There is an ever-increasing demand for online medicines and chemist app development services with the expanding penetration of eCommerce and utilization of the Internet. Numerous online pharmacies also called e-Pharmacy around the world offer dispensing of medicine order medicines and doorstep delivery and over-the-counter items. Be that as it may, ordering and dispensing a medicine order medicine through an online channel needs a medicine order from a medical specialist. With the beginning of ePharmacy, patients don’t need to travel to the pharmacist.
Furthermore, significant e-Pharmacy companies furnish medicines at discounted rates contrasted and other traditional medical stores. The ePharmacy market trend is assessed to encounter an exponentially growing CAGR of 17.3% in the upcoming 6-7 years inferable to the expanding investment of online business giants in the field of healthcare. For example, in June 2018, Amazon.com inc. reported the organization’s plans to procure ePharmacy organization PillPack, Inc. for around US$ 753 Mn.
Key Market Drivers
A huge patient pool worldwide likes doorstep delivery of healthcare products owing to the inaccessibility of specific medicines in retail pharmacy stores. Moreover, ePharmacies and online pharmacy apps bring down the dependency of constantly sick patients and elderly citizens on the third person for the procurement of healthcare and medicine supplies. Moreover, expanding penetration and literacy concerning internet resources are anticipated to increase market sales.
The growing reach of online business has encouraged the e-Pharmacy websites development to catch a wide customer base in the developed and developing countries of the globe. Millennials of the generation are profoundly dependent on the online procurement of goods like cosmetics and over-the-counter medicines. There are likewise different startups jumping up around the world over because of the advent of new data technologies and algorithms that offer better consumer satisfaction and experience. New technologies based on AI are evaluated to guarantee better customer loyalty in the market. Each of these factors cumulatively is relied upon to drive the worldwide ePharmacy market growth.
Alternately, there are stringent guidelines for selling medicine order medicines through online channels. Medicine order medicine deals through ePharmacy in Europe and North America are exceptionally regulated, and the organizations need to comply with different rules, which could affect the market growth in these regions. Also, not all the countries in the world have authorized sales of medicine order medicines through online sites. Factors, for example, the unregularised sale of medicine order medicines that could prompt the prohibition of online pharmacies are assessed to limit the worldwide market revenue.
Based on the product, the worldwide market segments incorporate medicine order medicines and over-the-counter items. The over-counter segment ruled the ePharmacy industry in 2018. The medicine order medicine segment represented the lower share of the market in 2018, however, is projected to grow at a quicker CAGR during the forecast period. Based on geography, the market segments incorporate Europe, North America, Asia Pacific, and the Rest of the world.
In North America, the over-reliance of the general population on the online conveyance of consumable goods including over-the-counter medicinal products like nutrition supplements, cosmetics, and vitamin tablets among others are anticipated to emphatically impact the ePharmacy market trend. A rise in the number of patients embracing home care services and treatment owing to high healthcare insurance in hospitals is projected to expand the online procurement of medicines in North America.
The market in North America is entrenched and has caught a wide population base owing to the high penetration of the internet. Also, the Food and Medicine Administration (FDA) in the US centers around actively illuminating the citizens in regards to the rule and regulations of ePharmacy and making them aware of the safety of buying the medicine online. The European market is exceptionally regulated by the European Commission with Stringent guidelines; notwithstanding, the worldwide market is evaluated to witness growth owing to the lucrative prices offered by significant brands working in the market.
The market in the Asia Pacific is anticipated to exhibit a relatively higher CAGR during the forecast period, owing to the rising demand for the Internet and higher appropriation of e-commerce websites. The market in the rest of the world that incorporates countries of the Middle East, Africa, and Latin America represented a comparatively small ePharmacy market share for the year 2018 owing to lower literacy in regards to ePharmcy be that as it may, it is required to encounter a considerable CAGR owing to the unmet needs of online distribution of medicines.
Key Market Players
The market is a semi-consolidated market with the main five players representing a significant share of the market in 2018. A profound established product presence in ePharmacy, alongside a solid distribution channel, has contributed to the predominance of these players in the market. Also, the established market presence and trust of the shoppers have encouraged the dominance of the top market players in ePharmacy.
On the other side, some other market players are increasing their presence in ePharmacy, combined with an emphasis on the expansion through the geographic presence and reinforcing their distribution channel with acquisition and mergers with local players. These players are relied upon to gain noteworthy ePharmacy market share during the forecast period. The rising completion inside the organizations operating in the ePharmacy industry is assessed to influence the market share of the industry's key players.
List of companies profiled
- Express script Holding company
- Walgreen Co.
- Walmart Stores, Inc.
- The Kroger Co.
- CVC Health Corporation
- Optum Rx, Inc.
- Rowland Pharmacy
- Giant Eagle, Inc.
As per the world bank, nearly 84% population in Germany is dependent on the internet and 75% of the population in the US are internet subscribers. This huge population relies on the internet for the acquisition of commodities combined with the worthwhile price offering by significant players is prompting rising demand for ePharmacy globally. The introduction of new players in the ePharmacy market joined with rising rivalry globally is anticipated to further enlarge the growth for ePharmacy during the estimated period.
The report gives quantitative and qualitative insights into the ePharmacy industry trends and a detailed analysis of the market growth rate and size for all possible fragments in the market. The market segments incorporate geography and product. Based on the product, the market segments incorporate over-the-counter products and medicine order medicines. Geographically, the worldwide market is segmented into four significant regions, in particular, Europe, Asia Pacific, North America, and the rest of the world. The regions are additionally sorted into countries.
Alongside this, the report analysis includes the ePharmacy industry competitive landscape of the market. Different key insights given in the report are key funding overview and start-ups, recent industry developments for example acquisitions and mergers for 2018, an overview of regulatory scenario – key industry trends, key countries, and an overview of e-commerce penetration – key countries.
Key Industry Development
In January 2019, Swedish online pharmacy organization Meds sacked a US$ 5.5 Mn funding to grow its business across Europe. This funding is evaluated to build the focus of the company in extending its reach in other European countries.
In June 2015, Rite Aid Corp merged with Envision Rx Options which gives mail-order pharmacy services including physician-recommended medicines. This acquisition encouraged Rite Aid Corp to enter into the field of ePharmacy.
In March 2019, 1mg, an Indian online pharmacy garnered LegitScript certification from the National Association of Boards of Pharmacy (NABP), the USA making it the first organization in India to win the said certification. The certification will build the trust of the clients in the company's products.
In November 2016, Netmeds Marketplace Limited reported the procurement of a hyperlocal medicine delivery app named Pluss for an undisclosed cost. This acquisition will empower the company to concentrate on upgrading the company’s online app.
Some of the Frequently Asked Questions
- What was the size of the worldwide ePharmacy Market in 2018?
- Fortune Business Insights says that the estimation of the worldwide ePharmacy Market was USD 49,727.7 Million in 2018.
- What amount will the worldwide ePharmacy Market be worth in the future?
- The ePharmacy market is anticipated to reach USD 177,794.9 Million by 2026.
- At what CAGR will the worldwide ePharmacy Market grow?
- The ePharmacy market will grow at a pace of 17.3% CAGR.
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