ANALGESICS IN ASIA PACIFIC

October 2017
INTRODUCTION
REGIONAL OVERVIEW
LEADING COMPANIES AND BRANDS
FORECAST PROJECTIONS
COUNTRY SNAPSHOTS
INTRODUCTION

Scope

Disclaimer
Much of the information in this
briefing is of a statistical nature and,
while every attempt has been made
to ensure accuracy and reliability,
Euromonitor International cannot be
held responsible for omissions or
errors.
Figures in tables and analyses are
calculated from unrounded data and
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discretion is advised.

Asia Pacific is the second

largest region in the world for
analgesics sales behind North
America and is also the fastest
growing region, driven by an
ageing population and an
increasing preference for topical
analgesics over systemics.
Looking forward to 2022, Asia
Pacific is expected to continue
growing at a rapid pace and to
overtake North America as the
largest global market by 2019
with USD6.0 billion in sales to
North America’s USD5.6 billion.

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INTRODUCTION

Key findings

Asia Pacific Over the review period 2012-2017, analgesics sales in the world’s largest regional
projected to market of North America posted a CAGR of 1% to reach total retail value sales of
overtake North USD5.9 billion in 2017, while analgesics sales in Asia Pacific posted a CAGR of 4%
America as global over 2012-2017 (outpacing the global CAGR of 2%) to reach total retail value sales of
leader in analgesics USD5.6 billion. While growth in North America is expected to be sluggish over the
sales by 2019 forecast period 2017-2022, growth in Asia Pacific will continue at a rapid rate,
resulting in Asia Pacific overtaking North America by 2019.
Topical analgesics Topical analgesics are historically quite popular in the Asia Pacific region and growing
exploding in very rapidly in China, where category sales posted a CAGR of 7% over 2012-2017 to
popularity in China, reach total retail value sales of USD996 million in 2017. Looking ahead, topicals in
expected to China are expected to continue to grow at a projected CAGR of 7% to reach
continue to grow estimated sales of USD1.4 billion in 2022, representing absolute value growth of
rapidly over the USD385 million. China’s increasingly elderly population reports preferring topical
forecast period analgesics when treating pains associated with old age such as arthritis.
GSK retains position GlaxoSmithKline ended 2017 with more than 8% of the total market for analgesics
as regional leader across the region, representing a sales CAGR of 9% since 2012 and absolute retail
despite push from value growth of USD161 million over that time. GSK’s sales were lifted by strong
Hisamitsu Pharma growth of its acetaminophen brand Panadol, as well as the 2014 acquisition of
Voltaren and Kaflan from Novartis, both of which have experienced steady positive
growth since 2014.
Hisamitsu’s Despite the popularity of GSK’s analgesic brands, Hisamitsu’s Salonpas retained its
Salonpas remains position as the most popular analgesic brand on the market, growing at a historic
regional brand CAGR of 6% to reach total sales of USD239 million in 2017. Consumers’ familiarity
leader with the Salonpas name and preference for topicals helped push the brand’s growth.

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INTRODUCTION
REGIONAL OVERVIEW
LEADING COMPANIES AND BRANDS
FORECAST PROJECTIONS
COUNTRY SNAPSHOTS
REGIONAL OVERVIEW

Putting Asia Pacific into context

 Asia Pacific is the second largest

region in the world for analgesics
sales at USD5.6 billion in 2017
behind North America’s USD5.9
billion. Asia Pacific is also the
fastest growing region in the world
for analgesics, posting a CAGR of
4% over the review period 2012-
2017, outpacing the Middle East
and Africa (MEA) at 3% and North
America at 1%.
 Asia Pacific is expected to continue
growing at a CAGR of 4% over the
forecast period 2017-2022, resulting
in absolute retail value sales growth
of USD1.1 billion to MEA’s USD695
million and North America’s
USD240 million and making Asia
Pacific the largest global region for
analgesics by 2019 with USD6.0
billion in sales to North America’s
USD5.6 billion.

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REGIONAL OVERVIEW

Steady regional growth driven by China

 The accelerated ageing of the

population in China and Japan
contributed to the region’s steady
growth over the past 10 years, as
elderly consumers consider pain
relief the major and first problem to
solve and increase their use of
topical analgesics as a way to
combat pain-associated maladies of
old age such as arthritis and muscle
aches.
 The market’s growth has been
consistently positive since 2012 but
experienced a major year-on-year
bump in sales between 2014 and
2015, driven almost exclusively by
China, which added USD84 million
to its analgesics markets in that
year, largely due to the introduction
of GSK’s analgesic Voltaren to the
market in 2015.

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REGIONAL OVERVIEW

Regional overview by country

 Topical analgesics remain the most

popular type of analgesic in the Asia
Pacific region, posting a CAGR of 4%
over the review period 2012-2017 and
resulting in total retail value sales of
USD2.9 billion in 2017, outpacing
growth of systemics at a CAGR of 3%
and total retail value sales of USD2.6
billion in 2017.
 In addition to China, topical analgesics
are vastly more popular than systemics
in Japan and India. In Japan, sales of
topical analgesics were almost twice
those of systemic analgesics in 2017,
while in India sales of topical analgesics
were more than four times those of
systemic analgesics.
 Looking ahead, sales in topical
analgesics are expected to accelerate in
growth at a projected CAGR of 5% to
2022, far outpacing systemic analgesics
at a projected CAGR of 3%.

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REGIONAL OVERVIEW

Topical sales reflect a shift in Chinese consumer preference

 Topical analgesics have always been popular in Asia Pacific, selling almost double in Asia Pacific as the
next largest region of Western Europe since 2003 and representing USD2.9 billion total sales in 2017.
 Though the rise in topical analgesics in China is undeniable in terms of size, it reflects an underlying shift
that is very different from either the Japanese or Indian markets. Topical analgesics have always been
popular in India - sales of topical analgesics represented 80% of total analgesics sales in India in 2003 and
are projected to represent 85% of total analgesics sales in 2022: an important increase, but one that
reflects consistent consumer preference for topicals. In Japan, in contrast, topicals are falling slightly as a
share of total analgesics sales, from 66% of the market in 2003 to an estimated 62% in 2022. Yet in China,
topicals as a share of total analgesics sales are growing from 47% of the market in 2003 to an estimated
57% in 2022, representing a clear consumer shift towards topicals and away from systemics and driven in
large part by the rapid rise of local company Yunnan Baiyao’s eponymous Yunnan Baiyao, which is
extremely popular among Chinese consumers and often recommended by medical professionals.

Topical Analgesics as a Proportion of Total Analgesics Sales (USD million rsp) by

Country 2003/2022
100%

80%

60%

40%

20%

0%
China India Japan

2003 2022

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REGIONAL OVERVIEW

Regional overview by category

 In comparison to topical analgesics,

systemic analgesics represent around
50% of total analgesics sold in China, but
only 40% in Japan and 18% in India,
though proportionally systemics are
expected to slowly regain some market
space from topicals in Japan over the
forecast period 2017-2022.
 Yet, topical analgesics are growing to
such an extent in China that by 2022
absolute value growth of topical
analgesics sales in China will exceed
total absolute retail value sales growth of
systemic analgesics across the entire
Asia Pacific region, with USD385 million
to systemics’ USD382 million.
 Other markets to watch across the
forecast period are the Philippines and
Thailand, where total retail value sales of
analgesics are expected to reach
USD269 million and USD226 million,
respectively, by 2022, at projected
CAGRs of 1% and 6%, respectively.

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REGIONAL OVERVIEW

Health and beauty specialists control most distribution

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REGIONAL OVERVIEW

Major growth in China driven by topical analgesics

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REGIONAL OVERVIEW

Asia Pacific expected to be global leader in analgesics by 2019

 Increasing demand for topical analgesics in the Asia Pacific region is driven by an ageing consumer base
that views OTC analgesics as both easy to purchase and an essential product for everyday life. Topicals
are particularly popular due to their immediate efficacy for pains associated with arthritis as well as the
general perception among consumers that the treatment of pain represents a rebalancing of physical
energies that should not involve the ingestion of pharmaceuticals.
 Though growth in analgesics (both systemic and topical) is expected to be strong in the Asia Pacific region
over the forecast period, it is the expansion of the market for topical analgesics that will propel Asia Pacific
into the top global position for analgesics sales in 2019 and drop the North American region to second
place. The absolute retail value sales growth for topical analgesics in Asia Pacific is expected to reach
USD273 million by 2019, where the North American region is only expected to reach absolute retail value
sales growth of USD88 million in topicals and USD12 million in systemic analgesics.
 The market in China continues to drive growth across the region, representing a CAGR of 5% over the
review period 2012-2017 and resulting in absolute retail value sales growth of USD401 million. Within
China, the most popular brands of analgesics in 2017 were Yunnan Baiyao Group’s topical Yunnan Baiyao,
followed by GSK’s Fenbid and Tibet Cheezheng’s Cheezheng.
 China is likely to remain the regional leader, posting a projected CAGR of 5% to reach USD2.4 billion in
sales in 2022, absolute value growth of more than USD520 million. While China’s growth stands to eclipse
the other markets across the region in its size, other important increases are likely to occur in Japan
(projected CAGR of 3% reflecting absolute retail value sales growth of USD236 million), Indonesia
(projected CAGR of 3%, reflecting absolute retail value sales growth of USD73 million), and India (projected
CAGR of 2%, reflecting absolute retail value sales growth of USD61 million).

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INTRODUCTION
REGIONAL OVERVIEW
LEADING COMPANIES AND BRANDS
FORECAST PROJECTIONS
COUNTRY SNAPSHOTS
LEADING COMPANIES AND BRANDS

GSK regains regional lead in a market rife with local competitors

 Asia Pacific is a fairly diffuse

market in terms of the competitive
landscape in analgesics: though
GSK is consistently among the top
five companies, local players are
holding their own, building on long-
standing regional familiarity with
Asia-based companies and locally-
focused brands.
 Though GSK has traditionally been
the leader in market share in China,
it was overtaken by local company
Yunnan Baiyao in 2013 and
remains in second position in 2017
with 10% of market share to
Yunnan Baiyao’s 12%.
 Regionally, however, GSK regained
its lead in market share in 2015 due
to the introduction of brand
Voltaren, and leads Hisamitsu
Pharma at 8% to 7%, followed by
Yunnan Baiyao at 4% and Taisho
Pharma at 3%.

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LEADING COMPANIES AND BRANDS

GlaxoSmithKline holding steady with 8% of total market share

 GlaxoSmithKline fended off a challenge from Hisamitsu Pharma to retain its lead in analgesics in 2017 with
8% share to Hisamitsu’s 7%. The introduction of GSK’s analgesic brand Voltaren in 2015 was crucial in
establishing GSK’s dominance in the region, adding a full two percentage points to GSK’s share in 2015.
 Taking third and fourth place behind GSK and Hisamitsu are Yunnan Baiyao Group and Taisho Pharma,
both regional companies, with 4% and 3% market shares, respectively.
 Over the review period, Sanofi was the fastest growing company in the region due to its acquisition of
Boehringer Ingelheim’s consumer health portfolio in 2017 (excluding the Chinese market). A former
Boehringer Ingelheim brand that boosted Sanofi’s presence in regional analgesics was the Eve line of
products, which generated sales of USD161 million in Japan in 2017.

Asia Pacific Analgesics Market by Company Share 2012/2017

9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
GSK Hisamitsu Yunnan Taisho Sanofi United Kowa Co Lion Corp Daiichi Sankyo Tibet
Baiyao Group Laboratories Cheezheng
Tibetan
Medicine Co
2012 2017

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LEADING COMPANIES AND BRANDS

Greatest competition in the Japanese market

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LEADING COMPANIES AND BRANDS

Salonpas fends off surge from Yunnan Baiyao

Sales in 6-year  Hisamitsu Pharma’s Salonpas

2017 (USD Rank in Rank brand is the most popular analgesic in
Product million rsp) 2012 in 2017 trend the region, with sales of more
than USD239 million in 2017
Salonpas (Hisamitsu) 239 1 1 and representing a very healthy
Yunnan Baiyao CAGR of 6% since 2012.
231 7 2
(Yunnan Baiyao)  In the number two and three
Panadol (GSK) 166 5 3 spots behind Salonpas are
Yunnan Baiyao’s Yunnan
Eve (Sanofi) 162 2 4 Baiyao with USD231 million in
Ventelin Kowa (Kowa sales in 2017 and GSK’s
136 3 5 Panadol with USD166 million.
Co)
While both Yunnan Baiyao and
Fenbid (GSK) 131 4 6
Panadol have grown very
Bufferin (Lion Corp) 112 6 7 quickly since 2012, Yunnan
Cheezheng (Tibet Baiyao’s rise in the ranking has
100 11 8 been dramatic, increasing from
Cheezheng)
2% market share in 2012 to 4%
Voltaren (GSK) 95 9 9 in 2017, building on continued
investment in advertising as
Lingrui (Henan Lingrui) 91 34 10 well as touting the benefits of
herbal analgesics in the
domestic market.

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INTRODUCTION
REGIONAL OVERVIEW
LEADING COMPANIES AND BRANDS
FORECAST PROJECTIONS
COUNTRY SNAPSHOTS
FORECAST PROJECTIONS

Sales in China drive future regional growth

© Euromonitor International ANALGESICS IN ASIA PACIFIC PASSPORT 20

FORECAST PROJECTIONS

Growth in topicals to determine Asia Pacific’s future

 The market for analgesics in the Asia Pacific region is a fast growing one: at a forecast CAGR of 4%,
double the global market rate of 2%, the market for analgesics in Asia Pacific is projected to grow by more
than USD3 billion over the forecast period to 2022 and push the region into the number one position
globally for analgesics sales by 2019.
 While systemic analgesics are still very popular, particularly in the smaller markets in Southeast Asia, the
real story in the region is the continued popularity of topical analgesics in India and the dramatic increase in
sales of topical analgesics in China, where growth outpaces that of systemics and where consumers are
increasingly turning to topicals that offer immediate relief without the ingestion of chemicals.
 Unlike other regions such as Western Europe where consumers shy away from systemic analgesics out of
concern about their potential side effects, consumers in Asia Pacific are more motivated by a different
understanding of pain that represents a physical imbalance of energies that can best be addressed by
natural, topical remedies that are thought to address the imbalance long term and without the short-term
quick fix offered by a pill.
 Though GSK continues to do well in Asia Pacific, local companies continue to occupy a large portion of the
market, often by appealing to consumers’ familiarity with herbal and traditional components that are seen to
be more attuned with their perception of what causes pain and how to address it. Looking forward, Yunnan
Baiyao and Hisamitsu Pharma are likely to be serious competitors to GSK across the region and particularly
in China, where GSK has already fallen to the number two spot behind Yunnan Baiyao.
 Finally, while China will continue to drive both regional and global growth in analgesics sales, smaller
markets in the region will begin to occupy a greater percentage of regional market share as their economies
develop and stabilise. Markets to watch in this category include India, Thailand, and Vietnam, all of which
are projected to grow in absolute retail value sales terms by more than USD50 million by 2022.

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INTRODUCTION
REGIONAL OVERVIEW
LEADING COMPANIES AND BRANDS
FORECAST PROJECTIONS
COUNTRY SNAPSHOTS
COUNTRY SNAPSHOTS

Azerbaijan: Market context

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COUNTRY SNAPSHOTS

Azerbaijan: Competitive and retail landscape

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COUNTRY SNAPSHOTS

China: Market context

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COUNTRY SNAPSHOTS

China: Competitive and retail landscape

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COUNTRY SNAPSHOTS

Hong Kong, China: Market context

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COUNTRY SNAPSHOTS

Hong Kong, China: Competitive and retail landscape

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COUNTRY SNAPSHOTS

India: Market context

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COUNTRY SNAPSHOTS

India: Competitive and retail landscape

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COUNTRY SNAPSHOTS

Indonesia: Market context

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COUNTRY SNAPSHOTS

Indonesia: Competitive and retail landscape

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COUNTRY SNAPSHOTS

Japan: Market context

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COUNTRY SNAPSHOTS

Japan: Competitive and retail landscape

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COUNTRY SNAPSHOTS

Kazakhstan: Market context

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COUNTRY SNAPSHOTS

Kazakhstan: Competitive and retail landscape

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COUNTRY SNAPSHOTS

Malaysia: Market context

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COUNTRY SNAPSHOTS

Malaysia: Competitive and retail landscape

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COUNTRY SNAPSHOTS

Pakistan: Market context

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COUNTRY SNAPSHOTS

Pakistan: Competitive and retail landscape

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COUNTRY SNAPSHOTS

Philippines: Market context

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COUNTRY SNAPSHOTS

Philippines: Competitive and retail landscape

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COUNTRY SNAPSHOTS

Singapore: Market context

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COUNTRY SNAPSHOTS

Singapore: Competitive and retail landscape

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COUNTRY SNAPSHOTS

South Korea: Market context

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COUNTRY SNAPSHOTS

South Korea: Competitive and retail landscape

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COUNTRY SNAPSHOTS

Taiwan: Market context

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COUNTRY SNAPSHOTS

Taiwan: Competitive and retail landscape

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COUNTRY SNAPSHOTS

Thailand: Market context

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COUNTRY SNAPSHOTS

Thailand: Competitive and retail landscape

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COUNTRY SNAPSHOTS

Vietnam: Market context

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COUNTRY SNAPSHOTS

Vietnam: Competitive and retail landscape

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FOR FURTHER INSIGHT PLEASE CONTACT
Keena Roberts
Industry Analyst - Consumer Health
keena.roberts@euromonitor.com

RELATED ANALYSIS
Analgesics Update Part 1: Global Trends
Analgesics Update Part 2: The Future of Pain Management
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