The complete review and analysis of the 10 best Consumer Health Companies in 2018.
Consumer health companies deals with products in wellness, oral health, nutrition, and skin health. These consumer healthcare products primarily include the “over-the-counter” (OTC) drugs that are sold without a prescription from registered medical practitioner. Globally large number of acquisitions, mergers, and shutdowns has resulted in industry consolidation and large market share is controlled by the top 10 firms. In 2017, top 10 consumer health companies accounted for the collective revenue of USD 70157.1 million, a moderate growth from USD 65335.6 million in 2016.
Global Market Size:
As per the Euromonitor International research, global sales of consumer health products in 2016 was USD 217 billion and is forecasted to reach USD 290 billion by 2020. In 2016, “over-the-counter” (OTC) medicine generated revenue of USD 98.5 Billion and accounted for 45% of the global consumer health industry revenue share.
The United States (US) dominated the global consumer health industry and accounted for the USD 67 billion in revenue representing the 31% of the global market share. The US, China, Japan, Germany and Italy collectively have a global market share of 61%. South Korea, France, India and Mexico are considered as most promising markets for sales expansion by 2020.
The global consumer health market is broadly segmented on the basis of type of products (OTC pharmaceuticals and dietary supplements), distribution network (departmental stores, independent retailers, pharmacies or drugstores, specialist retailers, supermarkets or hypermarkets and online retailers), and region (North America, Europe, Asia-Pacific, and LAMEA).
The larger inclination towards the self-care, self-medication, awareness for wellness & preventive medicine, rise in disposable income, demand for personalised products, acceptance of e-commerce websites & health oriented mobile apps, growing healthcare costs, increasing aged population, and switch from prescription medication to OTC products (Rx-to-OTC switch) will positively drive the consumer health market till 2020.
The lower barriers to entry, fewer regulatory obstacles are also fuelling the product innovation by smaller companies resulted in growth of marketable customer focused niche products in the consumer health industry globally.
Governmental regulations and counterfeit pharmaceuticals in many developing market restrain the growth of the consumer health market.
Top 10 Companies:
1) Johnson & Johnson Inc
Johnson & Johnson (J&J) is top brand in pharmaceutical and consumer goods manufacturing and is engaged in the research, development, manufacture and sales of pharmaceuticals, medical devices and consumer health products. In 2017, the Consumer segment revenue was USD 13602 million and as a percentage to sales was 18.6%, versus 18.3% in 2016. The increase was attributable to higher gains on divestitures of COMPEED in 2017. This was partially offset by higher selling, marketing and administrative expenses.
2) GlaxoSmithKiline Plc
GlaxoSmithKline (GSK) is research-focused pharmaceutical company engaged in manufacturing, distributing and pharmaceuticals trading. GlaxoSmithKline has portfolio in prescription medicines, vaccines and consumer healthcare. Consumer Healthcare turnover at USD 10462.5 million accounts for 26% of group turnover and was up 8% AER, 2% CER. Revenue was driven by strong performance by power brands in Wellness and Oral health and impacted by lower sales of tail brands across the Nutrition and Skin health categories and broader market slowdown in key categories.
3) Amway Corp
Amway is a world’s leader in direct selling with operations in more than 100 countries. In 2017, company has generated revenue of USD 8600 million from the consumer health segment. It manufactures and distributes 450+ consumer products that support health and well-being. Top-selling brands for Amway are Nutrilite™ vitamin, mineral and dietary supplements, Artistry™ skincare and color cosmetics, eSpring™ water treatment systems and XS™ energy drinks.
4) Procter & Gamble Co
The Procter & Gamble Company (P&G) sells consumer packaged goods with segments comprising of hair, skin and personal, oral, family, feminine, and baby care product lines. In 2017, company has generated revenue of USD 7513 million from the consumer health segment. P&G’s health care segment includes gastrointestinal, rapid diagnostics, respiratory, vitamins/ minerals/ supplements, other personal health care products. Company’s sales outside the U.S. in personal health care are supported by PGT Healthcare partnership with Teva Pharmaceuticals Ltd.
5) Bayer AG
Bayer’s Consumer Health segment markets non-prescription (OTC) medicines, medical products and cosmetics in the dermatology, nutritional supplement, analgesic, digestive health, allergy, cold, foot care and sun protection categories. In 2017, company has generated revenue of USD 7034.4 million from the consumer health segment. Consumer Health figures in 2017 was below the prior-year level and also below company expectations. Sales declined by a currency and portfolio-adjusted 1.7 percent, while clean EBITDA decreased significantly by 12.8 percent.
6) Reckitt Benckiser Group Plc
Reckitt Benckiser Group plc manufactures, markets, and sells health, hygiene, and home products. The company offers wellness products in wellbeing, foot-care, vitamins, and supplements. In 2017, company has generated revenue of USD 6871.5 million from the consumer health segment. The combination of organic growth strategy and acquisitions has generated significant growth for the company. On 10 February 2017, company announced that it has signed an agreement to acquire Mead Johnson for USD 16.6 billion in cash.
Sanofi is a French pharmaceutical company involved in research, development, manufacture and marketing of therapeutic solutions. Sanofi offer medicines in prescription and over the counter (OTC) category. In 2017, company has generated revenue of USD 4832 million from the consumer health segment. On January 1, 2017, Sanofi completed the acquisition transaction of Boehringer Ingelheim’s (BI) CHC business in most markets that helped in critical scale and strengthen geographical presence. The deal enhanced Sanofi’s position in four strategic categories of allergy, cough & cold, pain, digestive and nutritionals.
8) Herbalife Ltd
Herbalife Nutrition is a global multi-level marketing (MLM) corporation that develops, markets, and sells weight management, targeted nutrition, energy, sports & fitness, and outer nutrition products to and through a network of independent members. In 2017, company has generated revenue of USD 4427 million from the consumer health segment. The revenue generated from verticals includes weight management (64.2%), targeted nutrition (24.5%), energy, sports & fitness (6.0%) and outer nutrition (2.1%). Company conducted business in 94 countries throughout the world. The top ten countries worldwide represented approximately 71.8% total global revenue.
9) Pfizer Inc
Pfizer is a research-based pharmaceutical company engaged in the wellness, prevention and treatment for diseases across a broad range of therapeutic areas. The company operates through Innovative Health and Established Health businesses segment. In 2017, company has generated revenue of USD 3472 million from the consumer health segment. Pfizer is one of the largest over-the-counter (OTC) healthcare companies in the world. Pfizer’s non-prescription medicines for pain management, respiratory & digestive health, and nutritional & personal care products, are marketed in more than 90 countries.
10) The Nature’s Bounty Co
The Nature’s Bounty Co. manufactures, markets, distributes, and retails vitamins, minerals, nutritional supplements, herbs, sports and active nutrition, and ethical beauty products in the United States and internationally. In 2017, company has generated revenue of USD 3342 million from the consumer health segment. In 2017, Kohlberg Kravis Roberts (KKR) purchased a majority ownership stake in the company, while The Carlyle Group has retained a minority share.
Sources: SEC filings, annual reports, companies’ websites, news websites and research reports by consultancy companies.Top 10 Consumer Health Companies 2018 last edit: 2018-09-24T19:21:10+00:00 da