The parapharmacy market - Portugal

1.1 Definition and scope of study

The parapharmacy market refers to all sales of care and hygiene products (for adults and babies), as well as beauty products, dietetics and food supplements, which do not require a prescription. It is also necessary to include small appliances such as nail files or electric toothbrushes.

The parapharmacy market in Portugal has evolved considerably since its creation in the 1980s. The consumption of parapharmaceuticals has been democratised by opening up to all types of distribution:

• The pharmacies Historic players, continue to capture 75% of the market. To maintain their hegemony, they are developing their own brands at competitive prices.
• Specialty brands (Parashop) In the fashionable 1990s, they were threatened by the offensive of mass distribution and by insufficient investment capacity.
• GSA parapharmacies (Corte Ingles): their weight has increased significantly in recent years. They anticipate an exit from the monopoly of over-the-counter (OTC) drugs
• Online sales are increasing and are taking advantage of the recent success of Internet sales.
• Mass distribution which invests heavily in the sector

In Portugal, consumers are beginning to focus on health prevention rather than treating them after they appear. This change of mentality increases the demand for parapharmaceutical products to the detriment of medicines. This type of commercial channel is developing rapidly and is exploited by the parapharmacies that offer products with this objective in mind.

In addition to enjoying comparative pricing advantages, these players benefit from their expertise in other fields and invest their resources in aggressive marketing. There is no doubt that these chains have been able to adapt to the Portuguese people's pricing concerns. Today, parapharmacies already account for a significant share of total sales of dermocosmetic products.