CH14 MY Herbal Traditional

HERBAL/TRADITIONAL
PRODUCTS IN MALAYSIA
Euromonitor International
April 2014

HE RB A L / T RA DI T I ONA L P RODUCT S I N MA L A Y S I A P a s s p o r t I
E u r o mo n i t o r I n t e r n a t i o n a l
LIST OF CONTENTS AND TABLES

Herbal/traditional Products in Malaysia - Category analysis ......................................................... 1
Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 2
Prospects ..................................................................................................................................... 2
Category Data .............................................................................................................................. 3
Table 1 Sales of Herbal/Traditional Products by Category: Value 2008-2013 .......... 3
Table 2 Sales of Herbal/Traditional Products by Category: % Value Growth
2008-2013 .................................................................................................... 3
Table 3 NBO Company Shares of Herbal/Traditional Products: % Value 2009-
2013 ............................................................................................................. 4
Table 4 LBN Brand Shares of Herbal/Traditional Products: % Value 2010-
2013 ............................................................................................................. 5
Table 5 Forecast Sales of Herbal/Traditional Products by Category: Value
2013-2018 .................................................................................................... 6
Table 6 Forecast Sales of Herbal/Traditional Products by Category: % Value
Growth 2013-2018 ....................................................................................... 7
Herbal/traditional Products in Malaysia - Company Profiles ......................................................... 8
Cerebos Sdn Bhd in Consumer Health (malaysia) ....................................................................... 8
Strategic Direction .................................................................................................................... 8
Company Background .............................................................................................................. 8
Production ................................................................................................................................ 8
Summary 1 Cerebos Sdn Bhd: Production Statistics 2013 .............................................. 8
Competitive Positioning ............................................................................................................ 9
Summary 2 Cerebos Sdn Bhd: Competitive Position 2013 ............................................. 9
Cosway (m) Sdn Bhd in Consumer Health (malaysia) ................................................................. 9
Strategic Direction .................................................................................................................... 9
Company Background ............................................................................................................ 10
Production .............................................................................................................................. 10
Competitive Positioning .......................................................................................................... 10
Summary 3 Cosway (M) Sdn Bhd: Competitive Position 2013 ...................................... 10
Elken Sdn Bhd in Consumer Health (malaysia) .......................................................................... 11
Strategic Direction .................................................................................................................. 11
Company Background ............................................................................................................ 11
Production .............................................................................................................................. 11
Competitive Positioning .......................................................................................................... 11
Summary 4 Elken Sdn Bhd: Competitive Position 2013 ................................................ 12
Consumer Health in Malaysia - Industry Overview ..................................................................... 13
Executive Summary ................................................................................................................... 13
Slight Growth Recorded in 2013 ............................................................................................. 13
Worsening Pollution Brings Higher Growth for Eye Care ........................................................ 13
International Players Dominate Consumer Health .................................................................. 13
Direct Selling Remains the Most Important Distribution Channel ........................................... 13
Slowing But Positive Growth for Consumer Health Is Expected Over the Forecast Period .... 13
HE RB A L / T RA DI T I ONA L P RODUCT S I N MA L A Y S I A P a s s p o r t I I
Key Trends and Developments .................................................................................................. 14
Busier, More Stressful Lifestyle and Urbanisation Help To Maintain Growth of Consumer
Health ..................................................................................................................................... 14
Stronger Demand From Female Consumers Drives Growth for Beauty-related Products ...... 14
High Percentage of Overweight and Obese Population .......................................................... 15
International and Direct Selling Players Dominates Consumer Health ................................... 16
Market Indicators ........................................................................................................................ 16
Table 7 Consumer Expenditure on Health Goods and Medical Services: Value
2008-2013 .................................................................................................. 16
Table 8 Life Expectancy at Birth 2008-2013 ........................................................... 17
Market Data ................................................................................................................................ 17
Table 9 Sales of Consumer Health by Category: Value 2008-2013 ........................ 17
Table 10 Sales of Consumer Health by Category: % Value Growth 2008-2013 ....... 17
Table 11 NBO Company Shares of Consumer Health: % Value 2009-2013 ............. 18
Table 12 LBN Brand Shares of Consumer Health: % Value 2010-2013 ................... 19
Table 13 Distribution of Consumer Health by Format: % Value 2008-2013 .............. 20
Table 14 Distribution of Consumer Health by Format and Category: % Value
2013 ........................................................................................................... 21
Table 15 Forecast Sales of Consumer Health by Category: Value 2013-2018 ......... 22
Table 16 Forecast Sales of Consumer Health by Category: % Value Growth
2013-2018 .................................................................................................. 22
Appendix .................................................................................................................................... 23
OTC Registration and Classification ....................................................................................... 23
Vitamins and Dietary Supplements Registration and Classification ........................................ 24
Self-medication/self-care and Preventative Medicine ............................................................. 25
Switches ................................................................................................................................. 25
Sources ...................................................................................................................................... 25
Summary 5 Research Sources ...................................................................................... 25

HE RB A L / T RA DI T I ONA L P RODUCT S I N MA L A Y S I A P a s s p o r t 1
HERBAL/TRADITIONAL PRODUCTS IN
MALAYSIA - CATEGORY ANALYSIS

HEADLINES

Herbal/traditional products grows by 6% to reach over RM1 billion in 2013
Herbal/traditional products continue to gain favour from consumers for their natural image
Herbal/traditional tonics and bottled nutritive drinks is the fastest-growing category at 13%
value growth
Cerebos Sdn Bhd continues to lead the category with over 14% value share
Herbal/traditional products is expected to grow with constant value CAGR of 3% over the
forecast period

TRENDS

Herbal/traditional consumer health products continued to be favoured by many consumers
thanks to the perception that they have fewer harmful side effects on the body compared to
non-herbal/traditional products. There were a rising number of consumers who turned to
alternative methods and natural remedies for minor illnesses.
2013s value growth was faster than the review periods CAGR, also due to the shifting trends
towards more natural remedies and growing favour for herbal/traditional products. As
consumers became more educated, more people were drawn towards herbal/traditional
products, even though they sometimes take a longer time to show effectiveness than
standard products.
Herbal/traditional tonics and bottled nutritive drinks was the fastest-growing category as it was
the only product with double-digit value growth amongst all herbal/traditional products. This
was attributed to the strong performance of tonics and bottled nutritive drinks as a whole.
Brands by Cerebos Sdn Bhd was the most popular brand, which also drove performance of
herbal/traditional tonics and bottled nutritive drinks thanks to the companys continuous
research and development efforts to launch new products and drive consumer demand.
Herbal/traditional medicines were increasingly packaged in nicely designed packaging in
order to convey an updated and modern look. There were still many herbal/traditional
medicine practitioners selling products in loose form, but it was increasingly easier to find
herbal/traditional medicines in readily packaged form, with detailed information on indications
and intake for consumer reference. This could be seen as the manufacturers efforts in
attracting the younger consumers who are busier and prefer convenience when buying
products.
Traditional Chinese Medicine (TCM) is popular, especially amongst the ethnic Chinese
community. The Chinese are the second largest ethnic group in Malaysia, after Malays. The
concept of TCM is familiar to many people, especially the middle-aged and elderly population
who tend to prefer TCM rather than modern medicine. Eu Yan Sang, a company that was
established in Malaysia but is now headquartered in Singapore, is one of the most popular
TCM producers, which has established a popular brand name with a chain of retail shops
throughout the country which focus on TCM products.
Paediatric products did not have a major presence in herbal/traditional products. Like almost
all kinds of medicines, parents are usually less confident in self-medication for their children
compared to for themselves. Thus, parents usually take their children to the clinics instead of
purchasing herbal/traditional medicine.

COMPETITIVE LANDSCAPE

Cerebos Sdn Bhd further gained share and maintained its leading position in herbal/traditional
products in 2013. Brands was one of the most popular brands in vitamins and dietary
supplements, having built its reputation over a long history. The companys position was
further strengthened in 2013 by its continuous efforts in researching and developing new
products to capture consumer trends. At the end of 2012, the company launched Brands
Innershine RubyCollagen Essence, which is a collagen drink fortified with micro-collagen for
better absorption by the body, and astaxanthin (micro-algae extract), advertised as natures
most powerful antioxidant. The new product saw a good reception in the market.
International companies dominated shares of herbal/traditional products in 2013. Amongst the
top 10 players, there were only two local ones, namely Elken Sdn Bhd and Cosway (M) Sdn
Bhd. International players had the advantage of a long history of presence and brand-building
activities in the country, making them more well known and trusted by many consumers.
Besides, as herbal/traditional vitamins and dietary supplements was the biggest category in
terms of value sales, international direct selling players like Nu Skin, Forever Living Products
and Amway gained a competitive advantage as they also dominated the category of vitamins
and dietary supplements.
Most marketing campaigns of herbal/traditional products focused on their natural ingredients
and brand image. For example, one of the main ingredients of the new product Brands
Innershine RubyCollagen Essence is astaxanthin, a micro-algae extract, advertised to be
natures most powerful antioxidant. Eu Yan Sang, a company focusing on Traditional Chinese
Medicine, also has always leveraged on its herbal medicine heritage in its advertising and
marketing campaigns.
The presence of private label in herbal/traditional products remained negligible in 2013.
Consumers were more drawn towards branded products for their trusted image and high
quality. Herbal/traditional products also seldom had direct competition with standard OTC
medicines, as they catered to different consumers. Consumers usually sought
herbal/traditional medicines as they wanted a more natural alternative to the regular products.

PROSPECTS

Herbal/traditional products will continue to grow with a constant value CAGR of 3% over the
forecast period. Market performance will be maintained thanks to continuously rising demand
for more natural medicinal alternatives to standard medicines and dietary supplements. As
consumers become more and more educated, they are more aware of various long-term side
effects that standard medicines have on their body. As such, more people will be actively
seeking herbal/traditional products, starting with minor illnesses like flu, coughs and colds.
One potential threat to growth is the increasingly busier and more stressful lifestyle that many
urban Malaysian consumers are leading. Due to this lifestyle, many people prefer a quick and
effective way to treat their illnesses so that they can go back to their normal lives and work.
Herbal/traditional medicines are perceived to be less effective, or to take a longer time than
standard medicine to show effectiveness. Thus, many consumers still choose standard
medicines when they need to recover fast.
Companies will continue to focus on building their brand image, together with marketing
efforts to communicate the effectiveness and natural image of their products to the
consumers. As demand for herbal/traditional products increases, competition will also rise and
companies have to spend more on marketing, research and development in order to stand
out.

CATEGORY DATA

Table 1 Sales of Herbal/Traditional Products by Category: Value 2008-2013

RM million
2008 2009 2010 2011 2012 2013

Herbal/Traditional 54.5 57.2 60.7 64.5 68.5 72.7
Topical Analgesics
Herbal/Traditional - - - - - -
Calming and Sleeping
Products
Cough, Cold and Allergy
(Hay Fever) Remedies
Digestive Remedies
Dermatologicals
Medicinal Teas
Smoking Cessation Aids
Paediatric Dietary
Supplements
Dietary Supplements
Tonics and Bottled
Nutritive Drinks
Herbal/Traditional 794.1 843.8 890.3 935.2 981.3 1,041.0
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 by Category: % Value Growth 2008-2013

% current value growth
2012/13 2008-13 CAGR 2008/13 Total

Herbal/Traditional Topical Analgesics 6.0 5.9 33.3
Herbal/Traditional Calming and - - -
Sleeping Products
Herbal/Traditional Cough, Cold and 4.7 4.2 22.8
Allergy (Hay Fever) Remedies
Herbal/Traditional Digestive Remedies 1.4 1.4 7.2
Herbal/Traditional Dermatologicals - - -
Herbal/Traditional Medicinal Teas - - -
Herbal/Traditional Smoking Cessation - - -
Aids
Herbal/Traditional Paediatric Dietary - - -
Supplements
Herbal/Traditional Dietary Supplements 4.2 4.1 22.3
Herbal/Traditional Tonics and Bottled 13.0 11.9 75.1
Nutritive Drinks
Herbal/Traditional Products 6.1 5.6 31.1

Table 3 NBO Company Shares of Herbal/Traditional Products: % Value 2009-2013

% retail value rsp
Company 2009 2010 2011 2012 2013

Cerebos Sdn Bhd 10.9 11.8 12.2 12.9 14.1
Elken Sdn Bhd 8.2 8.0 7.8 7.6 7.5
Lofthouse of Fleetwood 4.3 4.2 4.1 4.0 3.9
Ltd
Ricola Asia Pacific Pte 3.7 3.7 3.6 3.6 3.5
Ltd
Nu Skin (M) Sdn Bhd 3.1 3.3 3.3 3.3 3.3
Forever Living Products 3.5 3.4 3.3 3.2 3.2
(M) Sdn Bhd
Cosway (M) Sdn Bhd 3.5 3.5 3.3 3.2 3.1
Amway (M) Sdn Bhd 2.6 2.6 2.7 2.8 2.8
Kraft Foods (M) Sdn Bhd - 3.1 3.0 2.9 2.8
Haw Par Healthcare Ltd 2.2 2.3 2.5 2.7 2.7
Yomeishu Seizo Co Ltd 2.3 2.4 2.2 2.2 2.2
Bio-Life Marketing (M) 2.2 2.2 2.2 2.1 2.1
Sdn Bhd
VitaHealth Asia Pacific 2.1 2.0 2.0 1.9 1.9
(S) Pte Ltd
Nin Jiom Medicine Mfy 1.5 1.6 1.7 1.7 1.7
(Hong Kong) Ltd
Kordel's Ltd 1.7 1.7 1.7 1.6 1.6
CNI Enterprise (M) Sdn 1.9 1.7 1.6 1.6 1.5
Bhd
Eu Yan Sang (1959) Sdn 0.7 0.9 1.2 1.2 1.2
Bhd
Blackmores (M) Sdn Bhd 1.0 1.0 1.1 1.1 1.1
Leung Kai Fook Co Ltd 0.7 0.8 0.8 0.8 0.8
Enseval Megatrading (M) 0.8 0.8 0.8 0.8 0.8
Sdn Bhd
21st Century Products 0.7 0.8 0.7 0.7 0.7
Sdn Bhd
Procter & Gamble (M) 0.7 0.7 0.7 0.7 0.7
Sdn Bhd
Vita Health 0.7 0.7 0.7 0.7 0.6
Laboratories Pte Ltd
Li Chung Shing Tong 0.7 0.7 0.7 0.6 0.6
(Holdings) Ltd
Merck (M) Sdn Bhd 0.5 0.5 0.5 0.6 0.5
Soho Flordis - - - - 0.5
International Pty Ltd
Huamao Agencies Sdn Bhd 0.7 0.7 0.7 0.6 0.5
Beaufour-Ipsen SA 0.6 0.6 0.6 0.5 0.5
Poon Goor Soe Ltd 0.6 0.5 0.5 0.5 0.5
Luen Fook Medicine Sdn 0.3 0.3 0.3 0.3 0.3
Bhd
Herbal Revival Sdn Bhd 0.3 0.3 0.3 0.3 0.3
Ranbaxy (M) Sdn Bhd 0.2 0.2 0.2 0.2 0.2
Reckitt Benckiser (M) 0.2 0.2 0.2 0.2 0.2
Sdn Bhd
Rohto-Mentholatum (M) 0.2 0.2 0.2 0.1 0.1
Sdn Bhd
Total Health Concept 0.1 0.1 0.1 0.1 0.1
Sdn Bhd
Hacks (M) Sdn Bhd 1.7 - - - -
Cadbury Confectionery 1.5 - - - -
(M) Sdn Bhd
Boehringer Ingelheim 0.6 0.6 0.6 0.6 -
(M) Sdn Bhd
Supreme Health Products - - - - -
Sdn Bhd
Others 32.7 32.0 32.1 32.1 31.8
Total 100.0 100.0 100.0 100.0 100.0

Table 4 LBN Brand Shares of Herbal/Traditional Products: % Value 2010-2013

% retail value rsp
Brand Company 2010 2011 2012 2013

Brand's Cerebos Sdn Bhd 11.8 12.2 12.9 14.1
Elken Elken Sdn Bhd 7.6 7.4 7.2 7.0
Fisherman's Friend Lofthouse of Fleetwood Ltd 4.2 4.1 4.0 3.9
Ricola Ricola Asia Pacific Pte 3.7 3.6 3.6 3.5
Ltd
Pharmanex Nu Skin (M) Sdn Bhd 3.3 3.3 3.3 3.3
Pomesteen Forever Living Products 3.4 3.3 3.2 3.2
(M) Sdn Bhd
Cosway Cosway (M) Sdn Bhd 3.5 3.3 3.2 3.1
Nutrilite Amway (M) Sdn Bhd 2.6 2.7 2.8 2.8
Yomeishu Yomeishu Seizo Co Ltd 2.4 2.2 2.2 2.2
Tiger Balm Haw Par Healthcare Ltd 1.9 2.0 2.1 2.2
Bio-Life Bio-Life Marketing (M) 2.2 2.2 2.1 2.1
Sdn Bhd
VitaHealth VitaHealth Asia Pacific 2.0 2.0 1.9 1.9
(S) Pte Ltd
Kordel's Kordel's Ltd 1.7 1.7 1.6 1.6
Halls Kraft Foods (M) Sdn Bhd 1.5 1.4 1.4 1.4
Hacks Kraft Foods (M) Sdn Bhd 1.6 1.6 1.5 1.4
CNI CNI Enterprise (M) Sdn Bhd 1.5 1.4 1.3 1.2
Eu Yan Sang Eu Yan Sang (1959) Sdn Bhd 0.9 1.2 1.2 1.2
Blackmores Blackmores (M) Sdn Bhd 1.0 1.1 1.1 1.1
Nin Jiom Pei Pa Koa Nin Jiom Medicine Mfy 1.0 1.0 1.0 1.0
(Hong Kong) Ltd
Axe Brand Leung Kai Fook Co Ltd 0.8 0.8 0.8 0.8
Woods' Enseval Megatrading (M) 0.8 0.8 0.8 0.8
Sdn Bhd
Nin Jiom Nin Jiom Medicine Mfy 0.6 0.7 0.7 0.7
(Hong Kong) Ltd
21st Century 21st Century Products 0.8 0.7 0.7 0.7
Sdn Bhd
Vicks Procter & Gamble (M) 0.7 0.7 0.7 0.7
Sdn Bhd
VitaHealth Vita Health 0.7 0.7 0.7 0.6
Laboratories Pte Ltd
Po Chai Li Chung Shing Tong 0.7 0.7 0.6 0.6
(Holdings) Ltd
Kwan Loong Haw Par Healthcare Ltd 0.5 0.5 0.5 0.6
Medicated Oil
Seven Seas Merck (M) Sdn Bhd 0.5 0.5 0.6 0.5
Ginsana Soho Flordis - - - 0.5
International Pty Ltd
Polleney Huamao Agencies Sdn Bhd 0.7 0.7 0.6 0.5
Tanakan Beaufour-Ipsen SA 0.6 0.6 0.5 0.5
Poon Goor Soe Poon Goor Soe Ltd 0.5 0.5 0.5 0.5
Win Elken Sdn Bhd 0.4 0.4 0.4 0.5
African Sea Coconut Luen Fook Medicine Sdn Bhd 0.3 0.3 0.3 0.3
Thomson Herbal Revival Sdn Bhd 0.3 0.3 0.3 0.3
Royal Ginkgo CNI Enterprise (M) Sdn Bhd 0.3 0.2 0.2 0.2
Ranbaxy Ranbaxy (M) Sdn Bhd 0.2 0.2 0.2 0.2
Senokot Reckitt Benckiser (M) 0.2 0.2 0.2 0.2
Sdn Bhd
Mentholatum Rohto-Mentholatum (M) 0.2 0.2 0.1 0.1
Sdn Bhd
Total Health Concept Total Health Concept 0.1 0.1 0.1 0.1
Sdn Bhd
Ginsana Boehringer Ingelheim 0.6 0.6 0.6 -
(M) Sdn Bhd
Hacks Hacks (M) Sdn Bhd - - - -
Halls Cadbury Confectionery - - - -
(M) Sdn Bhd
Sky Green Spirulinar Supreme Health Products - - - -
Sdn Bhd
Others 32.0 32.1 32.1 31.8
Total 100.0 100.0 100.0 100.0

Table 5 Forecast Sales of Herbal/Traditional Products by Category: Value 2013-2018

RM million
2013 2014 2015 2016 2017 2018

Topical Analgesics
Calming and Sleeping
Products
Cough, Cold and Allergy
(Hay Fever) Remedies
Digestive Remedies
Dermatologicals
Medicinal Teas
Smoking Cessation Aids
Paediatric Dietary
Supplements
Dietary Supplements
Tonics and Bottled
Nutritive Drinks
Herbal/Traditional 1,041.0 1,077.8 1,114.2 1,149.5 1,183.6 1,216.5
Products
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 6 Forecast Sales of Herbal/Traditional Products by Category: % Value Growth
2013-2018

% constant value growth
2013-18 CAGR 2013/18 TOTAL

Herbal/Traditional Topical Analgesics 3.1 16.5
Herbal/Traditional Calming and Sleeping Products - -
Herbal/Traditional Cough, Cold and Allergy (Hay 3.0 15.7
Fever) Remedies
Herbal/Traditional Digestive Remedies -1.2 -5.9
Herbal/Traditional Dermatologicals - -
Herbal/Traditional Medicinal Teas - -
Herbal/Traditional Smoking Cessation Aids - -
Herbal/Traditional Paediatric Dietary Supplements - -
Herbal/Traditional Dietary Supplements 1.6 8.2
Herbal/Traditional Tonics and Bottled Nutritive 7.0 40.2
Drinks
Herbal/Traditional Products 3.2 16.9
trade sources

HERBAL/TRADITIONAL PRODUCTS IN
MALAYSIA - COMPANY PROFILES

CEREBOS SDN BHD IN CONSUMER HEALTH (MALAYSIA)

Strategic Direction

Cerebos Sdn Bhd aims to strengthen its position in vitamins and dietary supplements by
continuing to focus on research and development in order to launch new products that are
suitable for market needs and demands. Marketing activities are also paid special attention by
the company to raise awareness and brand equity for its core brand, Brands.

Company Background

Cerebos Sdn Bhd is a subsidiary of the Singaporean company Cerebos Pacific Ltd. By the
end of 2013, Cerebos Pacific Ltd held 60% of Cerebos Sdn Bhds shares. Cerebos Pacific is
publicly listed on the Singapore Exchange and has business operations in the consumer
health and packaged food industries.
Cerebos most popular brand is Brands, which includes liquid dietary supplement products.
Besides, it also has operations in packaged food and drinks.
Cerebos Sdn Bhd has a national coverage. It does not operate its own retail stores but it
distributes its products through supermarkets, hypermarkets, pharmacies and Chinese
medical halls. Its most popular brand, Brands, can be easily found throughout the country
due to its popularity and high demand from consumers.
In 2012, Cerebos Sdn Bhd won the Guardian Consumer Choice Awards in the Beauty Drink
category with the product Brands InnerShine Berry Essence with Grape Seed Extract. The
company was also awarded a Gold medal at the Malaysia Putra Brand Awards 2012.

Production

Cerebos Sdn Bhd opened its new manufacturing plant in Shah Alam in 2010 to replace the
previous one in Petaling Jaya with a more modern facility and higher capacity. The new
manufacturing plant specialises in its flagship brand, Brands, with a capacity of nearly 2
million bottles a month.
Cerebos manufacturing plant in Shah Alam caters to both the local market and export
markets.
Cerebos is not known to produce for any other third parties, including licensing and private
label, as the company focuses on its own brands to maintain high quality for all of its products.

Summary 1 Cerebos Sdn Bhd: Production Statistics 2013
Location Brand Annual production
Shah Alam Brands Nearly 22 million bottles
Source: Euromonitor International from company reports, company research, trade interviews


Competitive Positioning

Cerebos Sdn Bhd was ranked fourth in consumer health in 2013 with a value share of over
4%. Especially, the company was the leader in tonics and bottled nutritive drinks with over
half of the value share. Its share has been increasing continuously over the review period
thanks to strong efforts in research and development to launch new products that cater to
changing market demand. For example, at the end of 2012, the company launched Brands
Innershine RubyCollagen Essence, which is differentiated from other collagen drinks in the
market by containing micro-collagen molecules for better absorption by the body and
astaxanthin (micro-algae extract), advertised as natures most powerful antioxidant.
Although the company participates in a wide range of industries, from consumer health to
packaged food and drinks, it has a pretty narrow product portfolio in consumer health alone.
Its brand, Brands, focuses only on tonics and bottled nutritive drinks. This is one of the
fastest-growing categories in consumer health, giving the company lots of opportunity for
growth. Besides, by focusing on just one category, the company is able to build a very strong
brand equity. Brands is a well-known household name when it comes to tonics and bottled
nutritive drinks.
Cerebos Sdn Bhd positions itself at the mid-range of the market, with a pricing strategy that is
affordable to most middle-income and upper-income urban families.
Cerebos Sdn Bhd could be considered a leader in terms of market innovation. Over the years,
the company has launched many new products with novel features to the market, such as
Brands Innershine RubyCollagen Essence at the end of 2012. Many of its products have
garnered success and awards. For example, in 2012, the company won the Guardian
Consumer Choice Awards in the Beauty Drink category with Brands InnerShine Berry
Essence with Grape Seed Extract.

Summary 2 Cerebos Sdn Bhd: Competitive Position 2013
Product type Value share Rank
Consumer health 4.3% 4
Vitamins and dietary
supplements
8.5% 2
Tonics and bottled nutritive
drinks
50.5% 1

COSWAY (M) SDN BHD IN CONSUMER HEALTH (MALAYSIA)

Strategic Direction

Cosway (M) aims to maintain its position in consumer health by continuously investing in
research and development to launch better products, expanding its distribution network, as
well as modernising its brand image to compete with its main competitors, which are mostly
international direct sellers.

Company Background

Cosway (M) is an independent private company which began its operations in Malaysia in
December 1979. It is also a wholly-owned subsidiary of Berjaya Group in Malaysia. Cosway
(M)s headquarters is located at Wisma Cosway, in the middle of Kuala Lumpurs premier
Golden Triangle area.
The company specialises in the direct selling model with a wide range of products, including
beauty and personal care, vitamins and dietary supplements, weight management products,
home care and packaged food amongst others. Apart from direct selling, Cosway (M) has
also ventured into Cosway Pharmacy by opening new store-based retail outlets selling its own
products as well as prescribed drugs from other manufacturers.
Cosway (M) has hundreds of its Stockist Centres located throughout the country which are
responsible for distributing its products to its sales agents and customers. Almost all the
states in Malaysia are covered by these Stockist Centres. In addition, its Cosway Pharmacy
concept stores have helped to enhance the coverage of its distribution network within
Malaysia since their opening in 2012.

Production

Cosway (M) does not handle the manufacturing of its products by itself, but it collaborates
with contract manufacturers, one of which is Eng Kah Corp Bhd. Cosway (M) also owns a few
subsidiaries that it has acquired over the years, which are in charge of the manufacturing of
some of its products. Thanks to its strong manufacturing capacity that comes from both of its
subsidiaries and contract manufacturers, Cosway (M) supplies the Malaysian market locally,
and even exports to neighbouring countries, such as Singapore.
Cosway (M) is not known to manufacture for any other third parties, either under licence or
private label.


In 2013, Cosway (M) was ranked seventh in Malaysian consumer health with a value share of
just over 3%. The company has lost share over the review period and dropped in ranking from
the fourth place in 2008 to seventh in 2010, mainly due to the lack of product innovation, a
dull brand image and strong competition from international players like Herbalife Products (M)
and Amway (M).
By focusing on vitamins, dietary supplements and weight management products, the
company positions itself in some of the highest-growing categories of the Malaysian
consumer health industry.
Cosway (M) possesses a very wide product portfolio, including consumer health, beauty and
personal care, home care and packaged food amongst others. That being said, despite being
well known for its extensive product portfolio, the company is not as famous in terms of
product quality. The company targets mainly the low-end segment with consumers who look
for value for money products.

Summary 3 Cosway (M) Sdn Bhd: Competitive Position 2013
supplements
5.8% 4
Dietary supplements 6.9% 4
Vitamins 8.3% 3
Weight management 0.4% 9
Slimming teas 13.1% 4

ELKEN SDN BHD IN CONSUMER HEALTH (MALAYSIA)

Strategic Direction

Elken Sdn Bhd aims to raise its share in vitamins and dietary supplements in Malaysia,
especially maintaining its leading ranking in spirulina, through a combination of strong
marketing activities, widening distribution network and research and development to launch
new products to cater to changing market needs and demands.

Company Background

Elken Sdn Bhd was established in Malaysia in 1995 and remained a private company at the
end of 2013. Over the years, the company has opened branches in neighbouring countries,
including Singapore, Thailand, Indonesia, Brunei and Hong Kong, China.
The company has a wide range of products, including consumer healthcare, beauty and
personal care, packaged food, non-alcoholic drinks and home appliances. Its consumer
healthcare products, consisting mostly of vitamins and dietary supplements, remained some
of its most popular products in 2013.
Elken Sdn Bhd has a national coverage, spreading from East to West Malaysia. West
Malaysia (or Peninsular Malaysia) has a higher concentration of its business due to the better
economic conditions compared to East Malaysia.
In 2013, the company continued its regional expansion with the opening of a Hanoi office and
service centre, marking its second year of operation in Vietnam after the opening of the Ho
Chi Minh City office in 2012.

Production

Elken Sdn Bhd supplies the local market from in-country manufacturing facilities. Besides, the
company also exports to other Asian countries, including Singapore; Hong Kong, China;
Vietnam; and India, amongst others.
It is not known that Elken Sdn Bhd also produces for any other third parties, including
licensing and private label. The company mostly focuses on its own brand in order to maintain
the high quality of its products.


Elken Sdn Bhd was ranked eighth in consumer health in Malaysia in 2013. Especially, the
company was ranked the top player in spirulina with a dominating share of 66%. Elken Sdn
Bhds spirulina is very popular in the market thanks to its early entrance to this category, and
strong marketing and advertising activities that have made Elken a household name for
spirulina products.
Its share in consumer health was decreasing over the review period, although the company
still sustained its market share in spirulina. The reason was because of spirulinas slower
growth compared to the whole consumer health industry. Spirulina is considered to be more
mature than many other vitamins and dietary supplements products, due to its early
appearance in Malaysia.
Although Elken Sdn Bhd has quite many products in its portfolio, the bulk of its revenue
comes from spirulina. As such, the performance of this category has great impact on the
companys total sales. Spirulinas slow growth negatively affected Elken Sdn Bhds
performance over the review period, resulting in its lowering share.
Elken Sdn Bhd positions itself at the mid-range of the market, targeting middle-income urban
consumers.

Summary 4 Elken Sdn Bhd: Competitive Position 2013
supplements
5.2% 5
Dietary supplements 8.5% 2
Spirulina 66.2% 1

CONSUMER HEALTH IN MALAYSIA -
INDUSTRY OVERVIEW

EXECUTIVE SUMMARY

Slight Growth Recorded in 2013
Consumer health in Malaysia recorded slightly slower growth in 2013 as compared to 2012
and the review periods CAGR, mainly due to the maturity of most products. There were no
significant events and happenings in 2013 to result in a stronger overall performance for
consumer health. Vitamins and dietary supplements was one of the few products with higher
growth rate in 2013, as consumers were more concerned about their long-term health and were
more willing to spend on sickness prevention.

Worsening Pollution Brings Higher Growth for Eye Care
In 2013, eye care recorded a value growth rate that was slightly faster than 2012 growth and
the review periods CAGR, due to the very bad air pollution caused by wildfires from Indonesia.
Strong wind blew the smoke from Indonesia to many places in Malaysia, in some cases causing
the air pollution index to rise to hazardous levels. Besides creating respiratory sicknesses such
that many people had to seek help from doctors, the air pollution also led to eye problems,
which eventually led to a surging demand for eye care products.

International Players Dominate Consumer Health
International players continued to dominate consumer health with their trusted and well-known
brands. International players tend to have the advantage over local players in terms of bigger
financial capability for research and development, world-renowned brands and stronger
marketing budgets. Thus, it was usually challenging for local players to gain shares at the
expense of international players.

Direct Selling Remains the Most Important Distribution Channel
Direct selling continued to grow in value share and maintain its leading position as the biggest
distribution channel for consumer health in 2013. Direct selling is especially crucial for weight
management products and vitamins and dietary supplements, where direct sellers like Herbalife
Products (M), Amway (M) and Nu Skin (M) led the market with dominating shares. However, in
OTC medicine, health specialists like chemists and drugstores still accounted for the biggest
shares as they are the most convenient and familiar channels when consumers need to buy
medicine urgently.

Slowing But Positive Growth for Consumer Health Is Expected Over the
Forecast Period
In the 5-year forecast period, consumer health is expected to record slowing growth, but
constant value growth rates will remain positive. Slowing growth is inevitable due to the maturity
of the industry. However, as consumer awareness of health issues rises and consumers
become more confident with self-medication, demand for consumer health products will
continue to rise.


KEY TRENDS AND DEVELOPMENTS

Busier, More Stressful Lifestyle and Urbanisation Help To Maintain
Growth of Consumer Health
With the positive growth of the local economy and further integration of Malaysia into the
regional and global economy, more jobs were being created, and people became busier with
their working lives. Urbanisation also contributed to this issue, as the urban population rose
continuously every year throughout the review period. With the more stressful urban lifestyle,
more people were prone to sicknesses, such as eating disorders or sleeping disorders.
Together with this urbanisation trend, consumers also became more educated, and many
were more comfortable with the idea of self-medication. As they had more knowledge about
different kinds of OTC medicines and vitamins and dietary supplements, they felt more confident
making decisions about choosing medicines to treat certain minor diseases.
As a result, consumer health continued to record pretty strong growth of nearly 8% in retail
value sales in 2013, just slightly slower than that of 2012. Certain products even logged much
better growth in 2013 compared to the previous year, such as tonics and bottled nutritive drinks,
spirulina, cod liver oil and multivitamins.

Outlook
Consumer health in Malaysia is expected to continue recording good positive growth over the
forecast period. Even though Malaysia already has a pretty high urban population compared to
other ASEAN countries, urbanisation will continue taking place as the percentage of the urban
population is expected to rise from 73% in 2013 to 77% in 2018. With this, the education level of
most consumers will be improved and they will have more knowledge of self-medication and
other consumer health products. Urbanisation will also lead to a busier and more stressful
lifestyle for many people, resulting in many sicknesses that would provide an opportunity for
consumer health to grow.
As consumers become more educated and sophisticated, more will also be attracted to the
idea of prevention is better than cure. As such, products like vitamins, dietary supplements and
weight management products will perform well in the forecast period as they are all perceived as
having disease-preventing benefits. NRT smoking cessation aids is also another category with
high growth expected over the forecast period, as more people try to quit smoking as a way to
maintain good health.

Stronger Demand From Female Consumers Drives Growth for Beauty-
related Products
By the end of 2012, women made up over 46% of Malaysias workforce, which was still lower
than the percentage of women in the population of 49% and the average of ASEAN countries.
However, this percentage has been growing over the review period thanks to the governments
efforts in educating the people on gender equality and in bringing more of the female population
to school. This has brought more financial independence to female consumers, and also
increased the demand for taking care of ones personal image as the women have more
exposure to the public.
As a result of the rising financial independence and higher demand for taking care of ones
self-image, more women purchased beauty-related consumer health products as a way to
improve their health and look, besides cosmetics and skin care products. These included
several vitamins and dietary supplements that are positioned for beauty care, such as
coenzyme Q10 and tonics and bottled nutritive drinks. Collagen drinks were amongst the most
popular products with brands like Brands, Kinohimitsu and NH Colla Plus. Companies also
spent on research and development to go further with their ingredients to launch products that
have better quality. For example, Cerebos Sdn Bhd launched Brands Innershine RubyCollagen
Essence at the end of 2012 that contains micro-collagen for better absorption by the body and
astaxanthin (micro-algae extract), which is advertised to be natures most powerful antioxidant.
Being slim is also perceived as a major factor of beauty in Malaysia. As a result, products like
meal replacement slimming and weight loss supplement also recorded good growth in 2013.
Consumers want to look beautiful, but they have little time to exercise and eat healthily due to
the busy schedule of office work and housework. Thus, many female consumers relied on these
products to maintain their slim figure and stay beautiful.

Outlook
With better education and efforts from the government to balance the ratio of men versus
women in the workforce, the percentage of female workers is expected to continue increasing
over the forecast period. Besides, together with the rising trend in disposable income of the
whole country, the female population will also be able to achieve more financial impendence.
In the forecast period and beyond, many beauty-related products are expected to continue
recording strong growth as a result of the rising demand from the female consumers to take
care of their health and beauty. These would include products that are positioned as beauty
from within, such as coenzyme Q10 and collagen drinks, and also weight management
products.
With better education level, consumers will also be smarter in choosing their products. As
such, the competition level will rise as companies will spend every effort in tapping into this fast-
rising market segment. Research and development for improvement of product quality is crucial
for success, as the female consumers will have more sophisticated demand when selecting their
healthcare and beauty products. Marketing programmes will also play a big role in building
brand names and communicating the products quality and effectiveness to consumers.

High Percentage of Overweight and Obese Population
Malaysia has the highest percentage of overweight and obese population amongst ASEAN
countries. In 2012, 29% of the population was overweight, and 15% was obese. Furthermore,
these statistics grew steadily throughout the review period. Reasons included unhealthy eating
habits, as many traditional Malaysian dishes are high in simple carbohydrates and oil, and the
increasingly busy lifestyle that resulted in more stress and less time for exercise. Overweight
and obese conditions led to high numbers of cardiovascular diseases, which was one of the
major concerns of consumer health in 2013.
Many consumers tried various ways to control their weight, by changing their lifestyle and
eating habits. Weight management products are also consumed on a regular basis by many
consumers as a convenient and easy way to lose weight and improve their health condition.
Meal replacement slimming, for example, recorded outstanding growth of over 17% in 2013.
Concerns for cardiovascular diseases also led to rising consumption of certain OTC
medicines, one of which is aspirin. Aspirin is not widely known as a painkiller, the positioning
that has been dominated by acetaminophen, but by its ability in prevention of heart attacks and
other cardiovascular diseases. A majority of aspirin sold in the market was low-dose (300-
350mg), which was used for this purpose instead of the standard dose (500mg), which was
used as a painkiller.

Outlook
Despite the governments efforts in educating the public on healthier eating ways and
promoting exercise, the percentage of the overweight and obese population is not expected to
see a significant lowering trend over the forecast period. The traditional Malaysian eating habits,
with food that tends to be high in carbohydrates and fats, have been deeply rooted in many
Malaysian consumers and it is hard for them to change in a short period of time. Besides, a
busier lifestyle also causes people to have less time for exercising and taking proper care of
themselves.
The high percentage of the overweight and obese population will continue to bring
opportunities for weight management products, as consumers seek an easy and convenient
way to maintain a healthy weight. OTC medicines like low-dose aspirin will also see rising
demand as overweight and obese people consume it to prevent heart-related diseases. Over
the forecast period, aspirin is expected to be the fastest-growing product in analgesics,
overtaking the faster growth rate of acetaminophen during the review period.

International and Direct Selling Players Dominates Consumer Health
Big international companies took the high rankings in the consumer health industry in
Malaysia, amongst which there were many direct sellers such as Herbalife Products, Amway,
Nu Skin and USANA Health Sciences. International players had the advantage over local
players in terms of stronger financial capability, more well-known brands and longer history of
research and development knowledge. Thus, for consumer health products which tend to attract
consumers based on the popularity and trustworthiness of the brand names and product quality,
international companies fared better than local players.
Direct selling companies led in weight management and vitamins and dietary supplements.
These products observed strong growth over the review period thanks to rising disposable
income and increasing consumer awareness of healthcare and sickness prevention issues.
However, unlike OTC medicines for which consumers can seek clear indication information from
the packaging or from the doctors and pharmacists, vitamins and dietary supplements are not
meant to cure any specific disease. Thus, direct selling agents played an important role in
promoting the benefits of their products in terms of sickness prevention to the consumers to
drive demand and sales.

Outlook
This trend is expected to continue over the forecast period. Big international players have built
such a strong position in the country that it is very challenging for local players to compete.
Besides, these international players will continue to invest in Malaysia in order to maintain and
strengthen their rankings.
With the strong growth of weight management products and vitamins and dietary
supplements, the positions of direct selling players will continue to be strengthened over the
forecast period. In fact, these companies have continuously gained shares over the review
period, and this momentum will carry on in the near future as consumers still have trust in their
products and consultations with representatives.

MARKET INDICATORS

Table 7 Consumer Expenditure on Health Goods and Medical Services: Value 2008-
2013

RM million
2008 2009 2010 2011 2012 2013

Pharmaceuticals, 5,505.6 6,105.5 6,652.8 7,237.6 8,124.1 8,925.7
medical appliances/
equipment
Outpatient services 2,119.1 2,311.6 2,484.8 2,668.8 2,960.6 3,215.2
Hospital services 1,254.2 1,354.0 1,442.8 1,536.6 1,691.2 1,822.1
Total 8,878.9 9,771.1 10,580.4 11,443.1 12,775.9 13,963.1
Source: Euromonitor International from official statistics, trade associations, trade interviews

Table 8 Life Expectancy at Birth 2008-2013

years
2008 2009 2010 2011 2012 2013

Males 71.6 71.8 71.9 72.1 72.2 72.4
Females 76.5 76.8 77.0 77.2 77.4 77.5
Source: Euromonitor International from official statistics

MARKET DATA

Table 9 Sales of Consumer Health by Category: Value 2008-2013

RM million
2008 2009 2010 2011 2012 2013

OTC 616.8 642.6 672.3 700.2 727.4 754.0
Sports Nutrition 8.9 9.2 9.6 10.0 10.4 10.8
Vitamins and Dietary 1,241.0 1,339.3 1,444.7 1,530.3 1,617.3 1,723.5
Supplements
Weight Management 364.0 469.7 577.9 678.6 799.8 910.0
Herbal/Traditional 794.1 843.8 890.3 935.2 981.3 1,041.0
Products
Allergy Care 11.5 11.9 12.4 12.8 13.2 13.6
Paediatric Consumer 53.0 56.1 59.7 62.9 66.0 69.1
Health
Consumer Health 2,230.8 2,460.9 2,704.5 2,919.1 3,154.9 3,398.3
Note: Sum of categories is greater than the market size because allergy care is a duplicate of categories found
in cough, cold and allergy remedies, dermatologicals and eye care; paediatric consumer health is an
aggregate of paediatric categories in OTC and vitamins and dietary supplements; and herbal/traditional
products is an aggregate of herbal/traditional categories in OTC and vitamins and dietary supplements,
except herbal/traditional medicinal teas and herbal/traditional smoking cessation aids.

Table 10 Sales of Consumer Health by Category: % Value Growth 2008-2013

% current value growth
2012/13 2008-13 CAGR 2008/13 Total

OTC 3.6 4.1 22.2
Sports Nutrition 4.3 3.9 21.3
Vitamins and Dietary Supplements 6.6 6.8 38.9
Weight Management 13.8 20.1 150.0
Herbal/Traditional Products 6.1 5.6 31.1
Allergy Care 3.2 3.4 18.3
Paediatric Consumer Health 4.7 5.5 30.5
Consumer Health 7.7 8.8 52.3

Table 11 NBO Company Shares of Consumer Health: % Value 2009-2013

% retail value rsp
Company 2009 2010 2011 2012 2013

Herbalife Products (M) 8.8 9.2 10.2 12.3 13.8
Sdn Bhd
Amway (M) Sdn Bhd 12.1 11.8 11.6 11.3 11.2
Nu Skin (M) Sdn Bhd 3.0 4.9 5.9 6.1 6.1
Cerebos Sdn Bhd 3.8 3.9 3.9 4.0 4.3
GlaxoSmithKline 4.6 4.4 4.4 4.3 4.2
Consumer Healthcare Sdn
Bhd
USANA Health Sciences 4.0 4.0 4.0 4.1 4.1
Sdn Bhd
Cosway (M) Sdn Bhd 3.6 3.5 3.3 3.2 3.1
Elken Sdn Bhd 3.2 3.0 2.9 2.7 2.6
HerbalCeutical Sdn Bhd 1.6 1.8 2.1 2.3 2.4
Reckitt Benckiser (M) 2.8 2.7 2.6 2.5 2.4
Sdn Bhd
VitaHealth Asia Pacific 2.3 2.2 2.1 2.0 2.0
(S) Pte Ltd
21st Century Products 2.0 2.0 2.0 1.9 1.9
Sdn Bhd
Blackmores (M) Sdn Bhd 1.8 1.8 1.9 1.8 1.8
Forever Living Products 2.1 2.0 1.9 1.8 1.7
(M) Sdn Bhd
CCM Pharmaceuticals Sdn 2.0 1.9 1.7 1.6 1.5
Bhd
Total Image Regional 1.2 1.3 1.3 1.3 1.3
(M) Sdn Bhd
TR Networks (M) Sdn Bhd 0.6 1.0 1.1 1.2 1.3
Bio-Life Marketing (M) 1.5 1.4 1.4 1.3 1.3
Sdn Bhd
Boehringer Ingelheim 1.5 1.5 1.5 1.5 1.3
(M) Sdn Bhd
Lofthouse of Fleetwood 1.5 1.4 1.3 1.3 1.2
Ltd
Kordel's Ltd 1.3 1.2 1.2 1.2 1.2
Ricola Asia Pacific Pte 1.3 1.2 1.2 1.1 1.1
Ltd
Bayer (M) Sdn Bhd 1.1 1.1 1.1 1.1 1.1
Nutra-Life Health & 1.0 0.9 0.9 0.9 0.9
Fitness (NZ) Ltd
Kraft Foods (M) Sdn Bhd - 1.0 1.0 0.9 0.9
CNI Enterprise (M) Sdn 1.2 1.1 1.0 0.9 0.8
Bhd
Haw Par Healthcare Ltd 0.7 0.8 0.8 0.8 0.8
Yomeishu Seizo Co Ltd 0.8 0.8 0.7 0.7 0.7
Enseval Megatrading (M) 0.6 0.6 0.6 0.6 0.5
Sdn Bhd
Total Health Concept 0.6 0.6 0.6 0.5 0.5
Sdn Bhd
Hacks (M) Sdn Bhd 0.6 - - - -
Others 26.9 25.2 24.1 22.8 21.9
Total 100.0 100.0 100.0 100.0 100.0

Table 12 LBN Brand Shares of Consumer Health: % Value 2010-2013

% retail value rsp
Brand Company 2010 2011 2012 2013

Herbalife Herbalife Products (M) 9.2 10.2 12.3 13.8
Sdn Bhd
Nutrilite Amway (M) Sdn Bhd 10.9 10.7 10.5 10.3
Pharmanex Nu Skin (M) Sdn Bhd 4.9 5.9 6.1 6.1
Brand's Cerebos Sdn Bhd 3.9 3.9 4.0 4.3
USANA USANA Health Sciences 3.2 3.2 3.3 3.3
Sdn Bhd
Cosway Cosway (M) Sdn Bhd 3.4 3.2 3.1 3.0
Panadol GlaxoSmithKline 3.0 2.9 2.9 2.8
Consumer Healthcare Sdn
Bhd
Elken Elken Sdn Bhd 2.9 2.7 2.6 2.5
VitaHealth VitaHealth Asia Pacific 2.1 2.1 2.0 2.0
(S) Pte Ltd
21st Century 21st Century Products 2.0 2.0 1.9 1.9
Sdn Bhd
Blackmores Blackmores (M) Sdn Bhd 1.8 1.9 1.8 1.8
NH Detoxlim HerbalCeutical Sdn Bhd 1.5 1.6 1.6 1.6
Kinohimitsu TR Networks (M) Sdn Bhd 1.0 1.1 1.2 1.3
Bio-Life Bio-Life Marketing (M) 1.4 1.4 1.3 1.3
Sdn Bhd
Total Image Total Image Regional 1.2 1.3 1.3 1.3
(M) Sdn Bhd
Fisherman's Friend Lofthouse of Fleetwood Ltd 1.4 1.3 1.3 1.2
Pharmaton Boehringer Ingelheim 1.2 1.2 1.2 1.2
(M) Sdn Bhd
Kordel's Kordel's Ltd 1.2 1.2 1.2 1.2
Ricola Ricola Asia Pacific Pte 1.2 1.2 1.1 1.1
Ltd
Pomesteen Forever Living Products 1.1 1.1 1.0 1.0
(M) Sdn Bhd
Nutra-life Nutra-Life Health & 0.9 0.9 0.9 0.9
Fitness (NZ) Ltd
Dettol Reckitt Benckiser (M) 1.0 1.0 0.9 0.9
Sdn Bhd
Positrim Amway (M) Sdn Bhd 0.9 0.9 0.9 0.9
NH Colla Plus HerbalCeutical Sdn Bhd 0.3 0.5 0.7 0.8
CNI CNI Enterprise (M) Sdn Bhd 1.0 0.9 0.8 0.8
Forever Living Forever Living Products 0.9 0.8 0.8 0.8
(M) Sdn Bhd
Nutrimeal USANA Health Sciences 0.8 0.8 0.8 0.8
Sdn Bhd
Yomeishu Yomeishu Seizo Co Ltd 0.8 0.7 0.7 0.7
Strepsils Reckitt Benckiser (M) 0.8 0.7 0.7 0.7
Sdn Bhd
Tiger Balm Haw Par Healthcare Ltd 0.6 0.6 0.7 0.7
Others 33.5 32.2 30.6 29.2
Total 100.0 100.0 100.0 100.0

Table 13 Distribution of Consumer Health by Format: % Value 2008-2013

% retail value rsp
2008 2009 2010 2011 2012 2013

Store-Based Retailing 58.3 57.3 56.1 53.5 52.8 52.2
- Grocery Retailers 8.2 7.7 7.4 7.3 7.0 6.8
-- Modern Grocery 8.0 7.6 7.3 7.1 6.9 6.7
Retailers
--- Convenience Stores 0.0 0.0 0.0 0.0 0.0 0.0
--- Discounters 0.0 0.0 0.0 0.0 0.0 0.0
--- Forecourt Retailers 0.0 0.0 0.0 0.0 0.0 0.0
--- Hypermarkets 6.3 5.9 5.7 5.6 5.4 5.3
--- Supermarkets 1.7 1.7 1.6 1.5 1.5 1.4
-- Traditional Grocery 0.1 0.1 0.1 0.1 0.1 0.1
Retailers
--- Food/drink/tobacco 0.0 0.0 0.0 0.0 0.0 0.0
specialists
--- Independent Small 0.1 0.1 0.1 0.1 0.1 0.1
Grocers
--- Other Grocery 0.0 0.0 0.0 0.0 0.0 0.0
Retailers
---- Healthfood shops 0.0 0.0 0.0 0.0 0.0 0.0
---- Other Other 0.0 0.0 0.0 0.0 0.0 0.0
Grocery Retailers
- Non-Grocery Retailers 50.1 49.6 48.7 46.3 45.8 45.4
-- Health and Beauty 49.5 49.0 48.1 45.8 45.3 44.9
Specialist Retailers
--- Beauty Specialist 0.0 0.0 0.0 0.0 0.0 0.0
Retailers
--- Chemists/Pharmacies 18.6 16.8 14.4 12.6 11.6 10.8
--- Optical Goods Stores 0.0 0.0 0.0 0.0 0.0 0.0
--- Parapharmacies/ 27.3 28.6 30.1 29.8 30.3 30.8
Drugstores
--- Other Healthcare 3.6 3.6 3.6 3.4 3.3 3.3
-- Mixed Retailers 0.0 0.0 0.0 0.0 0.0 0.0
--- Department Stores 0.0 0.0 0.0 0.0 0.0 0.0
--- Mass Merchandisers 0.0 0.0 0.0 0.0 0.0 0.0
--- Variety Stores 0.0 0.0 0.0 0.0 0.0 0.0
--- Warehouse Clubs 0.0 0.0 0.0 0.0 0.0 0.0
-- Other Consumer 0.6 0.6 0.6 0.5 0.5 0.5
Health Non-Grocery
Retailers
Non-Store Retailing 41.7 42.7 43.9 46.5 47.2 47.8
- Vending 0.0 0.0 0.0 0.0 0.0 0.0
- Homeshopping 0.0 0.0 0.0 0.0 0.0 0.0
- Internet Retailing 0.1 0.2 0.2 0.2 0.2 0.2
- Direct Selling 41.6 42.5 43.8 46.3 47.0 47.6
Total 100.0 100.0 100.0 100.0 100.0 100.0

Table 14 Distribution of Consumer Health by Format and Category: % Value 2013

% retail value rsp
OTC SN VDS WM HTP AC

Store-Based Retailing 99.7 77.8 49.0 18.5 64.3 100.0
Grocery Retailers 21.7 0.0 2.8 2.2 10.4 32.7
Modern Grocery Retailers 21.2 0.0 2.8 2.2 10.2 31.9
Convenience Stores 0.0 0.0 0.0 0.0 0.0 0.0
Discounters 0.0 0.0 0.0 0.0 0.0 0.0
Forecourt Retailers 0.0 0.0 0.0 0.0 0.0 0.0
Hypermarkets 16.5 0.0 2.2 1.8 7.9 24.9
Supermarkets 4.7 0.0 0.6 0.4 2.2 7.0
Traditional Grocery 0.5 0.0 0.0 0.0 0.2 0.8
Retailers
Food/drink/tobacco 0.0 0.0 0.0 0.0 0.0 0.0
specialists
Independent Small Grocers 0.5 0.0 0.0 0.0 0.2 0.8
Other Grocery Retailers 0.0 0.0 0.0 0.0 0.0 0.0
Healthfood shops 0.0 0.0 0.0 0.0 0.0 0.0
Other Other Grocery 0.0 0.0 0.0 0.0 0.0 0.0
Retailers
Non-Grocery Retailers 78.0 77.8 46.2 16.3 53.9 67.3
Health and Beauty 77.6 76.7 45.4 16.3 53.4 67.3
Beauty Specialist 0.0 0.0 0.0 0.0 0.0 0.0
Retailers
Chemists/Pharmacies 29.3 7.0 7.0 2.7 10.4 23.2
Optical Goods Stores 0.0 0.0 0.0 0.0 0.0 0.0
Parapharmacies/Drugstores 48.4 18.5 33.7 10.8 39.7 44.1
Other Healthcare 0.0 51.2 4.7 2.8 3.3 0.0
Mixed Retailers 0.0 0.0 0.0 0.0 0.0 0.0
Department Stores 0.0 0.0 0.0 0.0 0.0 0.0
Mass Merchandisers 0.0 0.0 0.0 0.0 0.0 0.0
Variety Stores 0.0 0.0 0.0 0.0 0.0 0.0
Warehouse Clubs 0.0 0.0 0.0 0.0 0.0 0.0
Other Consumer Health 0.4 1.1 0.8 0.0 0.5 0.0
Non-Grocery Retailers
Non-Store Retailing 0.3 22.2 51.0 81.5 35.7 0.0
Vending 0.0 0.0 0.0 0.0 0.0 0.0
Homeshopping 0.0 0.0 0.0 0.0 0.0 0.0
Internet Retailing 0.0 22.2 0.0 0.5 0.0 0.0
Direct Selling 0.3 0.0 51.0 81.0 35.7 0.0
Total 100.0 100.0 100.0 100.0 100.0 100.0

PCH

Store-Based Retailing 64.4
Grocery Retailers 7.5
Modern Grocery Retailers 7.4
Convenience Stores 0.0
Discounters 0.0
Forecourt Retailers 0.0
Hypermarkets 5.8
Supermarkets 1.6
Traditional Grocery 0.1
Retailers
Food/drink/tobacco 0.0
specialists
Independent Small Grocers 0.1
Other Grocery Retailers 0.0
Healthfood shops 0.0
Other Other Grocery 0.0
Retailers
Non-Grocery Retailers 57.0
Health and Beauty 56.3
Beauty Specialist 0.0
Retailers
Chemists/Pharmacies 16.7
Optical Goods Stores 0.0
Parapharmacies/Drugstores 36.3
Other Healthcare 3.3
Mixed Retailers 0.0
Department Stores 0.0
Mass Merchandisers 0.0
Variety Stores 0.0
Warehouse Clubs 0.0
Other Consumer Health 0.7
Non-Grocery Retailers
Non-Store Retailing 35.6
Vending 0.0
Homeshopping 0.0
Internet Retailing 0.0
Direct Selling 35.6
Total 100.0
Key: OTC = over the counter; SN = sports nutrition; VDS = vitamins and dietary supplements; WM = weight
management; HTP = herbal/traditional products; AC = Allergy Care; PCH = paediatric consumer health

Table 15 Forecast Sales of Consumer Health by Category: Value 2013-2018

RM million
2013 2014 2015 2016 2017 2018

OTC 754.0 764.7 774.6 783.8 792.0 799.3
Sports Nutrition 10.8 11.1 11.3 11.5 11.7 11.8
Vitamins and Dietary 1,723.5 1,791.2 1,853.9 1,913.3 1,968.4 2,018.1
Supplements
Weight Management 910.0 993.1 1,070.2 1,147.2 1,217.2 1,285.0
Herbal/Traditional 1,041.0 1,077.8 1,114.2 1,149.5 1,183.6 1,216.5
Products
Allergy Care 13.6 13.8 13.9 14.1 14.2 14.4
Paediatric Consumer 69.1 70.8 72.3 73.8 75.2 76.6
Health
Consumer Health 3,398.3 3,560.1 3,710.1 3,855.8 3,989.3 4,114.3
trade sources

Table 16 Forecast Sales of Consumer Health by Category: % Value Growth 2013-2018

% constant value growth
2013-18 CAGR 2013/18 TOTAL

OTC 1.2 6.0
Sports Nutrition 1.7 9.0
Vitamins and Dietary Supplements 3.2 17.1
Weight Management 7.1 41.2
Herbal/Traditional Products 3.2 16.9
Allergy Care 1.0 5.2
Paediatric Consumer Health 2.1 10.8
Consumer Health 3.9 21.1
trade sources

APPENDIX

OTC Registration and Classification

The Drug Control Authority (DCA) requires all drugs in pharmaceutical dosage form to be
registered with it before being manufactured, imported, sold or supplied. This includes
pharmaceutical products that contain scheduled poisons as defined in the Poisons Act 1952;
pharmaceutical products that do not contain scheduled poisons; traditional medicines and
homoeopathic medicines. All manufacturers, importers and wholesalers are required by the
Drug Control Authority to register their products. To obtain a licence, products must meet
strict evaluation standards.
The Malaysian government has greatly restricted the advertising of pharmaceuticals and
consumer health products. Except for A, B and C categories of scheduled poisons, all classes
of pharmaceuticals can be advertised directly to consumers. Doctors and pharmacies are the
main target of the advertising and especially marketing within the group. Otherwise,
advertising is allowed for other products, such as non-poison products. The advertising of
drugs in Malaysia is governed by the Medicine Advertisement Act. All adverts for medicine
and health products and services are required by this act to be registered with the Medicines
and Advertisement Board. Only approved advertisements will be given a Kementerian
Kesihatan Lembaga Iklan Ubat (KKLIU) approval number.
The law does not allow any child-specific products to be packaged in the shape or form of
toys and cartoon characters or to be sold together with toys or gifts. However, it does not
restrict toys, cartoons and colourful pictures from being depicted on product packaging.
Starting on 1 April 2004, the Drug Control Authority required all liquid cough mixtures to be
fixed at a maximum pack size of 120ml +/- 10ml. This is pertinent to liquid cough preparations
for both local consumption and exports. However, traditional liquid medicine cough
preparations and liquid cough preparations containing pholcodeine are not affected by the
new guidelines.
In order to help consumers to identify products which are registered with Malaysias DCA, all
registered products for distribution and sale in Malaysia must carry the Malay language words
dilulus oleh Kementerian Kesihatan or dilulus oleh KKM on the immediate label, which
means recognised by the Ministry of Health. In addition, registration holders are also
encouraged to print the DCA holographic logo on the label for easier identification. Malaysias
DCA decided to limit the use of cough and cold products for children because they had not
been proved to be effective and can be harmful to children, as the US Food and Drug
Administration (FDA) panel of advisers suggested in 2007 that OTC cough and cold
medicines should not be used for children younger than six years old. Display of warnings
stating Not to be used for children under two years of age and To be used with caution and
on doctors/pharmacists advice for children aged two to six on both the labels and package
inserts is compulsory on all prescription oral liquid preparations containing antihistamines,
antitussives and decongestants.
In Malaysia, prescription medicines comprise patented and generic drugs, the sale and
transaction of which are confined to doctors and registered pharmacists only. On the other
hand, OTC non-poisons and herbal/traditional products are allowed to be sold by non-
professional outlets for example, supermarkets, convenience stores, petrol forecourts and
Chinese medical halls to the general public.

Vitamins and Dietary Supplements Registration and Classification

In Malaysia, vitamins and dietary supplements are not grouped by any special class as they
are regulated as OTC non-poisons, or in some cases as traditional medicines, depending on
their indications for use. Therefore, as required by Control of Drugs and Cosmetics
Regulations 1984, all drugs in a pharmaceutical dosage form, including dietary and herbal
supplements, must be registered with the Drug Control Authority. A Free Sale Certificate and
Good Manufacturing Practice Certificate are required for all vitamins and dietary supplements
and traditional medicines.
The Medicine Advertisement Act which governs advertising for vitamins and dietary
supplements in Malaysia requires that all advertisements for vitamins and dietary
supplements are to be registered with the Medicines and Advertisement Board; also, an
approved advertisement will have a Kementerian Kesihatan Lembaga Iklan Ubat (KKLIU)
approval number. Likewise, the Medicines (Advertisement and Sale) Act 1956 does not allow
any advertisements claiming cures of 20 diseases, including diabetes, hypertension, heart
disease, renal disease, cancer, drug addiction and AIDS. Therefore, manufacturers or
distributors are not allowed to make excessive or unsupported claims about treating serious
illnesses in the advertising of vitamins and dietary supplements. According to the Medical
Advertisement Board, advertising for vitamins and dietary supplements should only contain
sufficient and necessary information that can be used by the consumer to make an informed
choice.
Vitamins and dietary supplements with differences only in their packaging materials or pack
sizes are allowed to be registered in a single application for product registration.
Malaysia has mandatory labelling requirements for dietary supplements and traditional
medicines, which include the need to state the names and locations of manufacturers or the
agents responsible for the manufacture. These requirements are for the purpose of possible
product recall, as well as for the purpose of monitoring safety. All registered products for
distribution and sale in Malaysia must also carry the Malay language words dilulus oleh
Kementerian Kesihatan or dilulus oleh KKM on the immediate label, which means
recognised by the Ministry of Health. This facilitates consumers in identifying which products
are registered with Malaysias DCA. Besides that, registration holders are also encouraged to
print the DCA holographic logo on the label for easier identification.
Vitamins and dietary supplements, being categorised as OTC, traditional medicines as well as
health and food supplements, may be sold by non-professional outlets such as supermarkets,
convenience stores, petrol forecourts and Chinese medical halls, to the general public. Direct
selling is the largest distribution channel of vitamins and dietary supplements in Malaysia.

Self-medication/self-care and Preventative Medicine
Awareness of self-medication has been rising constantly in Malaysia. For minor illnesses like
flu, fever and sore throats, most people know how to treat themselves with OTC medicines
thanks to the strong educational efforts and high advertising activities by industry players.
Besides, vitamins and dietary supplements continued to gain popularity in 2013 as more
people consume them for preventative purposes. As consumers lead busier and more stressful
lifestyles, they have less time to take proper care of their daily meals. Thus, they consume
vitamins and dietary supplements to ensure their bodies get the necessary nutrition to protect
them from sickness.

Switches
No switches were found in 2011-2013 as existing players had already established a strong
presence during the review period, giving Rx players little incentive to switch to OTC status and
vice versa.

SOURCES
Sources used during research include the following:

Summary 5 Research Sources
Official Sources Ministry of Domestic Trade & Consumer
Affairs
Ministry of Health Malaysia
National Pharmaceutical Control Bureau
portal.bpfk.gov.my
www.pharmacy.gov.my
Trade Associations Direct Selling Association of Malaysia
Malaysian Medical Association
Malaysian Organisation of Pharmaceutical
Industries
Malaysian Organisation of Pharmaceutical
Industries (MOPI)
Malaysian Pharmaceutical Society
National Pharmaceutical Control Bureau
NPCB
Nutrition Society of Malaysia
Pharmaceutical Association of Malaysia
Pharmaceutical Services Division of the
Malaysian Ministry of Health
World Self-Medication Industry (WSMI)
Trade Press Bernama
Business Times
Edge Daily, The
Ezyhealth
Health Today
HealthToday
Marketing & Brand Equity
New Straits Times
News Straits Times
Retail World Asia
Star, The
Utusan Express
Source: Euromonitor International

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