The parapharmacy market - Italy (2024)

1.2 The Global and European Market

Global context

The market for pharmacies and parapharmacies has experienced strong growth in recent years. The market size is estimated at $*,***.** billion in **** and is expected to grow at a compound annual growth rate(***) of *.* percent. The main factors driving the growth of parapharmaceuticals include the aging population, which requires products for health management and disease prevention; the rise of chronic diseases, which stimulates the consumption of supplements and supportive devices; and the accessibility and convenience of outlets, including online sales.[***]

Global pharmacy and parapharmacy market value Italy, ****-****, in billions of dollars (***) TheBusiness

European Context

In ****, the market for SOP (***). Sweden, on the other hand, with a per capita expenditure of **.* euros and an index of **, represents one of the countries with the lowest levels, lower even than the United Kingdom. These data highlight how the Italian market for SOP drugs is still small compared to other countries, reflecting different consumption habits and approaches to self-medication.

Per capita spending on non-prescription (***) drugs Main European countries, ****, in € Assosalute

1.3 The domestic market

The parapharmaceutical sector consists of an extensive network of private, municipal and rural pharmacies and parapharmacies (***). Multinationalization of the sector has not occurred in Italy as well as abroad, so that more than *** outlets continue to be opened each year. The parapharmacy market has a size of more than *,*** employees; the market value is estimated at around *** million euros per year, distributed throughout the country. At the structural level, parapharmacies have premises of about **.* square meters, with an additional **.* square meters of warehouse space.**.* percent of parapharmacies have no street windows, while ** percent of cases have one or two windows.[***]

The parapharmacy market belongs to the non-pharmacy market segment, which composes **.*% of the health market; the remaining **.*% is composed of pharmacies. Specifically, the nonpharmaceutical sector is composed of several sectors: nutritional (***).

The health market can be divided into: Ethical sector: drugs that can only be dispensed by a pharmacist in a pharmacy with a prescription. This sector is further divided into: - band A drug: essential medicine and medicine for chronic diseases. They are free to the patient, except for a possible co-payment (***), which varies from region to region. - band C medicine: medicine that is not granted by the national ...

1.4 Foreign market analysis

The analysis focuses on Harmonized System category **.**, which includes medicines (***), and medicines for general use. From a trade perspective, the value of exports belonging to category **.** is higher than that of imports, highlighting a predominant role of the domestic pharmaceutical sector in the international market. However, the data show significant variations over the period analyzed. From **** to ****, there is an **.* percent decline in the value of exports, likely influenced by post-pandemic dynamics and fluctuating global drug demand. The trend reverses in the subsequent period, with a **.* percent increase between **** and ****, marking a recovery in the sector, driven by increased demand and renewed interest in pharmaceuticals globally. On the other hand, a **.* percent decline is observed in the value of imports, underscoring greater self-sufficiency in production or reduced demand for imported pharmaceuticals. These figures reflect the competitive ability of the domestic pharmaceutical sector and the growing importance of exports in sustaining the positive trade balance of the **.** category.

Exports, Imports and Coverage Rate (***) Italy, ****-****, in millions of dollars UNComtrade

The value of exports for medicines included in category **.** shows a geographic distribution concentrated on a few key markets. Switzerland is the main destination country, accounting for **.* percent of the total export ...

2.1 Demand characteristics

Analysis of demand trends for non-prescription medical products, based on the household monthly expenditure item (***), shows two distinct phases between **** and ****. From **** to ****, there was a significant growth of **.* percent, likely influenced by factors such as the health emergency related to the COVID-** pandemic, which increased demand for products for the management of mild or moderate symptoms at home. From **** to ****, on the other hand, a slight decline of **.* percent was observed, which can be attributed to the gradual return to normalcy, with a decrease in the perception of health urgency and a resumption of routine medical visits, which reduced self-medication. This trend reflects a cycle influenced by extraordinary events, but also a stabilization of consumption behavior in the post-pandemic period.

Household monthly expenditure item in non-prescription products Italy, ****-****, in current &euro Istat In the non-prescription drug market, the different therapeutic categories show a significant distribution in values. Products for coughs, colds, and respiratory ailments account for the largest share with **.* percent, highlighting a strong demand related to seasonal illnesses and respiratory problems. This is followed by analgesics, with **.* percent, a relevant segment for the treatment of pain of various kinds. Digestive and intestinal products make up **.* percent, reflecting the ...

2.2 Factors influencing demand

The demand for some pharmaceutical and extrapharmaceutical products is strongly influenced by seasonal factors; in general, the consumption of pharmaceutical products is higher during autumn and winter, as low temperatures and unfavorable weather are some of the causes that can contribute to the weakening of the body. However, depending on the season, the demand trend is as follows:

Spring: Sudden changes in weather conditions and rising and falling temperatures can lead to the first flu symptoms, such as coughs and colds. The most popular medications to combat these symptoms are mucolytic-acting syrups, mouthwashes to soothe the throat, and nasal decongestants. In addition, from March to June there is an increase in pollen concentration, which is the enemy of one-third of Italians. In fact, ** million Italians suffer from seasonal allergies and *.* million are children. As a result, antihistamines and cortisone are among the most popular medications in spring [***] Summer: is considered the season when the body is unlikely to fall to viral attacks and weather conditions, as usually good weather and pleasant temperatures do not seem to put health at risk. However, there is a massive increase in demand for sunscreen and "after-sun" products during this season. Fall : During this season, antipyretic ...

2.3 Geographical distribution of demand

In ****, the geographical distribution of demand for the COICOP expenditure item "Herbal medicines and homeopathic products" showed significant variation among the main areas of the country. In terms of average values in current euros, the Center recorded the highest expenditure, with *.** euros, followed by the North, with *.** euros. The South, on the other hand, showed a lower average expenditure of * euros, marking a gap with the rest of Italy. This distribution could reflect differences in consumption habits, perceptions of the efficacy of these products or affordability among different geographic areas.

2.4 New demand trends

By virtue of the European Directive (***) , which allowed EU member states to decide independently on the marketing of drugs within their territorial jurisdiction, online sales of non-prescription drugs, so-called SOPs and OTCs, have been possible in Italy since ****, after obtaining approval from the Ministry of Health

Since ****, there has been a remarkable number of pharmacies and parapharmacies authorized to sell online. The first year in which the online sale of OTC and SOP drugs was deregulated saw the highest and most sudden growth. Today there are ** pharmacies and parapharmacies that in the first four months of **** obtained authorization for online sales from the Ministry of Health; the total, therefore, of authorized players rises to *,***.

Top five regions by number of authorizations for online sales of OTC and SOP drugs issued by the Ministry of Health Italy, ****, number of units Farmakom

Pharmacists in these five regions have believed in the online sale of SOPs and OTCs from the very beginning, with important growth rates recorded since early ****: in fact, they are the first and only ones to have reached triple digits at the turn of ****-****.Emilia-Romagna achieved the following in mid-****, due to the pandemic.

Covid and online parapharmacy

Precisely, the ...

3.1 Market structure and dynamics

Active Firms

Active enterprises in other specialty retail trade of non-prescription medicines remain numerically robust, showing a gradual growth in the period between **** and **** of *.* percent. This increase, while small, underscores the sector's ability to maintain a stable presence and adapt to changing market dynamics.

Number of active enterprises (***) Italy, ****-****, in thousands Istat

Number of employees

The number of employees in the non-prescription drug retail sector in other specialized establishments showed significant growth between **** and ****, with an overall increase of **.* percent. This figure reflects the expansion of the sector, boosted by a growing demand for products related to self-medication and wellness, as well as the opening of new businesses.

Number of employees (***) Italy, ****-****, in thousands Istat Legal Form Active Firms

In the sector of retail trade in other specialized establishments of non-prescription medicines, active enterprises are characterized by a predominance of the legal form of sole proprietor, freelancer and self-employed, accounting for **.* percent of the total. This is followed by limited liability companies (***), on the other hand, cover a smaller share of*.* percent, while the other residual legal forms account for *.* percent.

Legal form of active enterprises (***) Italy, ****, % Istat

3.2 Value Chain

The supply chain of the parapharmacy market includes several stages:

raw materials and equipment, such as active ingredients, glass, cardboard, rubber and plastics, are supplied to pharmaceutical companies, which process or use them to produce pharmaceuticals and health care products; the pharmaceutical and non-pharmaceutical products are, then, delivered to depositories; these are responsible for storage and transportation; before reaching customers, the products are distributed to various operators, including parapharmacies, which will be the actual distributors of the product.

Parapharmacy market value chain

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3.3 Distribution channels

Following the enactment of Legislative Decree No. *** Art.* of July *, ****, the possibility of selling certain types of drugs in places other than pharmacies was guaranteed, with the aim of achieving economic and social revitalization; as a result of this, parapharmacies and GDO corners took root in the sector, becoming decisive channels of product distribution.

In ****, the parapharmacy sector had a significantly higher presence than the large-scale retail trade (***). Specifically, the number of parapharmacy units stood at *,***, compared to only *** belonging to the large-scale retail trade. This figure underscores the predominant role of parapharmacies as a point of reference for the purchase of non-prescription pharmaceuticals and other health-related items. The numerical disparity also highlights how parapharmacies, being more widespread and rooted in the territory, are better able to respond to the proximity needs of consumers, compared to the large-scale retail trade, which operates in a more centralized and less capillary manner. This difference is a key element in understanding competitive dynamics and the relationship with the traditional pharmaceutical market.

Evolution of the number of GDO parapharmacies and corners Italy, ****-****, number of units Assosalute

From a territorial point of view, the distribution of parapharmacies in Italy shows a marked concentration in Southern ...

3.4 The main actors

Manufacturers are in the business of manufacturing, marketing, and distributing personal and health care merchandise. These products can be used for the prevention, treatment or amelioration of minor ailments, but are not as effective as drugs in the treatment of serious conditions.

Manufacturers have to comply with a number of rules and regulations so that they can ensure the safety and effectiveness of their products, and for these reasons they undergo quality control in order to make the goods comply with European regulations.

The market for parapharmaceutical products is growing steadily, thanks to increased consumer awareness of the benefits of these products. Manufacturers are investing in research and development in order to expand the range of products available and meet the needs of consumers.

Examples of parapharmaceutical products include:

Skin care products, such as creams, lotions, cleansers, and makeup. Hair care products, such as shampoos, conditioners, dyes and styling products. Body care products, such as deodorants, oral hygiene products, and intimate hygiene products. Health care products, such as dietary supplements, weight management products, and sleep care products.

Leading manufacturers

Aboca: is a leading manufacturer of therapeutic innovation based on natural molecular complexes, going on to develop and manufacture innovative and effective ...

4.1 Overview of the offer

The supply in the parapharmacy market can be summarized as follows:

OTC & SOP: also called "over the counter" and "non-prescription" are non-prescription drugs that can be sold without a prescription and are not reimbursable. OTCs are distinguished from SOPs by the freedom to advertise directly to the public, through the press or television. Patient care: includes all products that support a patient's recovery that are not classified as OTC or SOP. This category includes drugs, diagnostic tests, medical and surgical accessories and equipment, and parapharmaceuticals, such as needles, bandages and hydrogen peroxide, etc; Personal care: includes all personal care and hygiene products. it is further segmented into the following categories: beauty and oral hygiene, hair, body, sunscreen, and face; Nutritional products: these include diet foods, meal replacement, infant milk, gluten-free products, etc

Specifically, the parapharmaceuticals available within the gifted facilities can be parapharmaceuticals for human use (***) and parapharmaceuticals for veterinary use. According to the latest available data updated in November '**, parapharmaceuticals for human use currently produced are about *.* billion. Of this total, **.* percent are commercially available and the remaining **.* percent are undergoing approval reviews. As for parapharmaceuticals for veterinary use,**.* percent of the products are already commercially available.[***]

Statistics by ...

4.2 New trends in online offerings

According to recent research conducted by Industry, an agency specializing in e-commerce and digital marketing, online parapharmacy stores are consolidating their role as an increasingly popular and relevant purchasing channel. In ****, e-retailers (***) exceeded one million visits per month. This trend underscores a growing consumer propensity to use the online channel for purchasing parapharmaceuticals, with a ** percent increase in average monthly visits between **** and ****.

In this context, some stores stand out for above-average performance. Established realities such as eFarma, Farmaè, Farmacia Loreto, and FarmaSave have achieved significantly higher traffic volumes, while new players such as Dr Max and Redcare have experienced exceptional growth of ***% and ***% respectively in just two years. This success is partly attributable to user experience optimization strategies, which have improved the navigation, accessibility and visual appeal of the platforms, while also contributing to an increase in the average number of page views per session, now standing at *.*.

From a consumer profile perspective, the research shows that the typical customer is a woman (***) who chooses the online channel primarily for reasons of convenience and affordability. Other demographics, particularly young adults between the ages of ** and **, account for a significant share of total traffic, accounting for ** percent. In addition,increasing loyalty ...

4.3 Prices

In ****, the average price of non-prescription drugs (***).

Average price of products in the parapharmacy channel Italy, ****, in current euros (***) Pharmacyscanner Below are some of the prices of the most purchased products in the parapharmacy sector:

Aboca Product Price Aboca Immunomix syrup, *** gr € **,** Aboca Immunomix advanced ** tablets € **,** Aboca Adiprox advanced, ** tablets € **,** Angelini Product Price Tachipirina € *,** Verolax € *,** Moment € **,** Bioscalin Product Price Bioscalin Energy Man - anti-hair loss supplement € **,** Bioscalin Physiogenin ** tablets - ZERO € **,** Bioscalin Nova Genina Anti-Hair Loss Supplement € **,** Lierac Product Price Lierac Sunissime ** capsules tablets € **,** Lieract Lift Integral, regenerating night cream ** ml € **,** Lirac Hydrgenist rehydrating cream € **,** [***]

Pharmaceutical prices show slight overall growth from **** to ****, with the index increasing from ***.* to **.* (***). In contrast, other medical products experienced a more pronounced initial decline, falling from **.* in **** to **.* in ****, then rising again to **.* in ****, registering an overall change of +*.*%. The trends of the two groups converge in ****, with different dynamics in the subsequent recovery.

Price trends for Pharmaceuticals [***] Italy, ****-****, index (***) Istat

5.1 Italian regulations

Birth of parapharmacies

The possibility of selling certain types of medicines outside of pharmacies is provided for in Art. * of Legislative Decree No. *** of July *, **** containing "Urgent provisions for economic and social revitalization, for the containment and rationalization of public spending, as well as interventions in the field of revenue and the fight against tax evasion," which came into force on the same July *.

Subsequently, the types of medicines that can be marketed in commercial establishments were expanded (***).

Commercial activities can be:

neighborhood businesses: those with a sales area of no more than *** square meters in municipalities with a resident population of less than **,*** inhabitants and *** square meters in municipalities with a resident population of more than **,*** inhabitants; medium-sized sales facilities: establishments with an area exceeding the limits set for neighborhood establishments and up to *,*** square meters in municipalities with a resident population of less than **,*** inhabitants and *,*** square meters in municipalities with a resident population of more than **,*** inhabitants large sales facilities: establishments with areas that exceed the limits set for medium-sized establishments. A shopping center is defined as a medium- or large-scale sales facility in which a number of commercial activities are included in a specific destination structure and ...

5.2 Steps to open a parapharmacy

To open a parapharmacy, there are several steps:

Develop a strategy : It is important to analyze the area and existing competitors to develop a coherent strategy in line with the goals, skills and attitude of the future staff; Choosing the location : to choose the location is mainly influenced by factors of location and space, as well as economics, availability of premises, accessibility, visibility, status of locations, etc; Identify a partner company for strategy development and venue realization: choosing a specialized company with whom to first have a strategic discussion in addition to advice on developing a project that materializes initial ambitions, allows ideas on paper to be concretized and goals to be defined; Set the budget and identify financial instruments to manage the operation; Apply to the municipality: the interested party can submit the communication in person, by mail or fax to the Commercial Office at the fixed location, using the appropriate forms. The communication must be signed by the owner/legal representative of the business, and submitted in triplicate signed in original; no stamp duty is required. The notice must be submitted at least ** days before the date of opening, relocation, addition of the commodity sector, extension of the area. Notify ...

5.3 Bonuses and Incentives

To support professionals in the sector, theNational Pharmacists Pension and Assistance Fund (***) has allocated one-time grants to pharmacists who own or are members of parapharmacies. In ****, ENPAF allocated ***,*** euros for this initiative, with the aim of financially supporting members who meet certain requirements. [***]

Requirements to access the grant include:

being an owner or member of a parapharmacy since at least ****; having paid the full contribution fee in the three-year period ****-****; be in good standing with the payment of ENPAF contributions.

6.1 Segmentation

• Farmaè
• Medi-Market
• Bennet
• Pulker Farma Parafarmacie
• Weleda
• Talea Group S.P.A.
• E' QUI S.P.A.
• G.S.M. S.r.l.