Estonian firm expands market share in medical sector with EU-certified cosmetics

A smooth gateway to Green Public Procurements 

Since their cosmetic products earned the prestigious EU Ecolabel in 2022, Chemi-Pharm has gained recognition in the medical sector. The company has witnessed firsthand how the EU Ecolabel can indeed be an enticing opportunity to unlock new business through public procurement. 

Short of EU certification, a business is often excluded from bidding processes. Notably, Green Public Procurements have afforded the company a competitive edge internationally, as public institutions now usually require EU Ecolabel-certified items for their tendering procedures. 

The EU Ecolabel has positioned Chemi-Pharm favourably, allowing it to endow its cosmetic products with environmental credentials. Currently, more than 10% of its total revenue comes from Ecolabel-certified cosmetics. A visible sustainability track record and alignment with EU standards for performance have benefitted them: both are key priorities for public healthcare facilities seeking high-quality products.  

Chemi-Pharm’s versatile business model, which serves both B2B and B2C markets, has cemented a solid market presence across hospitals in Estonia, Latvia and Lithuania, with growth extending beyond the Baltic region. Approximately 70% of its revenue comes from export markets, with products now available in most EU Member States.  

‘Our business model relies on having resellers in export markets,’ confirms Chemi-Pharm’s Managing Director Joonas Lahe, as he places emphasis on the wide net of intermediaries and wholesalers.  

Supplier engagement for optimal outcomes  

Chemi-Pharm’s advice to others on the same boat? Conduct thorough market research and forge supplier partnerships that can help you secure the coveted EU Ecolabel. Obtaining one is a feather in the cap for a company’s portfolio. However, getting certified requires meeting strict and evolving eligibility criteria, a test many companies must sit through. 

Sourcing suitable components becomes a matter of utmost priority. In Joonas Lahe’s words: 

‘My advice would be to involve the external partners as early as possible, instead of only focusing on your internal know-how. We had to review our formulations and packaging, and for us it was a bit challenging, but we found a solution together with our suppliers’. 

Balancing profit and ethics in the equation 

All in all, the EU Ecolabel is not only about the earnings jump, but rather it reflects practices resonating with consumers and promoting a better world. ‘Businesses have a lot of influence on the environment: it might be a small step for one company, but if we add all the steps together, then it actually plays a big role,’ says Lahe.  

Chemi-Pharm’s environmental policies - focused on optimised waste management and resource use, chemical contamination prevention, energy efficiency, and renewables - demonstrates that the company walks the talk. The EU certification further strengthens the bond of trust with consumers, who show appreciation for the products. 

‘We are hearing a lot of positive feedback from the market,’ concludes Joonas Lahe. Ethical business practices and commercial prosperity go hand in hand. This is not just a success story for the EU Ecolabel: it’s a story of responsibility, innovation and lasting change. 

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