How has the pharmaceutical industry changed with the arrival of COVID-19? What trends are emerging in the nonprescription drug, prescription medicine, and dietary supplement sectors?
The pharmaceutical sector, with the advent of the COVID-19 pandemic, generally saw a sharp decline in sales.
However, according to data compiled by Assosalute from those collected by IQVIA-a world leader in healthcare data processing and analysis-at the same time as the outbreak of the pandemic between February and March 2021, consumption in the pharmaceutical sector saw a surge that we can interpret with the phenomenon of hoarding medicines for fear there might be a shortage of drugs-sort of like what happened at the same time with the assault on supermarkets.
The rest of the year, however, turnover and consumption saw significant declines compared to 2019, by -6.6 percent and -8.8 percent, respectively. As a result of social distancing, the use of masks and frequent hand washing and the use of sanitizing gels, as well as the introduction of anti-contagious measures with differential forms of lockdown, the circulation of influenza and parainfluenza viruses has been significantly contained compared to previous years, a fact also confirmed by the National Institute of Health. In fact, medicines used in the treatment of respiratory ailments saw consumption literally halved compared to the same months in 2019.
Average consumer attendance at pharmacies (calculated on the number of receipts issued) throughout 2020 was lower than the previous year, a trend that seems to be confirmed for 2021 as well.
Also from the data collected by IQVIA shows that in the first weeks of 2021 (specifically, through March 21), there was an increase in multi-product category receipts. The categories contain: prescription drugs, non-prescription drugs, parapharmaceuticals, and personal care products (such as cosmetics or nutritional). The exception is only the parapharmaceuticals segment, which, including products such as thermometers, masks and oximeters, during, also saw an increase in single-product spending.
Nutraceuticals and pharmaceutical market: growing dietary supplement sector
During the pandemic, in contrast to the pharmaceutical sector, the dietary supplement sector saw a 0.8 percent growth in 2020. Specifically, in the first 8 months of the year, sales of vitamins and minerals to boost immunity and care for one’s well-being increased by 4 percent. This is despite the fact that the nutraceuticals sector (a neologism that originates from the crasis between “nutrition and pharmaceuticals” and indicates the discipline that deals with all components or active ingredients of foods that have positive effects on health, prevention and treatment of diseases1) still experienced an overall decline of 1.1 percent compared to 2019.2
It is also interesting to note that in addition to supplements and consistent with the changes triggered in our lives by the various phases of the pandemic, the consumption of sedatives and sleeping pills as adjuvants to manage anxiety and so-called lockdown disorders also increased by 22.7 percent.
This finding also seems to be confirmed by the latest survey by New Line Market Research for the industry association that is part of Unione Italiana Food adhering to Confindustria, which shows a 23.5 percent increase in the consumption of supplements for night rest and mental well-being.
The same research also shows strong growth in the consumption of vitamins (up 47 percent) and immune-boosting supplements (up 68 percent). Decline, however, for probiotics and mineral salts, which until last year were the best-selling supplements in the physical pharmacy.
E-commerce and sales channels of the pharmaceutical industry during the pandemic
The pandemic has boosted e-commerce, especially in the pharmaceutical sector.
According to Netcomm’s (the Italian Digital Commerce Consortium) Digital Health & Pharma Report 2020, online buyers of pharmaceutical products in Italy grew by 76 percent to 16.9 million in 2020. The Pharma & Health online market saw an 87 percent increase over 2019, reaching 1.22 billion.
According to Federsalus (National Association of Manufacturers and Distributors of Health Products), consistent with trends in the retail sector, dietary supplements have also experienced significant growth in sales in the online channel.
It becomes, therefore, important for companies in the field to take this information into consideration, because it is clear that if purchasing is increasingly influenced by e-commerce or search engine suggestions instead of by the healthcare professional, it will be crucial to have competent personnel who know how to manage digital marketing and e-commerce strategies and tools in order to gain visibility and – consequently – competitiveness.
Finally, the pandemic has certainly given a strong boost to the online presence and activities of pharmacies and parapharmacies, particularly the online sale of non-prescription medicines, but according to the data, the pharmacy still continues to be the main channel for the sale of drugs and health care products, followed by parapharmacies and large-scale retail.
Notes:
1 The Angelica Herbal Institute, “What is Nutraceuticals.
2 Data presented by Federsalus, the association dedicated to protecting the dietary supplement market, during the webinar “Market. Rethinking the information and promotion model for dietary supplements to address the new normal”
