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November, 2011

  1. Marketsensus: China Pharmaceutical Market Shows Signs of Phenomenal Growth of 26.5%

    November 30, 2011 by admin


    Hong Kong (PRWEB) September 15, 2011

    This Marketsensus report provides complete overview on the China pharmaceutical Market

    The Chinese hospital prescription pharma market generated sales of $ 22.9 billion in 2009, with an annual growth rate of 26.5% between 2008 and 2009. Key growth drivers include China?s support of foreign direct investment, low operating costs, growing economic wealth and a government stimulus of $ 125 billion to be spent on healthcare reforms during 2009?2011.

    Overview of socioeconomic and demographic trends, healthcare system, regulation, pricing and reimbursement and intellectual property position in China

    Assesses the size of the Chinese pharmaceutical market by prescribing setting, therapy area, leading brands and by leading companies

    Examines the Chinese generics and biosimilars landscape in terms of regulatory issues, level of penetration, key players and degree of brand erosion

    Quantifies the R&D and manufacturing infrastructure for the leading pharmaceutical companies, including key metrics and domestic M&A analysis

    Report Highlights

    The combination of China?s rising population to 2030, plus the expansion of the elderly population, as a proportion of the total population, will create additional pressure on the government in terms of healthcare provision especially for the elderly.

    According to the Ministry of Health, by the end of October 2010, the three public health insurance schemes covered 1,233 million Chinese citizens, accounting for more than 90% of the total population.

    Domestic manufacturers dominate the Chinese generics market, accounting for nearly 99% of generics sales of both branded and unbranded generics. The domestic industry has expanded rapidly as companies have improved their manufacturing capacities.

    Reasons to Purchase

    Evaluate the evolving regulatory landscape and the impact of pricing and reimbursement controls on market access in China

    Quantify the size and growth of the prescription pharmaceutical market in China, analyzing key therapy areas, brands and companies

    Assess drivers and resistors of generic and biosimilars uptake in China

    About the Strategic Pharmaceutical Analysis Team 2

    Geographic specific reports: 2

    Global issue reports: 2

    Executive Summary 3

    Introduction 3

    Strategic scoping and focus 4

    Key findings – Healthcare drivers and resistors in China 5

    China – Socio-demographic and economic analysis 8

    Socio-demographic trends 8

    Socio-economic trends 9

    China – Healthcare system and drug regulatory analysis 11

    Healthcare expenditure 11

    Healthcare system 12

    Healthcare insurance 12

    Regulatory issues 12

    Pricing and reimbursement issues 13

    China – Prescription pharmaceutical sales analysis 15

    Pharmaceutical market size 15

    Leading therapy areas 15

    Leading prescription pharmaceutical brands 15

    Leading pharmaceutical companies 15

    China – Drug expiry analysis 17

    China generics market 17

    China brand erosion post patent expiry 17

    China biosimilars market 17

    China – Pharmaceutical Industry Infrastructure analysis 19

    Related reports 21

    Upcoming related reports 21

    Table of Contents 22

    2. China – Socio-demographic and economic analysis 23

    China – Key findings 23

    Socio-demographic trends 23

    Socio-economic trends 23

    China – Demographic trends 25

    Chinese population growth rate expected to slow 25

    Birth rate in China is declining 28

    Proportion of elderly people in the China expected to rise 29

    Life expectancy will continue to increase in China and across other markets 30

    China – Disease burden 31

    No longer Kingdom of Bicycles, but still Kingdom of Cigarettes 33

    Demographic changes lead to increase in more Westernized chronic conditions 33

    Tuberculosis prevalence is high but is declining 34

    Hepatitis incidence increasing despite universal vaccination coverage 34

    China – Regional score card analysis 36

    Mainland China is divided into 31 administrative regions (22 provinces, 5 autonomous regions, and 4 municipality cities) 37

    Total healthcare scores of different regions in China 38

    The eastern coastal provinces are more densely populated than the western interior 39

    Disparity of economic development directly impacts the healthcare expenditure 40

    Most hospitals are situated in big cities in China 45

    Lifeexpectancy is higher in the eastern coastal provinces 51

    China – Political climate 52

    Overview of Chinese governmental departments and healthcare reform policies 52

    China – Economic climate 55

    Government’s stimulus plan compensates for the global recession 55

    Pharma has historically been relatively well insulated from the recession 58

    China – Business environment 59

    Factors responsible for driving China’s strong GDP growth 59

    Foreign direct investment is contributing to economic growth 59

    Low cost manufacturing drivers exports 60

    Taxation system in China – complex but R&D tax credits exist 61

    Corruption remains widespread 61

    Cultural differences and the language barrier can impact business with Western companies 62

    China’s unemployment rate – official versus unofficial reports 62

    Renminbi (RMB) appreciation and its impact on the pharmaceutical industry 63

    3. China – Healthcare system and drug regulatory analysis 66

    China – Key findings 66

    Healthcare expenditure 66

    Healthcare system 66

    Healthcare insurance 66

    Regulatory issues 67

    Pricing and reimbursement issues 67

    China – Healthcare expenditure 69

    China – Healthcare system 71

    Regulatory healthcare bodies 71

    Ministry of Health sets the high-level policies 72

    Ministry of Human Resources and Social Security oversees the national medical insurance system 72

    The National Council for Social Security Fund is often surrounded by scandals 72

    China Insurance Regulatory Commission regulates private insurance sector 72

    National Development and Reform Commission oversees overall policy development 72

    State Administration for Industry and Commerce 73

    China’s healthcare reform 73

    China healthcare reform, 2010-2020 The Glorious Ten? 75

    China – Health insurance 77

    China – Social health insurance 78

    The introduction of the urban employee Basic Medical Insurance System has improved health insurance coverage in cities 79

    The unemployed are offered a very basic health insurance 80

    Rural health insurance coverage is increasing but the benefits are insufficient 80

    China – Private health insurance 82

    Primary versus secondary care 83

    China – Regulatory issues 84

    State Food and Drug Administration is the watchdog for drug registration and safety issues 84

    Evolution of the SFDA 85

    Drug classification in China 87

    Drug Monitoring Period 87

    Drug registration in China 87

    New Provisions for Drug Registration led to a fall in drug approvals 91

    New pathway for expedited drug approval 91

    GMP regulation in China 92

    Intellectual property protection 93

    State Intellectual Property Office (SIPO) 93

    China provides 6 years of data exclusivity for pharmaceuticals, but it is not applied adequately in practice 94

    Patent breakage 95

    Case of Pfizer’s Viagra fight in China 95

    China’s compulsory licensing policy is a cause for concern 96

    Despite improvements China remains on the USTR Priority Watch List 96

    Drug counterfeiting in China 97

    China – Pricing and reimbursement 99

    Pricing issues – continuing price cuts make China’s business environment uncertain 99

    The process for setting drug prices in China 100

    Price cuts and the elimination of hospital mark-ups will make drugs more affordable 101

    New Methods and Regulations on Drug Prices 103

    Reimbursement issues in China 106

    National Reimbursement Drug List (NRDL) 107

    Essential Drug List (EDL) 108

    Preferential purchasing of domestic drugs will hamper growth of foreign brands 109

    Hospitals purchase drugs through a tendering system 109

    Government crack down on overprescribing 110

    Government initiatives to reduce reliance on hospital drug distribution have meant retail pharmacies are growing in importance 110

    4. China – Pharmaceutical sales analysis 112

    China – Key findings 112

    Pharmaceutical market size 112

    Leading therapy areas 112

    Leading prescription pharmaceutical brands 112

    Leading pharmaceutical companies 113

    China – Pharmaceutical market size 114

    China – Leading therapy areas 116

    Infectious diseases drugs hold the largest share of the Chinese market value 118

    Traditional Chinese medicines (TCMs) exhibited the strongest sales during 2005-09 119

    China – Leading pharmaceutical brands 120

    Shu Xue Ning achieved by far the highest sales in China in 2009 123

    Ke Lin Ao 123

    Plavix – FDA ‘black box’ warning may influence its sales in China 124

    China – Leading pharmaceutical companies 125

    The leading international companies held almost 18% of Chinese value market in 2009 126

    The leading domestic companies experienced impressive growth 129

    Shandong Qilu Pharma 131

    Jiangsu Yangzijiang Pharma 131

    5. China – Drug expiry analysis 133

    China – Key findings 133

    China generics market 133

    China brand erosion post patent expiry 133

    China biosimilars market 133

    China – Generics market dynamics 135

    China generics volume uptake 138

    China generics value uptake 139

    China generics market size 140

    China – Generics drivers and resistors 141

    Chinese government favors cheap generics 142

    Domestic players can use their relationships with the government to enter preferred-supplier contracts with hospitals 142

    Healthcare reforms aim to crack down on over prescription 142

    Price cuts hit profitability of China’s generics companies 142

    Patients start to shift from cheap generics to more expensive branded drugs 143

    Poor perception of quality of limit uptake of Chinese-made drugs internationally 143

    Improvement of IP law enforcement – both generics and foreign drug makers face challenges 143

    Case of Pfizer’s Viagra fight in China 143

    China – Key generics players 144

    China – Small molecule brand erosion 146

    China – Biosimilar market dynamics 147

    China – drivers and resistors of biosimilar uptake 150

    Lack of a specific biosimilars approval pathway 150

    Low cost of Chinese biosimilar development 150

    Patients’ preference for biosimilars versus biologics is split according to their financial status 150

    Healthcare coverage expansion will drive the need for biosimilars 151

    Domestic biosimilar producers are yet to fully realize their potential in China 151

    Key biologics manufacturers in China 151

    Opportunities for the biosimilar industry 152

    Biosimilars in development in China 153

    Currently barriers exist to development of biosimilar monoclonal antibodies in China 156

    6. China – Pharmaceutical industry infrastructure analysis 158

    China – Key findings 158

    China – Pharmaceutical industry infrastructure overview 159

    Introduction of policies to stimulate domestic R&D 159

    Many multinational companies have opened R&D centers in China in recent years 160

    Life science clusters play a crucial role in China-based R&D 160

    China is becoming an increasingly popular destination for clinical trials 161

    Drug manufacturing in China – GMP is improving but IP protection is insufficient for Western manufacturers 163

    M&A on the rise again in China 164

    China – Key company infrastructure 166

    Pfizer 167

    Pfizer’s top 10 selling drugs and their NRDL status 167

    R&D and manufacturing 168

    M&A activity 171

    AstraZeneca 173

    AstraZeneca’s top 10 selling drugs and their reimbursement status 173

    R&D and manufacturing 174

    Sanofi-Aventis 179

    Sanofi-Aventis’s top 10 selling drugs and their reimbursement status 179

    R&D and manufacturing 179

    Bayer Schering Pharma 184

    Bayer’s top 10 selling drugs and their reimbursement status 184

    R&D and manufacturing 184

    M&A activity 188

    Roche 189

    Roche’s top 10 selling drugs and their NRDL status 189

    R&D and manufacturing 189

    M&A activity 193

    Shandong Qilu Pharma 194

    Shandong Qilu Pharma’s top 10 selling drugs and their NRDL status 194

    R&D and manufacturing 194

    Merck & Co. 197

    Merck & Co.’s top 10 selling drugs and their reimbursement status 197

    R&D and manufacturing 198

    Jiangsu Yangzijiang Pharma 202

    Jiangsu Yangzijiang Pharma’s top 10 selling drugs and their NRDL status 202

    R&D and manufacturing 202

    Novartis 205

    Novartis’s top 10 selling drugs and their reimbursement status 205

    R&D and manufacturing 206

    M&A activity 210

    GlaxoSmithKline 211

    GlaxoSmithKline’s top 10 selling drugs and their reimbursement status 211

    R&D and manufacturing 211

    M&A activity 214

    7. China – Bibliography 216

    China – Executive summary 216

    Publications and online articles 216

    Datamonitor reports and products 217

    China – Socio-demographic and Economic analysis 218

    Publications and online articles 218

    Datamonitor reports and products 223

    China – Healthcare system and drug regulation 224

    Publications and online articles 224

    Datamonitor reports and products 229

    China – Prescription pharmaceutical sales analysis 230

    Publications and online articles 230

    Datamonitor reports and products 230

    China – Drug expiry analysis 231

    Publications and online articles 231

    Datamonitor reports and products 233

    China – Industry infrastructure analysis 234

    Publications and online articles 234

    Datamonitor reports and products 238

    Appendix 239

    Exchange rates used in this report 239

    Datamonitor prescription pharmaceutical definition and therapy area classification 240

    About Datamonitor 241

    About Datamonitor Healthcare 241

    Datamonitor consulting 241

    Disclaimer 242

    Disclaimer 243

    List of Tables

    Table 1: China – changes in the key value drivers of the Chinese pharmaceutical market, 2005-09 6

    Table 2: China – demographic indicators, 2005 and 2010 8

    Table 3: China – key economic indicators, 2005-2012 10

    Table 4: China – healthcare expenditure indicators, 2006-09 11

    Table 5: China – a range of pricing and reimbursement tools are used, 2010 14

    Table 6: China – sales (LCDm) and volume (SUm) of the hospital prescription pharmaceutical market (China and Hong Kong), 2009 16

    Table 7: China – key metrics for the generics and biologics/biosimilars market, 2010 18

    Table 8: China – sales, R&D and manufacturing infrastructure data for the top 8 multinational companies in China, 2010 20

    Table 9: China – demographic indicators, 2005 and 2010 25

    Table 10: China – top 10 causes of mortality, 2004 31

    Table 11: China – disability-adjusted life years (DALY) rates compared with North America, Japan, the five major EU countries (5EU), Australia, and other BRIC nations, 2004 32

    Table 12: China – key economic indicators, 2005-2012 56

    Table 13: China – healthcare expenditure indicators, 2006-09 70

    Table 14: China – evolution of the Basic Medical Insurance System (BMI) for urban workers and non-workers, 2005-09 80

    Table 15: China – evolution of the New Rural Co-operative Medical System (NRCMS), 2005-09 81

    Table 16: China – hospital bed and healthcare worker density, 2003-04 83

    Table 17: China – State Food and Drug Administration (SFDA) New Drug Classification, 2007 87

    Table 18: China – a range of pricing and reimbursement tools are used, 2010 99

    Table 19: China – National Development and Reform Commission (NDRC) government pricing and government guided pricing guidelines, 2010 104

    Table 20: China – National Development and Reform Commission (NDRC) guaranteed maximum price premium, 2010 104

    Table 21: China – key drug lists and regulatory bodies, 2010 106

    Table 22: China – sales (LCDm) and volume (SUm) of the hospital prescription pharmaceutical market (China and Hong Kong), 2009 115

    Table 23: China – hospital pharmaceutical sales ($ m and %) by therapy area (China and Hong Kong), 2005-09 117

    Table 24: China – hospital pharmaceutical volume (SUm and %) by therapy area (China and Hong Kong), 2005-09 118

    Table 25: China – top 10 selling traditional Chinese medicines in hospital prescription drug market (China and Hong Kong), 2009 120

    Table 26: China – hospital sales growth ($ m and %) for top 20 pharmaceutical brands (China and Hong Kong), 2009 122

    Table 27: China – hospital volume growth (SUm and %) for top 20 pharmaceutical brands (China and Hong Kong), 2009 123

    Table 28: China – hospital sales growth ($ and %) for the leading pharmaceutical companies (China and Hong Kong), 2009 127

    Table 29: China – hospital volume growth (SUm and %) for the leading pharmaceutical companies (China and Hong Kong), 2009 128

    Table 30: China – hospital sales growth ($ m and %) for the leading Chinese pharmaceutical companies (China and Hong Kong), 2009 129

    Table 31: China – hospital volume growth (SUm and %) for the leading Chinese pharmaceutical companies (China and Hong Kong), 2009 130

    Table 32: China – Shandong Qilu Pharma’s top 10 selling drugs ($ m) and their NRDL status (China and Hong Kong), 2010 131

    Table 33: China – Jiangsu Yangzijiang Pharma’s top 10 selling drugs ($ m) and their NRDL status (China and Hong Kong), 2010 132

    Table 34: China – key metrics for the generics and biologics/biosimilars market, 2010 134

    Table 35: China – comparison of generic penetration versus other major pharmaceutical markets ($ billion and %), 2007-08 137

    Table 36: China – leading domestic and foreign generics companies in the hospital segment, 2009 145

    Table 37: China – hospital sales and market share ($ m and %) of domestically and internationally developed biologics (China and Hong Kong), 2009 148

    Table 38: China – hospital sales($ m) for the top10 domestic/biologics manufacturers (China and Hong Kong), 2009 151

    Table 39: China – global and domestic sales ($ m) for the top 10 biologics (China and Hong Kong hospital sales), 2009 152

    Table 40: China – launched and developmental biosimilars in China, 2010 154

    Table 41: China – sales ($ m) of monoclonal antibodies (China and Hong Kong),2009 156

    Table 42: China – overview of the main domestic biotech and pharmaceutical companies located in Shanghai Zhangjiang Hi-Tech Park and Beijing Zhongguancun (ZGC) Life Science Park, 2010 161

    Table 43: China – hospital pharmaceutical sales growth($ m and %) for the top 10 pharmaceutical companies (China and Hong Kong), 2009 166

    Table 44: China – Pfizer’s top 10 selling drugs ($ m) and their NRDL status (China and Hong Kong), 2010 168

    Table 45: China – Pfizer’s sales, R&D and manufacturing infrastructure data (post-merger with Wyeth) compared with other top 8 multinational companies in China, 2010 169

    Table 46: China – Pfizer’s China-based M&A activities, 2010 172

    Table 47: China – AstraZeneca’s top 10 selling drugs ($ m) and their NRDL status (China and Hong Kong), 2010 174

    Table 48: China – AstraZeneca’s sales, R&D and manufacturing infrastructure data compared with other top 8 multinational companies in China, 2010 176

    Table 49: China – Sanofi-Aventis’s top 10 selling drugs and their NRDL status ($ m), 2010 (China and Hong Kong) 179

    Table 50: China – Sanofi-Aventis’s sales, R&D and manufacturing infrastructure data compared with other top 8 multinational companies in China, 2010 181

    Table 51: China – Bayer’s top 10 selling drugs and their NRDL status ($ m), 2010 (China and Hong Kong) 184

    Table 52: China – Bayer Schering’s sales, R&D and manufacturing infrastructure data compared with other top 8 multinational companies in China, 2010 185

    Table 53: China – Bayer Schering’s China-based M&A activities, 2008 188

    Table 54: China – Roche’s top 10 selling drugs ($ m) and their NRDL status (China and Hong Kong), 2010 189

    Table 55: China – Roche’s sales, R&D and manufacturing infrastructure data compared with other top 8 multinational companies in China, 2010 190

    Table 56: China – Roche’s China-based M&A activities, 1995-2010 193

    Table 57: China – Shandong Qilu Pharma’s top 10 selling drugs ($ m) and their NRDL status (China and Hong Kong), 2010 194

    Table 58: China – Shandong Qilu Pharma’s sales, R&D and manufacturing infrastructure data compared with the top 2 domestic companies in China, 2010 195

    Table 59: China – Merck & Co.’s top 10 selling drugs ($ m) and their NRDL status (China and Hong Kong), 2010 197

    Table 60: China – Merck & Co.’s sales, R&D and manufacturing infrastructure data compared with other top 8 multinational companies in China, 2010 199

    Table 61: China – Jiangsu Yangzijiang Pharma’s top 10 selling drugs ($ m) and their NRDL status (China and Hong Kong), 2010 202

    Table 62: China – Jiangsu Yangzijiang Pharma’s sales, R&D and manufacturing data compared with the top 2 domestic companies, 2010 203

    Table 63: China – Novartis’s top 10 selling drugs ($ m) and their NRDL status (China and Hong Kong), 2010 205

    Table 64: China – Novartis drugs recently listed on the NRDL, 2009 206

    Table 65: China – Novartis’s sales, R&D and manufacturing infrastructure data compared with other top 8 multinational companies in China, 2010 207

    Table 66: China – Novartis’s China-based M&A activities, 2008-2010 210

    Table 67: China – GlaxoSmithKline’s top 10 selling drugs ($ m) and their NRDL status (China and Hong Kong), 2010 211

    Table 68: China – GlaxoSmithKline’s sales, R&D and manufacturing infrastructure data compared with other top 8 multinational companies in China, 2010 212

    Table 69: China – GlaxoSmithKline’s China-based M&A activities, 2008-2010 215

    Table 70: Currency exchange rates, 2010 239

    Table 71: ATC (anatomical therapeutic chemical) classification codes assigned to a given therapy area within the prescription pharmaceutical market 240

    List of Figures

    Figure 1: China – key value drivers of the Chinese pharmaceutical market, 2009 5

    Figure 2: China – drivers and resistors facing branded pharmaceutical companies 7

    Figure 3: China – Population (million) and population growth rate (%), 1950-2050 26

    Figure 4: China – population growth compared with North America, Japan, the five major EU countries (5EU), Australia, and other BRIC nations, 1950-2050 27

    Figure 5: China – birth rates per 1,000 individuals compared with North America, Japan, the five major EU countries (5EU), Australia, and other BRIC nations, 1950-2050 28

    Figure 6: China – proportion of population over 65 years old compared with North America, Japan, the five major EU countries (5EU), Australia, and other BRIC nations,1950-2050 29

    Figure 7: China – life expectancy compared with North America, Japan, the five major EU countries (5EU), Australia, and other BRIC nations,1950-2050 30

    Figure 8: China – administrative regions of mainland China, 2010 37

    Figure 9: China – total healthcare score by administrative region in mainland China, 2009 38

    Figure 10: China – population density by administrative region in mainland China, number of people per square kilometer, 2009 39

    Figure 11: China – GDP per capita ($ ) by administrative region in mainland China, 2008 41

    Figure 12: China – average urban household disposable income ($ ) by administrative region in mainland China, 2008 42

    Figure 13: China – average urban household healthcare expenditure ($ ) by administrative region in mainland China, 2008 43

    Figure 14: China – urban household healthcare expenditure as % of disposable income by administrative region, 2009 44

    Figure 15: China – number of hospitals by administrative region in mainland China, 2008 46

    Figure 16: China – number of Tier 3 hospitals by administrative region in mainland China, 2008 47

    Figure 17: China – number of healthcare facilities by administrative region in mainland China, 2008 49

    Figure 18: China – number of healthcare personnel by administrative region in mainland China, 2008 50

    Figure 19: China – life expectancy by administrative region in mainland China, 2008 51

    Figure 20: China – political departments of state power in the People’s Republic of China, 2010 53

    Figure 21: China – GDP per capita growth rate compared with North America, Japan, the five major EU countries (5EU), Australia, and other BRIC nations, 2008-09 57

    Figure 22: China – GDP and Pharma annual growth rate of China compared to the global values, 2009-2010 58

    Figure 23: China – GDP growth rate vs. foreign trade as % of GDP, 1960-2008 59

    Figure 24: China – foreign direct investment, net inflows,1979-2008, net outflows, 2008 60

    Figure 25: Unemployment rates in China, UK, France, Germany, Italy, Spain, US, Canada, Australia, Japan, Brazil, India, and Russia, 1990-2008 63

    Figure 26: China – foreign exchange rate, 1 RMB to USD, January 2006-August 2010 64

    Figure 27: China – health expenditure as a proportion of GDP compared with North America, five major EU markets (5EU), Japan, Australia and other BRIC nations, 2006-07 69

    Figure 28: China – healthcare industry regulatory bodies, 2010 71

    Figure 29: China – major historical and forecast healthcare reform events, 1985-2020 73

    Figure 30: China – four layers of Chinese medical insurance system, 2010 78

    Figure 31: China – Organizational structure of the State Food and Drug Administration (SFDA), 2010 84

    Figure 32: China – subordinate drug evaluation bodies that directly report to the SFDA in China, 2010 85

    Figure 33: China – Development of drug evaluation, 1949-2008 86

    Figure 34: China – new drug application process and timing, 2007 88

    Figure 35: China – application and approval procedure for imported drugs before clinical trials, 2010 89

    Figure 36: China – application and approval procedure for imported drugs after clinical trials, 2010 90

    Figure 37: China – domestic and international patent applications, 2007- 09 94

    Figure 38: China – counterfeit drugs, number of incidents by year 2002-09, and by region, 2009 97

    Figure 39: China -drug price setting process, 2009 100

    Figure 40: China – National Development and Reform Commission (NDRC) policies on drug pricing, pre- and post-April 2009 102

    Figure 41: China – three ways of drug pricing in China, 2010 103

    Figure 42: China – number of drugs listed in the pharmacopeia, NRDL, EDL, 2010 106

    Figure 43: China – National Reimbursement Drug List (NRDL), 2004, 2009 and Essential Drug List (EDL), 2009 108

    Figure 44: China – Ministry of Health categorization of reasonable and non-reasonable prescriptions, 2010 110

    Figure 45: China – relative sales ($ ) and volume (SU) of the hospital prescription pharmaceutical market (China and Hong Kong), 2009 114

    Figure 46: China – hospital pharmaceutical sales (%) by therapy area (China and Hong Kong), 2005-09 116

    Figure 47: China – hospital sales growth ($ m and %) for the leading pharmaceutical brands (China and Hong Kong), 2009 121

    Figure 48: China – hospital sales growth (%) for leading pharmaceutical companies (China and Hong Kong), 2005-09 125

    Figure 49: China – value share of brands, generics and traditional Chinese medicines, 1999-2008 135

    Figure 50: China – value share (%) of brands, generics and traditional Chinese medicines (TCMs), 1999-2008 136

    Figure 51: China – comparison of generic volume (%) uptake versus other major pharmaceutical markets, 2007-08 138

    Figure 52: China – comparison of generic value (%) uptake versus other major pharmaceutical markets, 2007-08 139

    Figure 53: China – comparison of generics market size versus other pharmaceutical markets ($ billion), 2007-08 140

    Figure 54: China – drivers and resistors of the generics market, 2010 141

    Figure 55: China – indexed sales of Plavix and generic clopidogrel in the hospital segment, 2005-09 146

    Figure 56: China – central government’s policies in favor of biotech development, 2006-09 149

    Figure 57: China – drivers and resistors of biosimilar uptake 150

    Figure 58: China – launched and developmental biosimilars in China, 2010 153

    Figure 59: China – drivers and resistors to biosimilar monoclonal antibody entry, 2010 157

    Figure 60: China – drivers and resistors for foreign and domestic players in innovative drug R&D 159

    Figure 61: China – advantages and disadvantages of conducting clinical trials in China 162

    Figure 62: China – international and domestic M&A deals in the pharmaceutical sector carried out in China, 2008-2010 165

    Figure 63: China – Pfizer’s R&D and manufacturing presence compared with top 8 multinational companies in China, 2010 170

    Figure 64: China – Pfizer’s pharmaceutical operations (post-merger with Wyeth), 2010 171

    Figure 65: China – AstraZeneca’s R&D and manufacturing presence compared with top 8 multinational companies in China, 2010 177

    Figure 66: China – AstraZeneca’s pharmaceutical operations, 2010 178

    Figure 67: China – Sanofi-Aventis R&D presence compared with top 8 multinational companies in China, 2010 182

    Figure 68: China – Sanofi-Aventis’s pharmaceutical operations, 2010 183

    Figure 69: China – Bayer Schering R&D and manufacturing presence compared with top 8 multinational companies in China, 2010 186

    Figure 70: China – Bayer Schering’s pharmaceutical operations, 2010 187

    Figure 71: China – Roche R&D and manufacturing presence compared with top 8 multinational companies in China, 2010 191

    Figure 72: China – Roche’s pharmaceutical operations, 2010 192

    Figure 73: China – Shandong Qilu Pharma’s pharmaceutical operations, 2010 196

    Figure 74: China – Merck & Co.’s sales, R&D and manufacturing infrastructure data compared with other top 8 multinational companies in China, 2010 200

    Figure 75: China – Merck & Co.’s pharmaceutical operations, 2010 201

    Figure 76: China – Jiangsu Yangzijiang Pharma’s pharmaceutical operations, 2010 204

    Figure 77: China – Novartis’s sales, R&D infrastructure data compared with other top 8 multinational companies in China, 2010 208

    Figure 78: China – Novartis’s pharmaceutical operations, 2010 209

    Figure 79: China – GlaxoSmithKline’s sales, R&D and manufacturing infrastructure data compared with other top 8 multinational companies in China, 2010 213

    Figure 80: China – GlaxoSmithKline’s pharmaceutical operations, 2010 214

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  2. Electronic Cigarette Company Receives Celebrity Endorsement

    November 28, 2011 by admin


    Miami Beach, FL (PRWEB) July 14, 2011

    Trace Cyrus, former vocalist of the band Metro Station and brother to Miley Cyrus, announced his quest to ?stop smoking? aided by electronic cigarettes from South Beach Smoke, a popular electronic cigarette company with connections to the Hollywood elite. Trace reportedly decided to make the switch from traditional cigarettes to electronic cigarettes for not only his health, but for the well-being of his girlfriend and popular actress from the Disney series ?The Suite Life on Deck?, Brenda Song. Electronic cigarettes do not produce second-hand smoke nor foul odors that bother and potentially harm most people including Song.

    His endorsement of South Beach Smoke was featured on the popular celebrity website HollywoodLife.com that included a warm wish from the publication that read, ?We hope it?s the next step for Trace to be completely smoke free, but good for him to take the proper steps to have a healthier lifestyle! Keep it up Trace!?. Trace Cyrus is not the first celebrity linked to electronic cigarettes like those offered at SouthBeachSmoke.com; Katherine Heigl and Charlie Sheen have both openly endorsed the product as well.

    South Beach Smoke commented on the celebrity endorsement by stating, ?We are proud that our product can improve the lives of celebrity musicians like Trace Cyrus along with thousands of others who have made the switch to electronic cigarettes from South Beach Smoke?. Trace Cyrus has signed up for a South Beach Smoke membership which will include a regular shipment of cartridges of his choice in various flavors and strengths such as tobacco, cherry, vanilla, menthol or chocolate.

    South Beach Smoke is a leading electronic cigarette company. Electronic cigarettes, or e-cigarettes as they are popularly called, are hand-held electronic devices that flash vaporize a liquid nicotine solution creating vapor which looks and feel like smoke but isn?t real smoke. South Beach Smoke offers electronic cigarette starter kits which include batteries, disposable cartridges and a charger. A typical starter kit in the e-cigarette industry is around $ 100 but South Beach Smoke offers them for as low as $ 29.99. It is easy to see why this company has one of the most popular e-cigarette brands in the country.

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  3. Man Arrested for Using Electronic Cigarette on Plane: Statement Issued by South Beach Smoke

    November 28, 2011 by admin


    Miami Beach, FL (PRWEB) July 15, 2011

    South Beach Smoke has issued a statement on the Federal case against Pogos Paul Sefilian, who was brought into custody by the FBI and charged with ?Interference with the Flight Crew? after they told him to put away his electronic cigarette on an airplane July 10th.

    According to the US District Court in Utah case number: 2:11-MJ-172 DN, the flight crew approached Sefilian after he started using an an e-cigarette, like those offered at South Beach Smoke, and told him to put it away. After trying to explain that the product does not produce the same harmful or bothersome effects as traditional cigarettes to others, the passenger put the product away. Then minutes later, he resumed using the e-cigarette which prompted the flight attendant to ask him again to put it away. Sefilian was less cooperative at that point and resorted to throwing peanuts and pretzels as a way of showing his defiance.

    When Sefilian?s flight arrived at its final destination, he was met by FBI agents who brought him into custody and charged him with Interfering with the Flight Crew.

    South Beach Smoke issued a statement on this occurrence showing their understanding of Sefilian?s frustrations,

    ?We at South Beach Smoke believe in the reasonable regulation of electronic cigarettes to the extent that they are not sold to minors and are held to the same safety standards all products should; but not letting people use them on planes, restaurants, or other popular indoor facilities is simply overreaching regulation. The product does not produce smoke, but instead vapor which dissipates in the air and is not odorous or noxious; it is simply ignorant to think that this product shouldn?t be allowed for use indoors anywhere.We understand Pogos Paul Sefilian?s frustrations and though we do not condone the action of interfering with airline flight crews, we understand why he decided to take a stand against this baseless airline regulation.?

    South Beach Smoke is one of the leading electronic cigarette companies in the country. Their products are hand-held electronic cigarette devices that flash vaporize liquid nicotine creating vapor instead of smoke. South Beach Smoke sells these products in electronic cigarette starter kits which come with rechargeable batteries, flavored disposable cartridges and various charging devices like wall chargers, car chargers and even USB chargers.

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  4. Green Smoke? Electronic Cigarettes Announces New, Longer Lasting Cartomizers With 25% More Vapor, More Vibrant Flavor and Half the Inhaling Effort

    November 27, 2011 by admin


    Miami,FL (PRWEB) July 16, 2011

    Green Smoke?, the makers of high quality electronic cigarettes, announce the release of new FlavorMax long lasting cartomizers. Each new Green Smoke? FlavorMax? cartomizer provides the smoker up to 360 puffs of smoke-like vapor – equivalent to up to 30 traditional cigarettes or 1.5 packs of traditional cigarettes. The new Green Smoke? FlavorMax? cartomizers were released nationally July 14th and retail for $ 16.99 for a single pack of 5 cartomizers or as low as $ 13.59 per pack when buying 8 or more. Customers who buy Green Smoke? e-cigs now will be paying as low as $ 1.81 for the equivalent of a pack of traditional cigarettes. Go to http://www.greensmoke.com to order.

    ?Green Smoke? customers will now get the vapor equivalent of two packs for less than the price of one pack of regular cigarettes,? states Steven Arnold, VP of Marketing & Customer Satisfaction at Green Smoke?. Arnold adds: ?The average price for a pack of cigarettes in most states is currently between $ 5-$ 6. Customers who buy Green Smoke? e-cigs will be paying less than half of that while enjoying a more flavorful smoke volume for a longer time period. With 25% more smoke-like vapor than before, the new Green Smoke? FlavorMax? cartomizers are the first of many improvements and exciting new products to be released over the next few months. Our commitment to customer satisfaction is unmatched by any other company in the industry. We have listened closely to what our customers want and that is what the new FlavorMax? Cartomizer line delivers. We are proud of our record of extensive research and commitment to customer service and are excited to provide our customers more smoke volume for their money.?

    The new Green Smoke? FlavorMax? cartomizers have also been reengineered with improved airflow which allows smokers obtain a full inhale of vapor with less effort. In addition to being longer lasting, the new Green Smoke? FlavorMax? cartomizers include Green Smoke?s innovative Green Seal? freshness labels, thick vapor volume, array of flavors and a variety of nicotine levels for customers to choose from.

    ?This is the first in a series of major breakthroughs that we will be making to our product line,? adds Green Smoke? Product Marketing Manager Aaron Weigensberg. ?We?re very proud to announce the launch of our re-designed, re-engineered, longer lasting Green Smoke? FlavorMax? Cartomizer. The Green Smoke? cartomizer redesign is the result of many months of work ? and a sign of the quality Green Smoke? puts into its products in their desire to continually give their customers the best smoking experience possible.?

    Green Smoke?, one of the pioneers of the two-piece e-cigarette design, continues to lead the industry while providing maximum customer satisfaction and innovative products. Not satisfied with giving their customers what?s ?good enough,? Green Smoke ensures that the customer is provided with the most authentic smoking experience possible – and feels the difference in their wallets – while enjoying their e-cigarette.

    The new Green Smoke? FlavorMax? cartomizers are available in assorted flavors and nicotine levels. Visit http://www.greensmoke.com to for more information and to order.

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  5. Square 82 E-Cig Rises to #1 Spot as the Leading Disposable Electronic Cigarette in America

    November 27, 2011 by admin


    Los Angeles, CA (Vocus/PRWEB) July 19, 2011

    Square 82 E-Cig, manufacturer of long-lasting, high-quality disposable electronic cigarettes (or e-cig), has quickly secured its place as the number one disposable electronic cigarette in America, according to PhD Marketing.

    PhD Marketing attributes Square 82?s market leadership to the product?s relative low cost, convenience, vapor potency and likeness to real cigarettes.

    Square 82 disposable e-cigs? $ 6.99 price puts them in reach of most consumers, and because they last approximately 500 puffs (equivalent to 2 packs of traditional cigarettes), they make better economic sense than rechargeable e-cigs.

    Rechargeable e-cigarettes also require a large upfront investment?from $ 70 to $ 200. They also require battery changes every few months and must be replaced over time; sooner if lost or broken. This makes them a costly investment and comes with a great deal of financial risk.

    ?Most people are reluctant to lay out hundreds of dollars just to try an electronic cigarette,? said Mike Ahmad of PhD Marketing. ?Square 82 electronic cigarettes are well within the price range of traditional cigarettes, and in most areas of the country, they are even cheaper.?

    People also tend to stick with Square 82 over other e-cigarettes because Square?s products deliver a clean, robust vapor that feels more like a drag off a traditional cigarette than the vapors of other brands, according to PhD Marketing.

    Inhaling from a Square 82 e-cigarette feels a lot like inhaling cigarette smoke, but all that is expelled is water vapor with little to no aroma, and none of the dangers of secondhand smoke. That means Square 82 e-cigs do not stink up the room or clothes or breath, and the convenience of being able to use them almost anywhere is appealing to people looking for a cigarette alternative.

    ?The vapor mist dissipates almost instantly but still gives the smoker the look and feel of smoking cigarettes,? said John Kamar of PhD Marketing.

    A recent blog post about Square 82?s menthol product on http://www.e-cigarette-forum.com states: ?It has a really nice design, it lights up a nice green around the middle, button, and the end, and most importantly the flavor is still here without having to refill and get juice all over my hands. No recharging, no refilling, no mess. Best part, flavor is still the EXACT same as when I bought it, very vivid.?

    For more information about Square 82 e-cigs, please visit the company website at squaresmoke.com or call 1-888-900-6896.

    About Square Smoke

    Square Smoke?s electronic cigarettes offer smokers an inexpensive alternative to regular cigarettes or rechargeable e-cigs. The product?which lasts about the same as two packs of cigarettes, but is priced like a single pack?does not generate second hand smoke, tar, or yellow teeth. Square Smoke is now available at select bars, restaurants, movie theaters, gas stations, and even convenience stores such as Chevron Gas Stations.

    WARNING: Square 82 electronic cigarettes contain nicotine, a chemical known to the State of California to cause birth defects or other reproductive harm. Square 82 products are not a smoking cessation product, and have not been tested as such. The product and the statement made within have not been evaluated by the US FDA. Square products are not intended to diagnose, treat, cure, or prevent any condition, disorder, disease, or physical or mental condition. Keep out of reach of children.

    Square Smoke does not endorse the use of e-cigarettes or e-cigarette products by minors and pregnant or nursing women. Those with pre-existing health conditions should consult with their doctor prior to using any e-cigarette.

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  6. Green Smoke? Electronic Cigarette Announces Upgrades to their Starter Kits and Refreshing New Pricing

    November 26, 2011 by admin


    (PRWEB) July 22, 2011

    Green Smoke?, the makers of high quality electronic cigarettes, announces a refresh of their entire Green Smoke? Starter Kit Line with the addition of the Green Smoke? USB e-cigarette. The Green Smoke? USB e-cigarette, designed to ensure that the smoker never runs out of power, works with most USB ports to provide a constant, consistent source of power while the Green Smoke? rechargeable e-cigarette batteries are charging. Go to http://www.greensmoke.com to order.

    ?Green Smoke??s goal is to give its customers the best possible smoking experience and this Green Smoke? Starter Kit refresh is another step forward for us,? notes Aaron Weigensberg, Green Smoke? Product Marketing Manager. Weigensberg adds: ?With the addition of the USB e-cigarette to our entire Starter Kit line, Green Smoke? will be adding even more value to its already top-of-the line kits. Green Smoke? is always looking to see how we can give our customers more value?and this refresh is just a taste of what?s to come.?

    Each of the Green Smoke? Starter Kits is being upgraded to include the Green Smoke? USB e-cigarette. The number of cartomizers will also be doubling in the Starter Kit and Love Birds Kit. The Green Smoke? Starter Kit will now come with 10 of Green Smoke??s industry-leading cartomizers (up from 5) and the Love Birds Kit will now have 20 (up from 10).

    Green Smoke customers will also be treated to an even fresher flavor as all of the Green Smoke? Starter Kits will now include Green Smoke??s new FlavorMax? cartomizers. These FlavorMax? cartomizers produce over 25% more vapor and have an even fresher flavor than before.

    ?We?re continually striving to always see how we can improve the customer experience,? says Steven Arnold, VP of Marketing and Customer Satisfaction for Green Smoke?. ?With the release of these new, refreshed starter kits, we?re confident that our customers will get an even more authentic smoking experience and an even better value.?

    Green Smoke?, one of the pioneers of the two-piece e-cigarette design, continues to lead the industry while providing maximum customer satisfaction and innovative products. Not satisfied with giving their customers what?s ?good enough,? Green Smoke? ensures that their customers are provided with the most authentic smoking experience possible – and feel the difference in their wallets – while enjoying their e-cigarettes.

    The new starter kits are available for purchase at http://www.greensmoke.com and will sell at the following prices:

    ????Green Smoke? Basic Starter Kit: $ 129.99
    ????Green Smoke? Social Kit: $ 99.99
    ????Green Smoke? Love Birds Kit: $ 249.99

    About Green Smoke????

    Green Smoke Inc. is based in Miami, Fla. and was founded to provide smokers with an exciting new alternative to traditional cigarettes. As a leading electronic cigarette brand, Green Smoke? was amongst the first companies to pioneer the two-piece e-cigarette design that today is the industry standard. Today, the company continues to pride itself on consistently delivering the highest quality products and the most authentic e-cigarette smoking experience. Green Smoke? is the proud sponsor of TJ Bell in the 2011 NASCAR Sprint Cup Series.

    PR Contact: PR(at)GreenSmoke(dot)net

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  7. Social Networking Coming To Electronic Cigarettes

    November 26, 2011 by admin


    Tampa, FL (PRWEB) July 26, 2011

    The latest information about the new socially groundbreaking Blu Cigs Smart Pack can be found in the article ?Blu Cigs Smart Pack for a Social Media World? posted at cigarettereviews.org. Cigarettereviews.org is constantly striving to provide electronic cigarette users, and those considering making the switch, pertinent information about the products on the market as well as updated e cigarette reviews. E cig companies frequently upgrade their products, or promote new ones. Cigarettereviews.org recently spoke with Blu Cigs Business Development Manager Matt Coapman about the Smart Pack.

    ?Blu Cigs Smart Pack for a Social Media World? provides detailed information about Blu?s latest product. Blu Cigs is regularly upgrading their products to remain the premier e cig company. Their latest innovation, due to hit the market this August, is definitely a first in the electronic cigarette world. Their new Smart Pack is not only an on-the-go case that keeps e cigs charged, but a social networking tool. The pack, which resembles their regular Blu Pack, will now vibrate and light up when a user is within 50 feet of another Blu Cigs Smart Pack user. This will allow them to meet if they desire. The pack will also vibrate when near a retailer that sells Blu Cigs products.

    The Smart Pack is also a means for communicating through Facebook and Twitter. Smokers will be able to set the social networking feature to have their pack transmit their profiles through their pack. Those not interested can turn off the social network setting. A mobile app is also in development.

    Blu?s new Smart Pack will not cost much more than their standard pack. Smokers can upgrade for only $ 10 more. The Smart Pack does, however, perform nearly 20% better than the original. Battery management has been greatly improved on the Smart Pack. A new charging feature, as well as indicators on the pack itself, has also been created.

    Blu recently made headlines with the release of their new two piece electronic cigarette. While e cigs have not been marketed as smoking cessation products, thousands of traditional cigarette smokers have successfully made the switch to the chemical free alternatives. The Smart Pack will only increase curiosity in those who have yet to make the switch. The new social network aspect, combined with the fact that the FDA is set to launch their new graphic warning labels on traditional cigarette packs, will generate interest in the technologically hip generation of smokers. Social networking is a large part of society today, and Blu is looking to help continue the revolution.

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  8. Puffweb.com Releases Free Webmaster Tools to Promote Non-Smoking

    November 25, 2011 by admin


    Tampa, FL (PRWEB) August 02, 2011

    Puffweb.com (known for being one of the first websites to feature an electronic cigarette review) has set aside a section of their website for users to download free WordPress Plugins that display as widgets on their website. The widgets include a ?Cigarette Cost Calculator? and a ?This website owned by a non-smoker? Badge. Future plugins are in development and will be added regularly.

    The ?Cigarette Cost Calculator? displays a simple and sleek calculator that allows the user to choose the number of packs they smoke per day and the cost of their cigarettes. The widget then displays the Daily, Monthly and Yearly amount of money the user spends on cigarettes. The results are displayed in real time as the user slides the controls back and forth.

    The ?Non-Smoker Badge? is a beautiful widget that the website owner can display in their sidebar to show everyone that they do not smoke. The widget reads, “Website Proudly Owned by Non-Smoker”. If enough readers see this, it may help to spread awareness about cigarette smoking and show that not everyone is a smoker, as some smokers may want to believe.

    The “No Smoking Blog” widget is a fun way to tell website visitors that there is no smoking while visiting a blog!

    Puffweb.com is committed to helping people quit smoking, or at least use an alternative like electronic cigarettes. Puffweb also features articles on dealing with smoking withdrawals, what happens when you stop smoking, and other helpful resources for those that are considering kicking the habit.

    For example, Greensmoke Electronic Cigarettes offer ?non-nicotine? cartridges so the user can taper down slowly from a high dose, to a medium, to a low, and finally to a ?non-nicotine? cartridge. This is similar to ?The Patch,? but offers a much more realistic smoking experience.

    Webmasters can download the Free WordPress Widgets from Puffweb.com at the Free Widgets Page.

    Puffweb hopes that others will spread the word and help promote a healthier lifestyle!

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  9. Green Smoke? Offering Thousands of Dollars in Cash Prizes with the Launch of its Video Contest

    November 23, 2011 by admin


    Miami, FL (PRWEB) August 06, 2011

    Green Smoke?, the leading electronic cigarette brand, just launched its summer video project and is looking to end the summer with a bang. The Green Smoke? Video Project will act as a platform for customers to tell their stories and all qualifying entries will receive a cash prize up to $ 150. The top three videos will receive a $ 1500 cash prize. Additionally the video with the most ?likes? on YouTube will receive an additional $ 1000!

    ?This is a great opportunity for our customers to make their voices heard,? says Ken Berg marketing coordinator at Green Smoke? ?The video project is great way for our customers to not only tell us and the world what they love about our products, but to also win some great prizes.?

    The winning videos will be judged based on the best stories and how unique and interesting the shooting location is.

    To enter, participants need to make a video of themselves smoking their Green Smoke? electronic cigarette. In order to qualify, you must mention your name, age, favorite flavor and where you are filming the video. The Green Smoke? Video Project will culminate at the end of the summer with the 3 winning videos and the top videos will be compiled into a big Green Smoke? movie.

    To submit a video to the Green Smoke? Video Project or to learn more about it, go to http://www.greensmoke.com/videoproject.

    About Green Smoke?????

    Green Smoke Inc. is based in Miami, Fla. and was founded to provide smokers with an exciting new alternative to traditional cigarettes. As a leading electronic cigarette brand, Green Smoke? was amongst the first companies to pioneer the two-piece e-cigarette design that today is the industry standard. Today, the company continues to pride itself on consistently delivering the highest quality products and the most authentic e-cigarette smoking experience. Green Smoke? is the proud sponsor of TJ Bell in the 2011 NASCAR Sprint Cup Series.

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  10. Mintel’s British Lifestyles Report Reveals Consumer Reaction to the Age of Austerity

    November 21, 2011 by admin

    (PRWEB UK) 16 September 2011

    They say that money can?t buy you happiness – but new research from Mintel reveals it can certainly go a long way towards it. With economic pressures and an increasingly polarised society all making their mark, the research highlights the divide that has opened up between British consumers over the past couple of years – both in affluence and outlook.

    In new figures from British Lifestyles 2011 – Mintel?s flagship report ? it appears that money CAN buy you happiness and affluence plays a pivotal role in financial outlook. Indeed, today almost six in ten (58%) of those earning ?50,000 and over are satisfied with their life, compared to just four in ten (43%) of those earning under ?15,000. Similarly, almost half (47%) of those earning ?50,000 and over have achieved the important things they want in life compared to three in ten (31%) of those earning less that ?15,500. And despite being arguably in the ?prime of life?, it is not consumers aged 25-54 who are most satisfied with their lives. Those aged 16-24 are the group most optimistic about their finances (74% say they are healthy) with retirees faring next best (31% have money left at the end of the month for a few luxuries).

    Toby Clark, Head of Finance at Mintel, said:

    “There have always been sections of society who do better than others, but when times are tough it becomes harder to gloss over those differences. The UK is staging a weak recovery from the recession of 2008-10 – Government spending cuts, too, are playing on consumers’ minds, with seven in ten feeling that the austerity measures will leave them worse-off. The consumer remains under spending pressure with squeezed incomes not keeping pace with price rises in the shops. As with 2010, the path of recovery from the recession has proved somewhat bumpy for consumers whose confidence remains low. With interest rates still low, and an anticipation that household outgoings will rocket as soon as interest rates start to climb, the consumer remains wary.?

    Today, as many as half (50%) of all Brits are satisfied with their life, three in ten are neutral (31%) while a fifth (21%) are not content with their lot. Almost four in ten Brits (38%) have achieved the important things they want in life. Meanwhile, slightly more consumers (43%) admit that “in life they always want more than they have.

    Alexandra Richmond, Senior Consumer Analyst at Mintel, said:

    “A lack of money holds people back from realising their dreams and as a result, the unemployed and those living in lower-income households are the most likely to say that they always want more than they have. They are less satisfied with life and less likely to agree that they have achieved the things they wanted to.”

    And it is consumers living in Yorkshire who are the nations happiest consumers ? almost six in ten (57%) are very satisfied with life compared to an average of 50% across the nation. By contrast, those living in London are the least content, indeed, today, less than half (48%) of Londoners admit to being happy. Life in a village adds up to a content existence, well over half (56%) of those living in a village are satisfied with their lives, with Suburban dwellers (52%) the next most satisfied – and Urban Dwellers (47%) trailing someway behind.

    The markets covered by Mintel account for 90% of consumer discretionary spend. In 2010, UK consumers spent a total of ?993 billion on goods and services, with housing (?326 billion), transport (?157 billion), and in-home food (?70 billion) consumer sectors with the highest consumer expenditure. Compared with Mintel findings at the same time last year there has been nearly no improvement in feelings about the current financial situation. Overall, people are cautiously optimistic about their future financial situation, with only under a third (29%) feeling confident about their finances and only a minority are extremely worried (18%). Indeed, low recovery from the downturn, combined with the onset of the government?s austerity measures mean that overall people are still feeling the pressure. An estimated 34 and 33 million people have noticed price rises on transport and their food shop, respectively.

    Notions of false economy are coming to the fore; an estimated 10.4 million people buy something that is cheap in the hope that it will last, although a slightly larger group (an estimated 12.6 million) are prepared to spend more on something that they know will definitely last longer. An estimated 34 and 33 million people have noticed price rises on transport and their food shop, respectively and today, half (50%) of British consumers don?t like paying full price for anything. And it appears that when times are tough, brand loyalty is the first thing to be bypassed with more than half (51%) of people switching from their preferred brand if they see a better deal on another. More than one in three (35%) disagree that they?ll stick to the brands that they know and trust if the price rises. Consumers are cynical of price rises with almost half (46%) believing that retailers are using inflation as a cover to maintain their profits.

    And it seems the divide between rich and poor is reflected in their buying behaviour and treat purchases in the current economic climate. Almost half of people (46%) with incomes in excess of ?50,000 per year will take a holiday to cheer themselves up when they?re feeling down but this compares to 22% amongst those living in households with an income of less than ?15,500. The only type of product that lower income households are more likely to buy to cheer themselves up is cigarettes. Almost a third (32%) of those living in households with an income of less than ?9,500 buy cigarettes as a treat compared to an average of fewer than one in five (19%) of all adults – despite the price of cigarettes jumping by almost 50% in the last five years.

    And when feeling blue – an estimated 31 million (77%) Brits turn to food to cheer themselves up. Sweets and chocolate also rate highly as comfort foods with more than six in ten (around 24 million) turning to these treats to pick themselves up. Although many have cut down on their restaurant outings (the market for Eating Out and Takeaways grew by a sluggish 1.6% between 2007 and 2010) and started cooking more from home, more than half (52%) will treat themselves to a night out with friends or a partner and almost half (47%) will pick up a takeaway

    And its not just food self soothing Brits are turning to when times are tough, indeed, the top five things to cheer the nation up include 1. Favourite food to eat at home (77%) 2. Chocolate and sweets, 3. A night out (52%) 4. Takeaway (47%) and 5. Clothing & accessories

    Consumer sector highlights:

    ALCOHOLIC DRINKS ? Alcopops go flat? 50% decline in five years

    RTD (ready to drink) & alcoholic mixables (otherwise known as alcopops) have seen a dramatic decline as they fall victim to negative publicity around their perceived associations with underage drinking. The sector saw a decline of almost 50% between 2006 and 2010. However – Mintel forecasts prospects for this sector are set to improve as innovation in the RTD sector revives fortunes and tax on ABV encourages manufacturers to invest in the low ABV RTD sector.

    The total alcoholic drinks sector saw value slide between 2006 and 2010, although looking forward this is set to recover achieving an estimated 6.1% growth between 2011 and 2016. Mintel forecasts that the two major markets – beer and wine ? will see a sales decline over the next five years. The former due to over-reliance on the declining pub sector and the latter because of its reliance on imports which, alongside higher taxes, are driving up prices.

    FOOD AND DRINK: ?Cocooning? on the rise

    Not surprisingly, one of the biggest increases in consumer spending was seen in the in-home food sector, 38% of Brits claim to have spent more or started spending on this category over the past year. Of consumers who have eaten out, 33% say the number of times they eat out in a typical month has decreased and 36% say the amount they spend on eating out in a typical month has decreased. Another casualty is expenditure on alcohol (43% cut or stop spending), as the rising cost of living drives people away from the pub back to their homes.

    Today, nearly nine in ten people (87%) felt that food prices had risen compared to a year ago, while 78% were more concerned about the rising prices than a year earlier. Nearly two in three people (63%) who eat chocolate feel brands should make it clear when they have reduced the product size/weight, while a slightly lower share (56%) would feel cheated if manufacturers kept the product the same price but reduced the pack size. Nearly one in three people (31%) who eat meat cook more with red meat because they cook from scratch more, while a slightly lower share (29%) do so because they eat out less. Three in ten adults (29%) adults are using more butter and spreads, because they are baking and cooking more at home, while just over one in four (26%) say they eat out less often, so are eating more desserts at home.

    FOOD : Baby food fastest growing consumer market

    The baby food category has experienced a remarkable rate of growth in current prices (53%) over the period between 2006 and 2010. Sales in this category have been buoyed in part by the mini baby-boom over 2003-08 as well as mothers? increasing reliance on and better ability to spend on baby food. Parents continue to want the best for their babies and are less willing to make sacrifices when it comes to their offspring, which explains the strong growth in this sector.

    Ready meals are one of the smallest segments in the UK food market, at ?3.3 billion, accounting for just 5p in every ?1 spent on food by Britons. However, like some of the other smaller sectors, it has posted growth ahead of the wider market over the 2000 to 2010 period, at 51%.

    If the cost of their weekly grocery shopping rose by ?10, more than half (54%) of adults would switch to cheaper brands, while 44% would cut back on the quantity and 37% would switch to cheaper types of foods.

    Two in five meat-eaters (42%) eat more poultry/fish/sausages instead of red meat to save money, while a third of adults (34%) have switched to supermarket own-label butter/spread to save money.

    Expenditure on non-essentials, such as clothing and accessories as well as home and garden purchases have been trimmed (44% and 43% cut or stopped spending respectively), while spending on technology products has also gone down at the same rate (44%), but perhaps owing to different reasons.

    TRAVEL AND TOURISM – staycations here to stay?

    Spending on holidays has been cut, as more people choose to stay around where they live or elsewhere in the UK, rather than purchase more expensive holiday packages abroad. A combination of the weak pound and a decline in the cost of domestic holidays (with UK holidays ?144 cheaper compared to last year) this rise in the popularity of ?stacations? fits well into the mentality of ?preparing for the worst?. In 2010, total expenditure on holidays dropped to a five-year low. The number of overseas holidays continued to fall and domestic holidays came down from the ?staycation? high of 2009. Average expenditure increased, however, with petrol prices a key driver in the UK (over three in four domestic holidays are self-drive trips). Domestic holidays accounted for six in ten of the total in 2010; overseas holidays made up more than 60% of total expenditure, however. While one in four people consider holidays to be a necessary spend, four in ten classify them as a luxury.

    TECHNOLOGY – Boom for Technology sector

    In real terms, the technology market has enjoyed a remarkable growth between 2006 and 2010 (STAT), with real sales in all categories increasing fast, especially when it comes to audio visual (94% growth), computing and gaming (87% growth), and communications (71% growth).

    BEAUTY – healthy glow for beauty market

    The beauty and personal care categories sported a healthy glow in the first decade of the new millennium, turning in growth of just over 50% in the ten-year period. Despite the recession, the combined categories consistently reported growth, though in 2009 ? arguably the eye of the Credit Crunch storm – the rise was slight at just under 1%. True to the ?Lipstick Index? theory, make-up was the strongest growing category in the beauty and personal care segment, growing by almost 90% between 2000 and 2010. Face make-up, which accounts for almost 40% of make-up sales in the UK, has replaced lipstick as an economic bellwether since the segment continues to report positive growth driven by products with additional benefits, such as treatment properties. Meanwhile, in the same period, the proportion of women visiting hair salons remained more or less steady, standing at 80% in 2010. Nail varnish has been a standout segment for several years, almost doubling in size between 2005 and 2010.

    PERSONAL CARE – Brits give oral care the brush off

    Only eight in ten men (78%) brush their teeth at least once a day. Less than 10% of the population brush their teeth during the day when away from home. Women are more concerned than men about always having fresh breath. Almost four in ten women (38%) carry something (like mints or gum) with them at all times to ensure their breath smells fresh, whereas exactly half as many men (19%) do the same. Hair removal can be a tricky issue ? apparently all the more so for those aged under-25, six in ten (62%) of whom have hurt themselves at some point while removing excess hair.

    OTC – Complementary medicine boom?

    Between 2011 and 2016, sales of complementary medicines are forecast to show the strongest growth of 60%, while other pharmaceutical products and vitamins and supplements are forecast to lag behind average growth in the total market (just 2% and 6% respectively). Increased knowledge of health issues among consumers and an ageing population will help to boost preventative remedies.

    CLOTHING AND ADORNMENT – Brits dress to impress

    The clothing and adornment sector has enjoyed healthy growth over the last ten years. Mintel estimates the value of the clothing and adornment market at just over ?47.1 million in 2010, an increase of 31% over the last decade. Men?s and women?s outerwear account for 61% of the total value. There has been a significant rise in women investing in quality clothes, with almost a quarter (23%) buying fewer items but better quality garments, compared with one in eight in 2010. In contrast, Supermarkets have become the most popular outlets for buying menswear, with nearly four in ten (38%) men shopping there, rising to almost half of 45-54s.

    FOOTWEAR ? Shoes march on through the recession

    According to Mintel estimates, the footwear market was worth ?4.3 billion in 2010, an expansion of 30% over the last decade. Last year witnessed an impressive performance from the footwear sector, with annual growth of over 8%. Fashion played a major role in driving expenditure and a second cold winter provided a significant boost in the sales of ladies boots.

    For more information

    Please contact Sian Brenchley or Monica Trombini

    in the Mintel Press Office on 020 7600 5703 or sbrenchley(at)mintel(dot)com

    Notes to Editors

    ASK A MINTEL ANALYST: Mintel’s dedicated sector analysts are available to answer question from the public at British Lifestyles microsite – http://www.mintel.com/britlife. Working in partnership with VYou.com, users can type questions relating to specific consumer sectors which will be answered via video in reponse. Past responses, inforgraphics and downloads per sector are also available on site.

    Mintel’s British Lifestyles report is available to purchase from Mintel priced ?2195.

    For Mintel’s British Lifestyles report, Mintel conducted online consumer research in May 2011 on a sample of 2,017 internet users aged 16+. In addition to quantitative consumer research, Mintel also conducted an online discussion group in July 2011 among a demographically mixed group of consumers.

    Mintel is an independent award-winning provider of world-leading market intelligence, delivering robust information, analysis and critical recommendations. Mintel’s trusted portfolio of proprietary industry solutions and products has been supporting high-profile clients in key sectors such as FMCG, financial services, media, retail, leisure and education for over 38 years. With office locations in London, Chicago, New York, Shanghai, Tokyo and Sydney our global presence continues to grow.

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