecast period. Based on the fact that vitamins is a commoditised category, strong development in private label is possible. At the first stage, most private label vitamins and dietary supplements products are expected to appear via pharmacy networks, but in the longer term, private label development in major retail networks should be expected.
Table 88 Summary1 Dietary Supplements: Brand Ranking by Positioning 2011
Table 89 Sales of Vitamins and Dietary Supplements by Category: Value 2006-2011
Table 90 Sales of Vitamins and Dietary Supplements by Category: % Value Growth 2006-2011
Table 91 Dietary Supplements by Positioning 2007-2011
Table 92 Vitamins and Dietary Supplements Company Shares 2007-2011
Table 93 Vitamins and Dietary Supplements Brand Shares 2008-2011
Table 94 Vitamins Brand Shares 2008-2011
Table 95 Dietary Supplements Brand Shares 2008-2011
Table 96 Forecast Sales of Vitamins and Dietary Supplements by Category: Value 2011-2016
Table 97 Forecast Sales of Vitamins and Dietary Supplements by Category: % Value Growth 2011-2016
Weight Management in Latvia - Category Analysis
In 2011, women were the major consumer segment in weight management products followed by athletes and people with medical weight disorders. Growth was driven by improved economic climate which allowed consumers to spend more on their health and performance.
Bional International BV had the largest value share at 23% in 2011. Company’s success is defined by well-established brand in the largest weight loss supplements. The second largest company was Certmedica International GmbH with 8% sales share; it has a long presence in Latvia.
Weight management is expected to sustain its strong focus on the female population. The growth rates over forecast period are expected to be the same as for review period. Slightly faster growth is expected in short term due to recovery after economic downturn in 2009-2010.
Table 98 Sales of Weight Management by Category: Value 2006-2011
Table 99 Sales of Weight Management by Category: % Value Growth 2006-2011
Table 100 Weight Management Company Shares 2007-2011
Table 101 Weight Management Brand Shares 2008-2011
Table 102 Forecast Sales of Weight Management by Category: Value 2011-2016
Table 103 Forecast Sales of Weight Management by Category: % Value Growth 2011-2016
Wound Care in Latvia - Category Analysis
Wound care increased its value share through non-health retailers in 2011. The share of more expensive brands increased in 2011 as consumers were willing to spend more on higher quality products. Producers postponed introduction of new technologies or delivery formats, as a result such products as spray-on plasters were not present in Latvia. The major factor behind this was that producers wanted to develop more positive attitudes towards more expensive and higher quality products, because the high cost for new technologies would not be covered by consumer spending.
SCA Molycke was the leader with 31% value share in 2011. The performance of the company is defined by two successful brands Mepore with 26% value share and Mefix with 5% in 2011. Mepore is more expensive with surgical wound specification, while Mefix offers more universal product range. Both brands perceived as high quality by consumers, as a result of close cooperation with chemists/pharmacies.
The trend towards more expensive wound care products will develop during first half of forecast period. During second half, development within private label will intensify, which will have a moderating effect on average unit price and size growth. However, new development and application of new technologies within the product group should contribute to growth and possibility of unit price decrease.
Table 104 Sales of Wound Care by Category: Value 2006-2011
Table 105 Sales of Wound Care by Category: % Value Growth 2006-2011
Table 106 Wound Care Company Shares 2007-2011
Table 107 Wound Care Brand Shares 2008-2011
Table 108 Forecast Sales of Wound Care by Category: Value 2011-2016
Table 109 Forecast Sales of Wound Care by Category: % Value Growth 2011-2016