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OTC market looks healthy

By Liu Jie (China Daily)
Updated: 2007-04-06 11:07

The over-the-counter (OTC) healthcare market in China is set to expand by $3.5 billion over the next five years, making it the fastest growing OTC healthcare market in the world, according to a report from Euromonitor International.

Adrienne Crossley, global OTC healthcare manager at the business intelligence and strategic market analysis provider, said China would contribute almost one-fifth or 18 percent of the total growth in global sales for the OTC healthcare industry between 2005 and 2010.

"This impressive growth will be underpinned by a continuing rise in disposable income in China, an aging population and increased confidence in self-medication," said Crossley.

The disposable per capita income of urban Chinese rose 12.1 percentyear-on-yearto 11,759 yuan in 2006, an increase of 10.4 percent after inflation, a growth rate that was 0.8 of a percentage point higher than the previous year, according to the National Bureau of Statistics.

Vitamins and dietary supplements, one of the key growth markets driving OTC healthcare in China, is expected to grow by 55.6 percent between 2005 and 2010, according to the report.

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It said growing consumer confidence in the quality of self-medication products would boost the market, leading to a sales increase of $2.4 billion by 2010.

Chinese consumers are also becoming increasingly interested in preventative medicine, nutrition and wellness.

These factors, along with improved regulation of the sector, are expected to contribute further to the future growth of vitamins and dietary supplements, providing a golden opportunity for healthcare companies.