UAE Pharmacy Retail Market, By Type (Online, Offline); By Drug Type (Generic, Over the Counter (OTC), Patented); By End User (Equipment Retail, Drug Retail, Health Products Retail, Chemical Medicine Retail, Medicinal Materials Retail, Proprietary Chinese

UAE Pharmacy Retail Market, By Type (Online, Offline); By Drug Type (Generic, Over the Counter (OTC), Patented); By End User (Equipment Retail, Drug Retail, Health Products Retail, Chemical Medicine Retail, Medicinal Materials Retail, Proprietary Chinese Medicine Retail), Trend Analysis, Competitive Landscape & Forecast, 2019–2029

UAE Pharmacy Retail Market Size Almost Doubles to Touch USD 18.6 Billion by 2029

The UAE pharmacy retail market is flourishing because of the rising healthcare expenditure and growing e-commerce industry.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the UAE pharmacy retail market size at USD 9.82 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects the UAE pharmacy retail market size to grow at a significant CAGR of 11.22% reaching a value of USD 18.58 billion by 2029. Major growth drivers for the UAE pharmacy retail market include an increasing prevalence of chronic diseases and the government's supportive initiatives aimed at promoting the healthcare sector. Also, the strategic placement of retail pharmacies in high-traffic areas such as shopping malls and airports, along with the rapid adoption of effective marketing strategies by industry participants, is expected to fuel further growth in this market during the forecast period. The UAE government is actively committed to advancing the pharmaceutical industry, as evidenced by initiatives like the Dubai Industrial Strategy 2030 and the Abu Dhabi Vision 2030. These strategies aim to harness the pharmaceutical sector's future growth potential, export capabilities, and long-term economic advantages. While the UAE historically relied on imported pharmaceuticals, there is a concerted effort to reduce imports and boost local manufacturing through increased investments in pharmaceutical and therapeutic product research and development. In 2018, the country imported pharmaceutical products valued at over USD 14.9 billion, prompting collaborations with multinational market players to enhance local production. Notably, the market is expected to benefit from favorable schemes, distribution channel plans, and the strategic location with a sophisticated logistics infrastructure, further fortifying the UAE pharmacy retail market's growth prospects during the period in analysis. However, rising operational costs are anticipated to restrain the overall market growth during the forecast period.

UAE Pharmacy Retail Market – Overview

The UAE pharmacy retail market refers to the sector within the United Arab Emirates (UAE) dedicated to the retail sale of pharmaceutical and healthcare products directly to consumers. This market encompasses a wide range of products, including prescription and over-the-counter medications, health supplements, personal care items, and medical devices. Pharmacy retail outlets in the UAE may include standalone pharmacies, those located within hospitals or healthcare centers, and those situated in high-traffic areas such as shopping malls and airports. The UAE pharmacy retail market is influenced by factors such as government regulations, consumer healthcare needs, the prevalence of chronic diseases, and marketing strategies employed by industry players. It plays a crucial role in ensuring the accessibility of essential healthcare products to the UAE population.

Impact of COVID-19 on UAE Pharmacy Retail Market

COVID-19 pandemic had a mixed impact on the UAE pharmacy retail market. Initially, there was a surge in demand for essential healthcare products and medications, leading to increased sales. Retail pharmacies played a crucial role in providing access to medicines and hygiene products during lockdowns. However, the pandemic also brought operational challenges. Pharmacies had to implement safety measures, such as social distancing and sanitization, leading to increased operational costs. Supply chain disruptions affected the availability of certain medications and products. Moreover, the shift towards telehealth services during the pandemic altered patient behavior, affecting footfall in physical pharmacies. Despite these challenges, the UAE pharmacy retail market adapted by expanding e-commerce and delivery services. The long-term impact includes a greater emphasis on digital health solutions and preparedness for future healthcare crises.

UAE Pharmacy Retail Market – By Drug Type

Based on drug type, the UAE pharmacy retail market is divided into Generic, Over the Counter, and Patented segments. The generic segment held the highest share in the UAE pharmacy retail market by drug type. Generic drugs are cost-effective alternatives to brand-name medications, making them attractive to price-conscious consumers. The UAE government's push for affordable healthcare and regulations favoring generic substitution further promotes their use. Also, healthcare providers often prescribe generics, reinforcing their prevalence. The trust in the safety and efficacy of generic drugs, along with their lower prices, has made them the preferred choice among consumers, resulting in their dominant position in the pharmacy retail market.

Competitive Landscape

Major players operating in the UAE pharmacy retail market include CVS Health, Walgreens Boots Alliance, Inc., Albertsons Companies, Dirk Rossmann GmbH, Rite Aid Corp., The Jean Coutu Group (PJC) Inc., Loblaws Inc., and Ahold Delhaize. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of UAE Pharmacy Retail Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in UAE Pharmacy Retail Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.