There is an ever increasing need and preference for online
pharmacies due to high penetration of the internet. Online pharmacies also
known as ePharmacy offer medications at people's doorstep. They use the
internet to send medicine orders to customers through mail, shipping, or any
online web portal. Various benefits of such pharmacies are anticipated to drive
the market growth. Furthermore, the COVID-19 pandemic further transformed the
scenario of pharmaceuticals as contactless deliveries were on peak.
According to the World Bank, 75% of the population in the
U.S. and 84% of Germany's population are internet users. Dependency of a large
population on the internet and need for lucrative prices are anticipated to
facilitate market progress. Cost-effective medicines offered by companies
compared to normal brick and mortar medical stores are expected to propel
market development.
Increasing digitalization and benefits associated with such
pharmacies are expected to drive market growth. Escalating investments and
several funding from various organizations and governments are expected to
augment market development. Rise in the adoption of e-commerce, online sales,
and developed health infrastructure is anticipated to propel market growth.
According to Fortune Business Insights, the global ePharmacy
market size was valued at USD 49.7277 billion in 2018 and is expected to reach
a valuation of USD 177.7949 billion by 2026 at a CAGR of 17.3% over the
forecast period.
The market has the following leading players:
- DocMorris
- CVS Health Corporation
- Express Script Holding Company
- Walgreen Co.
- Giant Eagle, Inc.
- Optum Rx, Inc.
- Rowland Pharmacy
- Walmart Stores, Inc.
- The Kroger Co.
The key players have been putting focus on effectively
delivering medicinal products within a short duration. Patient pool worldwide
has grown and they prefer doorstep delivery. In 2019, CVS Health Corporation,
Express Scripts, and Doc Morris are leading ePharmacy players in the global
market. The dominance is owed to the presence of such players globally due to
strong logistics.
Other players have also been expanding their presence in
different regions. These players are anticipated to drive the market
development. Market players have been focusing on mergers and partnerships to focus
on distribution channels. In January 2019, Meds, a Swedish online pharmacy, has
bagged a funding of USD 5.5 million for expansion in other European
countries.
More Consumers are Demanding Doorstep Pharmaceuticals Delivery
High dependency of a large patient pool for doorstep
pharmacy deliveries is predicted to fuel market growth. There is a dependency
of chronically ill patients and elderly population on online pharmacies as they
offer a wide variety of medicinal products. Increasing number of beneficiaries
registered under such pharmacies is expected to give rise to market growth.
Ordering pharmacies means patients do not physically need to go to pharmacy
stores. Majority of ePharmacy companies have been providing medicinal products
at a discounted rate than brick and mortar stores.
Rise of Internet and E-Commerce Means Increased ePharmacy Uptake
High rise in digitization due to deep penetration of the
internet has largely affected the market growth positively. The growing spread
of e-commerce has facilitated the means to capture a wide consumer base in
developing and developed countries. Millennials have been reliant on cosmetics
and online shopping. Increasing investments and strategic initiatives by
various organizations and government organizations are estimated to drive the
market growth. New technologies based on Artificial Intelligence (AI) for
better customer satisfaction are expected to present the market with new
opportunities.
Pandemic Saw Massive Surge in Contactless Deliveries
The COVID-19 pandemic led to the shutdown of brick and
mortar medical shops. The pandemic transformed the healthcare systems globally.
Travel limitations and contactless deliveries prompted mobile applications of
online pharmacies. Expansion of e-commerce during the pandemic supported the
market growth for online pharmacies. Rise in demand from developing countries
for such pharmacies supported the market growth globally.
Artificial Intelligence-based Solutions to Become a Sizeable Trend
One of the prominent trends in the market is that various
companies have been introducing technologies and algorithms for enhanced
customer experience and satisfaction. Significant increase in online service
providers has offered a growth opportunity for internet pharmacies with
improved access in developing countries. Owing to such trends, the market is
expected to experience a significant growth rate in the coming years due to
investments by e-commerce companies. Moreover, there have been strict rules and
regulations for selling prescribed medicines through the internet. Thus, safety
and high penetration of the internet resulted in a high rate of adoption of
ePharmacy.
About the author
Mayuri Patidar
Mayuri Patidar holds an MBA in Marketing. She is a thorough research blogger. Her inclination is toward researching and writing precise blogs for several niche markets and offering the finest information.
