Summary of our market study

Since the 1980s, the parapharmacy market in Portugal, comprising non-prescription care, hygiene, beauty products, dietetics, food supplements, and small appliances, has witnessed significant evolution. As of 2020, traditional pharmacies remain the market leaders, holding 75% of the market by offering competitively priced private labels. Specialty brands, fashionable in the 1990s, face challenges from mass distribution and limited investment capacity. Large Scale Retailers (GSA) like Corte Ingles and online sales platforms have been on the rise, with digital sales buoyed by the growing trend of internet shopping. Mass distribution is also making strong inroads into the market. A shift in consumer mentality towards health prevention has led to an increased demand for parapharmaceutical products and this sector's growth, with parapharmacies becoming key players in dermocosmetic sales in Portugal. These trends reflect the market's dynamic nature and the growing emphasis on both value and health-conscious consumption..### Trends in the Portuguese Parapharmacy Market Dynamics The Portuguese parapharmacy market, comprising sales of care and hygiene products, beauty items, dietetics, food supplements, and certain small appliances, has witnessed significant growth and transformation since its inception in the 1980s. The market, formerly dominated by pharmacies, has seen a diversification in the types of retail establishments where parapharmaceutical products are sold. Pharmacies remain the stalwarts of the industry, holding onto around three-quarters of market share, by pivoting towards offering competitively priced private label brands. However, the market landscape has evolved with the emergence of specialty parapharmacy brands, such as Parashop, which soared in popularity in the 1990s but faced challenges from mass-market competitors and a lack of investment capacity. Furthermore, large-scale retailers known as GSA parapharmacies, like Corte Ingles, have significantly expanded their presence, leveraging the potential deregulation of over-the-counter medications to grow their market share. A notable shift in consumer behavior is observed as there is an increasing preference for preventing health issues rather than addressing them post-emergence. This preventative mindset has spurred the demand for parapharmaceutical products and benefits new entrants that specialize in offering such preventive solutions. Moreover, online sales channels are on the rise, capitalizing on the broader e-commerce boom. These digital platforms are drawing customers with the promise of convenience, better pricing, and access to a wide array of products. Meanwhile, mass distribution chains have not hesitated to claim their stake by investing heavily in this segment. The parapharmacy market's rapid development is evident in the substantial portion of dermocosmetic product sales accounted for by parapharmacies. These parapharmaceutical retailers have adeptly responded to the Portuguese population's price sensitivity and concerns, manifesting an astute commercial strategy that has allowed them to capture a significant portion of the market. To synthesize, the Portuguese parapharmacy market is characterized by a high concentration of pharmacy-held market share, diversification and increased competition from specialty and mass retailers, growth in preventative health consumer trends, and a booming online sales sector. These trends underline the market's dynamism and the varying consumer expectations around health and wellness retail in Portugal..### Key Pillars of Portugal's Diverse Parapharmacy Market In the rapidly evolving landscape of Portugal's parapharmacy market, several key players dominate, each carving out their unique position through a blend of competitive strategies and consumer outreach. 1. **Local Pharmacies:** As the cornerstone of the parapharmacy sector, local pharmacies hold a dominant position with approximately 75% of market share. With deep roots in their communities, these pharmacies maintain consumer trust and loyalty by integrating competitive pricing and developing own-brand products that cater to the economic sensibilities of their customers. 2. **Specialty Brands (Parashop):** Once the trendsetters in the 1990s, specialty brands like Parashop have experienced competitive pressures. However, they remain a staple in the market by focusing on specialized product offerings and leveraging their heritage in the industry, despite the more aggressive moves by other market segments. 3. **GSA Parapharmacies (Corte Ingles):** The likes of Corte Ingles have seen their influence grow as they break into markets traditionally reserved for pharmacies. By capitalizing on the relaxation of regulations around the sale of OTC drugs, they are well-positioned to make additional gains. 4. **Online Sales:** Reflecting global digital trends, the online parapharmacy sector is surging. The ease of access, coupled with broad consumer adoption of e-commerce, has made online sales channels one of the fastest-growing segments in the market. They draw in customers with user-friendly websites, competitive pricing, and an extensive array of products. 5. **Mass Distribution Outlets:** The entry of large-scale retail chains into the parapharmacy space has brought a new dynamic to the market. These outlets leverage sizeable investment capabilities and extensive marketing expertise to attract price-conscious consumers. Their aggressive growth strategies have enabled them to capture a growing share of sales, particularly in the realm of dermocosmetic products. Together, these various market players contribute to the diverse and competitive nature of the parapharmacy landscape in Portugal. Through differentiating strategies—whether it's heritage and trust for traditional players or technological adoption and market investments for newer entrants—each has uniquely positioned itself to address the evolving needs and concerns of Portuguese consumers. As the push towards preventive health measures over reactive treatment continues to gain traction, these organizations will likely continue to play an instrumental role in shaping the future direction of the market.
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  • Last update : 05/10/2020
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Summary and extracts

1 Market overview

1.1 Definition and scope of study

The parapharmacy market refers to all sales of care and hygiene products (for adults and babies), as well as beauty products, dietetics and food supplements, which do not require a prescription. It is also necessary to include small appliances such as nail files or electric toothbrushes.

The parapharmacy market in Portugal has evolved considerably since its creation in the 1980s. The consumption of parapharmaceuticals has been democratised by opening up to all types of distribution:

  • The pharmacies Historic players, continue to capture 75% of the market. To maintain their hegemony, they are developing their own brands at competitive prices.
  • Specialty brands (Parashop) In the fashionable 1990s, they were threatened by the offensive of mass distribution and by insufficient investment capacity.
  • GSA parapharmacies (Corte Ingles): their weight has increased significantly in recent years. They anticipate an exit from the monopoly of over-the-counter (OTC) drugs
  • Online sales are increasing and are taking advantage of the recent success of Internet sales.
  • Mass distribution which invests heavily in the sector

In Portugal, consumers are beginning to focus on health prevention rather than treating them after they appear. This change of mentality increases the demand for parapharmaceutical products to the detriment of medicines. This type of commercial channel is developing rapidly and is exploited by the parapharmacies that offer products with this objective in mind.

In addition to enjoying comparative pricing advantages, these players benefit from their expertise in other fields and invest their resources in aggressive marketing. There is no doubt that these chains have been able to adapt to the Portuguese people's pricing concerns. Today, parapharmacies already account for a significant share of total sales of dermocosmetic products.

List of charts presented in this market study

  • Nombre de pharmacies pour 100.000 habitants
  • Revenu du marché pharmaceutique dans le monde
  • Evolution du nombre de pharmacies au Portugal
  • Dynamique du marché Pharmaceutique par Segment
  • Evolution de l'exportation et importation des produits pharmaceutiques
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Latest news

Sephora to rapidly increase sales from 12 to 20 billion euros - 23/10/2023
  • Sephora is the world leader in selective perfumery.
  • LVMH has owned Sephora since 1997.
  • The Sephora store on the Champs Elysées welcomes 10,000 visitors a day.
  • The global beauty market grew by 6% last year to reach 250 billion euros.
  • Sephora has forecast 17% growth by 2022.
  • The brand has 2,700 stores.
  • By 2022, according to analysts, Sephora has almost reached 12 billion euros in sales.
Beauty: how Sephora is expanding in the United States - 07/10/2023
  • America is its first market
  • The French group opened its first store there twenty-five years ago
  • Today, it has 658 directly-operated stores on the American market, including 22 in New York
  • Sephora is present in 35 markets with 2,700 stores
  • A $430 billion industry according to McKinsey
  • The United States will consolidate its position as the world's leading beauty market, growing from $70 billion in 2022 to around $100 billion in 2027 (McKinsey).
  • The brand contributes 20% of LVMH sales and 12% of the Ebit of the number one in luxury goods.
  • sephora is America's leading selective retailer.
  • American retailer Kohl's, which has stores in 29 states, partnered with Sephora in 2020, and they share 862 "Sephora Kohl's".
Sephora and Zalando end their partnership - 09/09/2023
  • The partnership between Sephora and Zalando began in Germany in the fourth quarter of 2021.
  • The partnership was extended to Zalando's other European markets in 2022, including Italy
  • Two years after the start of the partnership, the collaboration comes to an end.
  • Sephora is a subsidiary of LVMH.
  • Sephora's aim in 2021 was to compete with Douglas (Nocibé in France), which has a greater presence in Europe.
Sephora returns to London. - 28/02/2023
  • 2.700 Distribution outlets worldwide
  • Return to the British capital with a first store of over 550 square metres in the Westfield shopping center
  • The online business was rolled out in the UK in 2021 with the acquisition of Feelunique, a digital player in prestige beauty in the UK
Sephora returns to London Contents - 26/02/2023

Absence from the UK market since 2006

  • Return with the opening of a London store on March 8, open seven days a week
  • - 2,700 Sephora points of sale
  • - E-commerce operational since October 2022
  • - Takeover of Feelunique in 2021
  • - Double-digit growth in UK prestige beauty sales post-Covid
  • - UK among top ten global markets for premium beauty products
  • - Beauty Hub with 26 beauty consultants
  • - Sephora's first Lip Bar
LVMH: 26% growth for selective distribution activity - 27/01/2023
  • Sephora to contribute to strong growth in selective retailing by 2022
  • Total group sales: 79.2 billion euros
  • Selective Retailing sales: 14.85 billion euros
  • Sephora growth in Europe, Middle East, Southeast Asia and North America
  • Sephora-Kohl's partnership to expand store network in the United States
  • Sephora contributes to strong growth in Selective Retailing business

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Pingo Doce
Sephora
Farmácias Holon
Grupo Nossa Farmacia

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