Consumer Health in Serbia

Published: October 2011

Price: $ 2400

Increased health awareness and willingness to self-medicate boost sales

The review period saw growing demand for consumer health in Serbia. This trend was supported by a number of factors, including improved living standards and better education in general and with regards to health and wellness. Consumers thus became increasingly willing to self-medicate. There was also a rapid increase in the range of products on offer in consumer health, as more foreign producers entered following liberalisation in 2001. Meanwhile, there was rapid expansion in retailing during the review period, including chemists/pharmacies and parapharmacies/drugstores. This resulted in consumer health becoming more accessible to Serbian consumers, particularly in rural areas.

Growth slows due to economic downturn

Sales growth notably slowed towards the end of the review period due to the impact of the economic downturn. Serbia saw a marked drop in real GDP and in remittances in 2009, with only a slight recovery in 2010. Consumers were meanwhile faced by high inflation and declining disposable income levels. Consequently, many consumers were forced to cut back on their spending on consumer health, with many product areas thus seeing weaker current value growth in the year.

Affordable domestic and regional players gain share

The impact of the economic downturn could clearly be seen on company shares in consumer health at the end of the review period. Affordable domestic players consequently mainly gained share in 2010 over the previous year. The leading player in 2010 was state-owned Galenika, which benefits from offering good quality products at low prices. This company thus saw the strongest growth in value share in the year. Affordable regional players also gained share, such as Alkaloid from Macedonia.

Retailing sees rapid development

Serbia Consumer Health Market

The Serbian retailing industry saw rapid development during the review period, with the number of outlets selling consumer health dramatically increasing. There was particularly strong growth in the number of privately-owned chemists/pharmacies, beauty specialist retailers and supermarkets/hypermarkets during the review period. Retailing expansion was thus a key factor behind good current value growth in consumer health, particularly driving sales growth in rural areas as consumers’ access to these products improved. In addition, growing competition in the retailing of these products increased price competition within consumer health and resulted in many products becoming more affordable.

Good forecast period growth thanks to ageing population

Serbia’s ageing population is expected to support strong growth for consumer health during the forecast period. The country’s consumer base is also expected to become more sophisticated in its understanding of health problems and their treatment, with growing media coverage of health and wellness in the country. Consumers are thus likely to become more willing to self-medicate. This trend is likely to be encouraged by further expansion in the number of chemists/pharmacies and parapharmacies/drugstores across the country and by these outlets offering a wider range of consumer health.