ePharmacy - Market Insights, Competitive Landscape, and Market Forecast - 2030

ePharmacy - Market Insights, Competitive Landscape, and Market Forecast - 2030

Epharmacy Market By Drug Type (Prescription Drugs And Over-The-Counter (OTC) Drugs) and geography is expected to grow at a steady CAGR forecast till 2030 owing to the booming digital health industry and the rising consumer preference for online purchase of various drugs and devices across the globe

The global ePharmacy market was valued at USD 60.40 billion in 2023, growing at a CAGR of 21.05% during the forecast period from 2024 to 2030 to reach USD 188.89 billion by 2030. The demand for ePharmacy is being boosted by the increasing number of tech-savvy consumers, surging access to web-based and online services among the end-users, rising implementation of E-prescriptions in hospitals and other healthcare services, and the increasing adoption of telemedicine services across, among others. In addition, the rising patient population suffering from chronic diseases, the rising burden of the geriatric population prone to different chronic diseases, increasing penetration of smartphones, the increasing digitization and benefits associated with the adoption of ePharmacy over traditional pharmacies, lucrative offers and discounts along with easy availability of online prescription drugs, among others are thereby contributing to the overall growth of the ePharmacy market during the forecast period from 2024-2030.

Epharmacy Market Dynamics:

The ePharmacy market is witnessing a growth in product demand owing to various factors, one of the key factors being the increasing adoption of digital technologies and e-commerce in the healthcare sector. For instance, the growing healthcare industry and high operating costs have made it necessary to use ePharmacy solutions to reduce operational costs. Demand for numerous healthcare products, especially medications, is rising as chronic illnesses become more common.

Further, the rising adoption of the internet and smartphones across the globe will increase the demand for ePharmacy services. For instance, International Telecommunication Union (ITU) 2022, report stated that an estimated 5.3 billion people, or 66 percent of the world’s population, used the internet in 2022.

The significant advantage of e-prescription is that one can easily upload their e-prescription on the e-pharmacy website and order medicine online without any hurdle. Thus, the rising implementation of e-prescribing systems in hospitals and other healthcare services is also driving the online pharmacy industry. The introduction of e-prescription is essential since it addresses a significant cost issue as it takes money to handle collecting, storing, and searching for information.

The pandemic has increased the demand for ePharmacy as there was a sudden thrust observed in teleconsulting services. Although medical stores were classified as vital services, still online pharmacies emerged as one of the largest beneficiaries of the pandemic-induced lockdown, as individuals preferred to buy medicines online to avoid the risk of disease spreading.

The rising demand for ePharmacy also leads to increased strategic activities including launches, funding, acquisitions, and others. For instance, in January 2022, Mark Cuban, the venture capitalist, launched a digital pharmacy that sells more than 100 generic pharmaceuticals at a low cost, to be radically transparent.

Also, in August 2020, E-commerce firm Amazon India launched Amazon Pharmacy, in Bengaluru. It offers both OTC and prescription drugs as well as basic health services and traditional Indian herbal medicines. Therefore, the above-mentioned factors are contributing to the growth of the ePharmacy market during the forecast period from 2024-2030.

However, the increasing number of illegal online pharmacies, the risk of counterfeit drugs, and others may restrict the ePharmacy market growth.

Epharmacy Market Segment Analysis:

ePharmacy Market by Drug Type (prescription drugs and over-the-counter (OTC) drugs), and Geography (North America, Europe, Asia-Pacific, and the Rest of the World)

In the drug type segment of the ePharmacy market, the over-the-counter drugs category is expected to amass a significant revenue share in the year 2023. This can be attributed to its increased demand among the end-users owing to their easy availability in the market.

OTC drugs typically treat conditions that are easy to self-diagnose, such as headaches, colds, and allergies, and can be purchased at grocery stores, drug stores, convenience stores, and supermarkets. Thus, the easy availability, rising consumer awareness, and the ability to treat various common health issues at lower cost are some crucial factors hastening the segmental demand.

Further, the patient doesn't have to wait around while their prescription is processed, which also saves time. In comparison to patients who must go through an additional two steps to obtain the proper drug, OTC medications save the patient time overall and expedite the process of providing relief, thereby making OTC drugs a preferable option for consumers. Moreover, these drugs can be easily purchased through e-commerce platforms without the hassle of uploading a prescription and further placing the order of drugs.

Additionally, the economic benefits of OTC drug usage are attributable to savings on drug costs and costs incurred on a clinical visit. Also, Rx to OTC switch by pharmaceutical manufacturers, a growing tendency of people toward self-medication, and the inclination of customers towards online pharmacies are strongly driving the segmental growth.

Further, increasing initiatives by the government to increase the demand for OTC drugs will also propel the market of the segment. For instance, in January 2022, the Drugs Technical Advisory Board (DTAB) approved the new OTC policy under which Indian pharmacists will allow the sale of certain medicines without a prescription, as per new over the counter (OTC) policy for drugs. The medicines like antifungal infections, analgesics (pain killers), cough syrups, decongestants, laxatives, antiseptics, medicines for gum infections, and others are approved in a list of OTC drugs by DTAB.

Thus, the above-mentioned factors are likely to propel the demand for over-the-counter (OTC) drugs, thereby contributing to the growth of the ePharmacy market during the forecast period from 2024-2030.

North America is expected to dominate the overall Epharmacy Market:

Among all the regions, North America is estimated to account for the largest share of the ePharmacy market in the year 2023. This domination is due to the rising preference for OTC drugs, increasing teleconsulting services in the region, increasing internet penetration, and rise in the adoption of digital technologies in the healthcare industry, among others will propel the market of ePharmacy in North America.

The consumer-friendly online experiences and other cutting-edge services made possible by the digital age are further driving the total market expansion in North America.

Additionally, it is anticipated that the e-pharmacy market in North America, particularly the United States, will be driven by the convenience of ordering medications from the comfort of home. The market's expansion in North America is also anticipated to be fueled by the high concentration of market participants and the adoption of cutting-edge technologies by key companies to enhance the experience of customers making online drug purchases.

Further owing to the rising demand for e-pharmacy led to a rise in the number of new players in the market. For instance, in February 2022, Medicure Inc. launched its national direct-to-consumer e-commerce pharmacy platform through its subsidiary, Marley Drug Pharmacy, in the United States. With this, Americans can buy FDA-approved pharmaceuticals at bargain prices on Marley Drug's new e-commerce website, which offers home delivery to all 50 states.

Also, in January 2022, Mark Cuban started an online pharmacy offering affordable generic medications under the name Mark Cuban Cost Plus Drug Company, a brand-new online pharmacy, in the United States.

Thus, all the above-mentioned factors will lead to an increase in the North America ePharmacy market growth during the forecasting period of 2022-2027.

Epharmacy Market Key Players:

Some of the key market players operating in the ePharmacy market include OptumRx, Inc., Rowlands Pharmacy, Walmart Stores, Inc, Walgreen Co., Amazon.com, CVS Health, Cigna, Giant Eagle, Inc., The Kroger Co., PharmEasy, Apollo Pharmacy, DocMorris AG, Netmeds.com, Well, Chemistdirect.co.uk, Healthxchange Pharmacy, LloydsPharmacy, 1Mg, Alto Pharmacy, MedsEngage, and others.

Recent Developmental Activities in the Epharmacy Market:

In September 2022, Amazon stated that it was planning to sell prescription medications online in Japan.

In January 2022, Hyphens Pharma International Limited, Singapore's largest specialty pharmaceutical as well as a consumer healthcare company, launched WellAway ePharmacy in the city-state. WellAway offers customers the ease of access to pharmaceutical services while also assisting doctors with teleconsultation

In August 2020, Reliance Retail announced the acquisition of a 60.0% equity stake in Netmeds for USD 83.0 million. The acquisition is aimed at enhancing the company’s ability to offer affordable & high-quality healthcare products & services to its customers.

Key Takeaways from the Epharmacy Market Report Study

Market size analysis for current ePharmacy market size (2023), and market forecast for 6 years (2024-2030)

Top key product/services/technology developments, mergers, acquisitions, partnerships, and joint ventures happened for the last 3 years

Key companies dominating the global ePharmacy market.

Various opportunities available for the other competitor in the ePharmacy market space.

What are the top-performing segments in 2023? How these segments will perform in 2030.

Which are the top-performing regions and countries in the current ePharmacy market scenario?

Which are the regions and countries where companies should have concentrated on opportunities for ePharmacy market growth in the coming future?

Target Audience who can be benefited from this Epharmacy Market Report Study

ePharmacy products providers

Research organizations and consulting companies

ePharmacy-related organizations, associations, forums, and other alliances

Government and corporate offices

Start-up companies, venture capitalists, and private equity firms

Distributors and Traders dealing in ePharmacy

Various End-users who want to know more about the ePharmacy market and the latest technological developments in the ePharmacy market.

Frequently Asked Questions for the Epharmacy Market:

1. What is ePharmacy?

E-Pharmacy is a pharmacy that sells medicines on the Internet and delivers them to customers. It is an online pharmacy that operates over the Internet and provides medicines to consumers through mail or shipping companies

2. What is the market for global ePharmacy?

The global ePharmacy market was valued at USD 60.40 billion in 2023, growing at a CAGR of 21.05% during the forecast period from 2024 to 2030 to reach USD 188.89 billion by 2030.

3. What are the drivers for the global ePharmacy market?

The demand for ePharmacy is primarily being heightened by the surging internet across the globe, improving digitalization of healthcare services, increasing number of tech-savvy consumers, rising consumer preference for online purchases, increasing adoption of digital technologies and e-commerce in the healthcare sector among others, thereby contribute to the overall growth of the ePharmacy market during the forecast period from 2024-2030.

4. Who are the key players operating in the global ePharmacy market?

Some of the key market players operating in the ePharmacy market include OptumRx, Inc., Rowlands Pharmacy, Walmart Stores, Inc, Walgreen Co., Amazon.com, CVS Health, Cigna, Giant Eagle, Inc., The Kroger Co., PharmEasy, Apollo Pharmacy, DocMorris AG, Netmeds.com, Well, Chemistdirect.co.uk, Healthxchange Pharmacy, LloydsPharmacy, 1Mg, Alto Pharmacy, MedsEngage, and others.

5. Which region has the highest share in the ePharmacy market?

North America is expected to dominate the overall ePharmacy market during the forecast period from 2024-2030. Factors such as the rising adoption of e-commerce, growing geriatric population, increasing online sales, developed healthcare infrastructure, positive attitude towards the adoption of new technologies, and the presence of key players in the region, among others will positively impact the North American ePharmacy market. Furthermore, high disposable income, sophisticated healthcare infrastructure, and high awareness about telemedicine and online pharmacy services also helped the market growth in this region.