Online Pharmacy Market Size Report, Industry Share, Analysis, Growth, 2030

Online Pharmacy Industry Prospective:

The global online pharmacy market size was worth around USD 18.5 billion in 2022 and is predicted to grow to around USD 38.2 billion by 2030 with a compound annual growth rate (CAGR) of roughly 9.5% between 2023 and 2030.          

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Online Pharmacy Market: Overview

The term "e-pharmacy," commonly referred to as "online pharmacy" or "digital pharmacy," describes the practice of buying prescription and OTC drugs, as well as healthcare supplies, online. It is a practical method of getting prescription drugs since it enables users to get their prescribed prescriptions and health supplies from the comfort of their homes, obviating the need to go to actual pharmacies. Typically, it offers a wide variety of medications, vitamins, personal care products, and medical equipment. It frequently offers secure ways to submit prescriptions, offers drug information, and guarantees covert packing & delivery. Additionally, it's critical to confirm that e-pharmacies value client safety and privacy and are licensed.

Key Insights

• As per the analysis shared by our research analyst, the global Online Pharmacy market is estimated to grow annually at a CAGR of around 9.5% over the forecast period (2023-2030).
• In terms of revenue, the global Online Pharmacy market size was valued at around USD 18.5 billion in 2022 and is projected to reach USD 38.2 billion, by 2030.
• The convenience offered by online pharmacies is expected to drive the online pharmacy industry revenue growth.
• Based on the product type, the cold and flu segment is expected to capture the largest market share over the forecast period.
• Based on the platform, the mobile user segment is expected to capture the largest market share over the forecast period.
• Based on the drug type, OTC medicines are expected to dominate the market over the forecast period.
• Based on region, North America is expected to dominate the market over the forecast period.

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Online Pharmacy Market: Growth Drivers

Growing digitalization drives market growth

With the increased use of smartphones and the internet, customers now have better access to online pharmacy services. Utilizing simple-to-use websites and mobile applications, people can explore and buy drugs quickly and easily. According to secondary sources, the number of smartphones in use is predicted to rise in the upcoming years, surpassing 7 billion in 2024 and then reaching 7.5 billion by 2026. It should not be surprising that the bulk of these smartphone users reside in China, the nation with the largest population in the world. There are over 910 million smartphone users there, surpassing India's 650 million, who are in second position. With 249 million users, the United States is the nation with the third-highest percentage of smartphone users. Thus, these stats support the online pharmacy market expansion during the forecast period.

Online Pharmacy Market: Restraints

Lack of physical evaluation capability limits market expansion

The inability to conduct physical evaluations is one of the main drawbacks of the online pharmacy business. Physical assessments and scenario analysis can both be done extremely well in particular circumstances. Even if an online evaluation is performed, it won't be done by a trained healthcare expert. Thus, this is expected to hamper the market growth during the forecast period.

Online Pharmacy Market: Opportunities

Rising launches of online pharmacies in developing countries offer a lucrative opportunity for market growth

Over the projected period, the online pharmacy industry growth is anticipated to be driven by the rise in the number of online pharmacies being launched in emerging nations. The WellAway e-pharmacy, for instance, was publicly introduced in Singapore in January 2022 by Hyphens Pharma International Limited. The Health Sciences Authority (HSA) has officially recognized Kellaway as Singapore's first e-pharmacy. Through this digital platform, patients may obtain e-prescriptions from duly qualified medical practitioners, and the suggested medicine will be delivered securely and safely. As e-pharmacy services are increasingly being used in Asian nations, such initiatives are anticipated to fuel market expansion.

Online Pharmacy Market: Challenges

Regulatory compliance might be a major challenge to market growth

A complicated network of laws and standards, which differ from one nation to another, governs the online pharmacy sector. Ensuring compliance with these rules may be difficult, and failure to do so might result in legal problems and the closure of online pharmacies. Thus, regulatory compliance is expected to be a major challenge for the market growth over the forecast period.

Online Pharmacy Market: Segmentation

The global Online Pharmacy industry is segmented based on product type, platform, drug type, and region.

Based on the product type, the global market is bifurcated into skin care, dental, cold and flu, vitamins, weight loss, and others. The cold and flu segment is expected to capture the largest market share over the forecast period. A variety of over-the-counter (OTC) cold and flu drugs, such as painkillers, decongestants, antihistamines, and cough syrups, are available from online pharmacies. These goods are easily available for consumers to view and buy, frequently with the choice of home delivery. Moreover, to obtain the best deals and savings, customers may compare costs for OTC cold and flu treatments from different online pharmacies. Cost-conscious people may find this to be extremely useful. Thus, driving the market expansion over the forecast period.

Based on the platform, the online pharmacy industry  is bifurcated into mobile users and desktop users. The mobile user segment is expected to capture the largest market share over the forecast period. A wider audience now has access to online pharmacy services because of mobile devices like smartphones and tablets. Users may explore, purchase drugs, and access healthcare information while on the road using mobile apps and websites that are mobile-friendly. Additionally, mobile consumers like how easy it is to order prescription drugs and healthcare products from their cell phones. There is no longer a requirement for them to physically visit pharmacies because they can place orders from anywhere. Thus, this is expected to drive the market growth during the forecast period.

Based on the drug type, the global online pharmacy market is bifurcated into OTC medicines and prescription medicines. OTC medicines are expected to dominate the market over the forecast period. Key elements anticipated to support the segment's growth during the projected period include rising public awareness of the availability of OTC products and education about the main treatment for various types of common diseases. The industry is being driven by the availability of a variety of over-the-counter medications for various prevalent diseases like the flu and the common cold. In the upcoming years, it is also anticipated that several beneficial government efforts and scenarios, which are now accelerating the Rx to OTC transition, will further improve segment development.

Online Pharmacy Market: Report Scope

Online Pharmacy Market: Regional Analysis

North America is expected to dominate the market growth over the forecast period

North America is expected to dominate the global online pharmacy market during the forecast period. This is mostly due to the increased usage of online services and the increased number of internet users, both of which are predicted to accelerate the market’s expansion throughout the projected period. For instance, Medicure Inc.’s subsidiary Marley Drug Pharmacy in the United States introduced its nationwide direct-to-consumer e-commerce pharmacy platform in February 2022. With this, Americans may purchase affordable, FDA-approved medications from Marley Drug on its brand-new e-commerce website, which provides home delivery to all 50 states.

The demand for over-the-counter pharmaceuticals rises as the frequency of minor diseases like the flu, fever, backaches, coughs, and colds rises. As a result, more people are turning to Internet pharmacies to get these prescriptions. Additionally, it is anticipated that the e-pharmacy industry in North America, particularly the United States, would be driven by the convenience of ordering medications from the comfort of home. The market's expansion in North America is also anticipated to be fueled by the high concentration of market participants and the use of cutting-edge technology by major companies to enhance the experience of customers making online drug purchases. For instance, Mark Cuban launched the "Mark Cuban Cost Plus Drug Company" (MCCPDC), a fresh online pharmacy, in January 2022, selling inexpensive generic drugs. Thus, driving the market growth in the region.

Online Pharmacy Market: Competitive Analysis

The global Online Pharmacy market is dominated by players like:

• CVS Health
• Kroger Co.
• Walgreen Co.
• Express Scripts Holding Company
• Wal-Mart Stores Inc.
• Giant Eagle Inc.
• Rowlands Pharmacy
• DocMorris
• OptumRx Inc.
• Netmeds Marketplace Ltd.
• Medlife International Pvt. Ltd

The global Online Pharmacy market is segmented as follows:

By Product Type

• Skin Care
• Dental
• Cold and Flu
• Vitamins
• Weight Loss
• Others

By Platform

• Mobile Users
• Desktop Users

By Drug Type

• OTC Medicines
• Prescription Medicines

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa