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Markets & trends

Sales of beauty products and toiletries increase by 20% in pharmacies

Chains see 20% higher turnover from the sale of cosmetics in the 1st quarter of the year – compared with 15.15% from medicines – and invest in own-brand products.

Buying medicines is no longer the main reason that leads consumers to the pharmacy. In Brazil, pharmacy and drugstore chains are seeing increasing turnover with the sale of cosmetics and toiletries.

From January to March 2014, the Brazilian pharmaceutical industry recorded R$ 7.4 billion in sales, with a 16.74% increase in relation to the same period last year, according to data from Abrafarma (Brazilian Association of Pharmacies and Drug Stores).

Drogasil Essence

Drogasil Essence

But the main items responsible for this increase were not medicines. While the category grew by 15.15%, ending the quarter with sales of R$ 4.9 billion, the highest rise was in toiletries and beauty products, with 20% more in the year-on-year comparison, totalling R$ 2.5 billion.

The result followed the trend of 2013. The non-medicines category, which includes cosmetics, toiletries and dietary supplements, recorded the highest increase. Last year, it grew by 19.17%, compared to 11.44% for medicines, with a 32.51% share of the total volume.

With an eye on this market niche, the leading Brazilian pharmacy and drug store chains are investing heavily in the production of own-brand beauty and toiletry products.

One of the pioneers was Ultrafarma, which launched its cosmetics brand Rahda in 2006. The brand today accounts for 5% of the company’s total sales. Six years operating with own-brand products (17% of the share of non-medicines), Pague Menos plans to launch new products such as deodorants, shaving foam, and dry shampoo by the end of the year. Operating in the South of Brazil, Panvel forecasts growth of more than 19% for its own-brand cosmetics in 2014.

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