Despite Double-Digit OTC Growth, German Community Pharmacy Still Struggling
Executive Summary
Despite growing by over 10% in the first six months of this year, sales of self-care products through German bricks-and-mortar pharmacy have not returned to 2020 levels. Conversely, the mail order channel continues to grow as consumers shop from home.
Germany’s bricks-and-mortar pharmacy channel is still struggling to return to early/pre-pandemic self-care sales levels despite double digit growth in the first half of 2022, IQVIA Consumer Health reports.
Total sales of OTC medicines and non-medicinal health products through bricks-and-mortar pharmacy grew by 10.4% to €3.75bn ($3.80bn) in the six months. Despite this strong growth, turnover remains lower than during the first half of 2020, when sales of OTC medicines and non-medicinal healthcare products through pharmacy reached €3.83bn.
Mail Order Posts Faster Growth
IQVIA Consumer Health noted that while bricks-and-mortar pharmacies remain popular among older people and those patients looking for personal advice, it is the mail order channel which enjoyed a higher grow rate over the six months.
In the first half of the 2022, sales of OTC medicines and non-medicinal healthcare products through mail order pharmacy rose by 11.5% to €1.18bn.
This channel has maintained the 24% market share it has commanded since H1 2021, which was up from 21% in 2020.
Therefore, while total sales during H1 through both channels are higher than in 2020 (€4.92bn compared with €4.84bn), the mail-order channel is now taking more of this total from its bricks-and-mortar equivalent.
Within the category of cosmetics and personal-care products this challenge can be seen even more clearly.
Sales of these products through mail order pharmacy grew by 9.6% to €247m in the first six months of 2022, while sales through community pharmacy fell by 7.9% to €545m.
The mail order channel has gradually increased its H1 market share in this category from 25% to 31% over the last two years, while community pharmacy’s share has shrunk from 75% to 69%.
“In terms of [Beauty] sales, bricks-and-mortar pharmacies are still clearly in the red, while the mail order business continues to grow,” IQVIA Consumer Health commented.
“The growth of the mail order business does not compensate for the losses of community pharmacy,” it noted. “Overall, this shows a declining market trend.”