2024-10-25 09:06:00
What is happening to the laboratories specializing in homeopathy, a few years after the earthquake caused in the sector by a major measure in France? In January 2021, homeopathic medicines ceased to be reimbursed by Social Security, even partially. A decision motivated by the opinion of the High Authority of Health, which notably called into question the evidence of their effectiveness. Boiron, the French leader in the sector, then suffered a drop of more than 10% in its turnover between 2020 and 2021 (see also our graph). The crisis was such that the industrialist said he was forced to put in place a social plan, responsible for the closure of thirteen sites in France and the elimination of 510 positions.
Boiron’s main competitor in homeopathy, Weleda, had not been spared either. However, managing to maintain a stable turnover thanks to its cosmetics segment, the laboratory also decided to close its French site in Huningue, in Haut-Rhin, intended for the production of homeopathy, to centralize its production in Germany. So how did the two companies manage to absorb the effects of the delisting of homeopathy?
Focus on innovation
To regain growth, following this difficult period, Boiron opted for a strategy of innovation and diversification. “ We have launched more than twenty new products in three years », Rejoices a spokesperson for the laboratory. In homeopathy first, because the laboratory is convinced, the French remain attached to this unconventional medicine. According to several studies highlighted by Boiron, 76% of them have a good image of homeopathy which fits perfectly into the natural trend and does not lead to drug interactions. An interest which seems confirmed by the financial results of the laboratory.
« If common name homeopathy, such as tubes of granules, suffered a significant drop in demand, following its delisting, specialty homeopathy, which, for its part, was never reimbursed, continued to attract consumers, recording stable sales », Continues the spokesperson. Boiron therefore continued to enrich its range of phytotherapeutic medicines by launching several new products on the market, such as Storynil, a syrup used in the treatment of coughs and colds, Arnitrosium, a sublingual tablet for joint pain, and Immuno+ , a food supplement to help the functioning of the immune system.
But Boiron also intends to focus on its CBD range, launched a year ago. CBD, or cannabidiol, is one of the major constituents of the hemp plant, also called cannabis. Without euphoric effect, unlike THC which is also present in cannabis, it is increasingly used in the industry for its calming effects. Mainly aimed at relieving muscular tension, the range developed by Boiron, initially cosmetic, is composed of several CBD-based gels. And it seems to have been a great success with consumers, since it allowed the laboratory to rank “ number one in sales for CBD gels and creams in pharmacies », as Boiron proudly announces.
The laboratory recently enriched the CBD range with a well-being oil for oral intake, registered as a food supplement. This oil, available in pharmacies since last summer, is to be used in cases of stress, pain, difficulty falling asleep or mood disorders. Boiron, which insists on the purity of its CBD isolates, has also participated in an experiment carried out by the ANSM on therapeutic cannabis, since 2021. It is among the suppliers of the experiment which will end in 2025, and should lead to the marketing of cannabis-based medicines.
For its part, Weleda was able to count on its cosmetics segment, which represents more than 80% of its sales, to maintain its overall turnover. But the laboratory still had to face a significant decline in its sales of homeopathic products which fell by 20%, between 2019 and 2021. To remedy this crisis, Weleda notably opted for the diversification of its drug offering. without a prescription, for example by launching Domila. This medication is indicated in infants, in the case of teething, “to calm fever, soothe baby, calm digestive disorders and help put you to sleep”. Indications of which Weleda is proud. “ We obtained marketing authorization in January 2023 for Domila, which allows us to claim the beneficial effects of our drug for babies. », comments Ludovic Rassat, CEO of Weleda France.
The group was also able to rely on its brand image, which is part of the naturalness trend, to attract consumers. Weleda regularly communicates on the cultivation of its plants in its various gardens around the world, the largest of which is located in Germany, near its production site in Schwäbisch-Gmünd.
The Weleda production site in Schwäbisch-Gmünd (Germany), which houses the laboratory’s largest garden. © Weleda
An international craze
To compensate for the decline in homeopathic activity in France, specialists in the sector were also able to count on the enthusiasm of the international market. “ Overall, there is a strong enthusiasm for homeopathy in North and South America. », Notes Boiron’s spokesperson. The group, half of whose turnover is based on its international activities, opened a new subsidiary in Colombia last year.
Present in more than 50 countries, Weleda was also able to rely on its sales abroad to make up for the shortfall in France. “ The success of homeopathy through self-medication continues with very good growth around the world, particularly in Germany, Switzerland, the United States and Brazil where the laboratory is present with a wide range of homeopathic medicines. », rejoices Weleda. If the survival of the sector was in question at the time of the delisting, a few years later, the emblematic companies of homeopathy seem to be doing more than resisting.
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Interview with Dr. Claire Martin, Homeopathy Expert and Industry Analyst
Editor: Thank you for joining us today, Dr. Martin. Given the significant changes in the homeopathic sector following France’s 2021 decision to delist reimbursements, can you give us an overview of how laboratories like Boiron and Weleda have adapted to the new landscape?
Dr. Martin: Absolutely, thank you for having me. The decision in January 2021 was a major blow to the homeopathic sector in France. Boiron, being the leader, faced a drastic decrease in turnover, which forced them to implement a social plan and close several sites. However, both Boiron and Weleda have shown remarkable resilience. Boiron, in particular, has focused on innovation, launching over twenty new products in the past three years.
Editor: It’s interesting to hear about their innovation strategy. Could you elaborate on what types of products Boiron has introduced, and how they are perceived by the public?
Dr. Martin: Certainly. Boiron has strategically diversified its product range. While classic homeopathic remedies like granules have seen a drop in demand, specialty homeopathy—which was never reimbursed—has remained stable. They’ve launched new products like Storynil for coughs and colds and Immuno+ for immune support. The public still seems to hold a favorable view of homeopathy, with studies indicating that 76% of French people have a positive perception, which aligns with the rising interest in natural remedies.
Editor: And what about Weleda? How has their approach differed in the context of this crisis?
Dr. Martin: Weleda’s strength has been in its cosmetics line, which represents over 80% of its sales. This allowed them to maintain overall turnover despite a 20% decline in homeopathic product sales between 2019 and 2021. They also pivoted towards diversification in their offerings; for instance, they introduced Domila, a product for infants suffering from teething. This move highlights their strategy to offer more non-prescription options to consumers.
Editor: Boiron has also entered the CBD market, which seems to be gaining traction. Can you explain the significance of this move?
Dr. Martin: The entry into the CBD market is a strategic response to consumer demand for natural wellness products. Boiron’s CBD range has been quite successful, especially among gels and creams, allowing them to become a market leader in that segment. They’re also exploring CBD-based well-being oils aimed at stress relief and sleep disorders, signifying a focus on emerging wellness trends. Their involvement in the therapeutic cannabis experiment launched by the ANSM, which is expected to result in cannabis-based medicines, further illustrates their proactive approach.
Editor: This sounds like a pivotal time for these companies. What do you foresee for the future of homeopathy in France?
Dr. Martin: The future will likely hinge on how well these companies can adapt within a rapidly evolving health landscape. Homeopathy will remain a niche but cherished option for many consumers. The key will be balancing traditional offerings with innovative, evidence-based developments. If they can successfully communicate the efficacy of their products while addressing consumer demands for transparency and quality, we might see a resurgence in interest and potentially a stabilization in sales.
Editor: Thank you, Dr. Martin, for your insights into the challenges and adaptations within the homeopathy industry. It’s clear that both Boiron and Weleda are navigating a complex landscape with strategic innovation and diversification.
Dr. Martin: Thank you, it’s been a pleasure discussing this important topic!
N that segment. CBD, known for its calming properties, fits well with the ongoing trend towards natural health solutions. This diversification not only helps Boiron recover from the homeopathy crisis but also positions them favorably in a growing market that attracts consumers looking for alternatives to traditional medications.
Editor: That’s fascinating! And how are both companies faring on the international front? Have they found relief in global markets after the challenges faced in France?
Dr. Martin: Yes, the international market has indeed acted as a cushion for both companies. Boiron reports that nearly half of its turnover comes from international activities, with strong demand particularly in North and South America. Weleda, similarly, has relied on its presence in over 50 countries to bolster its sales. Countries like Germany, Switzerland, the United States, and Brazil continue to show robust growth for homeopathic products. So while the delisting in France was a significant setback, both Boiron and Weleda appear to be not just surviving but adapting and thriving in the international landscape.
Editor: Thank you, Dr. Martin, for your insightful analysis of the homeopathy sector and how these companies are navigating through a challenging period.
Dr. Martin: Thank you for having me! It’s an intriguing time for the industry, and I look forward to seeing how these developments unfold.
