‘Vibrant’ pharmacy sector outperforms retail, analysts say
The pharmacy sector is experiencing double digit sales growth, outperforming the general retail sector, industry analysts say.
The sector is seeing “dynamic and vibrant growth” said experts from research group IRI Australia.
Speaking at the recent ASMI Conference in Sydney, IRI’s channel insights manager Daniel Bone and business development manager, pharmacy, Katherine Doric, lauded the sector’s strong front of shop performance, saying it was “an overall story of strong growth”
Their survey of 25 pharmacy product categories reveals that 88% have experienced growth. In particular, the natural health and baby care categories have experienced strong growth
The skincare and weight categories were among the few to suffer a fall, as revealed in IRI’s State of the Australian Pharmacy Industry 2015-16 report.
While the Baby Care category was obviously driven by the dramatic Chinese export market explosion, Bone said pharmacy had a lot to celebrate given the “overall strong growth across a broad range of categories.”
“Pharmacy is still proving to be an amazingly dynamic and vibrant channel with, really given the economic climate, phenomenal growth in a number of areas.”
Overall, the sector recorded accelerated double-digit growth in 2015-16 – of 10.1% – compared to the 0.9% growth recorded over the period by the retail sector, 4.2% growth in the convenience sector and 3.6% in the liquor sector.
Double-digit gains in Victoria (up 14.8%) and NSW (11.4%) are driving the total market, they said, with the two largest states by value share also recording the fastest growth.
There was also a story of vibrant growth in the vitamins and supplements category, responsible for 52% of the overall growth in OTC and front of shop sales growth in pharmacy.
Across the sector, private label sales continue to lead by share, but have declined in 2015-16.
However, eight of the top nine manufacturers are in growth, with the strongest results recorded by Swisse (up by 39.5%) and Blackmores (up by 26.3%). L’Oreal and Bayer also recorded double-digit growth results.