Operating environment

Oriola has identified solid long-term drivers supporting market growth such as ageing population, wellbeing and healthcare, online pharmaceuticals and growth of speciality products.

The value of the pharmaceutical distribution market continued a steady growth in the second quarter driven by good demand for high-value pharmaceuticals, while volumes declined especially in the Finnish market. The challenges in the availability of pharmaceuticals have continued in Europe. Cost inflation has slowed down, with more stabilised energy and fuel prices.

Market environment – Pharmaceuticals 
The pharmaceutical distribution markets in Finland and Sweden are valued at around EUR 8.5 billion and have historically been relatively stable during uncertain economic times. In the past three years, the average annual growth rate has been about 6% in value terms.

In Sweden, the value of the pharmaceutical distribution market at wholesale prices, measured in Swedish krona, grew by 7.0% (9.8%) in the second quarter and by 7.2% (10.0%) in January-June (source: IQVIA). In Finland, the market value grew by 3.8% (3.4%) in the second quarter and by 4.0% (3.9%) in January-June (source: Pharmaca Health Intelligence). According to Oriola’s estimate, the company’s share of the pharmaceutical distribution market in Sweden was approximately 43% (45%) in the second quarter and 43% (44%) in January-June. Oriola estimates that, the company’s share of the pharmaceutical distribution market in Finland was approximately 45% (45%) in the second quarter and 45% (44%) in January-June.

In the dose dispensing business, Oriola offers pharmaceuticals and dose dispensing for private and public healthcare sector operators. The total market size for dose dispensing in Finland is approximately 112,000 (105,000) patients of which Oriola serves approximately 33,000 (29,000). 

Market environment – Health products
The consumer health markets in Finland and Sweden are valued at around EUR 1.5 billion. The historical market growth has been 3.1% (2018-2023 CAGR%) while growth is expected to be 3.2 % for 2023-2028 with significant differences between categories. In Sweden, the ongoing preventive health trend will continue driving demand for products such as vitamins, dietary supplements and sports nutrition, all of which are expected to benefit from increased demand. In Finland, consumers are expected to demand more natural and clean products with high-quality ingredients and available in easy-to-use formats. (Source: Euromonitor)

Consumer confidence indicators in both Sweden and Finland have improved slightly and reached the highest value since February 2022, although the indicators on how consumers view their personal finances were still weak or below normal levels. 

As published in the Half-Year Report 2024 on 18 July 2024.