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Summary
Since 2020, the global pharmaceutical market has seen a significant increase in value, reaching around $1.27 trillion by the end of 2020, representing substantial growth from $390 billion. The Italian pharmaceutical market contracted slightly during the pandemic, but projections for 2022 expect to exceed 2019 sales figures. The number of pharmacies in Italy increased, despite the decline in profitability of individual pharmacies. The pandemic also considerably boosted online drug purchases, which totaled around 234 million euros. Despite a modest share of the total market, the future of e-commerce looks promising. Italy is home to key global pharmaceutical groups, and the industry's commitment to research has strengthened, marking a 6% increase.
Italian pharmacies are actively engaged in the fight against COVID-19, with a significant number offering vaccination services. The annual number of pharmacy graduates in Italy is in line with a workforce that has stabilized over the last five years, and the majority of pharmacy graduates find employment in various sectors, with 88,000 currently employed in industry. The boom in parapharmacies continues, with 4163 units. Online commerce in the pharmaceutical sector has seen double-digit growth, with sales expected to reach 315 million euros in 2020, while the Italian market for COVID-19-related products has soared, with test sales alone totaling 176.9 million euros in the first weeks of 2022. Finally, the pharmacy cosmetics segment saw a 3.5% decline in 2020, but still achieved sales of 1.8 billion euros, indicating an evolving demand landscape influenced by the pandemic.
Dynamics of the Italian pharmacy market and consumer behavior after the pandemic
Following the impact of the Covid-19 pandemic, the Italian pharmacy market witnessed a series of significant transformations influenced by changes in consumer behavior, regulations and economic conditions. The country, known for hosting some of the world's largest pharmaceutical groups such as Menarini and Chiesi, experienced a slight contraction in the pharmacy market during the pandemic, with a drop of around 1.7%. However, forecasts for the market have rebounded, with sales projected to exceed $30 billion, which could surpass recorded sales figures. Despite the presence of some 19,100 pharmacies throughout Italy, there has been a noticeable drop in average profitability, attributed in part to the growing number of new pharmacies opening every year - around 300. This increase has caused the catchment area of individual pharmacies to shrink by around 7% over a three-year period. The pandemic has also reshaped the digital pharmacy landscape, considerably boosting online pharmacy sales.
In Italy, the pharmaceutical e-commerce sector jumped 66% in 2020 compared to figures, when it was valued at around 200-250 million euros. Although the online segment represents only a small slice of the total market, its positive trajectory suggests a promising future. Consumer trends in Italy point to an increase in the consumption of pharmaceutical products, with Italy showing one of the few consistent upward trends in consumption among European countries. Prescription drugs, in particular those classified in tranches A and C, account for the lion's share of pharmacy sales, reaching almost 14 billion euros in 2020. Demand for self-medication products also accounts for a significant share of sales, at around 9%. Alongside the domestic market, trade flows of pharmaceutical products present a healthy picture. Imports and exports of Italian pharmaceuticals number in the millions, with the USA becoming the main destination for Italian pharmaceutical exports, accounting for almost 40% of total exports.
The Italian pharmaceutical industry is increasingly investing in research, not least because of the 19-year-old avian flu pandemic. In 2020 alone, pharmaceutical companies injected 1.6 billion euros into research and development activities. This commitment to innovation and development makes Italy a major player in the European pharmaceutical landscape, as evidenced by the large number of biomedical research publications and patents filed by Italian companies. As far as distribution is concerned, pharmacies remain the predominant channel for sales of both prescription and over-the-counter pharmaceutical products, with sales of around 1.5 billion euros.
The main players in Italy's pharmaceutical market: an overview of leading companies and their contribution to the global healthcare industry.
The Italian pharmaceutical market is shaped by a number of leading companies that have established a strong presence both nationally and internationally. These companies are not only key players in the Italian market, but also make a significant contribution to the global pharmaceutical industry through their research, production and innovation efforts. The key players who have played a decisive role in the development of Italy's pharmaceutical sector are listed below.
- Menarini Group Founded in Florence in 1886, the Menarini Group has become the world's leading Italian pharmaceutical company, with a presence in over 140 countries. Renowned for its commitment to research and development, Menarini is dedicated to the production of a wide range of pharmaceutical products, focusing on various therapeutic areas and investing substantially in the advancement of medical science.
- Chiesi Farmaceutici: Headquartered in Parma, Chiesi Farmaceutici has established itself as a world leader in the pharmaceutical industry. With a deep-rooted heritage dating back to 1935, Chiesi is a research-driven company specializing in the development of innovative solutions in the fields of respiratory medicine, necrespiratory medicine, neonatology, rare diseases and special care, meeting the needs of healthcare providers and patients alike.
- Bracco Imaging A subsidiary of the Bracco Group, Bracco Imaging specializes in diagnostic imaging. The company has established itself as a pioneer in the production of contrast agents and advanced imaging modalities. Bracco's commitment to excellence in diagnostic imaging helps physicians make accurate, early diagnoses, thereby improving patient outcomes.
- Recordati: Recordati, founded in 1926, is an international pharmaceutical group dedicated to the research, development, manufacture and marketing of pharmaceutical products. It has a strong portfolio of original and generic medicines that treat a multitude of health problems, with the aim of improving the quality of life of patients worldwide.
- Alfasigma: Alfasigma is a major pharmaceutical company dedicated to the research, development and marketing of prescription medicines. The company is particularly committed to gastrointestinal and vascular diseases, providing innovative healthcare solutions and therapeutic approaches for these common ailments.
- Angelini Pharma: Angelini Pharma is a key player with a strong international footprint, particularly known for its in-depth work in the fields of mental health, gynecology and consumer health. Angelini Pharma is dedicated to improving the lives of patients through the continuous pursuit of innovation and the development of effective therapeutic solutions.
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- Number of pages : 30 pages
- Format : Digital and PDF versions
- Last update : 15/06/2022
Summary and extracts
1 Market Overview
1.1 Definition and presentation
A pharmacy is the store where drugs and other products and items that are used for the treatment of ailments and diseases are sold, such as syringes, band-aids, diapers, disinfectants, thermometers, dietary foods, food supplements, etc.; sometimes a laboratory is attached to the store where medicines are produced that the pharmacist himself prepares on the doctor's instructions. The global pharmaceutical market has experienced significant growth in recent years. At the end of 2020, the total global pharmaceutical market was valued at about $1.27 trillion.
This represents a significant increase since 2001, when the market was worth $390 billion. The Italian pharmacy market contracted slightly during the pandemic period (-1.7 %), but the outlook is positive, with projected 2022 sales greater than 2019 sales of more than $30 billion. There are currently about 19,100 pharmacies in Italy. The average profitability of these is declining, but the figure has also been affected by the opening of about 300 new pharmacies per year in recent years. This has resulted in an average reduction in the individual pharmacy's catchment area of 7 % over the past three years. This is in contrast to the rest of Europe; in fact, the Belpaese is currently the only country to increase outlets.
The pandemic has also had a strong impact on online pharmacy purchases. In fact, while in 2019 the value of pharmacy e-commerce in Italy was about 234 million euros, in 2020 there was an acceleration of 66 %. This is indeed a small share compared to the total market, but e-commerce represents a positive outlook for the future.
Italy is also home to some of the most important global pharmaceutical groups, including Menarini, Chiesi, Bracco, Recordati, Alfasigma, Angelini, Italfarmaco and many others.
1.2 The global pharmaceutical market is growing
The pharmaceutical industry in the world:
Every year, the French syndicate Leem (***) publishes an economic report. In the Economic Report-Edition ****, the syndicate reports that in **** the market for pharmaceuticals at production prices reached $* *** billion in sales, * % more than in ****. The market size is distributed around the world according to the chart ...
1.3 Weak domestic market growth
The pharmacy market in Italy is worth **.** billion euros in ****.
Turnover generated by pharmacies Italy, ****-****, in billion euros Source: ****
This graph shows the evolution over the last decade of the turnover of the pharmacy market in Italy. It can be seen that the value has remained fairly stable all the ...
1.4 Drug trade flows
In this part, the trade flows created by pharmacies will be analyzed, so it is about pharmaceuticals.
Value of trade in pharmaceutical products Italy, ****-****, in millions of USD Source: ****
In the graph above you can see the evolution of trade (***) between Italy and the world. The graph does not take ...
1.5 Post Covid-19: industry increasingly invested in research
Data published by Efpia, the European Federation of the Pharmaceutical Industry, tell of a leading Italy in the EU by value of production. Even before the pandemic, the beautiful country was among the top European countries in terms of research spending and investment, and this position has strengthened in the last ...
2 Demand analysis
2.1 Italian consumption on the rise
Italians are consuming more and more pharmaceutical products; it is a growing trend that has been established since ****. In Europe, Italy is not a large consumer of pharmaceuticals, but it is one of the few countries with a growing trend of consumption.
Change in per capita consumption of pharmaceuticals France, Germany, ...
2.2 Focus Covid-19 and products sold in pharmacies
The Covid-** pandemic greatly impacted the population, who in the early ****s and chased also during **** and **** had to protect themselves and buy various hygienic and other related products. These are in particular:
Masks Hand sanitizers Tests against Covid-**
Semi-annual sales of products against Covid-** Italy, ****-****, in millions of euros Source: ...
2.3 Cosmetics sold in pharmacies
The value of cosmetics sold in pharmacies in **** contracted by *.* %, with generated sales of *.* billion euros. Since February ****, the channel has also benefited from the possibility of remaining open so that overtaking has occurred, in the ranking of sales by channel, compared to perfumery, which, on the other hand, has suffered ...
2.4 Italian regions that consume the most
From November **** to October ****, an average pharmacy in Italy will issue about **.* thousand receipts. This statistic breaks this down by region, showing the average number of receipts issued by an individual pharmacy for each administrative area. Campania is the region where pharmacies issued the most receipts in the ** months under consideration, ...
3 Market structure
3.1 Global and national leaders in the industry
Top ** global pharmaceutical companies World, ****, in billions of USD Source: ****
The chart above shows the top ** global companies in the industry. We can see that there are no Italian companies in this list, despite the notoriety of Abiogen Pharma, Alfasigma, Angelini, Chiesi or Menarini. However, thanks to major Italian investments in ...
3.2 Distribution channels
The distribution channels of the pharmacy market are:
Pharmacies: Pharmacies are the only commercial establishments authorized to sell ethical medicines, and they also sell Sop-Otc and extra-drugs in the presence of a pharmacist. To open a pharmacy, it is necessary to obtain a specific license, the supply of which is restricted ...
3.3 Italian pharmacies
The relationship with the public:
Here are some facts about pharmacies in Italy in the year ****:
Total number of pharmacies: **,*** Number of citizens who visit pharmacies daily: * million Number of citizens requesting pharmaceutical service at home: *** per month Number of pharmacies open at night: * ***
[***]
Pharmacies in the territory:
This map ...
3.4 The employment of pharmacies
Annual pharmacy undergraduates in the last decade were:
Pharmacy graduates Italy, ****-****, in whole numbers Source: ****
Pharmacists working in private pharmacies are covered by a specific labor contract, the "National Collective Bargaining Agreement for Private Pharmacy Employees," signed by the Pharmacy Employees' Unions and Federfarma. In the past decade, the number ...
4 Supply analysis
4.1 The prices charged in the Italian market
**** shows a slight increase in drug prices(***). These data confirm the historical trend of the relationship between drug prices and inflation, generally declining in all European countries, but more rapidly in Italy.
Variation in medicine prices Italy-EU, ****-****, in % Source: ****
The graph above shows the change in medicine prices for different ...
4.2 The parapharmacies
Legislative Decree No. *** Article * of July *, ****, which opened the possibility of selling certain types of drugs outside of pharmacies to achieve economic and social revitalization, marked the birth of parapharmacies. Since its implementation, the number of parapharmacies has grown rapidly throughout the country, reaching **** units in ****.
Analyzing other distribution channels, we ...
4.3 Online commerce boom: double-digit growth
According to Iqvia data, in ****, the value of pharmacy e-commerce in Italy was about *** million euros, an acceleration of more than ** percent from the ** million in ****. According to forecasts, the Italian market will continue to grow, reaching €*** million in ****, while sales of €*** million are expected in ****. If these double-digit growth estimates ...
5 Regulations
5.1 Opening a pharmacy: rules and regulations
Pharmaceutical service is regulated in our country by a complex of regulations contained in different legislative sources that, over time, have come to overlap with each other. The main normative sources are:
R.D. **.**.****, no. **** "Testo Unico delle Leggi Sanitarie" R.D. **-*-**** No. **** "Approval of the regulations for the ...
6 Positioning of actors
6.1 Segmentation of actors
- Farmaè
- Bayer France
- Bennet
- Pulker Farma Parafarmacie
List of charts
- Trends in global pharmaceutical market spending (against a backdrop of health crisis)
- The global pharmaceutical market by geographic area
- Market share of drugs and non-pharmaceuticals by segment
- Evolution of the value and volume of the market for drugs and extrapharmaceuticals
- Turnover generated by pharmacies
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