Latest Developments in ePharmacy

The rapidly growing geriatric population, rising penetration of e-commerce, rising prevalence of diseases, and rapidly growing adoption of digital technologies across the globe are the most prominent factors that are driving the growth of the global ePharmacy market. According the International Telecommunications Union, the around 64% of the global population were using internet in 2021 and most of them operated through their smartphones. The rising government spending on the development of digital infrastructure and boost the digital businesses have led to the market growth significantly. Moreover, the global geriatric population is projected to reach 1.5 billion by 2050, as per the United Nations.

The significantly rising adoption of the smartphones, e-commerce, and internet among the population owing to the ease and conveniences of shopping the desired products and brands from the comfort of their home is driving the growth of the global ePharmacy market. The growing popularity of the e-commerce channels among the Gen Z and the millennials are expected to boost the adoption of the ePharmacy in the upcoming future. The ePharmacy platforms offers a huge variety of pharmaceutical products, huge discounts and cashbacks, quick and free home deliveries, easy replace and refund options, and easy payment options.

The global ePharmacy market size was valued at USD 59.93 billion in 2021, grew to USD 70.42 billion in 2022, and is projected to reach around USD 256 billion by 2030, poised to grow at a compound annual growth rate (CAGR) of 17.51% from 2022 to 2030. The rapidly growing geriatric population, rising penetration of e-commerce and rapidly growing adoption of the digital technologies across the globe are the most prominent factors that are driving the growth of the global ePharmacy market.

Recent Developments

In August 2020, Reliance Retail announced the acquisition of 60% of the stake in Netmeds for US$ 83 million. This strategy aimed at offering healthcare products it its customers at affordable prices.

ePharmacy Market Scope

Report Coverage	Details
Market Size by 2030	USD 256 Billion
Growth Rate from 2022 to 2030	CAGR of 17.51%
North America Market Share in 2021	41%
OTC Products Segment Market Share in 2021	70%
Base Year	2021
Forecast Period	2022 to 2030
Segments Covered	Product, Type, Drug Type, Operating Platform, Platform, Payment Method, Business Model, Geography

Highlights Of ePharmacy

Based on product, the over-the-counter (OTC) products segment dominated the market with over 70% of the market share in 2021. The increased consumer awareness regarding the commonly and frequently prevailing diseases and primary medication has led to the growth of this segment. The increasing demands for the primary medications in the developing economies are expected to foster the growth of this segment in the forthcoming years.
North America was the leading ePharmacy market with a market share of 41% in 2021.
North America ePharmacy market was valued at USD 21.5 billion in 2021.
Europe region accounted 19% revenue share in 2021.
Asia Pacific region garnered market share of around 25% in 2021.

Regional Snapshot

North America has a positive attitude towards the innovative and technologically advanced products and services, which has led to the significant growth of the ePharmacy market in the past few years. Nearly 80% of the US population is connected to the ePharmacy platforms. The significant shift towards the direct-to-patient model has driven the market growth. The presence of well-established transportation and digital infrastructure in the regions has led to the rapid adoption of the e-commerce channels among the consumers. The increasing online sales, rising geriatric population, growing prevalence of diseases, and rising penetration of telehealth platforms are the major factors that are supporting the growth of the ePharmacy market. More than half of the population is US is suffering from chronic diseases and it is also expected that the geriatric population will constitute 24% of the US population by 2060. The ease and conveniences of buying medicines from ePharmacy will contribute significantly towards the market growth in the upcoming years.

Asia Pacific is expected to be the fastest-growing market during the forecast period. The presence of huge population in the region, growing geriatric population, and rising prevalence of diseases are boosting the demand for drugs across Asia Pacific region. The rising technological advances, rising government initiatives to boost the adoption of digital technologies, growing popularity of e-commerce, and rising penetration of the ePharmacies are the major factors that are expected to drive the growth of the Asia Pacific ePharmacy market during the forecast period.

ePharmacy Market Dynamics

Driver

The higher efficiency of the online pharmacies in providing low cost medical products

The rapidly growing patient population across the globe is boosting the demand for the medicines. The ePharmacies allows the chronically ill and elderly people to conveniently order and receive the drugs without depending on any third person. The ePharmacies specializes in the procurement and supply of medicine at low costs. The rising penetration of internet and growing digital literacy among the population is expected to drive the demand for the ePharmacies across the globe in the forthcoming future.

Restraint

Stringent regulations on online sales of prescription drugs

The online sales of the prescriptions drugs in the developed markets like North America and Europe are highly regulated by the government. The market players face a challenge to comply strictly with the various regulations and rules. Moreover, there are several countries that do not legalize the sales of the prescription drugs through online channels. These factors may hamper the growth of the ePharmacy market.

Opportunity

Rising penetration of internet

The market has witnessed an increasing number of market players across the globe. The rising advances in the IT and telecommunications infrastructure has led to the increased penetration and adoption of internet among the global population. According to the International Telecommunications Union, a rise of around 17% has been noticed in the number of internet users from 2019 to 2021. Around 64% of the global population had access to the internet in 2021 and majority of them operated through their smartphones. The rising penetration of internet is expected to offer growth opportunities to the market players in the undeveloped and developing markets.

Challenge

Risk of counterfeit drugs through online pharmacies

The e-commerce platforms are vulnerable to the counterfeit products especially in the developing and underdeveloped economies. The presence of various counterfeit drug providers in the market may hamper the growth of the market and countering these illegal drug suppliers are the major challenge for the ePharmacy providers.

Key Vendors Mentioned:

The Kroger Co.
DocMorris
Walgreen Co.
Rowlands Pharmacy
Giant Eagle, Inc.
Optum Rx, Inc.
Walmart, Inc.
CVS Health
Express Scripts Holding Company
Netmeds

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