The Polish OTC healthcare market has recorded admirable growth in value over the last five years. In 2004 the retail market for OTC medicines is estimated at PLN 4.5bn. Unlike other FMCG markets, the OTC healthcare market was not badly affected by Poland's economic crisis of 2001-2002. However, the market recorded a slight decrease in the value of sales in the year 2002. Indeed, the increase in the value of sales in Poland was more dynamic than in the majority of other countries in the region. Per capita spending was also higher in Poland than in most of the other Eastern European countries and Russia. The OTC market value, compared with the total pharmaceutical products market.

In May 2004 Poland joined the EU, which further increased the attractiveness of the OTC healthcare market for investors from EU countries. The Polish economy is relatively stable, GDP is growing and inflation levels are the same as average EU levels.

Polish pharmaceutical law has changed rapidly over the last decade, making OTC market operation easier for both private domestic investors and foreign players. Accession to the EU and the standardisation of the law have done much to improve the transparency of all regulation on drug distribution and new product registration. The OTC switching process has been simplified, and regulations on OTC advertising and distribution are clearer.

At the end of the period studied (1999-2004), the Polish OTC healthcare market was divided between local players and foreign manufacturers. The absolute market leader was GlaxoSmithKline. The company reinforced its leading position with the acquisition of the largest Polish manufacturer Polfa Poznan in 1998. Over the years GlaxoSmithKline has invested heavily in the Polish pharmaceutical market (including the OTC division) and has also been the most active player in terms of new drug launches.

By 2004 it held a substantial market share in all sections of the OTC market. Other foreign players with large market shares include Pliva, Roche, Bristol-Myers Squibb, Novartis and ICN. The domestic OTC market leaders are Polpharma, US Pharmacia, Polfa Warszawa, Herbapol Wroclaw, and Herbapol Poznan.

In terms of major market segments, vitamins and mineral supplements (VMS) were in the lead throughout the period covered in the study (1999-2004), although growth in VMS slowed after Poland suffered its financial crisis in 2001. This segment was followed by cold and cough remedies, and in third place were analgesics. The relatively low position of this segment reflects the fact that it is dominated by low priced locally produced remedies.

- (Source: Pharma Poland News)