ePharmacy Market Analysis By Region [North America (U.S., Canada), Europe (Germany, UK), Asia Pacific (Japan, China, India), Latin America (Brazil, Mexico)], And Segment Forecasts, 2018 - 2025

Industry Insights

The global ePharmacy market size was valued at USD 33.03 billion in 2016 and is projected to grow at a CAGR of 14.8% during the forecast period. Increased internet penetration across the world, improved healthcare infrastructure, rapid aging of the population, and increasing awareness pertaining to ecommerce amongst users are some of the factors propelling growth. Shift in consumer behavior with an increased demand for convenience is also one of the key factors contributing to the market growth. Furthermore, rising adoption of ecommerce and digital technologies in healthcare sector is expected to propel growth. 

North America ePharmacy market, by country, 2014 - 2025 (USD Billion)

Constantly increasing healthcare burden in emerging economies indicate the growing need to cut down the costs. The ever growing demand for healthcare products & services makes it difficult for the offline retail providers to demographically meet the increasing needs and thus offer a huge potential for online health retailers to cater to the large consumer base. Increasing prevalence of chronic conditions is leading to growing demand for various drugs and healthcare products. People are opting for online pharmacies owing to lucrative offers, such as price discounts, ease in availability of drugs, and home delivery services. Consumers are no longer required to visit pharmacies to procure medicines. In addition, growing adoption of information technology in the healthcare sector is enabling clinicians to send prescriptions electronically, which is expected to boost the market growth.

High unmet needs in emerging economies and developing nations is one of the factors responsible for growth. These regions are witnessing upsurge in online purchases due to improving IT infrastructure and increase in smart phone users & penetration of high-speed internet in urban & rural areas. Increasing initiatives undertaken in these nations to make these medicines affordable and available is one of the factors driving the demand for ePharmacies. Increase in investments and growing number of start-ups are also fueling the growth. Safe Medicines India (2016) states that around 60 new start-ups emerged in India over the last 2 years and online pharmacies in India attracted a funding of USD 93 million by 2015.

However, presence of a large number of illegitimate ePharmacies across the world is negatively impacting the market These illegal pharmacies sell medicines that are not approved for sale. There is always a risk of receiving counterfeit & contaminated medicines with wrong active ingredients from such ePharmacies. The National Association of Boards of Pharmacy (NABP), in its report Internet Drug Outlet Identification Program Progress, stated that in 2015, around 10,668 online drug outlets were recognized by it as “Not Recommended.” Some of these websites do not carry authentic information such as location of the outlet and some offer drugs that are either not approved by the U.S. FDA or are foreign drugs.

ePharmacy market, by region, 2016 (%)

Regional Insights

North America dominated the ePharmacy market in 2016 with the largest market share. High adoption of ecommerce, increase in online orders, and growth in elderly population are some of the key factors that contribute to the large share of the market. Presence of well-established players and increase in pharmaceutical needs, especially of baby boomers, are also expected to drive growth.

Asia Pacific is expected to register fastest growth of 15.3% over the next few years owing to the presence of a large patient pool and rise in target population. Emerging economies, such as China and India, possess a high growth potential. Large population base of these countries along with the high unmet medical needs are some of the challenges faced by the healthcare sector in these regions. With increase in government initiatives and investments for improving the healthcare infrastructure, the market in the Asia Pacific region is anticipated to grow at a faster pace in the near future.

The ePharmacy market in China and India have a vast potential for growth. Changing regulations in the regions and increase in demand for consumer healthcare products owing to change in lifestyle is driving the market growth of these economies. Growing interest of various national & international players in these markets with high potential and rapid penetration of internet and web-based technology is also amongst the key driving factors.

Competitive Insights

Some significant players include The Kroger Co.; Walgreen Co.; Wal-Mart Stores, Inc.; CVS Health; Express Scripts Holding Company; Giant Eagle, Inc.; DocMorris (Zur Rose Group AG); Rowlands Pharmacy; and OptumRx, Inc. These players are adopting various marketing strategies to gain higher share in the ePharmacy market and focusing on expanding their geographic presence, especially in developing regions that offer lucrative opportunities.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the ePharmacy market on the basis of region:

• Regional Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

  • Asia Pacific

    • Japan

    • China

    • India

  • Latin America

    • Brazil

    • Mexico

  • MEA

    • South Africa