Online Pharmacy Market Size, Share, Trends Analysis Forecast 2022-2028

Industry Insights

[230 Pages Report] According to the report published by Facts and Factors, the global online pharmacy market size was valued around USD 69.25 Billion in 2020 and is expected to grow to around USD 210.35 billion by 2028 with a compound annual growth rate (CAGR) of roughly 17.83% between 2022 and 2028. The report analyzes the global online pharmacy market drivers, challenges, and the impact they have on the demands during the forecast period. In addition, the report explores emerging opportunities in the online pharmacy market.

Market Overview       

An e-Pharmacy is an online pharmacy that sells drugs to customers via mail or shipping services. Telemedicine, which has enabled people with access to healthcare advice via the Internet, has recently emerged as one of the most innovative technologies in the healthcare industry. Progressive technological advancements assist with price transparency, raising awareness, locating appropriate healthcare service providers, and providing medication reminders. Another technical invention that has become a problem solver for the supply of contactless medicine, particularly during pandemic days, is e-pharmacy. The demand for online pharmacy has increased significantly in the recent past and is estimated that the steak would continue during the forecast period.

Industry Growth Factors

People are turning to online pharmacies because of attractive offerings such as price reductions, ease of drug availability, and home delivery options. Consumers are no longer obligated to purchase medicines through pharmacies. In addition, when information technology becomes more widely adopted in the healthcare sector, clinicians will be able to submit prescriptions electronically, boosting market development.

With a fast-growing number of smartphone users, enhanced digital infrastructure, and online payment options, the world's population is adapting to online pharmacies. Growing demand for nutritionally and functionally enhanced products, as well as the rising prevalence of vitamin insufficiency among the population, would provide the market with significant potential possibilities. Furthermore, because different brands are available on such platforms, expanding self-medication would contribute to increased sales of multivitamin pharmaceutical goods in the future. Contactless delivery has become immensely popular during the pandemic. It has been difficult for people to go outside to purchase medicines because of the lockdown restrictions. The online pharmacy market has witnessed a surge in demand and it is expected that the trend will continue, hence being a key factor to drive future growth

Segmentation Analysis

The global online pharmacy market is segregated into product type, platform type, and drug type.

The product type is categorized into skincare, dental, cold and flu, vitamins, weight loss, and others. In terms of platform type, the market is segmented into mobile users and desktop users. The number of desktop and laptop computers in households has increased over time. In Europe, per capita, PC penetration is increasing swiftly and steadily, with most families owning a computer. While most European countries' personal computer product life cycles have reached maturity, retail sales of desktop computers are progressively expanding. Mobile usage has increased dramatically in recent years. In 2020, global smartphone traffic increased by more than 70%. Mobile and desktop traffic levels were roughly similar in 2020.

By 2020, the number of orders placed on mobile devices will have overtaken ones placed on desktop computers. Personal computer purchases, on the other hand, cost twice as much as purchases are done on mobile devices. Based on drug type, the industry has been bifurcated into OTC medicines and prescription medicines. The over the counter (OTC) segment dominated the online pharmacy industry in 2020, but the prescription medicine segment though accounted for a lower share in the past is estimated to register a healthy CAGR during the forecast period. Because of increased health awareness and the rise of lifestyle-related disorders, the OTC category is expected to grow in upcoming years too. By 2028, global prescription medicine consumption is estimated to grow owing to an increasing focus on R&D and high spending on healthcare.

Report Scope

Regional Analysis

In North America, the online pharmacy market generates the largest revenue. Due to the ease with which a wide range of pharmaceuticals may be accessible, the region's growth drivers are increasing internet penetration, which has led to the rapid acceptance of new technologies, as well as demand for digital health platforms. Furthermore, the presence of local online pharmacy players, as well as major industry players, in the region will expand the market.

The European online pharmacy market accounts for a significant percentage of the global market. Over the forecast period, the e-Pharmacy market in Europe is expected to rise due to increased online orders, an increase in the geriatric population, rising prevalence of chronic diseases, rapid e-commerce growth, and well-developed IT infrastructures.

Asia Pacific is expected to grow at the fastest CAGR rate over the forecasted period due to the availability of a large patient pool and an increase in the target population. Emerging economies like China and India have plenty of opportunities to expand. In addition, the rise in diabetes incidence, and government efforts to improve healthcare quality are all contributing to the Asia-Pacific market growth. China, India, and Australia are promising online pharmacy markets because of their aging populations. The new public-private partnerships (PPP) business model, increasing healthcare infrastructure and government assistance are all contributing to market expansion across the Middle East and Africa.

Competitive Players

Some main participants of the global online pharmacy market are

• The Kroger Co.
• Wal-Mart Stores Inc.
• Walgreen Co.
• Express Scripts Holding Company
• CVS Health
• Giant Eagle Inc.
• Rowlands Pharmacy
• DocMorris (Zur Rose Group AG) and OptumRx Inc.
• Netmeds Marketplace Ltd.
• DocMorris Express Scripts and Medlife International Pvt. Ltd

Product Type Segment Analysis

• Skin Care
• Dental
• Cold and Flu
• Vitamins
• Weight Loss
• Others

Platform Type Segment Analysis

• Mobile Users
• Desktop Users

Drug Type Segment Analysis

• OTC Medicines
• Prescription Medicines

Regional Segment Analysis

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • France
  • Germany
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East and Africa
  • GCC Countries
  • South Africa
  • Rest of MEA