ePharmacy Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Japan, Germany, France - Size and Forecast 2024-2028

Global ePharmacy Market Forecast 2024-2028 

The Global ePharmacy market size is estimated to grow by USD 118.73 billion at a CAGR of 20.47% between 2023 and 2028. The market is experiencing rapid growth fueled by various factors, including the widespread availability of high-speed internet services facilitating seamless online purchases. Pharmacy chains are increasingly adopting omnichannel retailing techniques, integrating online platforms with brick-and-mortar stores to enhance customer convenience and accessibility. Moreover, the user-friendly interfaces and ease of operation offered by ePharmacy services are driving their adoption among consumers seeking convenient healthcare solutions. This trend underscores the market's trajectory towards digitalization and the increasing reliance on online platforms for pharmaceutical needs. This market research and growth report includes in-depth information on the market drivers, trends, and challenges during the forecasted period. 

What will be the size of the Market During the Forecast Period?

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The market is experiencing substantial growth across both developed and developing countries, driven by factors such as the increasing demand from tech-savvy millennials seeking convenience in purchasing cosmetics and other healthcare products online. Information technologies and artificial intelligence algorithms play a crucial role in enhancing customer satisfaction through personalized recommendations and streamlined purchasing experiences. Regulatory frameworks are adapting to the digitalization trend, ensuring compliance while fostering innovation in ePharmacy services. This market evolution reflects the growing preference for online purchases among consumers and the transformative impact of digital technologies on the healthcare industry.

Market Segmentation

The type segment of the market encompasses various categories tailored to meet the diverse needs of consumers in the digital era. Online pharmacies provide convenient access to both prescription medicines and over-the-counter products, allowing users to order essential healthcare items from the comfort of their homes. Mail-order medicines represent a subset of ePharmacy services, enabling patients to receive prescribed medications through efficient delivery systems. E-commerce platforms serve as the backbone of the ePharmacy market, facilitating seamless transactions and secure online purchases of medical products. While traditional retail pharmacy stores remain prevalent, the growing popularity of ePharmacy reflects the shifting landscape towards digital healthcare solutions. ePharmacies cater to a wide range of consumers, including chronically ill patients and elderly citizens who may find it challenging to visit physical stores regularly. By leveraging internet resources and digital technologies, ePharmacies enhance accessibility to vital healthcare products, improving overall market sales and driving growth in the healthcare sector.

By Type

The prescription drugs segment is estimated to witness significant growth during the forecast period. Online pharmacies also called ePharmacy, provide prescription drug delivery services through distribution channels such as mailed product delivery and third-party shipping companies. Buyers can order prescription drugs through various online portals, including the manufacturer/brand's online platforms, such as their websites, mobile applications, and e-commerce platforms.

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The prescription drugs segment was the largest segment and was valued at USD 23.76 billion in 2018. There is a preference for medical practitioners to provide e-prescriptions to patients, which enables them to send the prescriptions in digital format rather than providing handwritten prescriptions. The advantage of having an e-prescription is that patients can upload it on the ePharmacy websites and other online portals without any hurdle. The developments in e-prescription technology will augment the growth of the global E-pharmacy market during the forecast period.

Market Dynamics and Customer Landscape

The market revolutionizes access to healthcare, offering mail-order medicines and a vast array of prescription and over-the-counter products through online platforms. Catering to chronically ill patients and elderly citizens, it bridges gaps in healthcare access, especially in developing countries. Millennials drive growth, embracing the convenience of digital technologies for purchasing medications and cosmetics. Startups leverage algorithms and artificial intelligence to enhance customer satisfaction, while regulatory measures ensure quality and safety. With the increasing digitalization of healthcare services, ePharmacies meet the needs of tech-savvy consumers, reshaping the landscape of the healthcare sector and fostering greater accessibility worldwide.

Key Market Driver

Ease of operation within the ePharmacy industry stands as the primary catalyst for epharmacy demand and market expansion. The market has experienced significant growth due to the surge in government initiatives endorsing online medication adoption amid the pandemic. In the US, initiatives by the FDA include augmenting consumer awareness regarding procuring medicines through ePharmacy industry channels and ensuring the safety of online platforms for purchasing generic and prescription drugs.

These FDA-backed efforts are set to incentivize potential market entrants. Additionally, government initiatives such as Digital India and the Jan Aushadhi programs aimed at promoting generic medicines, telemedicine, and e-healthcare initiatives in rural parts of India, where over 60% of the population resides, are pivotal factors propelling market growth. Thus, the ease of operation within the ePharmacy market is expected to propel global market growth during the forecast period.

Significant Market Trends

The introduction of same-day delivery and shopping is the primary trend shaping market growth. Same-day delivery is described as the delivery of products in less than 24 hours, mainly on the same day. The advantages provided by market players, such as same-day delivery, free home delivery, and free returns, are other attractive features of the market. The evolution of the market has led to the availability of drugs at a significantly lower price at consumers' doorsteps.

Furthermore, government regulations are mandatory for ePharmacies operating in the global market and provide that these players deliver the drugs within the specific time that is conveyed to the patient during the time of purchase. These beneficial services lead to greater customer satisfaction, less friction in purchase decisions, competitive advantages, and increased savings on shipping costs. Thus, such factors will drive the growth of the market during the forecast period.

Major Market Challenge

Difficulty in retaining the loyalty of online customers is a challenge that affects market growth. Keeping consumer's interest is one of the biggest challenges market players face. In the offline platform or telehealth adoption, staff members help the buyers to choose the right product and help them to understand its usage. However, in the online platform, customers have complete responsibility for their buying decisions and might not be confident enough to buy medicines.

Therefore, it becomes difficult for e-commerce market players to engage customers and confirm sales. If their webpage is not self-explanatory or interactive enough, they will lose their customers to the competitors. Hence, these factors will hinder the market growth and trends during the forecast period.

Key Customer Landscape

The market research and growth report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Customer Landscape

Who are the Major ePharmacy Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Axelia Solutions Pvt. Ltd.: The company deals in online pharmacy and medical stores offering pharmaceutical and healthcare products under its brand name "Pharmeasy".

The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 10 market companies, including:

• CVS Health Corp.
• Evernorth Health Inc.
• Giant Eagle Inc.
• Reliance Industries Ltd.
• Kroger Co.
• UnitedHealth Group Inc.
• Walgreens Boots Alliance Inc.
• Walmart Inc.
• Zur Rose Group AG

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Regional Analysis

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North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The growth of the regional E-pharmacy market is led by the US, followed by Canada and Mexico. The factors behind the high demand for e-pharmacy in the region are high awareness and affordability of e-pharmacy services.

Moreover, the increasing aging population drives the demand for ePharmacy in the region. In North America, factors such as high healthcare expenditure in hospitals lead to patients adopting home care treatment. Owing to this, the procurement of medicines through online channels in the region is growing. The rising smartphone adoption and Internet penetration are allowing consumers to access online channels to order products, including prescription and over-the-counter drugs.  Hence, such factors are expected to drive E-pharmacy market growth in this region during the forecast period.

Market Analyst Overview

The market is witnessing significant growth, driven by the increasing demand for convenience and accessibility in healthcare services. With mail-order medicines and over-the-counter products readily available online, patients can easily procure their prescribed medications without leaving their homes. This convenience is particularly beneficial for chronically ill patients and elderly citizens who may have difficulty visiting retail pharmacy stores. Moreover, the proliferation of internet resources and the integration of information technologies, algorithms, and artificial intelligence are revolutionizing the healthcare sector. This trend is observed not only in developed countries but also in developing nations, where startups are leveraging digital platforms to expand market sales and cater to the needs of millennials seeking efficient healthcare solutions.

The market is witnessing a surge in popularity, with the convenience of accessing prescription medicines and cosmetics online. Patients can now consult with a medical practitioner remotely, particularly benefiting those in developing countries where access to healthcare services is limited. Moreover, venture capitalists are increasingly investing in ePharmacy startups, recognizing the potential beneficiaries of online platforms. Medicare Advantage plans, as noted by the Kaiser Family Foundation, are also embracing ePharmacy services, facilitating enrollment and funding initiatives. However, the market also faces challenges, including the presence of illegitimate online pharmacies selling adulterated medications with incorrect active ingredients, prompting warning letters from governments and regulatory agencies regarding the risks associated with such practices.

The market is witnessing rapid growth driven by the increasing adoption of digital technologies and the rise of tech-savvy consumers. Venture capitalist funding is heavily investing in digital pharmacy platforms that offer generic pharmaceuticals at low costs, catering to the needs of chronic elderly patients and the geriatric population. With the prevalence of nuclear families, there's a growing demand for convenient and transparent healthcare solutions, further fueled by the availability of Medicare Advantage plans. Governments and funding agencies are supporting strategic initiatives to combat the sale of counterfeit medications online, ensuring the safety and well-being of consumers. Overall, the market presents significant opportunities for innovation and growth in the healthcare sector.

Segment Overview

The market trends and analysis report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Type Outlook 
  • Prescription drugs
  • Over-the-counter drugs

• Product Type Outlook 
  • Medications
  • HW and N
  • Personal care and essentials

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile 
    • Brazil 
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

ePharmacy Market Scope
Market Report Coverage	Details
Page number	161
Base year	2023
Historic period	2018 - 2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 20.47%
Market growth 2024-2028	USD 118.73 billion
Market structure	Concentrated
YoY growth 2023-2024(%)	18.95
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 36%
Key countries	US, China, Japan, Germany, and France
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Axelia Solutions Pvt. Ltd., CVS Health Corp., Evernorth Health Inc., Giant Eagle Inc., Reliance Industries Ltd., Kroger Co., UnitedHealth Group Inc., Walgreens Boots Alliance Inc., Walmart Inc., and Zur Rose Group AG
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our market analysis and report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market  size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market Growth Analysis across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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