Digital Pharmacy Market Share, Size, Trends, Industry Analysis Report, By Drug Type (Prescription Medicines and Over-the-counter Products); By Platform; By Product; By Region; Segment Forecast, 2022 - 2030
- Published Date:Nov-2022
- Pages: 118
- Format: PDF
- Report ID: PM2786
- Base Year: 2021
- Historical Data: 2018-2020
Report Outlook
The global digital pharmacy market was valued at USD 83.45 billion in 2021 and is expected to grow at a CAGR of 17.05% during the forecast period.
The extensive rise in the number of smartphone users and growing penetration of the internet, coupled with the growing digitization in healthcare infrastructure, are major factors expected to drive the growth of the global market during the forecast period.
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According to GSMA, the global mobile industry connects more than 5 billion populations to internet services, nearly 63.1% of the global population. And, because mobile data will continue to become affordable and accessible, the number of smartphone and internet users is expected to boom. As a result, the popularity and adoption of E-pharmacy is also likely to have a positive impact on the global market over the coming years.
However, the growth of the global market is majorly restrained by the lack of physical evaluation and insufficient safety and surety of financial as well as personal information. Additionally, lack of consumer trust as few online pharmacy companies do not dispense drugs by licensed pharmacies.
The outbreak of the COVID-19 pandemic has positively impacted the digital pharmacy market, owing to an increased number of consumers preferring online purchases of drugs along with the social distancing forms and the high emergence of various online pharmacies. Furthermore, the rise in online sales of various healthcare products, including face masks, hand sanitizers, drugs, and antibacterial creams during the COVID-19 pandemic, also affected the market significantly, which resulted in a sudden increase in the growth of the market.
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Industry Dynamics
Growth Drivers
A significant increase in the global users of the internet and online service providers has highly enhanced the accessibility to online pharmacies, mainly in developing nations such as India, China, and Indonesia are major factors projected to drive the growth of the global market throughout the forecast period. For instance, the number of internet users in India is estimated to grow by 45% in the next five years and is expected to touch a value of about 900 million by 2025 from 622 million in 2020.
Furthermore, increasing collaborations, partnerships, and mergers & acquisitions among key market players to expand the consumer base and broaden product offerings through several online channels are likely to be another key factor propelling the growth and demand for E-pharmacy in the coming years. For instance, in September 2021, Rite Aid Corporation entered into a partnership with Uber Eats to deliver Rite Aid products on demand nationwide. With this partnership, Rite Aid products are now available in 2,185 locations in 17 states.
Report Segmentation
The market is primarily segmented based on drug type, platform, product, and region.
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By Drug Type |
By Platform |
By Product |
By Region |
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Over-the-counter products segment accounted for the highest market share in 2021
Increasing awareness regarding the availability of OTC products and education about the primary medication for various type of common diseases among the global population are key factors expected to foster the growth of the segment over the forecast period. Availability of a range of over-the-counter products for several frequently occurring diseases like cold and flu driving the market. Furthermore, various favorable government initiatives and scenario, rapidly boosting Rx to OTC switch, is further expected to augment segment growth in the coming years.
In addition, the growing number of start-ups and intense competition among key market players forcing them to provide higher discounts and offers to their consumers coupled with better online publicity to strengthen their market position ahead of competitors, and that is anticipated to boost the sales and demand for OTC products rapidly across the globe in the near future.
Health Wellness & Nutrition segment expected to witness fastest growth
Health wellness & nutrition are projected to register the highest growth rate over the study period, owing to the rising awareness of several types of nutritional products and rising consumer preferences towards health wellness, especially in developed economies such as United Based, Canada, and France. According to our findings, over 50% of the United Consumers order health wellness and nutrition products with the help of various online channels. It is projected to grow at the same rate in the coming years. Moreover, increasing the introduction of new nutritional and wellness products by large global manufacturers and suppliers across the globe is creating growth opportunities for the segment market over the coming years.
Furthermore, the medications segment accounted for the largest market revenue share in 2021 on account of the high surge in the sales of OTC products as well as prescription medicines, with the easy availability of these products all over the world. For instance, CVS Health, a leading pharmacy service provider based in the United States, recorded a 1000% increase in the online sales of drugs during the COVID Pandemic.
App-based segment held the largest market revenue share in 2021
The app-based segment held a significant revenue share in 2021 and is projected to continue its dominance over the forecast period. A rapid increase in mobile phone users and growing penetration of the internet across the globe, coupled with the rising number of people conducting online transactions, have resulted in high demand for drugs through app-based platforms and are the driving factor for the segment market growth.
In addition, tremendous growth in the e-commerce industry due to variety of services offered by online platforms, such as free doorstep delivery, a wide range of pharmaceutical products, and ease of access, coupled with the growing internet services across the world, is fueling the segment growth at a strong growth rate over the coming years.
North America region accounted for the largest market share in 2021
In 2021, North America was the leading market for digital pharmacy and was set to maintain its position throughout the forecast period. A rapid increase in the adoption of e-commerce, growing online sales, and improved and developed healthcare infrastructure. An extensive rise in the geriatric population is a key factor expected to drive the growth and demand for the market in the region.
According to NCBI (National Center for Biotechnology Information), around 80% of the overall population in the United States is connected to ePharmacy and moving rapidly towards the direct-to-patient model. Moreover, a large presence of global market players such as CVS Health, Optum Inc., Walgreen Co., and Amazon.Com Inc. is likely to fuel the growth and adoption of E-pharmacy at a significant growth rate during the forecast period.
Furthermore, Asia Pacific region is witnessing fastest CAGR during the forecast period. A rise in the government’s favorable initiatives, large population base, and growing adoption of advanced technologies, especially in developing countries such as India and China, are major factors anticipated to propel the demand and adoption of digital pharmacy in the region over the coming years. In addition, rising digitization in healthcare systems and growing awareness regarding innovative technologies among consumers are projected to boost the growth of the digital pharmacy market in the region.
Competitive Insight
Some of the key players of the market operating across the globe are Amazon Pharmacy, CVS Health, Walgreen Co., Giant Eagle Inc., Walmart Inc., Express Scripts Holding Company, Rowlands Pharmacy, Optum Rx Inc., Axelia Solutions, Apollo Pharmacy, Netmeds.Com, Cigna Corporation, Apex Healthcare Berhad, PharmEasy, Pharmex Direct Inc., and Rexall Pharmacy Group ULC.
Recent Developments
In January 2022, Hyphens Pharma International Ltd., largest specialty pharmaceuticals as well as consumer healthcare company in Singapore, launched WellAway ePharmacy in the area. The new ePharmacy offers customers easy access to various pharmaceutical services coupled with assisting doctors and teleconsultation. The new services will be extremely helpful for parents who are elderly, self-isolating, and immobile.
In May 2021, PharmEasy (India) acquired MedLife, for the expansion of its offerings and to increase the consumer base in the Indian market. The new acquisition helped the company to expand its market presence, generate more revenue, and become India’s largest online pharmacy, with a total combined entity set to nearly 2 million consumers in a month.
Digital Pharmacy Market Report Scope
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Report Attributes |
Details |
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Market size value in 2022 |
USD 96.56 billion |
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Revenue forecast in 2030 |
USD 340.17 billion |
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CAGR |
17.05% from 2022 – 2030 |
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Base year |
2021 |
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Historical data |
2018 – 2020 |
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Forecast period |
2022 – 2030 |
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Quantitative units |
Revenue in USD billion and CAGR from 2022 to 2030 |
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Segments covered |
By Drug Type, By Platform, By Product, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Key companies |
Amazon Pharmacy, CVS Health, Walgreen Co., Giant Eagle Inc., Walmart Inc., Express Scripts Holding Company, Rowlands Pharmacy, Optum Rx Inc., Axelia Solutions, Apollo Pharmacy, Netmeds.Com, Cigna Corporation, Apex Healthcare Berhad, PharmEasy, Pharmex Direct Inc., and Rexall Pharmacy Group ULC |
