Pharmacies and beyond

This article is available for reading in Trade magazin 2024/12-01

Recently the OTC market has been influenced by three factors: the cold and flu season, inflation, and the declining and then stagnating real wages of patients. With all these influences, the OTC market has grown by 6% in value (IQVIA sell-in value, MAT June, 2024 vs. Y-1). The number of promotional purchases increased and downtiering started in some categories. In terms of the place of purchase, the pharmacy channel is one of the main places where vitamin and mineral sales are generated – and rightly so, as this is where the customer can also get professional help from a pharmacist. Large, economical packs often end up in shopping baskets.

Increasing consumer health consciousness does not necessarily translate into volume growth in all markets

Brand building at the top of the agenda

Thanks to a well-planned and executed strategy, Egis realised a 14% sales growth, strongly outperforming the market.

Dániel Dancza
OTC and pharmacy business unit manager
Egis Gyógyszergyár

“Building real brands besides delivering functional messages is a cornerstone of our business success. We can speak to people in unique ways and have special messages. A good example is our 2023 Reparon campaign, where we were the first in the industry to use AI technology. Another recent example is our summer Betadine campaign, in which we strategically partnered with the Hintalovon Foundation to raise awareness of the dangers of online bullying, drawing parallels with the importance of protection against invisible pathogens”,

says Dániel Dancza, business unit manager – OTC and head pharmacy management at Egis Gyógyszergyár Zrt.

Tailor-made solutions

There is great demand for painkillers and antipyretics, especially in the first and last quarters of the year, when the cold season boosts demand. Nasal sprays are also more popular at this time, as well as in the spring, summer and early autumn months because of the allergy season. There is an increasing focus on personalised nutrition and health.

After the disappearance of COVID, sales shifted to other categories such as skin and beauty vitamins

Zsófia Balku
consumer healthcare
CMI manager
Sanofi

Opella Healthcare, a subsidiary of Sanofi, represents the company’s global OTC business. It maintained its leading position in 2024, with Rhinospray in nasal sprays and Algopyrin, Algoflex and No-Spa in painkillers.

“Algopyrin is still the biggest brand in our portfolio, closely followed by Algoflex in the second place. We also performed well in the dietary supplements market, with our most successful product being Normaflore Oral Suspension 30x5ml”,

informs Zsófia Balku, CMI manager at Sanofi Consumer Healthcare.

In 2024 they plan to launch a new Normaflore dietary supplement.

New market

Béres keeps an eye on customer feedback, international trends and scientific publications. Their objective is to introduce scientifically backed formulations or technological improvements that lead to innovation.

Boglárka Dezse
domestic marketing and sales director
Béres Gyógyszergyár

“We carefully develop our portfolio, so that everyone can find the product that best suits their needs. Products containing herbal active ingredients and extracts are more and more popular, and we also use them in OTC medicines and dietary supplements. We have two product launches in autumn 2024: an OTC medicine, Béres vitamin C drops, which can also be given to newborns. We will also put Béres Magnesium + Relax on the market, a dietary supplement containing 375mg of magnesium, B vitamins and 75mg of valeriana dry extract”,

says Boglárka Dezse, domestic marketing and sales director of Béres Gyógyszergyár ZRt.

Increasing emphasis is placed on personalised nutrition and health

More and more challenges

In addition to competition, another challenge in the dietary supplements market can be counterfeit medicines, which undermine the reputation of trusted brands. Producer self-regulation and close cooperation with authorities are needed to educate and protect consumers. A further difficulty is that many people are still unaware of the differences between the manufacturing standards for OTC medicines and the regulations required for the production of dietary supplements. Dietary supplements are legally classified as foodstuffs and are therefore subject to different manufacturing, quality assurance, marketing and communication regulations than products registered as OTC medicines.

Focus on prevention

Zoltán Czirbus
director of strategic operations
Naturland Magyarország

Naturland Magyarország Kft.’s portfolio includes herbal dietary supplement solutions, vitamin D3, magnesium products and seasonal products, such as those used during the cold and flu season.

“We are constantly developing our product selection, reacting to market trends and changing consumer habits, but it is important that this is done in line with the brand ethos, with a particular focus on health awareness and prevention”,

explains Zoltán Czirbus, director of strategic operations at Naturland Magyarország Kft.

Miklós Bakati
managing director
Quattroceuticals

Quattroceuticals Kft. manufactures and distributes water-based, liquid-formulated products. They also have seasonal products, such as C+D+Zn, Immunity and Fulvoticum, which are typically the peak products during the cold season.

“I can report positive results from the Stilla range. On an annual basis sales by our webshop increased eightfold. We manufacture high quality products whose effectiveness is unquestionable. The returning customer rate is almost 70%”,

says managing director Miklós Bakati.

Producer self-regulation and close cooperation with authorities are needed to educate and protect consumers

New product groups

Dr. Anita Sike
manager
Natura Gyógyszertár
Siker-Pharma

Dr Anita Sike, manager of Natura Gyógyszertár – which is run by Siker-Pharma Kft. – reports that dietary supplements are becoming increasingly popular. She thinks the reason for this is that many prescription and OTC medicines are also available in open-shelf versions, registered as dietary supplements or medical devices, at lower prices than registered medicines.

“We are planning to introduce new product groups, to expand and increase visibility, especially in the area of special dietary supplements. In the future we are going to concentrate on premium products, quality vitamins and dietary supplements, and premium dermocosmetics sold exclusively through pharmacies. Within the Gyöngy network we were the first to introduce a points-based loyalty card and app”,

informs Dr Anita Sike.

Innovative formats

Gyöngyvér Mezei
senior category manager
Rossmann Magyarország

Referring to NIQ data, Gyöngyvér Mezei, senior category manager of Rossmann Magyarország Kft. says that drugstores are producing moderate growth in the dietary supplements category in 2024.

“A new trend is the growing popularity of collagen-containing products that support inner beauty. Products that strengthen internal balance, reduce stress and innovative solutions are also on the rise. The gummy candy format is gaining ground and no longer just as children’s vitamin, but also as a product for adults. Liquid, shot and powder products are becoming trendy and there is growing interest in vegan versions too”,

says Gyöngyvér Mezei.

Reacting quickly

Among OTC medicines painkillers, cold-related products and probiotics are the most popular. Besides traditional basic vitamins and minerals, nervous system support products are also selling well, just like various collagen products.

Ferenc Zabán
assortment manager
dm