The global online pharmacy market size is likely to cross USD 131 billion by 2025, growing at a CAGR of 20% during the forecast period. The industry is heading toward unprecedented growth in developing and developed economies. The US, the UK, France, Germany, Italy, Spain, China, India, and Japan are the key growth potential markets across the world. The increasing internet penetration and the growth in awareness of online OTC benefits are major factors contributing to the growth potential in the US and Germany. The importance of pharmaceutical care is growing with the increase in the need and demand for self-care such as self-medication. Self-care is gradually enhancing due to an increase in health awareness in the population both in developed and developing economies. The increase in demand for self-care is expected to increase the demand for online services, especially for OTC medicines. The role of pharmacies has been changing over the years. they are no longer medicine and medicinal product suppliers but also are involved in the provision of other health care services. The increased collaboration is another significant driver contributing to the growth of the market with online pharmacy companies collaborating with MedTech, health tech, and insurance companies to increase their reach and revenue.
- The OTC segment is projected to observe an incremental growth of over $64 billion by 2025 on account of the rising health awareness and the growth in lifestyle-related diseases.
- The mobile purchase segment is expected to grow a phenomenal CAGR of over 19% during the period 2019–2025 due to the increased penetration of the internet and the popularity of smartphones.
- The North American e-pharmacy market is likely to register a revenue of close to $76.50 billion by 2025 because of the rise in pharmacy automation in the region.
- The Europe online pharmacy market is likely to grow at a CAGR of close to 20% by the period 2019–2025 driven by the growing internet penetration, the implementation of e-prescriptions, an increase in chronic diseases, and the growth in the aging population.
INSIGHTS BY MEDICINE TYPE
The global OTC drugs market is likely to record the highest growth rate in Latin America and APAC in the coming years owing to the rapidly growing population, coupled with the growing middle-class population and increase in disposable incomes, which will increase access to OTC medication. The OTC drugs market in North America is innovation-driven and relies on the advent of innovative drugs for disease complexities and vary in their degree of intensity and efficacy. Product innovations in OTC drugs have built confidence among consumers, which have resulted in the increased demand for OTC drugs. The OTC meds online sales have increased due to relaxation in several regulations. Therefore, the number of brick-and-mortar pharmacies obtaining authorization for online pharmacies has been increasing YOY. In addition, the range of medicines covered by insurance was also reduced. This has resulted in the exemption of medications prescribed for mild symptoms and other OTC medicines from insurance, which were previously covered under insurance. This has driven the online sale of OTC medicines.
The global demand for prescription drugs is expected to hit $1.45 trillion by 2025, with a CAGR of 9% during the forecast period. The rising incidence of chronic illnesses such as obesity, cardiovascular diseases, and diabetes, would drive selling incentives for prescription medications in the market. The rise in new diseases would also have a high effect on the market share of prescription drugs online. The continuing clinical trials of key players in the production of innovative drug types would enable significant market growth. Moreover, the rising prevalence of chronic diseases is likely to fuel market growth in the region. In addition, the increasing R&D and high spending on healthcare are likely to allow a significant contribution to business growth. The demand in APAC is expected to observe the fast growth rate during the forecast period due to increasing awareness of chronic disorders.
INSIGHTS BY PLATFORM TYPE
The presence of desktop computers and laptops in households has increased over the years. Consumer PC penetration per capita in North America was increasing at a high rate and is still higher than across the world. The penetration of PCs is increasing steadily in Europe as most households in Europe have PC. While the product life cycle for personal computers has reached the maturity stage in most countries in Europe, the retail sale through desktop devices is increasing albeit gradually.
Mobile usage has increased in recent years. In 2016, traffic from smartphones increased by over 70% across the world. In 2018, mobile and desktop traffic shares were almost equal. The number of ordering sessions from mobile devices surpassed the desktop rate in 2019. However, the purchase via personal computers is twice the purchase carried out through mobile devices. Therefore, several consumers with mobile devices are finding it convenient during the initial stages of the sales funnel, which are searching and receiving additional information.
INSIGHTS BY GEOGRAPHY
The online pharmacy industry in North America is powered by state-of-the-art technology and the latest smartphone applications, the internet of things, and the introduction of cloud-based solutions in the medical sector. The region is expected to continue to lead global pharmaceutical sales during the forecast period and is projected to generate $635 billion in revenue by 2022. North America will also show significant growth owing to the availability of high-value drugs, increased healthcare awareness, high per capita expenditure on healthcare facilities. Automation in the pharmacy market in North America is growing significantly. The high adoption of e-commerce, an increase in online orders, and the growth in the elderly population are some of the key factors driving the U.S. online pharmacy market growth in this region during the forecast period.
INSIGHTS BY VENDORS
The global online pharmacy market is in the growing stage, and it has achieved popularity and high penetration majorly in developed countries such as the US, the UK, Germany, the Netherlands, France, and Switzerland, among others. The market consists of a few major market players in these regions, such as CVS Health, Llyods Pharmacy, SHOP APOTHEKE, Zur Rose Group, making it fragmented with an intense competition where 3-4 players account for most of the market share. However, there are no significant players in countries such as Spain, Italy, Poland, the UAE, South Africa, and the Czech Republic, where there is an immense opportunity to expand the business.
The global online pharmacy market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
Segmentation by Platform Type
- Mobile Users
- Desktop Users
By Medicine Type
- OTC Medicines
- Prescription Medicines
- North America
- Czech Republic
- South Korea
- Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia