Sales of dermocosmetics in pharmacies: stable growth in 2017-2023More information on this topic is presented in the PMR report:
Sales of dermocosmetics in Poland’s pharmacies will grow in value at an average rate of about 3% per annum in the period 2019-2023, a new report from PMR predicts. The other two channels of dermocosmetics retail – non-pharmacy and online – are expected to witness quicker growth.
Regulatory changes hurt pharmacy market
As we predicted in the previous edition of our report, the pharmacy channel faced strong competition from other retail formats such as drugstores, cosmetics stores and online stores in 2017. The last few years saw frequent changes to pharmaceutical laws that piled more and more restrictions on the pharmacy business – advertising was banned, pharmacy chains were prohibited from opening new stores, and skincare consultations in pharmacies were outlawed – and this has created a sense of uncertainty among dermocosmetics manufacturers and generally dampened their enthusiasm for the channel. As a result, they are now giving other retail channels a more prominent role in their strategies than they did in the past.
What is more, the dermocosmetics space continues to attract new players, compounding price competition and restraining sales value growth.
Also harming sales is Poles’ growing taste for organic/natural/ vegan cosmetics, distributed in non-pharmacy formats such as healthy products stores, small cosmetics stores, herbal stores, soap shops, or online. The trend reflects increasing consumer awareness and concern about the ingredients used in cosmetic products, fed by reports about the toxicity of some of them (often coming from online sources of varying credibility). Dermocosmetics manufacturers are adapting to these new sensibilities by playing up the organic aspects of their products, e.g. stating the percentage of natural ingredients on the labelling, indicating ingredients that a product is free from or whether it is vegan, etc. In general, the distinction between dermocosmetics and other cosmetics is becoming increasingly blurred in the non-pharmacy channel.
Sales poised to surpass PLN 1.4bn in 2023
A number of factors will drive continued growth in the value of dermocosmetics sales in pharmacies in the years until 2023, notably product innovation, Poles’ increasing preoccupation with looks, and their steadily growing incomes. The rate of market growth is forecast to decelerate after 2019, though, as consumer spending and wage growth in Poland slow down and the downtrend in the jobless rate comes to an end.
Importantly, too, we have adjusted downwards our forecast for the pharmacy market compared with the previous edition of our report, to reflect the growing competition from the non-pharmacy channel. It is not just about the tougher regulatory framework for pharmacies; Poland’s cosmetics chains are looking for new sources of sales growth now, and broadening the dermocosmetics offering has been one common tactic.
More information on this topic is presented in the PMR report:
Dermocosmetics market in Poland 2018. Market analysis and development forecasts for 2018-2023