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The pharma e-commerce market in Europe is estimated to grow at a CAGR of 15.47% between 2022 and 2027. The size of the market is forecast to increase by USD 16.42 billion. The growth of the market depends on several factors, including the availability of the internet provides convenience to consumers, the omnichannel retailing technique by pharmacy chains, and the availability of multiple payment options.
This report extensively covers market segmentation by type (Rx and OTC), and product (medications, health wellness and nutrition, and personal care and essentials). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The omnichannel retailing technique by pharmacy chains is notably driving the market growth, although factors such as difficulty in retaining the loyalty of online customers may impede the market growth. Our researchers analyzed the data with 2022 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 Pharma E-commerce Market In Europe Driver
The omnichannel retailing technique by pharmacy chains is notably driving the 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 pharma e-commerce market in Europe during the forecast period.
Significant Pharma E-commerce Market In Europe 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 Pharma E-commerce 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 vendors. 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 vendors are not self-explanatory or interactive enough, they will lose their customers to the competitors. Hence, vendors 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.
Key Pharma E-commerce Market In Europe Customer Landscape
The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Pharma E-commerce Market in Europe Customer Landscape
Vendors 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 operates under one segment. The company under this segment is involved in providing services such as dispensing, repeat dispensing, and disposing of medicines. The key offerings of the company include solutions for pharma e-commerce.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Technavio categorizes the pharma e-commerce market in Europe as a part of the global Internet and direct marketing retail market within the global retailing market. The parent global Internet and direct marketing retail market cover the revenue generated by companies providing retail services primarily on the internet, through mail orders, door-to-door retailers, and TV home shopping retailers. It also includes companies providing online marketplaces for consumer products and services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The market share growth by the Rx segment will be significant during the forecast period. Rx stands for 'prescription' drugs. One of the major reasons for the market growth is the improved life expectancy of people resulting in the growth of the older population.
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The Rx segment was valued at USD 6.59 billion in 2017 and continued to grow until 2021. The geriatric population (aged 65 years or more) living in the region is increasing. This is leading to an increase in the number of people with chronic diseases, which is raising the demand for prescription medicines. Hence, the sales of prescription medicines through the online platform are expected to increase. Furthermore, the changing healthcare infrastructure, such as telemedicine, is increasing the involvement of technology in the healthcare sector. This is resulting in the adoption of a mobile platform for doctor consultation and the purchase of medicines. As the adoption of technology in Europe is high, it supports the growth of the Rx pharma e-commerce market during the forecast period. Moreover, the expansion of vendors on m-commerce applications (e-commerce transactions done through smartphones) to increase the convenience of buyers also supports the growth of the market. Therefore, the abovementioned factors will fuel the segment's growth during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Pharma E-commerce Market In Europe Scope |
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Report Coverage |
Details |
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Page number |
143 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 15.47% |
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Market growth 2023-2027 |
USD 16.42 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
13.47 |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Ace Chemist Direct, 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, and Zur Rose Group AG |
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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. |
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Customization purview |
If our 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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