The global allergic rhinitis services market is characterized by the presence of global, regional, and local vendors. The market is highly competitive with all players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, quality, and reliability. It is decisive for the vendors to provide cost-efficient and high-quality products, to survive and succeed in an intensely competitive and growing market environment.
The growth of market vendors is dependent on market conditions, government support, and industry development. Thus, vendors should focus on expanding geographically and improving their products. They primarily focus on the development of novel products. Although international players are dominating the market, regional, and foreign players with small market shares also have a presence. The international players may strengthen their presence worldwide through acquisitions during the forecast period. It has also been forecast that improvement of the global economic scenario combined with efforts to enhance infrastructure in emerging nations, is fueling the market growth, thereby making it an ideal time for new products and to increase the global market share. Vendors with better technical and financial resources could develop innovative products. Therefore, vendors must develop new technologies and stay abreast of emerging technologies that could affect the continuing competitiveness of their treatment lines in the market.
The top players in the global allergic rhinitis market are GlaxoSmithKline plc, Johnson & Johnson Services, Inc, Bayer AG and Sanofi.
GlaxoSmithKline plc operates in four segments namely; pharmaceuticals, pharmaceuticals R&D, vaccines, and consumer healthcare. The company offers healthcare products in the form of tablets, caplets, infant syrup drops, syrups, topical gels, nasal sprays, effervescent, lozenges, gum and trans-dermal patches. GlaxoSmithKline plc holds First position in global allergic rhinitis market with 9.81% market share.
Johnson & Johnson Services, Inc. accounted for the second-largest market share of 9.12% in 2018. It is 130-year-old company and it has strong presence over the globe. The company has more than 125,000 employees in more than 60 countries. The company offers products in segments such as consumer, pharmaceuticals and medical devices. It is one of the major players in the global allergic rhinitis market and it has strong presence in established markets.
Bayer AG accounted for 6.93% market share of global allergic rhinitis market in 2018. The company is present in all established markets and has strong brand name in the market. It operates in business segments including human and veterinary pharmaceuticals, consumer healthcare products, agricultural chemicals, and biotechnology products, and high-value polymers.
Sanofi held third position in the allergic rhinitis market with 4.76% market share. It is a French multinational pharmaceutical company which functions through three segments, namely, pharmaceuticals, consumer healthcare, and vaccines. The company serves its customers around the globe with having presence in more than 100 countries and industrial sites in 38 countries. Sanofi mostly emphasizes on new product launches and invests in sales and marketing activities.
Few other major market value contributors operating in this market are Boehringer Ingelheim, Merck & Co., ALK-Abelló A/S, and Meda Pharmaceuticals.
Bargaining Power of Suppliers
The bargaining power of suppliers in the allergic rhinitis market is moderate. The number of suppliers in the market is sufficiently high to provide plenty of options to drug manufacturers for material sourcing which is required for the production of the various drugs, thus leaving suppliers with moderate bargaining power. Another factor affecting the bargaining power of suppliers is the supplier switching cost for buyers owing to the presence of a moderate number of raw material suppliers in the market. On the other hand, only a moderate number of viable raw material substitutes are available, which further boosts the bargaining power of suppliers in the market.
Bargaining Power of Buyers
The bargaining power of buyers is moderate in the global allergic rhinitis market. The market has a moderate number of buyers for various allergic rhinitis treatment drugs. The buyers of allergic rhinitis treatment in the global market are highly inclined towards brand identity. Moreover, the buyers can exert moderate to high pressure on the drugs manufacturing companies as some of the companies provide their product at a high cost. Hence, due to the presence of a large number of companies and a huge number of products, the bargaining power of buyers tends to be moderate.
Threat of New Entrants
The threat of new entrants is moderate to high in the global allergic rhinitis market. Prevalence of allergic rhinitis is increasing significantly, which has increased the demand for new drugs. Moreover, increasing geriatric population and funding is influencing many of the start-ups to take a keen interest in the field of research & development. Introduction of new drugs requires a long-time clinical trial and a huge capital. This is the reason that there are moderate to high possibilities for new entrants in the market.
Threat of Substitutes
The threat of substitutes in the global allergic rhinitis market is low. There are a very few substitute treatment methods which pose a low threat in the global allergic rhinitis market.
Intensity of Rivalry
The degree of competition in the global allergic rhinitis market is moderate to high. People are more inclined to brand identity. However, increasing government support and the availability of funding has encouraged many new start-ups. To compete with multinational players, new and small companies are reducing the cost of their products, which makes the intensity of rivalry moderate to high.
