Table of Contents
Executive Summary
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- The market
- Market sales drop due to the COVID-19 outbreak but consumers’ attitude change will drive future growth
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on OTC analgesics and cough, cold and flu remedies market, Sept 2020
- OTC analgesic and cold and flu remedies sales are expected to pick up
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- Figure 2: Retail sales and forecast of OTC analgesics and antipyretics, cough, cold and flu, China 2015-25
- Figure 3: Retail sales and forecast of OTC cold, cough and flu, China 2015-25
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- Figure 4: Retail sales and forecast of OTC analgesics and antipyretics, China 2015-25
- Legislative reform, online-to-offline integration and knowledge increase are main drivers
- Companies and brands
- 999 maintains leading position while Yiling grows fast
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- Figure 5: Retail value share of OTC cold and flu companies, 2018-2022 (est)
- The consumer
- Nasal issues and feeling tired are most recalled cold and flu symptoms
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- Figure 6: Cold and flu symptoms, July 2020
- COVID-19 impact arouses consumers’ attention towards health protection and treatment
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- Figure 7: COVID-19 impact, July 2020
- Taking medicine for cold and flu is a common form of treatment
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- Figure 8: Treatment used, July 2020
- 999 Ganmaoling enjoys highest usage penetration
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- Figure 9: Medicine taken, medicine type, July 2020
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- Figure 10: Medicine taken, brand/product name name, July 2020
- On-demand delivery service platforms are emerging popular sales channels
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- Figure 11: Purchase channel, July 2020
- Functionality and convenience are most important choice factors
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- Figure 12: Choice factor, July 2020
- What we think
Issues and Insights
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- Format innovations that meet consumers’ needs will drive future growth
- The facts
- The implications
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- Figure 13: Example of NPD in OTC cough, cold and flu medicines – mini-gel and spray formats, UK, 2020
- Enriching and reinforcing functionality claims
- The facts
- The implications
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- Figure 14: Example of NPD in OTC cough, cold and flu medicines – products with immunity support, Canada and USA, Nov 2019
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- Figure 15: Example of Lianhua anti-virus products, October 2020
- Continue marketing communication to reinforce branding and resonate with consumers
- The facts
- The implications
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- Figure 16: Example of 999 Ganmaoling marketing communication – high-waisted thermal underwear and noodles with chicken soup, Feb 2019 and Feb 2020
The Market – What You Need to Know
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- OTC cold and flu will see recovery from COVID-19 impact
- Legislative reform and development of new purchasing channels will drive growth
Market Size and Forecast
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- Cold and flu OTC sales see negative impact from COVID-19 outbreak in 2020
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- Figure 17: Retail sales and forecast of OTC cold and flu, China 2015-25
- Increasing consumers’ awareness, legislative reform and emerging purchase channel drives future growth
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- Figure 18: Short-, medium- and long-term impact of COVID-19 on OTC analgesics and cough, cold and flu remedies market, Sept 2020
Market Factors
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- COVID-19 has negative impact on sales, but has changed consumers’ attitudes towards OTC cold and flu
- Registration policy speeds up new products launch
- Consumers are not yet used to purchasing medicine online, but on-demand delivery grows fast
- Consumers getting more familiar with online medical information channels
Market Segmentation
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- OTC cold, cough and flu maintains solid growth
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- Figure 19: Retail sales and forecast of OTC cold, cough and flu, China 2015-25
- OTC analgesics and antipyretics expected to achieve considerable growth
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- Figure 20: Retail sales and forecast of OTC analgesics and antipyretics, China 2015-25
Key Players – What You Need to Know
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- China Resource Sanjiu maintains leading position, while Yiling grows fast
- Leading companies focus on expanding portfolio, building awareness, and entering overseas market
- More innovation, especially on format, leaves white space for future growth
Market Share
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- 999 maintains leading position while Yiling grows fast
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- Figure 21: Retail value share of OTC cold and flu companies, 2018-2020 (est)
Competitive Strategies
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- Expanding product portfolio with major ingredients
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- Figure 22: Pudilan toothpaste introduction on ingredient, October 2020
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- Figure 23: Lianhua Qingfei plant-based drink, October 2020
- Continue investment in cross-over marketing to reinforce brand image
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- Figure 24: 999 TV Series collaboration with Qingyunian (a Chinese TV series), October 2020
- Entering overseas market
Who’s Innovating
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- China market overview
- Global trends
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- Figure 25: Example of NPD in OTC cough, cold and flu medicines – spray and plug-in formats, UK, 2020
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- Figure 26: Example of NPD in OTC cough, cold and flu medicines – sleeping aid and immunity support, UK & New Zealand, 2020 & 2019
- Figure 27: TikTok “Too Sick to be Sick” challenge campaign page, (captured) October 2020
The Consumer – What You Need to Know
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- Increased health consciousness since COVID-19
- 63% have used OTC for cold and flu treatment
- Drug stores used the most while on-demand delivery grows fast
- Functional claim is the most important choice factor
Cold and Flu Symptoms
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- Nasal issues and tiredness are most recalled issues
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- Figure 28: Cold and flu symptoms, July 2020
- Females and parents recognise more symptoms
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- Figure 29: Cold and flu symptoms, by gender, July 2020
Impact of COVID-19
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- COVID-19 outbreak increases attention towards health and treatment among consumers
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- Figure 30: COVID-19 impact, July 2020
- Parents and consumers aged 30-39 are willing to take more health supplements
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- Figure 31: COVID-19 impact, by age group, July 2020
- Figure 32: COVID-19 impact, by household income level, July 2020
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- Figure 33: COVID-19 impact, by marital status, July 2020
Treatment Used
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- Nearly two thirds of consumers take medicine for cold and flu
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- Figure 34: Treatment used, July 2020
- Females used more treatments for natural recovery
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- Figure 35: Treatment used, by gender, July 2020
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- Figure 36: Treatment used, by age group, July 2020
- Respondents with cough issues are more likely to take medicines
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- Figure 37: Treatment used (netted), by symptom, July 2020
- Figure 38: Treatment used – Took OTC Medicine, by symptom, July 2020
- Those who don’t take OTCs skewed to younger generations and prefer to exercise
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- Figure 39: Treatment used, by whether took medicine last time caught cold and flu, July 2020
Medicine Brands Usage
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- Chinese medicine over Western medicine, and Ganmaoling the most favourable cold & flu medicine
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- Figure 40: Medicine taken, medicine type, July 2020
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- Figure 41: Medicine taken, brand/product name, July 2020
- 999 Ganmaoling and Gankang used by more 25-29s
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- Figure 42: Medicine taken, brand/product name, by age group, July 2020
- TCM for stocking at home while Western medicines for instant treatments
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- Figure 43: Medicine taken, medicine type, by stocking preference after COVID-19 impact, July 2020
Purchase Channel
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- Drug store and counter are most frequently used channels
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- Figure 44: Purchase channel, July 2020
- Younger generations and consumers with middle to high household incomes embrace on-demand delivery services
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- Figure 45: Purchase channel, by age group, July 2020
- Figure 46: Purchase channel, by household income level, July 2020
- Consumers rely on drug stores and on-demand services for immediate needs
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- Figure 47: Purchase channel, by whether took medicine last time caught a cold or flu, July 2020
Choice Factor
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- Functionality and convenience are most important
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- Figure 48: Choice factor, July 2020
- Brand awareness is important to 30-39s and those with middle to high household incomes
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- Figure 49: Choice factor, very important, by age group, July 2020
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- Figure 50: Choice factor, very important, by household income level, July 2020
- Medicine users pay more attention to offline convenience
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- Figure 51: Choice factor, somewhat important, by whether took medicine last time caught a cold or flu, July 2020
Meet the Mintropolitans
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- More MinTs sensed their symptoms last time they caught a cold or flu
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- Figure 52: Cold and flu symptoms, by consumer classification, July 2020
- Significantly more MinTs will take health supplements to avoid getting cold and flu
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- Figure 53: COVID-19 impact, by consumer classification, July 2020
- MinTs take multiple treatments when catching a cold
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- Figure 54: Treatment used, by consumer classification, July 2020
- More MinTs purchased online
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- Figure 55: Purchase channel, by consumer classification, July 2020
- MinTs pay greater attention to format
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- Figure 56: Choice factor, by consumer classification, July 2020
Appendix – Market Size and Forecast
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- Figure 57: Retail value sales and forecast of OTC cold and flu, China, 2015-25
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Appendix – Market Segmentation
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- Figure 58: Retail value sales and forecast of OTC analgesics/antipyretics, China, 2015-25
- Figure 59: Retail value sales and forecast of OTC cold/cough/flu, China, 2015-25
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Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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