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
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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 companys wide
product line, which encompasses several categories, and its ability to build strong brands
allowed it to maintain its prominence against its competitors. Amongst Unilabs 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
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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
manufacturers 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.
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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 ones 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 Natures 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 ones 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
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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 companys 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 countrys 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
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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 companys 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 ones 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 ones 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
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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.
Table 5
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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
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
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
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:
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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
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
Company
Universal Robina Corp
(Philippines) Inc
Tynor Drug House Inc
UHS Essential Health
Philippines Inc
Boehringer Ingelheim
(Phils) Inc
Johnson & Johnson
(Philippines) Inc
Pascual 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
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(Phils) Inc
Total Nutrition Corp
GlaxoSmithKline
Philippines Inc
Stresstabs
GNC
Calpol
Robitussin
Expectorant
Ritemed
Met Tathione
Loviscol
Bonamine

White Beauty Phils Co
(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:
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
-- Mixed Retailers
--- Department Stores
--- Mass Merchandisers
--- Variety Stores
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
--- 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
Table 9
Distribution of Consumer Health by Format and Category: % Value 2013
% retail value rsp
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
Beauty Specialist
Retailers
Chemists/Pharmacies
Optical Goods Stores
Parapharmacies/Drugstores
Other Healthcare
Mixed Retailers
Department Stores
Mass Merchandisers
Variety Stores
Warehouse Clubs
Other Consumer Health
Non-Store Retailing
Vending
Homeshopping
Internet Retailing
Direct Selling
Total
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
Passport
PCH
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
Health and Beauty
Beauty Specialist
Retailers
Chemists/Pharmacies
Optical Goods Stores
Parapharmacies/Drugstores
Other Healthcare
Mixed Retailers
Department Stores
Mass Merchandisers
Variety Stores
Warehouse Clubs
Other Consumer Health
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
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
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
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
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
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
12
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
Passport
13
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
governments 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 patients 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 doctors 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
Association of the European Self-Medication
14
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:
15

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Consumer Health in The Philippines

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CONSUMER HEALTH IN THE

CONSUMER HEALTH IN THE PHILIPPINES

LIST OF CONTENTS AND TABLES

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

Market Indicators .......................................................................................................................... 6

Consumer Expenditure on Health Goods and Medical Services: Value

Market Data .................................................................................................................................. 6

Sales of Consumer Health by Category: Value 2008-2013 .......................... 6

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

CONSUMER HEALTH IN THE PHILIPPINES

CONSUMER HEALTH IN THE

Herbal/traditional Product Choices Increase

United Laboratories Inc Sustains Its Leadership in 2013

Distribution Continues To Be Mainly Through

Improvements Expected in the Forecast Period

CONSUMER HEALTH IN THE PHILIPPINES

KEY TRENDS AND DEVELOPMENTS

CONSUMER HEALTH IN THE PHILIPPINES

Choice of Herbal/traditional Products Grows

Drugstores and Pharmacies Undergo Changes and Improvements

CONSUMER HEALTH IN THE PHILIPPINES

Government and Industry Players Contribute Towards Improved Health

CONSUMER HEALTH IN THE PHILIPPINES

Number of Smokers by Gender 2008-2013

Euromonitor International from official statistics

CONSUMER HEALTH IN THE PHILIPPINES

Consumer Expenditure on Health Goods and Medical Services: Value 20082013

Euromonitor International from official statistics, trade associations, trade interviews

Life Expectancy at Birth 2008-2013

Euromonitor International from official statistics

Sales of Consumer Health by Category: Value 2008-2013

CONSUMER HEALTH IN THE PHILIPPINES

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

% current value growth

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

% retail value rsp

CONSUMER HEALTH IN THE PHILIPPINES

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

% retail value rsp

CONSUMER HEALTH IN THE PHILIPPINES

United Laboratories Inc

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

% retail value rsp

CONSUMER HEALTH IN THE PHILIPPINES

--- Warehouse Clubs

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

% retail value rsp

CONSUMER HEALTH IN THE PHILIPPINES

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

CONSUMER HEALTH IN THE PHILIPPINES

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

% constant value growth

CONSUMER HEALTH IN THE PHILIPPINES

Vitamins and Dietary Supplements Registration and Classification

CONSUMER HEALTH IN THE PHILIPPINES

Self-medication/self-care and Preventative Medicine

Bureau of Food & Drugs

Association of the European Self-Medication

CONSUMER HEALTH IN THE PHILIPPINES

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