Global consumer health market hit US$216.4 billion in 2014

THE global consumer health industry generated US$216.4 billion in retail sales in 2014, equivalent to a 5.7% growth in current/fixed currency terms, according to a new market research from Euromonitor International.

 

Over-the-counter (OTC) remedies such as sleep aids, eye care, dermatologicals, and digestive remedies posted strong worldwide sales at US$36 billion. Despite being the smallest category with a 4.7% share, the sports nutrition sector registered significant mass market growth to hit US$10 billion in global sales.  

 

Latin America achieved US$20 billion in sales in 2014, posting the fastest growth of 7% from the previous year. Increasing availability of OTC remedies contributed to the strong performance of the consumer health market in the region.

 

The Middle East and Africa generated US$7.3 billion in sales for a 6% growth. The uptrend was aided by regional initiatives for local manufacturing that broadened affordable options for consumers.

 

Problems in Russia and Ukraine resulted in a -1% decline in sales in Eastern Europe. This, however, is relative as sales in Russia are not underperforming when viewed in local currency.

 

According to the report, new competitive industry pressures will come from global and regional corporate activity, including significant mergers, acquisitions, and joint ventures such as Bayer’s acquisition of Merck & Co., and GSK’s partnership with Novartis.

 

In the consumer level, mobile health, or mHealth, will create opportunities for OTC switches in novel therapeutic categories. Mobile apps and devices will engage consumers and modify behavior toward improved health outcomes.  

 

Monica Feldman, head of Industry Research at Euromonitor, said, “The industry keeps growing at a healthy pace as significant corporate consolidation will transform the competitive landscape and the rise of mobile health will impact consumer behavior in years to come.”