275222715 Consumer Health in the Philippines

CONSUMER HEALTH IN THE PHILIPPINES Euromonitor International May 2014

CONSUMER HEALTH IN THE PHILIPPINES

LIST OF CONTENTS AND TABLES Executive Summary ..................................................................................................................... 1 Consumer Health Slows Down in 2013 .................................................................................... 1 Herbal/traditional Product Choices Increase ............................................................................. 1 United Laboratories Inc Sustains Its Leadership in 2013 .......................................................... 1 Distribution Continues To Be Mainly Through Parapharmacies/drugstores .............................. 1 Improvements Expected in the Forecast Period ....................................................................... 1 Key Trends and Developments .................................................................................................... 2 Preference for Branded Products Over Generics Remain ........................................................ 2 Choice of Herbal/traditional Products Grows ............................................................................ 3 Drugstores and Pharmacies Undergo Changes and Improvements ......................................... 3 Government and Industry Players Contribute Towards Improved Health Awareness .............. 4 Category Indicators ...................................................................................................................... 5 Table 1

Number of Smokers by Gender 2008-2013.................................................. 5

Market Indicators .......................................................................................................................... 6 Table 2 Table 3

Consumer Expenditure on Health Goods and Medical Services: Value 2008-2013 .................................................................................................... 6 Life Expectancy at Birth 2008-2013 ............................................................. 6

Market Data .................................................................................................................................. 6 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11

Sales of Consumer Health by Category: Value 2008-2013 .......................... 6 Sales of Consumer Health by Category: % Value Growth 2008-2013 ......... 7 NBO Company Shares of Consumer Health: % Value 2009-2013 ............... 7 LBN Brand Shares of Consumer Health: % Value 2010-2013 ..................... 8 Distribution of Consumer Health by Format: % Value 2008-2013 ................ 9 Distribution of Consumer Health by Format and Category: % Value 2013 ........................................................................................................... 10 Forecast Sales of Consumer Health by Category: Value 2013-2018 ......... 11 Forecast Sales of Consumer Health by Category: % Value Growth 2013-2018 .................................................................................................. 12

Appendix .................................................................................................................................... 12 OTC Registration and Classification ....................................................................................... 12 Vitamins and Dietary Supplements Registration and Classification ........................................ 13 Self-medication/self-care and Preventative Medicine ............................................................. 14 Switches ................................................................................................................................. 14 Sources ...................................................................................................................................... 14 Summary 1

Research Sources ...................................................................................... 14

© Euromonitor International

Passport

I

CONSUMER HEALTH IN THE PHILIPPINES

CONSUMER HEALTH IN THE PHILIPPINES EXECUTIVE SUMMARY Consumer Health Slows Down in 2013 Consumer health witnessed a slowdown in growth in 2013. Although OTC and vitamins both registered growth improvements in 2013 compared to 2012, dietary supplements recorded a decline in growth. Alongside the increase in health awareness amongst Filipinos has been a surge in patronage of dietary supplements in recent years, consequently limiting the opportunity to record a more vibrant increase in sales as the prospective consumer base reaches saturation.

Herbal/traditional Product Choices Increase Companies are responding to the growing preference amongst consumers for products made from natural ingredients with the launch of more herbal/traditional remedies and dietary supplements. The technical support provided by government agencies and their endorsement of herbal ingredients as having therapeutic value are amongst the factors facilitating the development of pharmaceutical products made from natural sources and their easier acceptance by consumers.

United Laboratories Inc Sustains Its Leadership in 2013 United Laboratories Inc maintained its lead in consumer health in 2013. The company’s wide product line, which encompasses several categories, and its ability to build strong brands allowed it to maintain its prominence against its competitors. Amongst Unilab’s strengths are its continuous launch of new products and use of adequate advertising and promotions to support its new and existing brands. As such, several of its products are strongly preferred by consumers and continue to enjoy category leadership.

Distribution Continues To Be Mainly Through Parapharmacies/drugstores Parapharmacies/drugstores continued to be the main distribution channel for consumer health in 2013. The wide network of stores of leading chained drug retailers such as Mercury Drug and Watsons provide consumers easy access to their outlets, which likewise carry a comprehensive line of product and brand choices. Also, aside from OTC and vitamins and dietary supplements, their outlets carry an assortment of goods from beauty and personal care and home care to packaged food, which provides consumers with improved product choices.

Improvements Expected in the Forecast Period Consumer health is expected to record improvements in value growth over the forecast period compared with review period performance. Both OTC and vitamins are expected to register growth improvements amidst the increasing health consciousness amongst Filipinos, which is predicted to drive them to be more proactive in taking care of their health. The growth of dietary supplements over the forecast period, on the other hand, is predicted to record a decline compared to review period performance, reflecting the existing wide consumer base of the

© Euromonitor International

Passport

1

CONSUMER HEALTH IN THE PHILIPPINES

category which diminishes the opportunity for it to sustain the vibrant growth witnessed over the review period.

KEY TRENDS AND DEVELOPMENTS Preference for Branded Products Over Generics Remain Consumers in the country, in general, have a low regard for generic drugs and usually have doubts if their efficacy and quality are at par with branded products. In 2013, the market share of generic drugs, which are cheaper by as much as 55% to 80%, remained low. Such a scenario is not favourable in a country whose drug prices are high compared to its Asian neighbours. Branded medicines in the country were found to be more expensive by 5 to 30 times than comparable brands of similar manufacturers in India and Pakistan. Even the price of generic drugs is high compared to international reference prices. In a developing nation such as the Philippines where the disposable income of a significant portion of its citizens is low, the lack of access to affordable, quality medicines is seen as a serious problem. To make healthcare more accessible to consumers, both the government and industry players are exerting efforts to improve the acceptance of generic drugs amongst Filipinos. The Food and Drug Administration (FDA) is helping change the widely-held perception of generics as having poor quality by enforcing stricter guidelines to new entrants and preparing a list of substandard generics that are available in the market. The chained drugstore Watsons is also helping consumers switch towards generic products through its “Buy Generics and Save” campaign. It hopes to accomplish this by partnering with reputable drug manufacturers such as United Laboratories Inc, Pascual Laboratories Inc and Sanofi-Aventis Philippines Inc for the manufacture of the generic drugs sold at their outlets. United Laboratories Inc is also aggressive in the use of multimedia advertisements to build the image of its generic products, Ritemed, as the solution towards providing equitable access to quality medication. Outlook Preference for branded products is expected to remain amongst consumers should their financial resources permit. Both quality and efficacy, which are strongly linked to the manufacturer’s reputation in the industry, are predicted to remain as important factors that will influence the purchasing decision of individuals for pharmaceutical products. The choice of United Laboratories Inc and Pascual Laboratories Inc to use a brand name for their generics, thus, is vital as it can set their products apart from other generics manufactured by nonreputable companies. Patronage of unbranded generics, meanwhile, is seen to come mostly from low-income consumers who will benefit most from the efforts of the government, retailers and manufacturers to improve the quality of generic products in the market. Sales of drugs for transient illnesses are not expected to be significantly threatened by the promotion of generics in the market. Maintenance medications or drugs taken on a daily basis, however, are foreseen to be most vulnerable to switching amongst consumers due to the longterm cost savings that can be derived from patronising lower-priced generics. Pharmaceutical companies threatened by the efforts to improve consumer acceptance of generic products in the market can respond by creating their own lines of generic products. The use of a brand name for generic products, meanwhile, is expected to be helpful in stimulating purchases even amongst higher-income groups.

© Euromonitor International

Passport

2

CONSUMER HEALTH IN THE PHILIPPINES

Choice of Herbal/traditional Products Grows With the internet providing easy access to information, consumers are gaining increased awareness of the potential harms of various chemical ingredients on one’s health. There is likewise a growing health consciousness amongst consumers driven by the rise in popularity of various sports and fitness activities such as running, football, yoga and Pilates. As such, consumers are becoming more mindful of their product choices, with a growing preference for products using natural ingredients which are perceived as more beneficial in maintaining and improving their state of health. The Department of Health (DOH) is likewise promoting alternative and traditional healthcare alongside modern methods of treatment through the endorsement of 10 herbal ingredients as proven to have therapeutic effect. Two additional plants, namely tawa-tawa (Euphorbia hita) and guyabano (soursop), are also undergoing evaluation. As preference for products with natural ingredients grows amongst consumers, companies have responded with the introduction of more herbal/traditional products in the market. Boehringer Ingelheim (Phils) Inc, for instance, launched Antistax in 2013, which is an antivaricose supplement made from vine leaf extracts, as an alternative to chemical-based analgesics dominant in the market. Herbal/traditional cough, cold and allergy (hay fever) remedies likewise witnessed higher growth rate compared to 2012, as it registered a 7% value growth in 2013 amidst the growing preference amongst consumers for cough remedies made from lagundi (Vitex negundo). Product options likewise improved as oregano-based (Coleus amboinicus, Lour) cough remedies were made available by International Pharmaceuticals Inc through its brand, Herbycin. For vitamins and dietary supplements, meanwhile, malunggay or horseradish tree (Moringa oleifera) supplements grew in number through brands such as Nu Moms by Corbridge Group Philippines Inc, Malungai LifeOil capsule by Manila Nature’s Link Corp and Morizinc syrup by Pharmacare Products Corp. Outlook The preference for herbal/traditional products amongst consumers is predicted to be sustained and to further grow over the forecast period due to the widely held perception that natural-based products are better for one’s health. Companies which are successful in launching herbal alternatives which are as potent as the corresponding chemical-based remedies are thus expected to benefit from this development. Herbal products for children, meanwhile, hold the potential for growth as parents, in general, are cautious about products administered to their children. Herbal remedies for recurrent illnesses also are expected to be received well by consumers due to the undesirable effects of long-term use of chemical-based products. Local companies are expected to lead in the introduction of herbal/traditional products, particularly those which use indigenous ingredients. The reliance of multinational companies on centralised research and development departments is predicted to adversely affect their ability to respond to this trend in a timely manner. Domestic companies can, thus, take full advantage of this scenario by ensuring that their products are made with quality to attain brand loyalty and to discourage the launch of alternatives by international manufacturers. Companies can also benefit by focusing on herbal ingredients which are traditionally used and are endorsed by the DOH, as greater familiarity is expected to facilitate acceptance of the products in the market compared to those using herbal ingredients unknown to consumers.

Drugstores and Pharmacies Undergo Changes and Improvements The retail of pharmaceutical products in the country is still predominantly undertaken through chemists/pharmacies and parapharmacies/drugstores with value sales in 2013 accounting for

© Euromonitor International

Passport

3

CONSUMER HEALTH IN THE PHILIPPINES

31% and 42% of the total, respectively. The aggressive expansion of major retailer Mercury Drug led to the growth of its outlets, which now total over 900 nationwide. Furthermore, more than 100 of these outlets are open for business for 24 hours a day. Mercury Drug, thus, is almost a byword amongst consumers for drug retail. Although chained pharmacy The Generics Pharmacy claims to have a wider network of stores with its 1,500 outlets, its product line is limited to generic drugs compared to Mercury Drug, which sells both branded and generic products. The dominance of Mercury Drug, however, is being challenged by competitors. For instance, several outlets of chained drugstore Watsons are to be renovated to improve the store layout and accessibility of consumers to different areas of an outlet in line with the company’s global plans. Their staffs are also to be trained to effectively provide one-to-one health and beauty advice to consumers. Watsons will be adding 40 more stores in 2013. Meanwhile, prominent businessman John Gokongwei, through the Robinsons retail group, entered into a partnership agreement to take majority control of the 205 combined outlets of South Star Drug and Manson Drug. Lucio Co, owner of Puregold Price Club Inc, on the other hand, acquired ThreeSixty Pharmacy which operates a chain of outlets in Cebu. The Generics Pharmacy, meanwhile, made known its plan to broaden its product line with the possible inclusion of personal care and cosmetic products under its own brand by 2015. The company will likewise continue to increase its number of outlets with the opening of 150 more stores in 2013 with the goal of reaching a total of 2,000 by 2015. Outlook The expansion of several drugstores and pharmacies ensures that consumers in key cities in Metro Manila have easy access to medicines. The scenario in rural areas, however, is different and presents more opportunities for growth. In the provinces, independent pharmacies which provide limited product and brand choices are more common. Major drug retailers are thus predicted to fare well in focusing their expansion efforts in developing areas in major provinces. Growth in the number of outlets, however, is expected to be controlled by the growth in the number of registered pharmacists in the country. This is due to the existing Pharmacy Law or Republic Act 5921 which requires all drug outlets to be supervised by a registered pharmacist. The FDA, however, was reviewing this law in 2013, which it considers as negatively affecting the growth of the drug retail industry. Something unique about Filipino consumers is their desire to purchase goods in small quantities. Thus, it is important for retailers to maintain the common practice of allowing the purchase of medicines in tablet, capsule or pill format by piece. Those looking to further improve the current retail setup can consider providing a self-service section for non-prescription medicines to improve the knowledge of consumers with regards to alternative brands available in the market. The way by which consumers place their order for prescription medicine also presents opportunities for further improvement, for customers are usually provided service by a pharmacist in a disorderly manner, especially for outlets with fewer staff compared to the number of customers they have to attend to.

Government and Industry Players Contribute Towards Improved Health Awareness With the increasing cost of quality medical treatment, consumer awareness of the importance of a healthy lifestyle to prevent illnesses is growing. Furthermore, not very many individuals are covered by health insurance. Philhealth, which is the country’s universal healthcare programme, provides limited benefits and does not include financial aid for non-prescription medicines. Modernisation, however, is ushering in new habits that increase the susceptibility of consumers to acquire various diseases. The increased use of electronic gadgets, for instance, is

© Euromonitor International

Passport

4

CONSUMER HEALTH IN THE PHILIPPINES

Passport

encouraging a sedentary lifestyle leading to faster weight gain and higher incidence of obesity. Stress due to a fast-paced lifestyle, at the same time, is contributing to digestive problems and to more frequent smoking amongst tobacco users. Recognising that non-communicable diseases such as diabetes, cardiovascular disease, cancer and chronic obstructive pulmonary disorder are the cause of death of 54% of Filipinos, the Department of Health (DOH) allotted Ps10 million for its “Pilipinas Go4 Health” movement. The information campaign has four parts with different advocacies, namely, to encourage smokers to quit, to promote proper diet, to encourage an active lifestyle and to promote the moderate consumption of alcohol. Another programme of the DOH is its 3-year nationwide iCare project launched in 2013 with the primary goal of encouraging office workers to be more conscious of their health through free medical services such as blood sugar and blood pressure checks. Robinsons Supermarket, meanwhile, is running a “Wellness Mania Campaign” until the end of 2013. A wellness section was opened in its outlets to encourage buyers to be proactive in taking care of their health. United Laboratories Inc, meanwhile, in partnership with Gawad Kalinga and the Caloocan City Health Department, established a community satellite health clinic in the company’s belief that the focus should be on prevention and primary healthcare. Outlook The desire amongst consumers to lead a healthy lifestyle is predicted to remain strong over the forecast period. The demands both at work and at home, however, often hamper the ability of individuals to sustain a healthy lifestyle. Time constraints limit one’s opportunity to get regular exercise and prepare balanced meals. Information campaigns, thus, are seen to produce weaker results given that consumers are already aware of the perils and benefits of various lifestyle choices. It is predicted that programmes, both at work and in the community, which provide occasions to engage in various fitness activities are the ones which will be continuously well received by consumers. Projects providing free medical services or consultation are also more fruitful endeavours for both the government and industry players in view of the lack of affordable access of a greater number of Filipinos to such services. Players in the vitamins and dietary supplements category are set to benefit most from the health consciousness predicted to be sustained amongst consumers. Companies can improve market penetration by creating products positioned towards specific genders or age groups. Multivitamins targeted towards women, for instance, are few in number and present opportunities for growth for companies. Dietary supplements positioned for mood or relaxation are likewise lacking in the market. With the more demanding lifestyles of consumers, dietary supplements helpful in uplifting one’s mood will sit well with the desire of time-constrained individuals for convenience and quick solutions to their emotional issues.

CATEGORY INDICATORS Table 1

Number of Smokers by Gender 2008-2013

Male ('000) Female ('000) Total ('000) Male (%) Female (%) Total (%) Source:

2008

2009

2010

2011

2012

2013

12,588.3 2,526.4 15,114.7 46.5 9.6 28.0

12,908.6 2,541.2 15,449.8 47.2 9.4 28.2

13,238.5 2,554.5 15,793.1 47.1 9.2 28.1

13,564.9 2,593.1 16,158.0 47.0 9.0 27.9

13,893.1 2,630.3 16,523.4 47.0 9.0 27.9

14,222.5 2,666.3 16,888.7 47.0 9.0 27.9

Euromonitor International from official statistics

© Euromonitor International

5

CONSUMER HEALTH IN THE PHILIPPINES

Passport

MARKET INDICATORS Table 2

Consumer Expenditure on Health Goods and Medical Services: Value 20082013

Ps million

Pharmaceuticals, medical appliances/ equipment Outpatient services Hospital services Total Source:

2008

2009

2010

2011

2012

2013

61,308.1

62,852.3

69,090.4

75,669.1

86,506.8

93,406.8

38,077.7 36,465.7 135,851.5

39,730.6 38,118.4 140,701.3

44,399.5 42,669.5 156,159.4

49,383.2 47,532.4 172,584.6

57,242.4 55,172.3 198,921.5

63,013.6 60,845.0 217,265.4

Euromonitor International from official statistics, trade associations, trade interviews

Table 3

Life Expectancy at Birth 2008-2013

years

Males Females Source:

2008

2009

2010

2011

2012

2013

64.6 71.4

64.8 71.6

64.9 71.7

65.1 71.9

65.2 72.1

65.4 72.2

Euromonitor International from official statistics

MARKET DATA Table 4

Sales of Consumer Health by Category: Value 2008-2013

Ps million

OTC Sports Nutrition Vitamins and Dietary Supplements Weight Management Herbal/Traditional Products Allergy Care Paediatric Consumer Health Consumer Health Source: Note:

2008

2009

2010

2011

2012

2013

24,598.1 142.5 13,551.2

25,452.2 149.6 14,588.4

26,243.5 158.6 15,438.6

26,973.8 169.8 16,222.4

27,769.1 181.2 17,202.7

28,591.5 193.6 17,873.4

3,154.9 4,528.0

3,099.4 4,805.9

3,283.5 5,094.1

3,448.5 5,415.1

3,650.8 5,760.8

3,836.0 6,103.6

350.7 7,469.0

336.7 7,841.2

329.9 8,171.3

328.3 8,476.0

323.4 8,701.7

316.9 8,893.2

41,446.6

43,289.6

45,124.2

46,814.5

48,803.7

50,494.6

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Sum of categories is greater than the market size because allergy care is a duplicate of categories found in cough, cold and allergy remedies, dermatologicals and eye care; paediatric consumer health is an aggregate of paediatric categories in OTC and vitamins and dietary supplements; and herbal/traditional products is an aggregate of herbal/traditional categories in OTC and vitamins and dietary supplements, except herbal/traditional medicinal teas and herbal/traditional smoking cessation aids.

© Euromonitor International

6

CONSUMER HEALTH IN THE PHILIPPINES

Table 5

Passport

Sales of Consumer Health by Category: % Value Growth 2008-2013

% current value growth

OTC Sports Nutrition Vitamins and Dietary Supplements Weight Management Herbal/Traditional Products Allergy Care Paediatric Consumer Health Consumer Health Source: Note:

2012/13

2008-13 CAGR

2008/13 Total

3.0 6.9 3.9 5.1 6.0 -2.0 2.2 3.5

3.1 6.3 5.7 4.0 6.2 -2.0 3.6 4.0

16.2 35.9 31.9 21.6 34.8 -9.6 19.1 21.8

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Sum of categories is greater than the market size because allergy care is a duplicate of categories found in cough, cold and allergy remedies, dermatologicals and eye care; paediatric consumer health is an aggregate of paediatric categories in OTC and vitamins and dietary supplements; and herbal/traditional products is an aggregate of herbal/traditional categories in OTC and vitamins and dietary supplements, except herbal/traditional medicinal teas and herbal/traditional smoking cessation aids.

Table 6

NBO Company Shares of Consumer Health: % Value 2009-2013

% retail value rsp Company United Laboratories Inc Pfizer Philippines Inc Taisho Pharmaceutical (Philippines) Inc Universal Robina Corp Johnson & Johnson (Philippines) Inc Boehringer Ingelheim (Phils) Inc UHS Essential Health Philippines Inc Tynor Drug House Inc Pascual Laboratories Inc Roche (Phils) Inc GlaxoSmithKline Philippines Inc Abbott Laboratories (Phils) Inc Herbalife International Philippines Inc Bayer Philippines Inc Mondelez Philippines Inc Total Nutrition Corp International Pharmaceuticals Inc Nu Skin Enterprises Philippines Inc White Beauty Phils Co Mundipharma Distribution GmbH Dermpharma Inc Philusa Corp

© Euromonitor International

2009

2010

2011

2012

2013

31.6 0.4 4.8

31.4 7.5 5.0

31.7 7.5 5.7

32.0 7.2 5.7

32.0 7.2 5.7

5.8 7.1

5.7 6.9

5.5 5.9

5.4 5.3

5.4 5.0

3.4

3.4

3.3

3.1

3.1

0.7

1.1

1.3

2.2

2.4

2.2 2.3 1.2 1.4

2.3 1.9 1.2 1.4

2.4 1.9 1.2 1.4

2.4 2.1 1.3 1.3

2.4 2.2 1.3 1.3

1.3

1.3

1.3

1.3

1.3

0.8

1.1

1.1

1.2

1.2

1.2 0.7

1.1 0.7 0.7

1.1 0.8 0.7

1.1 0.8 0.8

1.0 1.0 0.8 0.8

0.4

0.6

0.7

0.7

0.8

0.6 -

0.7 0.7

0.7 0.8

0.7 0.8

0.8 0.8

0.7 0.7

0.7 0.7

0.7 0.7

0.7 0.7

0.7 0.7

7

CONSUMER HEALTH IN THE PHILIPPINES

Reckitt Benckiser (Philippines) Inc United Shelter Health Products Hisamitsu Pharmaceutical Co Inc Herbs & Nature Corp Bristol-Myers Squibb Co Multicare Pharmaceuticals Phils Inc Healthy Options Corp Merck Sharp & Dohme Philippines Inc Fuller Life Direct Selling Philippines, Inc Wyeth Philippines Inc Cadbury Adams Philippines Inc Healthy You Inc Schering-Plough Corp Bristol-Myers Squibb (Phil) Inc Others Total Source:

Passport

0.7

0.7

0.7

0.7

0.6

0.5

0.5

0.5

0.6

0.6

0.4

0.4

0.4

0.5

0.5

0.4 0.4 0.5

0.4 0.4 0.4

0.4 0.4 0.4

0.4 0.4 0.4

0.5 0.4 0.4

0.4 -

0.4 0.4

0.4 0.4

0.4 0.4

0.4 0.4

0.6

0.3

-

-

-

7.3 1.1

-

-

-

-

0.7 0.4 0.4

-

-

-

-

18.8 100.0

20.1 100.0

19.9 100.0

19.5 100.0

18.3 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 7

LBN Brand Shares of Consumer Health: % Value 2010-2013

% retail value rsp Brand Biogesic Maxx Tempra Alaxan Neozep Cherifer Ceelin USANA Pharmaton Revicon Forte Solmux Nizoral Clusivol Enervon-C Centrum Muskelax Ascof Tuseran Myra Herbalife Halls Cecon

© Euromonitor International

Company United Laboratories Inc Universal Robina Corp Taisho Pharmaceutical (Philippines) Inc United Laboratories Inc United Laboratories Inc Tynor Drug House Inc United Laboratories Inc UHS Essential Health Philippines Inc Boehringer Ingelheim (Phils) Inc United Laboratories Inc United Laboratories Inc Johnson & Johnson (Philippines) Inc Pfizer Philippines Inc United Laboratories Inc Pfizer Philippines Inc United Laboratories Inc Pascual Laboratories Inc United Laboratories Inc United Laboratories Inc Herbalife International Philippines Inc Mondelez Philippines Inc Abbott Laboratories

2010

2011

2012

2013

5.8 5.7 5.0

5.8 5.5 5.0

5.7 5.4 5.0

5.7 5.4 4.9

4.5 3.5 2.3 2.5 0.9

4.6 3.4 2.4 2.4 1.0

4.7 3.3 2.4 2.4 1.9

4.8 3.2 2.4 2.3 2.1

2.2

2.2

2.1

2.0

1.9 1.9 2.0

1.9 1.8 1.9

1.9 1.8 1.9

2.0 1.9 1.8

1.8 1.5 1.4 1.5 1.1 1.4 1.1 1.1

1.7 1.5 1.4 1.5 1.2 1.3 1.2 1.1

1.7 1.6 1.4 1.5 1.3 1.3 1.2 1.2

1.7 1.6 1.5 1.5 1.4 1.3 1.3 1.2

1.0

1.0

1.0

1.0 1.0

8

CONSUMER HEALTH IN THE PHILIPPINES

Passport

(Phils) Inc Pfizer Philippines Inc Total Nutrition Corp GlaxoSmithKline Philippines Inc Pfizer Philippines Inc

Stresstabs GNC Calpol Robitussin Expectorant Ritemed Met Tathione Loviscol Bonamine

United Laboratories Inc White Beauty Phils Co Pfizer Philippines Inc Taisho Pharmaceutical (Philippines) Inc Kraft Foods (Philippines) Inc

Halls Others Total

0.8 0.7 0.8

0.8 0.8 0.8

0.9 0.8 0.8

0.9 0.8 0.8

1.0

0.9

0.8

0.8

0.7 0.7 1.0 -

0.8 0.7 0.9 0.7

0.8 0.7 0.8 0.7

0.8 0.8 0.8 0.8

1.1

1.0

1.0

-

43.5 100.0

42.4 100.0

42.0 100.0

41.7 100.0

Source:

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 8

Distribution of Consumer Health by Format: % Value 2008-2013

% retail value rsp

Store-Based Retailing - Grocery Retailers -- Modern Grocery Retailers --- Convenience Stores --- Discounters --- Forecourt Retailers --- Hypermarkets --- Supermarkets -- Traditional Grocery Retailers --- Food/drink/tobacco specialists --- Independent Small Grocers --- Other Grocery Retailers ---- Healthfood shops ---- Other Other Grocery Retailers - Non-Grocery Retailers -- Health and Beauty Specialist Retailers --- Beauty Specialist Retailers --- Chemists/Pharmacies --- Optical Goods Stores --- Parapharmacies/ Drugstores --- Other Healthcare Specialist Retailers -- Mixed Retailers --- Department Stores --- Mass Merchandisers --- Variety Stores

© Euromonitor International

2008

2009

2010

2011

2012

2013

95.9 15.2 10.1

95.8 15.4 10.3

95.4 15.4 10.3

95.3 15.6 10.5

94.2 15.8 10.8

93.9 15.7 10.8

0.0 0.0 0.0 2.2 8.0 5.1

0.0 0.0 0.0 2.2 8.1 5.1

0.0 0.0 0.0 2.2 8.1 5.1

0.0 0.0 0.0 2.3 8.2 5.1

0.0 0.0 0.0 2.3 8.5 5.0

0.0 0.0 0.0 2.3 8.4 4.9

0.0

0.0

0.0

0.0

0.0

0.0

2.1

2.1

2.0

2.0

1.9

1.9

2.9

3.0

3.1

3.1

3.0

3.0

0.0 2.9

0.0 3.0

0.0 3.1

0.0 3.0

0.0 3.0

0.0 3.0

80.7 80.4

80.4 80.1

80.0 79.7

79.7 79.4

78.5 78.1

78.2 77.8

0.0

0.0

0.0

0.0

0.0

0.0

32.4 0.0 41.2

31.7 0.0 41.7

31.3 0.0 41.6

31.0 0.0 41.6

30.6 0.0 41.1

30.6 0.0 41.0

6.8

6.7

6.7

6.7

6.4

6.2

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

9

CONSUMER HEALTH IN THE PHILIPPINES

--- Warehouse Clubs -- Other Consumer Health Non-Grocery Retailers Non-Store Retailing - Vending - Homeshopping - Internet Retailing - Direct Selling Total Source:

Passport

0.0 0.3

0.0 0.3

0.0 0.3

0.0 0.4

0.0 0.4

0.0 0.4

4.1 0.0 0.0 0.0 4.1 100.0

4.2 0.0 0.0 0.0 4.2 100.0

4.5 0.0 0.0 0.0 4.5 100.0

4.7 0.0 0.0 0.0 4.7 100.0

5.8 0.0 0.0 0.0 5.8 100.0

6.1 0.0 0.0 0.0 6.1 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 9

Distribution of Consumer Health by Format and Category: % Value 2013

% retail value rsp

Store-Based Retailing Grocery Retailers Modern Grocery Retailers Convenience Stores Discounters Forecourt Retailers Hypermarkets Supermarkets Traditional Grocery Retailers Food/drink/tobacco specialists Independent Small Grocers Other Grocery Retailers Healthfood shops Other Other Grocery Retailers Non-Grocery Retailers Health and Beauty Specialist Retailers Beauty Specialist Retailers Chemists/Pharmacies Optical Goods Stores Parapharmacies/Drugstores Other Healthcare Specialist Retailers Mixed Retailers Department Stores Mass Merchandisers Variety Stores Warehouse Clubs Other Consumer Health Non-Grocery Retailers Non-Store Retailing Vending Homeshopping Internet Retailing Direct Selling Total

© Euromonitor International

OTC

SN

VDS

WM

HTP

AC

100.0 18.0 9.3 0.0 0.0 0.0 2.2 7.1 8.7

99.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

86.5 15.0 15.0 0.0 0.0 0.0 3.0 12.0 0.0

82.0 1.9 1.9 0.0 0.0 0.0 0.0 1.9 0.0

98.4 16.6 6.5 0.0 0.0 0.0 2.3 4.1 10.1

100.0 17.1 5.2 0.0 0.0 0.0 2.4 2.8 11.9

0.0

0.0

0.0

0.0

0.0

0.0

3.3 5.3 0.0 5.3

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

4.3 5.8 0.1 5.8

5.2 6.7 0.0 6.7

82.0 81.8

99.6 92.1

71.5 70.9

80.1 80.1

81.9 81.8

82.9 82.9

0.0

0.0

0.0

0.0

0.0

0.0

32.9 0.0 48.9 0.0

0.0 0.0 0.0 92.1

21.9 0.0 35.5 13.5

56.0 0.0 9.6 14.5

33.5 0.0 46.7 1.6

35.0 0.0 47.9 0.0

0.0 0.0 0.0 0.0 0.0 0.2

0.0 0.0 0.0 0.0 0.0 7.5

0.0 0.0 0.0 0.0 0.0 0.6

0.0 0.0 0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0 0.0 0.1

0.0 0.0 0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0 0.0 100.0

0.4 0.0 0.0 0.3 0.0 100.0

13.5 0.0 0.0 0.0 13.5 100.0

18.0 0.0 0.0 0.0 18.0 100.0

1.6 0.0 0.0 0.0 1.6 100.0

0.0 0.0 0.0 0.0 0.0 100.0

10

CONSUMER HEALTH IN THE PHILIPPINES

Passport

PCH Store-Based Retailing Grocery Retailers Modern Grocery Retailers Convenience Stores Discounters Forecourt Retailers Hypermarkets Supermarkets Traditional Grocery Retailers Food/drink/tobacco specialists Independent Small Grocers Other Grocery Retailers Healthfood shops Other Other Grocery Retailers Non-Grocery Retailers Health and Beauty Specialist Retailers Beauty Specialist Retailers Chemists/Pharmacies Optical Goods Stores Parapharmacies/Drugstores Other Healthcare Specialist Retailers Mixed Retailers Department Stores Mass Merchandisers Variety Stores Warehouse Clubs Other Consumer Health Non-Grocery Retailers Non-Store Retailing Vending Homeshopping Internet Retailing Direct Selling Total Source: Key:

91.9 15.3 12.3 0.0 0.0 0.0 2.4 9.8 3.1 0.0 1.1 1.9 0.0 1.9 76.5 76.2 0.0 25.3 0.0 42.7 8.1 0.0 0.0 0.0 0.0 0.0 0.4 8.1 0.0 0.0 0.0 8.1 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources OTC = over the counter; SN = sports nutrition; VDS = vitamins and dietary supplements; WM = weight management; HTP = herbal/traditional products; AC = Allergy Care; PCH = paediatric consumer health

Table 10

Forecast Sales of Consumer Health by Category: Value 2013-2018

Ps million

OTC Sports Nutrition Vitamins and Dietary Supplements Weight Management Herbal/Traditional Products

© Euromonitor International

2013

2014

2015

2016

2017

2018

28,591.5 193.6 17,873.4

29,011.4 201.6 18,311.6

29,598.8 210.7 18,859.7

30,356.3 221.4 19,515.9

31,281.9 233.2 20,291.8

32,387.9 246.5 21,189.6

3,836.0 6,103.6

3,893.6 6,337.9

3,967.0 6,609.4

4,056.8 6,923.5

4,161.8 7,284.6

4,281.8 7,695.1

11

CONSUMER HEALTH IN THE PHILIPPINES

Allergy Care Paediatric Consumer Health Consumer Health Source: Note:

Passport

316.9 8,893.2

318.5 9,062.6

321.7 9,280.3

326.5 9,549.6

333.0 9,874.3

341.4 10,259.3

50,494.6

51,418.2

52,636.2

54,150.4

55,968.8

58,105.8

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Sum of categories is greater than the market size because allergy care is a duplicate of categories found in cough, cold and allergy remedies, dermatologicals and eye care; paediatric consumer health is an aggregate of paediatric categories in OTC and vitamins and dietary supplements; and herbal/traditional products is an aggregate of herbal/traditional categories in OTC and vitamins and dietary supplements, except herbal/traditional medicinal teas and herbal/traditional smoking cessation aids.

Table 11

Forecast Sales of Consumer Health by Category: % Value Growth 2013-2018

% constant value growth

OTC Sports Nutrition Vitamins and Dietary Supplements Weight Management Herbal/Traditional Products Allergy Care Paediatric Consumer Health Consumer Health Source: Note:

2013-18 CAGR

2013/18 TOTAL

2.5 4.9 3.5 2.2 4.7 1.5 2.9 2.8

13.3 27.3 18.6 11.6 26.1 7.7 15.4 15.1

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Sum of categories is greater than the market size because allergy care is a duplicate of categories found in cough, cold and allergy remedies, dermatologicals and eye care; paediatric consumer health is an aggregate of paediatric categories in OTC and vitamins and dietary supplements; and herbal/traditional products is an aggregate of herbal/traditional categories in OTC and vitamins and dietary supplements, except herbal/traditional medicinal teas and herbal/traditional smoking cessation aids.

APPENDIX OTC Registration and Classification  The regulation of OTC products continues to be governed by the provisions of Administrative Order No 23-C enacted in 2000. No significant amendments were legislated in 2013. Companies looking into distributing OTC products in the market are required to submit the necessary requirements to the Food and Drug Administration, which is tasked to determine compliance with the set criteria and documentary requirements prior to the issuance of a Certificate of Product Registration needed for the legal distribution of the product in the market.  The Food and Drug Administration has the authority to revoke the OTC classification should any documented and verified adverse reactions arise. Reclassification of a product by the International Narcotics Control Board as an internationally controlled substance is likewise a ground for the withdrawal of approval as an OTC product.  Promotion of OTC drugs is governed by the provisions of Administrative Order No 119 ratified in 2000 which states that promotions of OTC products are allowed, provided that the known adverse effects are likewise disclosed to the public. Section 2 of the Generics Act of 1988 or GA 6675 likewise stipulates the use of generic names in the marketing, advertising and promotion of drugs. The use of medical prescriptions for promotional campaigns in exchange for a reward, promise or travel privilege is not allowed. Prior to the conduct of any promotional

© Euromonitor International

12

CONSUMER HEALTH IN THE PHILIPPINES

activity, companies must secure the approval of the Food and Drug Administration to ensure compliance with existing laws, rules and regulations.  Manufacturers of pharmaceutical products packaged in plastic material are required to submit general information (ie name of material, manufacturer, chemical structure, physicochemical properties), studies conducted to support the safety of the plastic container, test procedures and a sample empty plastic container in the application for a Certificate of Product Registration.  The labelling requirements for pharmaceutical products are stipulated under Administrative Order no 55, series of 1988. It requires that information on labels must be clear, prominent and written in either English or Filipino. Amongst the required information on labels are generic name, brand name if applicable, dosage form and strength, pharmacologic category, name and complete address of the manufacturer and trader, net content, formulation, indication, contraindications/precautions/warnings, directions for use, batch and lot number, expiration and manufacturing date, registration number and storage conditions.  Republic Act 5921 or The Pharmacy Law mandates that all drug retail outlets must be under the supervision of a registered pharmacist. In 2013, FDA released an advisory warning the public about the hazards of purchasing pharmaceutical products through sari-sari stores or local neighbourhood stores and other unlicensed outlets which may be selling counterfeit, contaminated, expired or improperly stored medicines.

Vitamins and Dietary Supplements Registration and Classification  Regulations applicable for the registration of OTC products likewise apply for vitamins and dietary supplements. The classification of vitamins and minerals as a drug or food supplement is governed by the provisions of Office Order No 22, series of 1991. Products indicated for the treatment of a vitamin deficiency or disease or having a concentration greater than 105% of the recommended daily allowance for fat-soluble vitamins and greater than 150% for watersoluble vitamins, products in injectable form and highly purified products having additional active ingredients are considered as drugs. Products indicated as a dietary supplement or having a concentration less than 105% of the recommended daily allowance for fat-soluble vitamins and 150% for water-soluble vitamins, products not in injectable form and purified or natural products with no additional active ingredients are considered as food supplements.  A product is not to be registered as an herbal medicine or traditionally used herbal product if it contains chemically defined therapeutically active ingredients. As of 2013, the FDA has approved a total of 106 traditional medicines and 35 herbal medicines. The Department of Health, meanwhile, has endorsed 10 herbal medicinal plants through its Traditional Health Programme as clinically proven to have therapeutic value. These are akapulko or ringworm bush (Cassia alata), ampalaya or bitter gourd/bitter melon (Momordica charantia), bawang or garlic (Allium sativum), bayabas or guava (Psidium guajava), lagundi or 5-leaved chaste tree (Vitex negundo), niyog-niyogan or Chinese honeysuckle (Quisqualis indica L.), sambong or blumea camphora (Blumea balsamifera), tsaang gubat (Ehretia microphylla Lam.), pansitpansitan (Peperomia pellucida) and yerba buena or peppermint (Clinopodium douglasii).  Companies use multimedia and online advertisements to promote vitamins and dietary supplements. The use of testimonials and anecdotal information associated with healing or curing diseases for the promotion and advertisement of food and dietary supplements, meanwhile, is prohibited by the Food and Drug Administration. This is due to the lack of proven therapeutic effects supported by clinical studies.  Vitamins and dietary supplements for adults are normally packaged in rigid plastic bottles. The use of blister and strip packs is also prominent as this provides greater flexibility in allowing small purchase quantities from those consumers with a limited budget. Paediatric

© Euromonitor International

Passport

13

CONSUMER HEALTH IN THE PHILIPPINES

Passport

vitamins and dietary supplements, meanwhile, are commonly packaged in glass bottles. Companies normally provide different volume sizes with products targeted towards older children having bottles as small as 60ml whilst those for infants have bottles as small as 15ml.  Herbal/traditional vitamins and dietary supplements normally include a graphic representation of the natural ingredient used in the label in order to clearly convey that the product is plantbased or is made of natural ingredients. The Food and Drug Administration, meanwhile, under Bureau Circular No 2, series of 1999 requires food and dietary supplements to indicate on the label the phrase “No Approved Therapeutic Claims” to inform the public that these products have no approved curative effects.  Aside from pharmacies and drugstores, vitamins and dietary supplements are likewise distributed through direct sellers, online retailers, healthfood shops and other healthcare specialist retailers. These drug retail outlets and distributors are required to have a licensed pharmacist during business hours. The imbalance in the number of registered pharmacists and drug retail outlets in the country, however, points to the lack of strict compliance with the government’s regulation. The FDA, thus, encourages the public to purchase only through legitimate drug outlets whilst it reviews its rules governing the sale of pharmaceutical products.

Self-medication/self-care and Preventative Medicine  The government has a universal healthcare system under the Philhealth program. This, however, has a limited coverage and does not include subsidies on non-prescription medicines. Furthermore, members of Philhealth are only able to receive free consultation from Philhealth-accredited doctors, limiting a patient’s choice of his or her preferred medical professional to consult. Thus, amidst warnings from government health officials through television or radio programmes about the dangers of self-diagnosis, individuals often selfmedicate minor ailments in order to save on a doctor’s consultation fees. Advertisements and recommendations by family or friends often serve as sources of information in treating common body aches and pains.

Switches  There were no switches and reverse switches in 2013.

SOURCES Sources used during the research included the following: Summary 1 Research Sources Official Sources

Bureau of Food & Drugs Center for Health Development Metro Manila Department of Health FDA Philippine Council for Health Research & Development Philippine Information Agency The Official Website of the Republic of the Philippines

Trade Associations

© Euromonitor International

Association of the European Self-Medication

14

CONSUMER HEALTH IN THE PHILIPPINES

Passport

Industry (AESGP) Pharmaceutical & Healthcare Association of the Philippines (PHAP) World Self-Medication Industry (WSMI) Trade Press

Business World Medical Observer Pharma Asia Reuters Top Health Source

Source:

Euromonitor International

© Euromonitor International

15