OTC market in Central and Eastern Europe will grow in 2009 despite the global financial crisis

In 2008, the over-the-counter medicines product market in Central and Eastern Europe developed by around 26%, to 9.2 billion euros ($13.16 billion). In 2009, this market in the region will grow by around 8%, according to a recently released report 'OTC market in Central and Eastern Europe 2009. Comparative analysis and development forecasts for 2009-2011' from PMR, a Poland-based research and consulting company.

8% OTC market growth in 2009

In the last few years the economies of the Central and Eastern European (CEE) countries (Russia, Poland, Ukraine, Bulgaria, Romania, Hungary, the Czech Republic, Slovakia, Slovenia and Croatia) expanded very dramatically. The favorable economic situation, combined with increases in wages and burgeoning affluence in the countries in question, along with changing lifestyles which prompt people to take better care of their health and appearance, accelerated the growth of the OTC market in Central and Eastern Europe. In 2008 it grew by 26% and was worth 9.2 billion euros, according to PMR estimates.

The current global financial crisis will result in a reduction in demand for OTC products, as people try to limit their spending on products which they can do without, and in the pharmaceutical industry this means spending less on dietary supplements and OTC drugs. In some CEE countries, such as Ukraine, negative growth may even be seen on the OTC product market.

'However, PMR forecasts that, despite this, the overall OTC product market in the region will grow by around 8% to approximately 10 billion euros in 2009. This is mainly because, in Russia, the largest market of the region, the OTC product market will see a positive growth rate of several percent this year,' Monika Stefanczyk, head pharmaceutical market analyst at PMR and report co-author, explained. In the first half of 2009, the market in Russia grew by around 28% in rouble terms. In euros, the growth rate was 6%, and in dollar terms there was an 8% reduction. However, such figures reflect unfavorable exchange rates and not, therefore, real market growth. This shows that, despite the global financial crisis, Russians are still buying OTC products very often and that the market should also grow rapidly in the next few months.
Russia predominates in the region