EPharmacy Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 104.83 Billion |
| Market Size (2029) | USD 198.31 Billion |
| CAGR (2024 - 2029) | 13.60 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
EPharmacy Market Analysis
The E-pharmacy Market size is estimated at USD 104.83 billion in 2024, and is expected to reach USD 198.31 billion by 2029, growing at a CAGR of 13.60% during the forecast period (2024-2029).
The market witnessed drastic growth during the COVID-19 pandemic. The lockdown and travel restrictions, along with the fear of getting infected with the COVID-19 virus, led to an increased dependence on online pharmacies to purchase both over-the-counter and prescription drugs. Also, in-person doctor visits were replaced by virtual-based teleconsultations, which resulted in the generation of digital medicines. Similarly, key players came up with various strategies to combat the pandemic. For instance, in November 2021, Flipkart launched Flipkart Health+ with the acquisition of a majority share in Sastasundar Marketplace Limited. Flipkart entered this market when there was a vast need for services that provided people with necessary medications during the COVID-19 pandemic. As a result of their concern about contracting the virus, more and more consumers were making online purchases instead of going to physical businesses. Additionally, as the trend toward non-contact delivery progressed, given the COVID-19 pandemic, the demand for e-pharmacy has increased throughout the current crisis. Furthermore, post-pandemic, there will be a massive increase in the e-pharmacy business due to the exposure of people to various e-pharmacy services and the rise in the adoption of online services due to the growing penetration and adoption of online services.
The growth of the e-pharmacy market is attributed to a rise in internet consumers, increased access to web-based and online services, and the rising implementation of e-prescriptions in hospitals and other healthcare services.
E-prescription is the electronic prescribing technology that allows healthcare professionals to go paperless by sending prescriptions in digital format instead of handwritten prescriptions. Doctors now prefer e-prescriptions to let patients quickly access medicine with the help of e-prescriptions. Countries like the UK are putting more effort into the implementation of e-prescriptions. For instance, in March 2021, Co-op Health, a digital prescription service that allows individuals to obtain medication via an app or the web for pickup at a nearby pharmacy or home delivery, was acquired by Phoenix UK. The app has shown a sharp increase in demand, and PHOENIX UK will use its network of Numark and Rowlands to meet that need. Such acquisitions in the e-pharmacy segment are expected to drive market growth due to the rise in the adoption and expansion of services.
Furthermore, the increase in the launch of e-pharmacies in developing countries is expected to drive the market's growth over the forecast period. For instance, in January 2022, Hyphens Pharma International Limited formally launched its WellAway e-pharmacy in Singapore. Kellaway is the first e-pharmacy in Singapore to be registered with the Health Sciences Authority (HSA). It is a digital platform where patients can get e-prescriptions from licensed medical professionals, and the recommended medication will be safely and securely supplied. Such initiatives are expected to drive market growth due to the rise in adopting e-pharmacy services in Asian countries.
The significant advantage of e-prescription is that one can easily upload their e-prescription on the e-pharmacy website and order medicine online without any hurdle. Therefore, due to the increasing implementation of e-prescriptions, uploading prescriptions online has become more accessible and less time-consuming. Thus, all the factors above augment the growth of the market. However, the increasing number of illegal online pharmacies and low penetration in rural areas in developing countries are expected to hinder market growth.
EPharmacy Market Trends
This section covers the major market trends shaping the E-Pharmacy Market according to our research experts:
The Over-the-Counter Drugs Segment, under Drug Type, is Expected to Grow at the Fastest Rate during the Forecast Period
The over-the-counter drug segment is poised to witness lucrative growth over the forecast timeframe. Major industry trends, such as Rx to OTC switch by pharmaceutical manufacturers, a growing tendency of people toward self-medication in developing regions, an increasing burden of pain, and the inclination of customers towards online pharmacies are strongly driving the segmental growth.
The increasing patent expiration rates result in companies switching from Rx to OTC as a counter strategy. In July 2022, the FDA received an application from HRA Pharma for the first OTC birth control pill sold in the United States. The company has submitted an Rx-to-OTC transition application for Opill, a daily birth control pill containing only progestin (also referred to as a mini pill or non-estrogen pill). This is expected to easy access to the mentioned drugs for the customers. Also, in the current COVID-19 pandemic, the e-pharmacy market, particularly for OTC drugs, witnessed significant growth as consumers were reluctant to visit clinics for minor ailments for fear of COVID-19.
Furthermore, in January 2022, the Drug Technical Advisory Board of India (DTAB), as part of a new OTC drug policy, will soon permit the sale of some medications without a prescription. A list of OTC medications, including analgesics (pain relievers), cough syrups, decongestants, laxatives, antiseptics, and medicines for gum infections, has been approved by the DTAB. Such initiatives from the governments of highly populated countries are expected to drive the market significantly, driving the market's growth.
Additionally, the economic benefits of OTC drug usage are attributable to savings on drug costs and costs incurred on a clinical visit. This factor significantly contributes to vertical growth in emerging economies.
Thus, these factors above collectively drive the segmental growth over the analysis period.
North America Holds the Largest Market Share of the E-pharmacy Market and is Expected to Witness the Same Trend over the Forecast Period
North America accounts for the largest share of the studied market. This can be primarily attributed to the higher number of internet users and higher adoption of online services, which are expected to augment the market's growth over the forecast period. For instance, in February 2022, Medicure Inc. launched its national direct-to-consumer e-commerce pharmacy platform through its subsidiary, Marley Drug Pharmacy, in the United States. With this, Americans can buy FDA-approved pharmaceuticals at bargain prices on Marley Drug's new e-commerce website, which offers home delivery to all 50 states.
The growing prevalence of minor illnesses, such as flu, fever, backache, cough, and cold, increases the demand for OTC medications, and thus, the dependence on online pharmacies to obtain these drugs increases. Additionally, the ease of getting medicines from the comfort of home is expected to drive the e-pharmacy market in North America, especially the United States. Also, the high concentration of market players and the incorporation of advanced technologies by key players to improve the experience of online medicine purchases by customers are expected to drive the market's growth in North America. For instance, in January 2022, Mark Cuban started an online pharmacy offering affordable generic medications under the name "Mark Cuban Cost Plus Drug Company" (MCCPDC), a brand-new online pharmacy. Although the company does not accept insurance, the website is now selling more than 100 medications, many of which are priced below what a person would have to pay even with insurance. Such initiatives to provide cost-effective medication are further expected to drive market growth in this region.
Therefore, owing to the above-mentioned factors, the market for e-pharmacy is expected to grow in this region.
EPharmacy Industry Overview
The E-pharmacy market is moderately competitive, with a few players currently dominating the market. The market players are adopting various marketing strategies to gain a higher share in the e-pharmacy market and focusing on expanding their geographic presence, especially in developing regions that offer lucrative opportunities. Some market players include CVS Health Corporation, Albertsons Companies Inc., ALTO, and Axelia Solutions (Pharmeasy).
EPharmacy Market Leaders
-
Optum Rx Inc.
-
Giant Eagle Inc.
-
Rowlands Pharmacy
-
Walmart Stores Inc.
-
Walgreen Co
*Disclaimer: Major Players sorted in no particular order
EPharmacy Market News
- In September 2022, Amazon stated that it was planning to sell prescription medications online in Japan. To build a platform where patients can get online instructions on taking medications, it aims to collaborate with small and medium-sized pharmacies. Without visiting a pharmacy, customers could have their drugs delivered to their homes.
- In September 2022, Walmart Canada and Canada Health Infoway entered a partnership. Infoway's PrescribeIT electronic prescribing service is now accessible in 14 Walmart Canada pharmacies in Ontario, Alberta, Saskatchewan, and New Brunswick, with plans to expand to additional locations by year's end.
EPharmacy Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
-
4.2 Market Drivers
- 4.2.1 Increased Access to Web-based and Online Services
- 4.2.2 Rising Implementation of E-prescriptions in Hospitals and Other Healthcare Services
-
4.3 Market Restraints
- 4.3.1 Increasing Number of Illegal Online Pharmacies
- 4.3.2 Low Penetration in Rural Areas in Developing Countries
-
4.4 Porter's Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD million)
-
5.1 By Drug Type
- 5.1.1 Prescription Drugs
- 5.1.2 Over-the-Counter (OTC) Drugs
-
5.2 By Product Type
- 5.2.1 Skin Care
- 5.2.2 Dental
- 5.2.3 Cold and Flu
- 5.2.4 Vitamins
- 5.2.5 Weight Loss
- 5.2.6 Other Product Types
-
5.3 Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.2 Canada
- 5.3.1.3 Mexico
- 5.3.2 Europe
- 5.3.2.1 Germany
- 5.3.2.2 United Kingdom
- 5.3.2.3 France
- 5.3.2.4 Italy
- 5.3.2.5 Spain
- 5.3.2.6 Rest of Europe
- 5.3.3 Asia-Pacific
- 5.3.3.1 China
- 5.3.3.2 Japan
- 5.3.3.3 India
- 5.3.3.4 Australia
- 5.3.3.5 South Korea
- 5.3.3.6 Rest of Asia-Pacific
- 5.3.4 Middle East and Africa
- 5.3.4.1 GCC
- 5.3.4.2 South Africa
- 5.3.4.3 Rest of Middle East and Africa
- 5.3.5 South America
- 5.3.5.1 Brazil
- 5.3.5.2 Argentina
- 5.3.5.3 Rest of South America
6. COMPETITIVE LANDSCAPE
-
6.1 Company Profiles
- 6.1.1 CVS Health Corporation
- 6.1.2 Cigna Corporation (Express Scripts Holdings)
- 6.1.3 Giant Eagle Inc.
- 6.1.4 Optum Rx Inc.
- 6.1.5 The Kroger Co.
- 6.1.6 Walgreen Boots Alliance (Walgreen Co.)
- 6.1.7 Amazon.com Inc.
- 6.1.8 Axelia Solutions (Pharmeasy)
- 6.1.9 Apex Healthcare Berhad (Apex Pharmacy)
- 6.1.10 Apollo Pharmacy
- 6.1.11 DocMorris (Zur Rose Group AG)
- 6.1.12 Netmeds.com
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
EPharmacy Industry Segmentation
As per the scope of the report, an e-pharmacy is an online pharmacy that operates over the internet and provides medicines to consumers through mail or shipping companies. The e-pharmacy cuts down the long chain of distributors; a report also covers the estimated market sizes and trends for 17 d directly provides medicine to the end user at a lesser price. The e-pharmacy Market is segmented by Drug Type (Prescription Drugs and Over-the-Counter (OTC) Drugs), Product Type (Skin Care, Dental, Cold and Flu, Vitamins, Weight Loss, and Other Product Types), and Geography (North America, Europe, Asia-Pacific, Middle East, and Africa, and South America). The market report also covers the estimated market sizes and trends for 17 different countries across major regions globally. The report offers the value (USD million) for the above segments.
| By Drug Type | Prescription Drugs | |
| Over-the-Counter (OTC) Drugs | ||
| By Product Type | Skin Care | |
| Dental | ||
| Cold and Flu | ||
| Vitamins | ||
| Weight Loss | ||
| Other Product Types | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| Japan | ||
| India | ||
| Australia | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | Middle East and Africa | GCC |
| South Africa | ||
| Rest of Middle East and Africa | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America |
EPharmacy Market Research FAQs
How big is the E-pharmacy Market?
The E-pharmacy Market size is expected to reach USD 104.83 billion in 2024 and grow at a CAGR of 13.60% to reach USD 198.31 billion by 2029.
What is the current E-pharmacy Market size?
In 2024, the E-pharmacy Market size is expected to reach USD 104.83 billion.
Who are the key players in E-pharmacy Market?
Optum Rx Inc., Giant Eagle Inc., Rowlands Pharmacy, Walmart Stores Inc. and Walgreen Co are the major companies operating in the E-pharmacy Market.
Which is the fastest growing region in E-pharmacy Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in E-pharmacy Market?
In 2024, the North America accounts for the largest market share in E-pharmacy Market.
What years does this E-pharmacy Market cover, and what was the market size in 2023?
In 2023, the E-pharmacy Market size was estimated at USD 92.28 billion. The report covers the E-pharmacy Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the E-pharmacy Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the challenges faced in the ePharmacy Market?
The challenges faced in the ePharmacy Market are a) Intense competition within the ePharmacy market can lead to price wars and pressure on profit margins b) Providing personalized service and addressing customer concerns effectively in an online environment can be challenging
Pharma E Industry Report
The ePharmacy market is experiencing substantial global growth, driven by increasing demand for mail-order medications amid rising internet usage and e-commerce penetration. This surge is enhancing the consumer experience through technological advancements like artificial intelligence, improving accessibility and reducing costs compared to traditional pharmacies. Despite facing legislative challenges, especially stringent regulations in North America and Europe, the ePharmacy market is thriving. Market analysis shows a dominant over-the-counter product segment, attributed to their ease of access and wide availability. Prescription medicines are also gaining traction as online platforms become more trusted. The online pharmacy market share is expanding, not just in well-established regions such as North America and Europe but also in rapidly growing areas like Asia-Pacific, fueled by increasing digital literacy and e-commerce advancements. For deeper insights into epharmacy market size and pharmacy market analysis, accessing detailed reports from sources like Mordor Intelligence provides comprehensive market forecast outlooks. Get a sample of this digital pharmacy market as a free report PDF download.
