Health and Beauty Specialist Retailers in Lithuania

2021 DEVELOPMENTS

Beauty specialists benefit from relaxation of restrictions in 2021

Healthy and beauty specialist retailers registered positive retail value sales growth in 2020 and 2021. However, beauty specialist retailers were negatively affected by the pandemic as sales growth slowed during 2020 and was slightly negative.

Health related retailers see rise in demand as consumers return to normal lifestyles in 2021

Health related specialist retailers, namely chemists/pharmacies, drugstores/parapharmacies and vitamins and dietary supplements specialist retailers, were generally positively impacted by the pandemic, but there were two different scenarios that played out at the end of the review period. Isolation and fewer social activities led to a significant reduction in the use of colds and flu medicine and thus sales of these drugs fell sharply during 2020.

Chemists/pharmacies continue to benefit from pandemic in 2021

Channels that offered products most sought after by consumers, such as hand sanitisers, masks and immune-boosting supplements, recorded higher sales growth at the end of the review period. For a significant part of 2021, Lithuanians had to continue wearing face masks and it was recommended that consumers continue disinfecting their hands, which boosted sales of these products.

PROSPECTS AND OPPORTUNITIES

Beauty retailers to benefit at the expense of pharmacies from new vaccination sites opening during the forecast period

Lithuania is expected to use some chemists/pharmacies as vaccination sites for COVID-19 during 2022. This may be negative for sales in this channel as many chemists/pharmacies were expanding their selling space before the pandemic and became increasingly associated with beauty retailers.

Demand expected to remain while the pandemic lasts during the forecast period

It is anticipated that in the first half of the forecast period, as the pandemic gradually subsides, demand in health and beauty specialist retailers will increasingly return to normal. Lithuanians will continue to be reminded of the need to wear face masks during certain periods and hand sanitisation will remain important while the pandemic lasts.

Pharmacists becoming more important, likely leading to a rise in sales during the forecast period

Many people started visiting general practitioners less often during the review period, rather consulting a pharmacist on health matters. As a result, many chemists/pharmacies started providing consultation areas.