Potential For Growth In Israel's OTC Market

The growth rate of Israel's over-the-counter medicines market can match that of the emerging markets of Southeast Asia, Latin America and Eastern Europe, according to Peter Glynn Jones, chairman of the World Federation of Proprietary Medicines Manufacturers, speaking at the annual meeting of Telem, the Israeli OTC industry association, in Tel-Aviv last month.

The meeting also heard from Telem's chairman, Zeev Biber, that the average annual growth rate of the Israeli OTC market has been 5% during the last five years, and that the national market value is currently estimated to be $70 million at manufacturers' selling prices. The OTC market represents 12% of Israel's total national drug market, compared with 17% in the UK, 20% in the USA, and 28% each in France and Germany. Mr Biber added that annual OTC consumption in Israel averages $12 per capita, compared to WFPMM estimates of $19 for the UK, $40 in France and $57 in the USA. These comparisons suggest considerable growth potential, given that Israeli patterns of consumption usually follow those of the USA and other western markets, he said.

Changing Market Structure Local IMS data shows that semi-ethicals now account for only 22% of the market and are declining, while the share of non-prescription-bound OTCs is up, growing 15% in the year to June. The leading OTC therapeutic classes are pain relief, at 23% of the total, vitamins/minerals/supplements at 17%, and skin products at 15%. Leading OTC brands are American Home Products' multivitamin product Centrum, Teva's paracetamol Acamol and Ciba's Voltaren Emulgel (diclofenac). The leading local OTC marketing groups are Teva, Promedico and Neopharm.