James Dudley Management

James Dudley Management

Opportunity for OTC Self-medication and other Health and Beauty Suppliers to Take Bigger Pharmacy Share

With Europe’s pharmacies finding it harder to generate profits from dispensing and social health services non-price regulated products including OTC self-medication and other health and beauty products represent an opportunity to add to turnover and boost margins. On average non-price regulated merchandise provides over 30% of turnover and probably doubles that in margin. This is according to James Dudley’s new 19 European Country report OTC Distribution in Europe the 2012 edition.

“With pharmacists looking for higher margin non-price regulated lines to offer their customers for suppliers of non-dispensing products the competition is between OTC self-medication and health and beauty categories that compete for space and pharmacy staff attention. Developing inventive ways of encouraging pharmacists to develop opportunities through training, motivation and merchandising is therefore paramount”, says James Dudley author of the report.

The European retail healthcare market is estimated to be worth €230.86 billion in 2011 and almost all of it is delivered through 157,310 pharmacies in the 19 countries under study. Of the total market 69% is made up of drugs dispensed against doctors’ prescriptions, 9% is from consumer purchases of OTC medicines for self-medication and the remainder, 22% is from other health and beauty products which include personal hygiene, nursing aids, dietetics and baby food, toiletries and cosmetics. (figure 1)

Average pharmacy annual turnover for the 19 countries in the Dudley OTC distribution study is € 1.47 million. This figure is highest in Denmark at €6.30 million where one pharmacy serves an average 17,526 inhabitants. Conversely, Poland comes in at the other end of the scale at €630,000 where on average a pharmacy serves 3,132 inhabitants. (figure 2)

Excluding mass market sales, 86% of the European OTC self-medication market in Europe’s main markets is delivered through 157,310 pharmacies. Yet, this accounts for less than 10% of average pharmacy turnover across the region. Other health and beauty products represent over a fifth of average pharmacy turnover. (Table 1)

In 6 out countries of the 19 countries under study OTC medicines outperform other health and beauty products these include Slovakia, Czech Republic, Finland, Poland and Germany. In Hungary the turnovers of OTC self-medication and other health and beauty products are about equal.

In Russia nearly half of turnover is from other health and beauty products, while OTC self-medication represents a little under 20% of pharmacy turnover. In France perfumery and unlicensed skincare makes up a large proportion of the 30% of turnover represented by other health and beauty products. In Switzerland , Belgium, Spain, the United Kingdom and Italy consumer purchases of other health and beauty products represent between a fifth and a quarter of pharmacy turnover.

The report, ‘OTC Distribution in Europe - the 2012 edition - Entering the New Era’, is the eight edition of a study of strategic analysis of the supply network serving the non-prescription pharmaceuticals and OTC Self-medication market in Europe. The report covers Austria, Belgium, Czech Republic, Finland, Denmark, France, Germany, Hungary, Italy, Netherlands, Norway, Poland, Russia, Slovak Republic, Slovenia, Spain, Sweden, Switzerland and the United Kingdom.

For further information about OTC Distribution in Europe 2012 edition contact James Dudley Management ++44(0) 1562 747705 e-mailinformation@james-dudley.co.uk or visit website www.jamesdudley.info

Tables and Figures

Table 1: Average % Split of Pharmacy Turnover by Country 2011 base 157,310 pharmacies


*Consumer OTC purchases only other non-prescription medicines included with drugs dispensed with prescription

Source: James Dudley Management
OTC Distribution in Europe the 2012 edition - Entering the New Era

Figure 1: Average % Split of Pharmacy Turnover by Category 2011 base 157,310 pharmacies


Source: James Dudley Management
OTC Distribution in Europe the 2012 edition - Entering the New Era

Figure 2: Average Pharmacy Turnover Compared by Country 2011 estimates €millions - base 157,310 pharmacies


Source: James Dudley Management
OTC Distribution in Europe the 2012 edition - Entering the New Era

OTC Distribution in Europe – 2012 edition [Report] , West, East, Russia, European, prescription, pharmacist advice, OTC medicines, self-medication, market share, licensed , unlicensed , non-prescription, number of, retail, pharmacy, statistics, regulation, channels, non-pharmacy, distribution, market research, sales, trends, forecasts, consumer healthcare, data, druggist and drugstore chains, consumer, patient, choice, health and beauty, training, motivation, analysis, regulatory, Rx to OTC, licensed for sale, Author James W Dudley

Paragraph. For enquiries contact James Dudley ++44(0)1562 747705 email information@james-dudley.co.uk or visit www.jamesdudley.info

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