Executive Summary
The market for contraceptives has long been heavily influenced by social and
political considerations. From the early days of the pill, the growing numbers
of abortions and the decision to make the pill freely available in the early
1970s to the emergence of the AIDS threat in the 1980s, this sector has always
been more than a mere product category.
The total market consists of a very broad range of products, covering oral
contraceptives (the pill), male condoms, intra uterus devices (IUDs) or coils,
diaphragms or caps, female condoms, spermicides and a contraceptive sponge.
Hormonal implants for women are also now set for widespread availability, and
several other new forms of contraception are currently being developed. Other,
`natural' forms of contraception are also practised, such as withdrawal and the
safe period. Men and women may also be surgically sterilised.
Contraceptive products are available in pharmacies or general retail outlets,
over-the-counter (OTC), or via prescriptions. In terms of the two leading forms
of contraception, the contraceptive pill is available only on prescription,
whilst condoms are widely available in chemists, grocers and vending machines,
etc. Growth in distribution channels has been a feature of the condom market
through the second half of the 1980s to date in response to the AIDS crisis.
The condom market is essentially the only major retail market in
contraceptives, with a value of around £42m at retail selling prices in
1992. The market is continuing to show gradual real volume growth, but has
slowed considerably from the very high growth rates it displayed in the early
years of AIDS awareness campaigns. Oral contraceptives had an estimated market
size of £48.7m at manufacturers' selling prices in 1991.
Condom usage has risen substantially over the past six years, whilst use of the
pill has remained broadly stable. The pill remains the most popular
contraceptive (based upon surveys of women -- surveys of men and women show
use of condom and pill as about equal).
At present, both the pill and condom markets are facing political scrutiny. The
Monopolies & Mergers Commission (MMC) is again investigating the condom
market, where one brand range, Durex, continues to dominate, although now
joined by a major new competitor, Mates. Oral contraceptive suppliers are
concerned as to how the latest review of the NHS Selected List will affect
their market. Oral contraceptives are the only prescription available freely to
anyone. In 1993's cost-conscious health service, it seems likely that the
Government will seek some method of saving money in this large prescription
category.
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