Pharma E-Commerce Market Analysis Europe - Size and Forecast 2024-2028

Europe Pharma E-commerce Market Size 2024-2028

The Europe pharma e-commerce market is estimated to grow by USD 38.7 billion, at a CAGR of 16.27% between 2023 and 2028. The market is experiencing significant growth, driven by the convenience offered by the Internet for consumers to access medications from the comfort of their homes. This trend is particularly notable in newly regulated European states, where e-pharmacies are increasingly gaining acceptance. However, the market also faces challenges, including the issue of illegal and counterfeit trading of drugs through e-pharmacies. Regulatory bodies are working to mitigate these risks, but it remains a concern for both consumers healthcare and legitimate e-pharmacies. The availability of a wide range of medications and competitive pricing are additional factors fueling the market's growth. Overall, the market is poised for continued expansion, with the potential to revolutionize the way healthcare is accessed and delivered.

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Market Dynamics and Customer Landscape

Pharma e-commerce refers to the buying and selling of medications, medical supplies, and healthcare products online. The market is witnessing significant growth due to several factors, including the increasing elderly population, the rise of chronic diseases, and the need for convenient healthcare solutions. Online pharmacies and mail-order pharmacies are popular options for consumers seeking prescription medications and over-the-counter pharmaceuticals. Telemedicine and e-prescriptions have also gained popularity, allowing for remote healthcare services and digital prescription services. However, the market also faces challenges such as illegal online pharmacies, counterfeit pharmaceuticals, and data protection concerns. Artificial intelligence and data analytics are being used to improve the Pharma e-commerce experience, including prescription refills, two-factor authentication, and online sales. Healthcare accessibility is greatly enhanced by digital healthcare solutions and internet connectivity, which facilitate personalized healthcare and medical tourism, offering cost-effective solutions and improving consumer convenience. Over-the-counter products and direct sales channels streamline the supply chain, while quality assurance ensures that healthcare systems meet high standards. Mobile applications and digital platforms are also key players in the market, offering consumers easy access to medications, medical supplies, and healthcare products. Overall, Pharma e-commerce is transforming the way we access and manage our healthcare needs. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The omnichannel retailing technique by pharmacy chains is notably driving market growth. With the growing adoption of online pharmacies by consumers, retail pharmacy chains in Europe have integrated online services and mobile applications with their traditional platforms to provide rapid and real-time access to the retail brand. This approach is known as an omnichannel approach, which offers a combination of physical and digital experiences with pharmacy as their touchpoint. This includes stock availability advice and display, backed by real-time inventory data and effective logistics.

In Europe, mobile technologies such as smartphones and tablets have become critical to the growth of omnichannel retailing, allowing consumers to get instant access to retailers and their products. Currently, pharmacies in Europe have started to shift their expansion plans from physical stores to omnichannel integration and technology to benefit from a relatively new but fast-growing market segment. Despite being capital intensive, some of the pharmacies in Europe have expanded their online offerings, upgraded websites, and invested in technologies and infrastructure to manage product inventories better. These factors will enhance the growth of the market during the forecast period.

Significant Market Trend

An increase in the older population and chronic diseases is an emerging trend in the market. The life expectancy of people in the EU is higher than in other developed countries. There are increased incidences of chronic illnesses such as diabetes, arthritis, cancer, obesity, heart disease, asthma, and chronic obstructive pulmonary disease (COPD) among the older population in the EU, leading to their increased dependency on families and caregivers. As pharma e-commerce enables older people to order their medicines online and make payments using online payment options, its adoption is increasing significantly across Europe.

Also, this reduces the cost of traveling to pharmacies while ensuring the timely delivery of legitimate medicines. Furthermore, the geriatric population is increasing every year in Europe. The geriatric population faces various kinds of health problems, such as cancer, diabetes, high blood pressure, as well as low/high blood sugar levels. Therefore, people in this age group need to be more careful with their health. Hence, they require medicines at the correct time in order to treat these recurring or chronic health problems. Hence, such factors are expected to drive the growth of the market during the forecast period.

Major Market Challenge

The difficulty in retaining the loyalty of online customers is a major challenge impeding the market growth. Retaining customers' interest is one of the biggest challenges faced by pharma e-commerce companies. In the offline platform, staff members help the buyers to pick the right product and help them to understand its usage. However, in the online platform, customers have complete responsibility for their buying decisions and hence, might not be confident enough to buy medicines. Thus, it becomes difficult for an e-commerce vendor to engage customers and confirm sales.

Furthermore, if the web pages of the companies are not self-explanatory or interactive enough, they will lose their customers to the competitors. Hence, companies are using SEO techniques to enhance their presence and collect data from cache files and social networks to learn about customer preferences and purchase patterns. Therefore, these factors will hinder the growth of the market during the forecast period.

Market Segmentation

By Type

The market share growth by the medications segment will be significant during the forecast period.  The European pharma e-commerce market is experiencing significant growth due to the increasing elderly population and the rise in chronic diseases. With life expectancy on the rise, there is a growing demand for medications to manage various health conditions. Online and mail-order pharmacies offer convenience and accessibility to consumers, particularly those with mobility issues or busy lifestyles. These platforms provide a wide range of medications, including specialty drugs and rare medicines, ensuring that patients have access to the necessary treatments, regardless of their location. Telemedicine and digital prescription services enable healthcare professionals to issue electronic prescriptions, streamlining the process and improving healthcare access.

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The medications segment was valued at USD 15.40 billion in 2018. However, the proliferation of illegal and unregulated online pharmacies poses a threat to consumer safety. Omnichannel retailing, inventory data management, logistics, and the integration of OTC medications into the e-commerce space are key trends in this market. Health insurers, digital healthcare, and artificial intelligence are also playing significant roles in the evolution of the European pharma e-commerce market. Mobile applications, prescription refills, two-factor authentication, and biometric identification offer added convenience to consumers. The market including tropical medicines, vaccines, and those for diabetes and immune-system diseases, is a significant part of the B2C segment. Manufacturer-owned marketplaces and the use of digital technologies, such as AI chatbots, are also shaping the future of this market. Cross-border e-commerce, drug counterfeiting, and data analytics are other critical areas of focus. Internet penetration and healthcare expenses are key drivers of growth in the market.

Key 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.

Ace Chemist Direct - The company offers solutions for pharma e-commerce that include services such as dispensing, repeat dispensing and disposing medicines.

The report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• apo rot GmbH
• Apotea AB
• Arzneiprivat
• Atropa Pharmacy
• Chemist4U Innox Trading Ltd.
• Dirk Rossmann GmbH
• EURO PHARM International Canada Inc.
• Farmacia Campoamor
• Juvalis
• McKesson Corp.
• myCARE e.k
• Parafarmacia online
• Pharmacy2U Ltd.
• SHOP APOTHEKE Europe N.V
• The French Pharmacy
• UK MEDS Direct Ltd.
• Walgreens Boots Alliance Inc.
• Wort and Bild Verlag Konradshohe GmbH and Co. KG
• Zur Rose Group AG

Segment Overview

The market research report provides comprehensive data with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Type Outlook
  • Rx
  • OTC

• Product Outlook
  • Medications
  • Health wellness and nutrition
  • Personal care and essentials

Market Analyst Overview

The market is witnessing significant growth, driven by the increasing elderly population, chronic diseases, and advancements in digital healthcare. This market includes online pharmacies, mail-order pharmacies, and telemedicine services. Elderly population growth and rising life expectancy are major factors fueling the demand for prescription medications, e-prescriptions, and digital prescription services. Chronic diseases such as diabetes, immune-system diseases, and cardiovascular diseases are significant contributors to this market, as patients increasingly turn to online pharmacies for convenience and accessibility. Online pharmacies offer OTC medications, prescription medications, and even vaccines, making healthcare more accessible to the patient population. Mail-order pharmacies provide an added advantage by offering inventory data, logistics, and prescription refills, making it easier for healthcare professionals and health insurers to manage patient care.

Furthermore, telemedicine, another segment of the market, is gaining popularity due to its convenience and ability to provide healthcare access to remote areas. Digital technologies, including AI chatbots, data analytics, and mobile applications, are transforming the industry by improving patient engagement and streamlining processes. However, challenges such as illegal and unregulated online pharmacies, drug counterfeiting, and cross-border e-commerce pose significant threats to the market's growth. Two-factor authentication, biometric identification, and internet penetration are essential measures to ensure the security and authenticity of online pharmacies. In conclusion, the market is poised for growth, driven by the increasing demand for digital health, convenience, and accessibility. Manufacturer-owned marketplaces and B2C segments are expected to lead the market, with Tropical medicines and vaccines being key areas of focus. The market's success depends on the effective implementation of digital technologies, regulatory compliance, and consumer trust.

What are the Key Data Covered in this Market Report?

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

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