The pharmacy market - Italy (2024)

1.2 The global market

The global pharmaceutical market shows steady growth from **** to ****. Starting from $****.* billion in ****, it is expected to reach $****.* billion in ****. This represents a **.* percent increase in six years with a compound annual growth rate(***) of *.* percent.

Global Pharmaceutical Market Value World, ****-****, in US$ billion GrandViewResearch

Increasing demand for specialty medicines globally and rising prescription drug spending in developed countries are expected to drive market growth over the forecast period. In addition, the increasing prevalence of chronic diseases, mainly due to changes in lifestyle and the rapidly aging population, is complementing the market growth. Increased demand for prescription drugs is contributing to the growth of the industry, with pharmacies experiencing a surge in activity due to the need to dispense these drugs. By product type, the prescription drug segment dominated the pharmaceutical market with the largest revenue share of **.* percent in ****. Pharmacies are adopting digitization programs to meet growing consumer demand and provide better accessibility to patients. For example, CVS Health has introduced a digital transformation program to personalize the healthcare experience using artificial intelligence, machine learning, data and analytics.

In ****, North America dominates the global pharmaceutical market with a ** percent share.Europe follows with ** percent, while Asia-Pacific, excluding China and ...

1.3 The European market

The European pharmaceutical market is set to grow steadily from **** to ****. Starting at $***.** billion in ****, it is estimated to reach $***.** billion in ****, marking a ** percent increase.

European Pharmacy Market Value Italy, ****-****, in US$ billion GrandViewResearch

This growth is attributed to the increasing number of people with chronic diseases turning to online pharmacies for convenience and accessibility to medicines, especially in rural areas.

European Pharmaceutical Exports: **** Ranking Major pharmaceutical exporters Europe, ****, in thousands of tons UNComtrade In ****, Germany is confirmed as the largest exporter of pharmaceuticals in Europe with **.* thousand tons. It is followed by the Netherlands with **.* thousand tons and Belgium with **.* thousand tons. Turkey and Ireland contribute *.** and *.** thousand tons, respectively, while Italy exports *.** thousand tons. France and Spain close the ranking with *.** and *.** thousand tons. These figures highlight the dominant role of Germany, the Netherlands and Belgium in European pharmaceutical exports, with a significant presence of Turkey and Ireland as well.

Disparity among Major Importers of Pharmaceuticals in Europe Major Importers of Pharmaceuticals Europe, ****, in thousands of tons UNComtrade In ****, the top importers of pharmaceuticals in Europe show a clear dominance of the Netherlands with **.* thousand tons. Germany follows with **.*, while France ranks third with **.*. Belgium and Ireland ...

1.4 The Italian market

In recent years, the Italian pharmaceutical industry has grown significantly in terms of development, added value, trade and investment. In terms of research, Italy has about ** percent of the total number of clinical trials authorized in the entire European Union. Over the years, the prevalence and incidence of many chronic and infectious diseases, such as diabetes, cancer and others, have increased significantly worldwide, leading to a strong demand for pharmaceuticals globally and, consequently, stimulating the growth of the market examined. However, in the coming years, the pharmaceutical sector in Italy may face a number of obstacles. Italy's rising debt relative to GDP and the country's limited economic growth could reduce the flow of money, which could cause difficulties in the sector and hinder the development of the industry in the country.

The total turnover of pharmacies in Italy showed a decline between **** and ****, from **.** billion euros to **.** billion euros, a decrease of * percent. From **** to ****, turnover grew significantly, reaching **.** billion euros, marking a *% increase from ****. This trend shows an economic recovery of pharmacies after a period of contraction, with a strong post-**** recovery. Total pharmacy turnover Italy, ****-****, in € billion Federfarma

The prescription drug category in Italy is estimated to account ...

1.5 Imports and Exports

Between **** and ****, exports of the Italian pharmaceutical industry increased by ** percent from ***.* million in **** to ***.* million in ****. Imports followed a similar trend, growing ** percent from ***.* million to ***.* million in the same period. Despite the changes, the coverage ratio remained above unity, signaling a positive trade balance. This ratio increased from *.*** in **** to *.*** in ****, with a slight decrease in **** and ****. In summary, Italy has maintained a trade surplus position in the pharmaceutical sector, with export growth outpacing import growth. Exports, Imports and Coverage Rate of the Pharmaceutical Industry Italy, ****-****, in millions of € Farmindustria

Main Destinations of Italian Pharmaceutical Exports:

Main Destination Countries of Pharmaceutical Exports Italy, ****, in % UNComtrade

In ****, the United States is the main destination of Italian pharmaceutical exports (***), with **.** percent of the total. China follows with **.**%, while Belgium and Spain receive **.**% and *.**%, respectively. South Korea, France and Mexico make up smaller shares, with *.**%, *.**% and *.**%, respectively. The "Other" countries category covers **.** percent, indicating a fairly diversified distribution of Italian exports.

Main Countries of Origin of Imports: Main source countries of pharmaceutical imports Italy, ****, in % UNComtrade In ****, Italy imported pharmaceutical products mainly from the Netherlands and Germany, accounting for **.** percent and **.** percent of the total (***), respectively. Belgium and France followed with ...

1.6 Inflation suffered by the sector

The pharmacy industry has responded to inflation with a variety of strategies aimed at containing costs and maintaining economic sustainability. Many pharmacies have had to increase prices of drugs and health care products to compensate for increased production and procurement costs, while trying to balance consumer sensitivity to higher prices. To better manage resources, pharmacies have optimized inventory management, using advanced technologies to monitor sales and forecast demand, thus avoiding waste and reducing costs associated with inventory. Negotiations with suppliers have become more intense, seeking more favorable purchasing terms, discounts, and extended payment terms. To retain customers despite general price increases, many pharmacies launched promotional campaigns and offered discounts on selected products. Improvements in operational efficiency, such as the automation of internal processes and the use of management software, helped reduce operating costs, while expanding the range of services offered, such as personalized consultations, home delivery services and loyalty programs, increased the perceived value to customers, thus justifying higher prices. Some pharmacies have also formed partnerships or joined in purchasing consortia and networks to increase bargaining power and reduce costs.

Producer price index of the manufacture of basic pharmaceutical products and pharmaceutical preparations industry - monthly data - base ****=*** Italy, ****-****, ...

2.1 Overview of demand

Total pharmacy spending in Italy increased from €**.* billion in **** to €**.* billion in ****, marking a ** percent increase. After a slight decline in ****, spending has shown a generally increasing trend, with a significant peak between **** and ****. This suggests higher healthcare spending and an increase in drug consumption. Italian pharmaceutical market value Italy, ****-****, in € billion Farmindustria

Year **** **** **** **** **** **** **** Total pharmacy expenditure **.*** **.*** **.*** **.*** **.*** **.*** **.*** Medicines class A **.*** **.*** **.*** **.*** **.*** **.*** **.*** Class C prescription drugs *.*** *.*** *.*** *.*** *.*** *.*** *.*** Self-medication *.*** *.*** *.*** *.*** *.*** *.*** *.***

From **** to ****, total per capita pharmacy spending in Italy showed a steady upward trend. Starting from *** euros in ****, spending declined slightly to *** euros in ****, but then picked up again, reaching *** euros in ****. This represents a **.* percent increase over ****.

Total per capita spending on pharmacy Italy, ****-****, in current &euro Farmindustria

In ****, the distribution of total pharmaceutical spending in Italy shows that **.* percent of spending is allocated to Class A in pharmacies, representing the largest share. Spending on Class C, SOP and OTC is **.* percent, while **.* percent is attributed to non-retail Class H. Finally, **% of the expenditure is on non-retail Class A.

Distribution of total pharmaceutical expenditure Italy, ****, in % Farmindustria

In the context of pharmaceutical spending in Italy, these categories represent different classifications of drugs and distribution channels: Class C, SOP, and OTC: Includes Class C ...

2.2 Geographical distribution of demand

In ****, according to Istat, the average expenditure item for medicines, vaccines and other pharmaceutical preparations of Italian households was €**.**. Below is the division by macro-region.

In ****, the average monthly expenditure on medicines, vaccines and other pharmaceutical preparations of Italian households shows a significant regional difference. Households in the South and Islands spend an average of €**.** per month, while those in the Northeast and Northwest spend €**.**. Households in the Center record a slightly lower average expenditure of **.** euros.

2.3 Trends in pharmacy demand

The trend of online pharmacy searches in Italy between **** and **** shows a significant peak in July **** with an index of **, followed by a marked decline in August and September ****, with **.* and **.*, respectively. In subsequent months, the index fluctuates, generally staying below ** points, with a brief rise in December **** (***).

The trend shows a steady decline during ****, reaching a low of ** in September, with a slight increase from January ****, stabilizing around **-** points in early ****.

The numbers represent search interest relative to the highest point on the graph in relation to the region and period indicated. A value of *** indicates the highest frequency of search for the term, ** indicates half as many searches. A score of *, on the other hand, indicates that insufficient data were found for the term.

Trend of online searches for pharmacies Italy, ****-****, index Google Trends, Businesscoot elaboration

Data on the geographic distribution of online pharmacy searches in Italy show significant variation among regions. Piedmont records the highest index with ***, followed by Liguria with **, and Veneto and Abruzzo both at **. Emilia-Romagna, Friuli-Venezia Giulia and Marche stand at around **. Other relevant values include Sicily with **, Puglia with **, and Valle d'Aosta and Basilicata with ** and ** respectively. Regions with lower values include ...

2.4 New demand trends

In recent years, the pharmacy industry has seen a significant evolution in consumer demand, driven by new needs and preferences. The following table highlights the major emerging trends that are shaping the future of pharmacy.

Holistic Health and Wellness

Natural and Organic Products: There is a growing demand for natural, organic and eco-friendly products, both for dietary supplementation and for skin and hair care. DietarySupplements: Increasing demand for dietary supplements to support general well-being, mental health, energy, and immunity.

Digitization and Telemedicine

E-commerce: Online pharmacies are gaining ground, offering a wide range of products and the convenience of home delivery. Apps and Digital Services: Apps for treatment management, health monitoring, and pharmaceutical counseling are becoming increasingly popular. Telemedicine: Pharmacies are integrating telemedicine services to offer remote consultations, facilitating access to care especially in rural areas.

Personalization of Treatments

Pharmacy Compounding: Increasing interest in personalized medications, prepared according to specific patient needs. Genetic Testing and Microbiome Analysis: Personalization of treatments through genetic and microbiome testing is becoming a growth area to provide more targeted and effective therapies.

Mental Health

Mental Health Products: There is growing demand for supplements, herbal teas and natural products to manage stress, anxiety and improve sleep quality. Counseling ...

3.1 Italian market structure

The number of active pharmacy enterprises in Italy showed moderate growth from **** to ****. In **** there were **,*** active businesses, a number that increased to **,*** in **** and **,*** in ****. In **** there was a slight decrease to **,***, followed by an increase to **,*** in ****. In **** the number dropped slightly to **,***. Overall, from **** to ****, the number of active pharmacies increased by * percent.

Number of businesses active as pharmacies [***] Italy, ****-****, in number Istat

In ****, the majority of businesses active as pharmacies in Italy are sole proprietors, freelancers, and self-employed, accounting for **.**% of the total. General partnerships follow with **.** percent, while limited liability companies make up **.** percent. Limited partnerships account for **.** percent, while corporations and limited partnerships are a minority, with only *.** percent. Other business forms make up *.** percent. This landscape indicates a predominance of simpler and more traditional legal forms in the industry. Legal form of businesses active as pharmacies Italy, ****, in % Istat

The number of employees working in pharmacies in Italy has shown a steady increase from **** to ****. In ****, the total was **,***, rising to **,*** in ****. The increase continued in the following years, reaching **,*** in ****, **,*** in ****, and **,*** in ****, reaching ***,*** in ****. Overall, from **** to ****, the number of employees grew by ** percent. This increase reflects a growth in the ...

3.2 Drug distribution channels in Italy

In Italy, drug distribution channels are characterized by a multifaceted structure that includes different players and distribution modes. Here is an updated overview of the main pharmacy distribution channels:

Intermediate Distribution: Intermediate distribution involves pharmaceutical wholesalers who purchase drugs from manufacturing companies and distribute them to pharmacies. This channel is very well established, with the top ten wholesalers covering ** percent of the market. Many of these wholesalers have developed their own or affiliated pharmacy networks, as well as e-commerce platforms (***).

Direct Distribution: It is carried out by public health facilities, such as ASLs and hospitals, which directly supply drugs to patients. This mode is often used for expensive or specific drugs that require tighter control over dispensing (***).

Distribution Per Account (***).

E-commerce: The e-commerce channel has experienced significant growth, accounting for a growing share of the market. The top thirty e-retailers control ** percent of the online market, with about ***,*** products available for sale. E-commerce offers a convenient alternative, especially for self-medication products and medical devices (***).

Parapharmacies and GDO: Parapharmacies and large-scale retail trade (***).

Chain Pharmacies: These are becoming increasingly common, accounting for about ** percent of pharmacies and ** percent of total sales. These chains are often part of larger networks that also include ...

3.3 Italian pharmacies

The number of pharmacies operating in Italy increased steadily from **** to ****, from **,*** to **,***, a growth of *.* percent. This increase reflects a continuous expansion of the pharmacy industry, with an average of about *** new pharmacies each year.

Number of operating pharmacies Italy, ****-****, in number Federfarma

The average turnover of a pharmacy in Italy showed a slight decrease from **** to ****, from €*.** million to €*.** million. However, a recovery is observed from **** to ****, with an increase to *.** million euros, marking a * percent increase compared to ****.

Average turnover of a pharmacy Italy, ****-****, in millions of € Federfarma

The geographical distribution of pharmacies in Italy shows a significant concentration in Lombardy with *,*** pharmacies, followed by Lazio with *,*** and Campania with *,***. In contrast, regions such as Valle d'Aosta and Molise have much lower numbers, ** and *** respectively. This disparity indicates a higher density of pharmacies in more populous and urbanized regions, while smaller and less densely populated regions have fewer. The distribution reflects the country's demographic and urban variability.

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3.4 The main players in the market

The main companies with Ateco code **.**.* under the name "Pharmacies" in Italy are:

Azienda Farmacie Milanesi Spa O Only A.F.M.: Operates a network of municipal pharmacies in Milan; main locations include those at Via Andrea Maria Ampère, ** and Piazzale Diego Velasquez, *. The company offers essential pharmaceutical and health services, including pharmaceutical counseling, blood pressure measurement, and booking of doctor visits and diagnostic tests. It also provides herbal products, natural essential oils, and orthopedic items. The company is structured as a corporation and includes a Board of Directors and a Board of Statutory Auditors, with the chairmanship currently held by Arianna Furia(***).

Farmacia S.Caterina Srl: Part of the Marzano Group, it was founded in **** and is based in Caivano, Naples. The company is known for its family management that has reached the third generation, focusing on innovation and quality of service. With sales of more than *** million euros and EBITDA of about *.* million euros, the company stands out in the pharmaceutical retail sector. The pharmacy manages international supply operations and offers an omnichannel service that effectively integrates advanced logistics and online commerce, serving customers in several countries (***).

Dr Max Italy: It is part of the Dr. Max Group, ...

4.1 Supply analysis

In ****, pharmacy sales in Italy consisted of **.* percent of nonprescription drugs and commercial market products, while prescription drugs accounted for **.* percent. This indicates that more than half of sales are attributable to drugs prescribed by doctors, showing a slight dominance over over-the-counter and commercial products.

Composition of pharmacy sales Italy, ****, in % Federfarma

In ****, nonprescription drugs accounted for **.* percent of sales in the commercial market in Italy. The predominant category was notified and supplements, which made up **.* percent of sales. Parapharmacy and hygiene and beauty products both had a **.* percent share. Finally, nutritional products occupied *.* percent of the market. These data show a significant prevalence of supplements over other market segments. Sales shares of nonprescription drugs and commercial market Italy, ****, in % Federfarma

Modern pharmacies offer a wide range of products and services that go beyond simply selling prescription drugs; lately they have evolved to become true health and wellness centers, offering a wide range of products and services to meet the diverse needs of customers.

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Products in each category:

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4.2 The price analysis

Data on the consumer price index for pharmaceuticals in Italy for ****-**** show a general downward trend, with some fluctuations over the years. Starting from a value of **.* in ****, the index gradually falls until it reaches a minimum value of **.* in ****. Thereafter, there is a slight recovery in **** with an index of **.*, and a further increase in **** to **.*. The years **** and **** show a slight increase and subsequent stabilization with indices of **.* and **.*, respectively. In ****, the index rises again to **.*. In summary, although the index showed a decline between **** and ****, there was a slight recovery in subsequent years. The value for ****, although lower than in ****, indicates an improvement over the three-year period ****-****.

Consumer price index for pharmaceuticals [***] for the whole community (***) - annual averages Italy, ****-****, index Istat

Monthly data on the consumer price index for pharmaceuticals in Italy from June **** to May **** show gradual growth. In ****, the index is stable around **.*, with a slight decrease to **.* in the last two months of the year. Starting in January ****, the index begins to rise, reaching **.* in May and remaining at this level until the end of the year. In ****, the index continues to rise slightly, reaching **.* in May. Consumer price index for ...

4.3 New supply trends

In ****, the pharmacy market is undergoing a significant transformation, driven by several emerging trends that are shaping the offerings and services provided. Here is an overview of the major trends:

Digitization and E-commerce

Online Pharmacies and E-commerce: Growth of online sales platforms offering a wide range of pharmaceuticals, cosmetics, and supplements. Health Apps: Mobile applications that allow customers to manage prescriptions, order medications, and consult pharmacists virtually. Telemedicine Services: Partnering with telemedicine platforms to provide online medical consultations and e-prescriptions.

Personalization of the Offering

Personalized Medicine: Use of genetic data and biomarkers to offer personalized treatments, especially in oncology and chronic diseases. Individual Counseling Services: Personalized consultations on nutrition, wellness, and chronic disease management.

Innovative Products and Services

Dietary Supplements and Nutriceuticals: Increasing offerings of wellness products such as natural supplements and customized nutraceuticals. Eco-Friendly Products: Growing focus on sustainable and environmentally friendly products, including eco-friendly packaging and organic products. Therapeutic Cannabis: Expansion of cannabis product offerings for medical use, with a focus on regulation and quality.

Expansion of Health Services

Vaccination and Screening: Pharmacies offer vaccination and screening services for common diseases such as influenza, COVID-** and other conditions. Chronic Disease Management: Dedicated programs to manage chronic diseases such as ...

5.1 Regulation of pharmacies

In Italy, the regulation and legislation of pharmacies are articulated and detailed, with the aim of ensuring the safety and effectiveness of the pharmaceutical service offered to citizens. The regulation of pharmacies is mainly governed by the Consolidated Text of Health Laws(***), as amended, as well as Law No. *** of November *, ****, which establishes specific rules for the opening, management and ownership of pharmacies.

Pharmacies may be owned by individual pharmacists or by corporations among pharmacists. Law No. *** of November *, ****providesthat the pharmacy owner must be a licensed and registered pharmacist, thus ensuring that the service is run by qualified personnel. The legislation also establishes the requirements for opening a new pharmacy, including the need for a public competition for the allocation of pharmaceutical locations. This competition is held by the regions, which also determine the number of pharmacies based on the criterion of resident population, guaranteeing one pharmacy for every *,*** inhabitants, with possible exemptions for rural or isolated areas.

The sale of medicines is strictly regulated: prescription drugs can only be dispensed upon presentation of a valid prescription, while over-the-counter medicines can be sold freely. Pharmacies must adhere to the opening hours set by local authorities and provide shift service to ...

6.1 Market segmentation

• Azienda Farmacie Milanesi Spa O Solo A.F.M.
• Farmacia S.Caterina Srl
• Dr Max Italia
• Afm Spa
• Farmacia Loreto Gallo
• Farmacie Comunali Torino
• Aspes Spa
• Farma Acquisition Srl
• Farmacie Lombardi
• Farmacia Fiorentine