Market Trends of E-pharmacy Industry
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.
