Wound Treatments in India-Market Report
Headlines
·
Wound treatment value sales
reached Rs193 million in 2008. Other wound treatments, such as crepe bandages,
gauze and surgical tapes, grew by 10% in current value terms, compared to 7%
growth for sticking plasters. However, in actual terms, sticking plasters made
the greater contribution to sales growth, as the larger subsector.
·
The overall wound treatments
sector grew by 8% in current value terms in 2008, compared to 7% growth in
2007. This marginal acceleration in growth was due to consumers starting to
believe that branded products from companies such as Johnson & Johnson Ltd
deliver greater efficacy and are of better quality than unbranded ones that are
mainly sold in government and rural clinics.
·
Johnson & Johnson Ltd
dominates wound treatments, capturing a 71% share in value terms in 2008. This
is mainly due to Band Aid, which enjoys a strong brand image and is present in
many Indian households. Johnson & Johnson Ltd is followed by Beiersdorf
India Ltd, with an 18% value share, through brands such as Hansaplast and
Leukocrepe. Both companies saw marginal increases in their overall shares in 2008.
·
The wound treatments sector
sees a fair amount of competition from unbranded products in both sticking
plasters and other wound treatments. These products are mainly present in rural
India, and come in the form of rudimentary tapes and gauzes. To counter this
threat, companies have stepped up their rural marketing efforts with the aim of
raising brand awareness. For example, doctors in rural areas are shown samples
of branded products and company representatives explain their advantages over
unbranded ones.
·
In December 2007, Beiersdorf
India Ltd launched a brand extension to Hansaplast, called Hansaplast Silver
Healing. The product contains silver ions, which act as an additional
antiseptic. Although the scope for product differentiation is limited in wound treatments,
companies will try to introduce brand variants that promise greater efficacy
and medicinal properties to heal wounds and injuries faster.
·
The forecast period is expected
to see growth of 20% in sales of wound treatments in constant value terms. The
bulk of this growth is likely to come from consumers in rural areas, who will
benefit from increased spending power due to rising incomes. Single-unit packs
priced at Rs1-2 will spur product trial among rural consumers. Since wounds and
injuries compulsorily need to be treated when they happen, consumers are
expected to continue purchasing wound treatment products in 2009 as well, in
spite of the economic downturn in the country. As a result, growth in 2009,
will be marginally higher than that witnessed in 2008.
Sector Data
Rs million
2003 2004 2005 2006 2007 2008
Wound treatments 1,314.7 1,432.8 1,552.0 1,671.5 1,791.3 1,941.1
Sticking plasters 966.8 1,050.1 1,134.2 1,217.3 1,300.4 1,401.8
Other wound
treatments 347.9 382.7 417.9 454.2 490.9 539.3
Source: Official statistics, Trade
associations, Trade press, Company research, Store checks, Trade interviews,
Euromonitor International estimates
% current value
growth
2007/08 2003-08 CAGR 2003/08 TOTAL
Wound treatments 8.4 8.1 47.6
Sticking plasters 7.8 7.7 45.0
Other wound
treatments 9.9 9.2 55.0
Source: Official statistics, Trade
associations, Trade press, Company research, Store checks, Trade interviews,
Euromonitor International estimates
% retail value
rsp
Company 2004 2005 2006 2007 2008
Johnson &
Johnson Ltd 70.4 70.3 70.8 70.7 70.9
Beiersdorf India
Ltd 18.4 18.4 18.4 18.0 18.3
Others 11.2 11.3 10.8 11.4 10.9
Total 100.0 100.0 100.0 100.0 100.0
Source: Trade associations, Trade press,
Company research, Trade interviews, Euromonitor International estimates
% retail value
rsp
Brand Company 2005 2006 2007 2008
Band-Aid Johnson
& Johnson Ltd 59.2 59.0 58.8 58.5
Dynacrepe Johnson
& Johnson Ltd 10.8 11.4 11.5 11.8
Hansaplast Beiersdorf
India Ltd 11.7 11.7 11.3 11.3
Leukocrepe Beiersdorf India
Ltd 6.7 6.8 6.7 6.9
Johnson's Johnson
& Johnson Ltd 0.4 0.4 0.4 0.5
Others 11.3 10.8 11.4 10.9
Total 100.0 100.0 100.0 100.0
Source: Trade associations, Trade press,
Company research, Trade interviews, Euromonitor International estimates
Rs million
2008 2009 2010 2011 2012 2013
Wound treatments 1,941.1 2,028.5 2,112.1 2,191.4 2,265.8 2,336.0
Sticking plasters 1,401.8 1,457.6 1,510.4 1,560.8 1,608.0 1,652.7
Other wound
treatments 539.3 570.9 601.7 630.6 657.9 683.3
Source: Official statistics, Trade
associations, Trade press, Company research, Trade interviews, Euromonitor
International estimates
% constant value
growth
2008-13
CAGR 2008/13
TOTAL
Wound treatments 3.8 20.3
Sticking plasters 3.3 17.9
Other wound
treatments 4.8 26.7
Source: Official statistics, Trade
associations, Trade press, Company research, Trade interviews, Euromonitor International
estimates
