BEIJING, April 6 -- The over-the-counter (OTC) healthcare market in China is set to expand by 3.5 billion U.S. dollars over the next five years, making it the fastest growing OTC healthcare market in the world, according to a report from Euromonitor International.

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

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

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

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

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

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

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

The phenomenal performance of the vitamin and dietary supplement market in China is one of the major reasons behind the global success of Nutrilite by Alticor (Amway China), according to Euromonitor's report.

As one of the world's most valuable OTC healthcare brands, Nutrilite generates one-third of its total sales in China.

The brand leads the Chinese market with its Nutrilite Protein Powder, accounting for over 8 percent of total vitamin and dietary supplement sales.

"Nutrilite has harnessed the trend for consumers taking responsibility for their own health by employing the tagline, "no health, no future", and positioning their premium product as the best way to achieve this goal," said Crossley.

The Nutrilite brand is a key factor in Alticor's No 1 ranking in China's highly competitive OTC healthcare market.

Alticor is therefore well positioned to respond to the recent liberalization of direct selling in China, along with new direct sellers such as Joincare Pharmaceutical.

Euromonitor International predicted these companies would be able to raise the level of media exposure and consumer education on the benefits of self-medication, further improving growth in this burgeoning market.

The report also said that a lack of education in China would inhibit the market for products to help people quit smoking.

As the number of smokers in China continues to rise, a low level of product awareness, the withdrawal of the global brand Nicorette, and strong competition from herbal and traditional alternatives would create a difficult environment for OTC quit-smoking products to flourish, the report said.

(Source: China Daily)