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List of Contents and Tables

HERBAL/TRADITIONAL PRODUCTS IN SWEDEN - CATEGORY ANALYSIS ................................. 1 

Headlines .......................................................................................................................................................................1 

Trends ...........................................................................................................................................................................1 

Competitive Landscape ...............................................................................................................................................2 

Prospects .......................................................................................................................................................................2 

Category Data...............................................................................................................................................................3 
Table 1  Sales of Herbal/Traditional Products: Value 2005-2010......................................................3 
Table 2  Sales of Herbal/Traditional Products: % Value Growth 2005-2010 ....................................3 
Table 3  Herbal/Traditional Products Company Shares 2006-2010 ...................................................4 
Table 4  Herbal/Traditional Products Brand Shares 2007-2010 .........................................................5 
Table 5  Forecast Sales of Herbal/Traditional Products: Value 2010-2015 .......................................6 
Table 6  Forecast Sales of Herbal/Traditional Products: % Value Growth 2010-2015 .....................7 

HERBAL/TRADITIONAL PRODUCTS IN SWEDEN - COMPANY PROFILES ................................... 8 

Abigo Medical Ab in Consumer Health (sweden) ....................................................................................................8 


Strategic Direction .........................................................................................................................................................8 
Key Facts........................................................................................................................................................................8 
Summary 1  Abigo Medical AB: Key Facts ..............................................................................................8 
Summary 2  Abigo Medical AB: Operational Indicators ..........................................................................8 
Company Background....................................................................................................................................................8 
Production ......................................................................................................................................................................8 
Competitive Positioning.................................................................................................................................................9 
Summary 3  Abigo Medical AB: Competitive Position 2010 ...................................................................9 

Friggs Ab in Consumer Health (sweden) ..................................................................................................................9 


Strategic Direction .........................................................................................................................................................9 
Key Facts........................................................................................................................................................................9 
Summary 4  Friggs AB: Key Facts ............................................................................................................9 
Summary 5  Friggs AB: Operational Indicators ......................................................................................10 
Company Background..................................................................................................................................................10 
Production ....................................................................................................................................................................10 
Summary 6  Friggs AB: Production Statistics 2010................................................................................10 
Competitive Positioning...............................................................................................................................................10 
Summary 7  Friggs AB: Competitive Position 2010 ...............................................................................11 

CONSUMER HEALTH IN SWEDEN - INDUSTRY OVERVIEW ........................................................ 12 

Executive Summary ...................................................................................................................................................12 


Resilience To Wider Economic Forces........................................................................................................................12 
Liberalisation Boosts Sales Growth ............................................................................................................................12 
Increasing Concentrated Environment .......................................................................................................................12 
Distribution Increasingly Diverse ...............................................................................................................................12 
Positive Outlook ...........................................................................................................................................................12 

Key Trends and Developments.................................................................................................................................12 

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the Population Continues To Age ................................................................................................................................13 


Consumer Healthcare Proves Resilient To Wider Economic Forces .........................................................................13 
Health and Wellness – A Driver of Sales ....................................................................................................................14 
Swedish Consumers Are More Willing To Self-medicate ...........................................................................................15 
Liberalisation Does Not Lead To Increased Price Competition ................................................................................16 

Market Indicators ......................................................................................................................................................17 


Table 7  Consumer Expenditure on Health Goods and Medical Services 2005-2010 .....................17 
Table 8  Life Expectancy at Birth 2005-2010 ...................................................................................18 

Market Data ...............................................................................................................................................................18 


Table 9  Sales of Consumer Health by Category: Value 2005-2010................................................18 
Table 10  Sales of Consumer Health by Category: % Value Growth 2005-2010 ..............................18 
Table 11  Consumer Health Company Shares by Value 2006-2010 ..................................................19 
Table 12  Consumer Health Brand Shares by Value 2007-2010 ........................................................19 
Table 13  Penetration of Private Label by Category 2005-2010 ........................................................20 
Table 14  Sales of Consumer Health by Distribution Format: % Analysis 2005-2010 .....................20 
Table 15  Sales of Consumer Health by Category and Distribution Format: % Analysis
2010 .....................................................................................................................................21 
Table 16  Forecast Sales of Consumer Health by Category: Value 2010-2015 .................................22 
Table 17  Forecast Sales of Consumer Health by Category: % Value Growth 2010-
2015 .....................................................................................................................................22 

Appendix .....................................................................................................................................................................22 
OTC Registration and Classification ..........................................................................................................................22 
Advertising ...................................................................................................................................................................24 
Standardised Packaging Requirements .......................................................................................................................24 
Vitamins and Dietary Supplements Registration and Classification ..........................................................................24 
Advertising ...................................................................................................................................................................26 
Self-medication/self-care and Preventative Medicine ................................................................................................26 
Switches ........................................................................................................................................................................27 
Summary 8  OTC Healthcare Switches 2008-2010 ................................................................................27 

Definitions ...................................................................................................................................................................28 
Summary 9  Research Sources.................................................................................................................28 

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HERBAL/TRADITIONAL PRODUCTS IN SWEDEN -


CATEGORY ANALYSIS

HEADLINES

 Current value sales reach SEK1.2 billion in 2010, an increase of 1%


 Growth is driven by consumers seeking a more “natural” approach to healing and prevention
 Herbal/traditional calming and sleeping products recorded the highest current value growth in 2010 at 7%
 Procter & Gamble Sweden is the leading category player with a 2010 value share of 20%
 Constant value sales are expected to reach SEK1,203 million in 2015, which represents a decrease of -1%
on 2010 estimates

TRENDS

 Growth is driven by consumers seeking a more “natural” approach to healing and prevention.
 In current retail value terms, 2010’s growth was faster than the CAGR recorded for the review period. This
reflects the increased availability and distribution of herbal/ traditional products. Products are all the more
likely to be found in mass market channels such as supermarkets.
 Herbal/traditional calming and sleeping products recorded the highest retail value growth in 2010 at 7%.
Increased product availability and distribution in mass market channels such as supermarkets and
hypermarkets is a key driver of growth for herbal/traditional calming and sleeping products.
 The use of alternative medicine has increased in Sweden, and based on a study from 2002, about 20% of the
adult population used some kind of alternative treatment. There are no signs that there has been any change
from the situation in 2002. The most common treatment is acupuncture, which is sometimes prescribed by
doctors. The number of types of different alternative medicines is huge, and includes ayurvedic treatments,
Feldenkreis, homeopathic treatment, crystals, zone therapy, rosen therapy amongst many others.
 Grocery retailers is a leading distribution channel for herbal/traditional products. Medicated confectionery
is the absolutely dominant product type in grocery retailers, although larger supermarkets/hypermarkets
also stock the best-selling herbal/traditional brands. Internet retailing is increasing in share, but this is still a
small distribution channel, with just 6% of sales in 2010. As with the case in previous years, sales continue
to be dominated by health specialists.
 Swedish health authorities and doctors are highly sceptical and questionable of the potential health benefits
offered by herbal/traditional products. Even though there are products which are approved by the Swedish
Medical Agency, the approval does not state anything about their effects on people, as the only criteria for
approval is that they are “safe and of high quality”. However, many consumers feel that these products
actually help, and this is why many people use them.
 One of the main reasons why people use herbal/traditional products is scepticism about medicines and the
healthcare system in general; either because of the side-effects of medicines or because the treatment does
not help to cure or reduce illness. Word-of- mouth, recommendations by friends or positive articles in
magazines also positively affects sales. Price is generally not an important factor.
 The general view on herbal/traditional products is positive, at least amongst the general public, and it is
estimated that about 40% to 50% of the population has used herbal/traditional products at any time,
according to a study from the University of Umeå. Swedish health authorities and doctors are however
highly sceptical and questionable to the potential health benefits offered by herbal/traditional products, and
consider that any positive benefits are from a placebo effect. Many consumers want to find alternatives to
OTC and Rx medicines as a result of their potential side-effects. The highest users of herbal/traditional
products are those with chronic illnesses, and many also combine herbal/traditional products with OTC
medicines.

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COMPETITIVE LANDSCAPE

 Medicated confectionary market players dominate sales of herbal/traditional products in 2010, due to the
dominance of medicated confectionery overall. As all medicated confectionary sales are by definition
herbal/ traditional, medicated confectionery was largely responsible for herbal cough, cold and allergy (hay
fever) remedies accounting for 51% of overall value sales in herbal/traditional products in 2010. The
leading brands in 2010 were Vicks from Procter & Gamble Sweden and Fisherman’s Friend from Adaco
AB. Green Medicine AB was ranked second with one of the most popular cough and cold remedy brands,
Kan Jang.

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PROSPECTS

 Consumer interest in alternative therapies and using non-OTC products will remain at a high level over the
forecast period. Despite negative attitudes from health authorities, consumers will continue to retain an
interest in herbal/traditional products as an alternative or complement to Rx and OTC products.

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CATEGORY DATA
Table 1 Sales of Herbal/Traditional Products: Value 2005-2010

SEK million
2005 2006 2007 2008 2009 2010

Herbal/Traditional
Analgesics
Herbal/Traditional Data removed from sample
Calming and Sleeping
Products
Herbal/Traditional
Cough, Cold and Allergy
(Hay Fever) Remedies
Herbal/Traditional
Digestive Remedies
Herbal/Traditional
Medicated Skin Care
Herbal/Traditional
Medicinal Teas
Herbal/Traditional
Smoking Cessation Aids
Herbal/Traditional
Child-Specific Dietary
Supplements
Herbal/Traditional
Dietary Supplements
Herbal/Traditional
Tonics and Bottled
Nutritive Drinks
Herbal/Traditional
Products
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store
checks, trade interviews, trade sources

Table 2 Sales of Herbal/Traditional Products: % Value Growth 2005-2010

% current value growth


2009/10 2005-10 CAGR 2005/10 TOTAL

Herbal/Traditional Analgesics
Herbal/Traditional Calming and
Sleeping Products Data removed from sample
Herbal/Traditional Cough, Cold and
Allergy (Hay Fever) Remedies
Herbal/Traditional Digestive Remedies
Herbal/Traditional Medicated Skin Care
Herbal/Traditional Medicinal Teas
Herbal/Traditional Smoking Cessation
Aids
Herbal/Traditional Child-Specific
Dietary Supplements
Herbal/Traditional Dietary Supplements
Herbal/Traditional Tonics and Bottled
Nutritive Drinks

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Herbal/Traditional Products
Data removed from sample
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store
checks, trade interviews, trade sources

Table 3 Herbal/Traditional Products Company Shares 2006-2010

% retail value rsp


Company 2006 2007 2008 2009 2010

Data removed from sample

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Data removed from sample

Total 100.0 100.0 100.0 100.0 100.0


Source: Euromonitor International from official statistics, trade associations, trade press, company research, store
checks, trade interviews, trade sources

Table 4 Herbal/Traditional Products Brand Shares 2007-2010

% retail value rsp


Brand Company 2007 2008 2009 2010

Data removed from sample

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Data removed from sample

Total 100.0 100.0 100.0 100.0


Source: Euromonitor International from official statistics, trade associations, trade press, company research, store
checks, trade interviews, trade sources

Table 5 Forecast Sales of Herbal/Traditional Products: Value 2010-2015

SEK million
2010 2011 2012 2013 2014 2015

Herbal/Traditional
Analgesics
Herbal/Traditional Data removed from sample
Calming and Sleeping
Products
Herbal/Traditional
Cough, Cold and Allergy
(Hay Fever) Remedies
Herbal/Traditional
Digestive Remedies
Herbal/Traditional
Medicated Skin Care
Herbal/Traditional
Medicinal Teas
Herbal/Traditional
Smoking Cessation Aids
Herbal/Traditional
Child-Specific Dietary
Supplements
Herbal/Traditional
Dietary Supplements
Herbal/Traditional
Tonics and Bottled

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Nutritive Drinks
Herbal/Traditional Data removed from sample
Products
Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade
sources

Table 6 Forecast Sales of Herbal/Traditional Products: % Value Growth 2010-2015

% constant value growth


2010-15 CAGR 2010/15 TOTAL

Herbal/Traditional Analgesics
Herbal/Traditional Calming and Sleeping Products Data removed from sample
Herbal/Traditional Cough, Cold and Allergy (Hay
Fever) Remedies
Herbal/Traditional Digestive Remedies
Herbal/Traditional Medicated Skin Care
Herbal/Traditional Medicinal Teas
Herbal/Traditional Smoking Cessation Aids
Herbal/Traditional Child-Specific Dietary
Supplements
Herbal/Traditional Dietary Supplements
Herbal/Traditional Tonics and Bottled Nutritive
Drinks
Herbal/Traditional Products
Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade
sources

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CONSUMER HEALTH IN SWEDEN - INDUSTRY


OVERVIEW

EXECUTIVE SUMMARY
Resilience To Wider Economic Forces
Despite the weak economic climate, Swedish consumer health sales proved to be relatively immune to wider
economic forces. Consumer health posted strong retail value growth once again in 2010, albeit slower than the
CAGR recorded for the review period as a whole. Most mature consumer health categories proved to be resilient
and posted healthy growth rates as consumers still needed to attend to their minor ailments. Growth in 2010 was
also supplemented and supported by a number of other factors such as the self-medication trend, liberalisation of
pharmacy sales, the continued ageing of the Swedish population and increased category segmentation.

Liberalisation Boosts Sales Growth


The de-regulation of pharmacy sales occurred in November 2009, leading to the entry of numerous new
pharmacy chains. As part of this process the sale of certain OTC medicines was liberalised with distribution via
mass market channels such as supermarkets and hypermarkets now possible. This change led to a strong boost
in sales prompted by the greater availability and distribution of consumer health products. However, despite the
de-regulation of pharmacy sales, subsequent entry of new players in pharmacy retailing sales and product
availability in mass market channels, increased or significant price competition had yet to occur in Swedish
consumer health at the end of the review period. The lack of price competition in the context of greater product
distribution consequently encouraged the recording of strong current retail value growth rates for 2010.

Increasing Concentrated Environment


Consumer health’s sales were increasingly characterised by consolidation; numerous categories are dominated
by a handful of players. Indeed major players are not just confined to one area of consumer health but have an
overall presence across the spectrum of total consumer health sales. 2010 was also a year that witnessed merger
and acquisition activity. The domestic player, Meda AB, firmly stated strategic goals to establish itself as a
leading player. This will be achieved through a combination of organic growth and acquisition, as the
company’s acquisition of BioPhausia OTC medicine product portfolio in September 2010 indicates.

Distribution Increasingly Diverse

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Positive Outlook

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KEY TRENDS AND DEVELOPMENTS

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the Population Continues To Age

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Current Impact

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Outlook

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Future Impact

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Consumer Healthcare Proves Resilient To Wider Economic Forces

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Current Impact

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Outlook

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Future Impact

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Health and Wellness – A Driver of Sales

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Current Impact

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Outlook

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Future Impact

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Swedish Consumers Are More Willing To Self-medicate

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Current Impact

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Outlook

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Future Impact

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Liberalisation Does Not Lead To Increased Price Competition

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Current Impact

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Outlook

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Future Impact

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MARKET INDICATORS
Table 1 Consumer Expenditure on Health Goods and Medical Services 2005-2010

SEK million
2005 2006 2007 2008 2009 2010

Pharmaceuticals, Data removed from sample

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medical appliances/
equipment
Outpatient services Data removed from sample
Hospital services
Total
Source: Euromonitor International from official statistics, trade associations, trade interviews

Table 2 Life Expectancy at Birth 2005-2010

years
2005 2006 2007 2008 2009 2010

Males Data removed from sample


Females 82.8 82.9 83.0 83.2 83. 83.5
Source: Euromonitor International from official statistics

MARKET DATA
Table 3 Sales of Consumer Health by Category: Value 2005-2010

SEK million
2005 2006 2007 2008 2009 2010

OTC
Sports Nutrition Data removed from sample
Vitamins and Dietary
Supplements
Weight Management
Herbal/Traditional
Products
Allergy Care
Child-Specific Consumer
Health
Consumer Health , , , , , ,
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store
checks, trade interviews, trade sources
Note: Sum of sectors is greater than the market size because the four allergy care subsectors are included in allergy
care as well as cough, cold and allergy remedies, medicated skin care and eye care.

Table 4 Sales of Consumer Health by Category: % Value Growth 2005-2010

% current value growth


2009/10 2005-10 CAGR 2005/10 TOTAL

OTC
Sports Nutrition Data removed from sample
Vitamins and Dietary Supplements
Weight Management
Herbal/Traditional Products
Allergy Care
Child-Specific Consumer Health
Consumer Health
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store
checks, trade interviews, trade sources
Note: Sum of sectors is greater than the market size because the four allergy care subsectors are included in allergy
care as well as cough, cold and allergy remedies, medicated skin care and eye care.

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Table 5 Consumer Health Company Shares by Value 2006-2010

% retail value rsp


Company 2006 2007 2008 2009 2010

Data removed from sample

Total 100.0 100.0 100.0 100.0 100.0


Source: Euromonitor International from official statistics, trade associations, trade press, company research, store
checks, trade interviews, trade sources

Table 6 Consumer Health Brand Shares by Value 2007-2010

% retail value rsp


Brand Company 2007 2008 2009 2010

Data removed from sample

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Data removed from sample

Total 100.0 100.0 100.0 100.0


Source: Euromonitor International from official statistics, trade associations, trade press, company research, store
checks, trade interviews, trade sources

Table 7 Penetration of Private Label by Category 2005-2010

% retail value rsp


2005 2006 2007 2008 2009 2010

Consumer Health Data removed from sample


OTC
Sports Nutrition
Vitamins and Dietary
Supplements
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store
checks, trade interviews, trade sources

Table 8 Sales of Consumer Health by Distribution Format: % Analysis 2005-2010

% retail value rsp


2005 2006 2007 2008 2009 2010

Store-Based Retailing
Grocery Retailers Data removed from sample
Discounters
Healthfood shops
Hypermarkets
Small Grocery Retailers
Supermarkets
Other Grocery Retailers
Non-Grocery Retailers
Health and Beauty
Retailers
Chemists/Pharmacies
Parapharmacies/Drugstores
Other Healthcare
Specialist Retailers

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Mass Merchandisers
Other Non-Grocery Data removed from sample
Retailers
Non-Store Retailing
Vending
Homeshopping
Internet Retailing
Direct Selling
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store
checks, trade interviews, trade sources

Table 9 Sales of Consumer Health by Category and Distribution Format: % Analysis 2010

% retail value rsp


OTC SN VDS WM HTP AC

Store-Based Retailing
Grocery Retailers
Discounters Data removed from sample
Healthfood shops
Hypermarkets
Small Grocery Retailers
Supermarkets
Other Grocery Retailers
Non-Grocery Retailers
Health and Beauty
Retailers
Chemists/Pharmacies
Parapharmacies/Drugstores
Other Healthcare
Specialist Retailers
Mass Merchandisers
Other Non-Grocery
Retailers
Non-Store Retailing
Vending
Homeshopping
Internet Retailing
Direct Selling
Total 100.0 100.0 100.0 100.0 100.0 100.0

CSCH

Store-Based Retailing
Grocery Retailers
Discounters Data removed from sample
Healthfood shops
Hypermarkets
Small Grocery Retailers
Supermarkets
Other Grocery Retailers
Non-Grocery Retailers
Health and Beauty
Retailers
Chemists/Pharmacies
Parapharmacies/Drugstores
Other Healthcare
Specialist Retailers
Mass Merchandisers
Other Non-Grocery
Retailers
Non-Store Retailing
Vending

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Homeshopping Data removed from sample


Internet Retailing
Direct Selling
Total 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store
checks, trade interviews, trade sources
Key: OTC = over the counter; SN = sports nutrition; VDS = vitamins and dietary supplements; WM = weight
management; HTP = herbal/traditional products; AC = Allergy Care; CSCH = child-specirfic consumer health

Table 10 Forecast Sales of Consumer Health by Category: Value 2010-2015

SEK million
2010 2011 2012 2013 2014 2015

OTC 5
Sports Nutrition Data removed from sample
Vitamins and Dietary 2
Supplements
Weight Management
Herbal/Traditional
Products
Allergy Care
Child-Specific Consumer
Health
Consumer Health 8, , , , , ,
Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade
sources
Note: Sum of sectors is greater than the market size because the four allergy care subsectors are included in allergy
care as well as cough, cold and allergy remedies, medicated skin care and eye care.

Table 11 Forecast Sales of Consumer Health by Category: % Value Growth 2010-2015

% constant value growth


2010-15 CAGR 2010/15 TOTAL

OTC
Sports Nutrition Data removed from sample
Vitamins and Dietary Supplements
Weight Management
Herbal/Traditional Products
Allergy Care
Child-Specific Consumer Health
Consumer Health 2.9 15.5
Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade
sources
Note: Sum of sectors is greater than the market size because the four allergy care subsectors are included in allergy
care as well as cough, cold and allergy remedies, medicated skin care and eye care.

APPENDIX
OTC Registration and Classification

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European regulatory systems

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Marketing authorisations

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Content removed from sample

Advertising

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Standardised Packaging Requirements

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Vitamins and Dietary Supplements Registration and Classification

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National legislation

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Distribution

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Regulation of vitamins and dietary supplements

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Regulation of herbal products

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Advertising

Content removed from sample

Self-medication/self-care and Preventative Medicine

Content removed from sample

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