Global ePharmacy Market by Drug Type (Prescription drug and OTC medicine), Product Type (Skin Care, Dental, Cold and Flu, Vitamins, Weight Loss and Others) and by Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022-2030

Industry Perspective

The Global Epharmacy Market size was worth around USD 57.45 billion in 2021 and is predicted to grow around USD 226.75 billion by 2030 with a compound annual growth rate of roughly 18.7% between 2022 and 2030. The report analyzes the global epharmacy market's drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the epharmacy market.

Global ePharmacy Market: Overview

E-Pharmacy is a business concept that, like traditional pharmacies, deals with the preparation and sale of prescription and nonprescription medications. However, internet pharmacies accept online orders and ship medications via postal mail. Additionally, with the proliferation of e-commerce and Internet usage, there is a growing demand for mail-order medications.

Today numerous online pharmacies, often known as ePharmacy, offer doorstep delivery and dispensing of prescription and over-the-counter medications. However, online buying and distribution of prescription drugs requires a valid prescription from a medical professional. With the advent of ePharmacy, patients are no longer need to visit the pharmacist in person.

Additionally, leading ePharmacy companies provide cheaper prices on medications compared to traditional brick-and-mortar pharmacies. Due to the increased investment of e-commerce titans in the healthcare industry over the next six to seven years, the market for healthcare services will grow significantly.

For example, Amazon.com, Inc. announced in June 2018 its intention to acquire PillPack, Inc. for roughly US$ 753 million.

Online pharmacies emerged as one of the primary beneficiaries of the pandemic-induced lockdown, as many consumers decided to purchase medications online to limit the spread of disease. In March 2022, Walgreens and Labcorp, a global leader in health sciences, launched Pixel by Labcorp, a PCR test for COVID-19 that can be performed at home. As a result of Walgreens' inclusion of the kits, which are distributed in partnership with the U.S. Department of Health and Human Services, testing services are accessible in numerous places (HHS).

Key Insights

As per the analysis shared by our analyst team, the global epharmacy market is estimated to grow annually at a CAGR of around 18.7% over the forecast period (2022-2030).

In terms of revenue, the global epharmacy market size was valued at around USD 57.45 billion in 2021 and is projected to reach USD 226.75 billion, by 2030. Due to a variety of driving factors, the market is predicted to rise at a significant rate

Based on drug type segmentation, the otc medicine were predicted to show maximum market share in the year 2021

Based on product type segmentation, the cold and flu segment was the leading revenue-generating drug type in 2021

On the basis of region, North America was the leading revenue generator in 2021 

COVID-19 Impact

The COVID-19 pandemic significantly altered the focus of global healthcare systems. It has prompted developing economies to reconsider their urban infrastructure objectives. Many nations also faced the problem of combating the pandemic while simultaneously advancing other healthcare objectives.

Countries, such as India, have been utilizing the need to stop the spread of COVID-19 as an opportunity to build more robust health systems. Increasing government emphasis on innovation and enhancement of the healthcare system as a whole can help to market expansion.

In addition, government actions promoting digital technology to increase drug accessibility have had a favorable effect on the expansion of the e-pharmacy business. Consequently, several industry participants in the e-pharmacy market saw an increase in application subscriptions during the epidemic.

Growing Penetration of Internet Among the Population Surging the Use of ePharmacy

The expansion of the market is primarily driven by the growing internet penetration, the digitalization of healthcare services, and the increasing number of tech-savvy consumers. Increasing consumer preference for online transactions with an emphasis on convenience is also contributing to the expansion. In the healthcare industry, the increased adoption of digital technology and e-commerce is predicted to drive growth.

• For instance, in January 2022, Mark Cuban, a venture capitalist, founded a radical transparent digital pharmacy that sells more than 100 low-cost generic medications.

ePharmacy provides easier access to which huge advantage to chronic old patients from nuclear families and patients who are unable to leave their homes.

Growing Usage of Smartphones Augmenting the Market Growth 

Increasing smartphone penetration contributes to the expansion of the market. According to The Mobile Economy 2020, smartphone penetration in 2019 was 65% and is projected to reach 80% by 2025. In order to reduce operational costs, ePharmacy solutions must be implemented due to the expansion of the healthcare industry and the accompanying increase in operational expenses.

The rising prevalence of chronic illnesses is also driving up demand for a variety of healthcare products, including pharmaceuticals. This demonstrates the increasing global prevalence of internet drug acquisition methods.

Stringent Regulations for Selling Prescription Drugs Through Online Channels

There are strict laws governing the internet sale of prescription medications. In North America and Europe, ePharmacy sales of prescription drugs are highly regulated, and enterprises must comply with a variety of restrictions, which may hinder market growth in these locations. 

In addition, not all nations have allowed the sale of prescription drugs through online pharmacies. It is anticipated that factors such as the unregulated selling of prescription drugs, which could lead to the prohibition of online pharmacies, will constrain the global market revenue.

ePharmacy Market: Segmentation Analysis

Based on drug type, the global market is segmented into prescription drug and OTC medicine. The OTC medicine segment dominates the market share owing to the rising demand for over-the-counter medical products, such as medications.

In the ePharmacy market, the demand for over-the-counter (OTC) drugs is increasing due to the growing consumer knowledge of common ailments and first-line medications. The widespread availability of over-the-counter (OTC) medications for prevalent conditions such as the common cold, influenza, and fever is anticipated to fuel the expansion of this market segment.

During the projected period, the increased penetration of OTC ePharmacy in developing and underdeveloped nations is anticipated to have a major growth impact on the OTC products category.

Recent Development

September 2022- Apex Healthcare has proposed a partnership with Shanghai Pharmaceuticals Holdings in order to promote its branded healthcare devices, pharmaceuticals, and medical equipment in ASEAN countries and internationally.

June 2022- iHerb announced an upgraded and extended iHerb Rewards Program to create substantial enhancements to its ground-breaking Rewards Program as a gesture of gratitude to its global clients.

March 2022- Zur Rose has launched e-prescriptions across Germany. The successful launch of the DocMorris healthcare app in 2021 established a centralized, easily available range of healthcare services and built the technical groundwork for the capture and transmission of e-prescription data.

August 2020- Reliance Industries Limited announced to acquire 60% stake in online pharmacy Netmeds for Rs 620 crore to improve the availability of high quality & affordable healthcare products and services across India.

May 2020- During the COVID-19 outbreak, Express Scripts (acquired by Cigna Corporation) created a new initiative to ensure that Americans may continue to afford their prescription prescriptions. For qualified individuals, offers substantial discounts on prescription pharmaceuticals, capping costs at $25 for a 30-day supply of generics and $75 for a 30-day supply of certain brand-name prescriptions.

January 2019- OptumRx and UnitedHealthcare jointly launched a discount program which will offer upto 16% discount to benefit more consumers at point-of-sale.

Regional Landscape

North America is Dominating the Market Share Due to the Rising Internet Users

North America is dominating the market share of global epharmacy market owing to the growing number of internet users and increased acceptance of online services, both of which are anticipated to contribute to the market's expansion throughout the forecast period. These government initiatives are anticipated to increase the usage of online pharmacy services for the hassle-free purchase of pharmaceuticals on the U.S. market. Hence contributing to the expansion of the E-pharmacy market in this area. 
 
The increasing occurrence of mild diseases such as influenza, fever, backache, cough, and cold increases the need for over-the-counter (OTC) medications, and consequently, the reliance on internet pharmacies to purchase these treatments.

In North America, particularly the United States, the e-pharmacy market is anticipated to be driven by the convenience of purchasing medications from the comfort of one's own home. In addition, the high concentration of market participants and the adoption of sophisticated technologies by key companies to enhance the online purchasing experience of customers are anticipated to propel the market's expansion in North America.

• For instance, in November 2020, Amazon established a generic and prescription drug online pharmacy business in the United States.

Competitive Landscape

Tata 1mg, Practo, PharmEasy, iHerb, LLC, Amazon.com Inc., Cigna Corporation, CVS Health, Zur Rose Group AG, iHerb, LLC, Apollo Pharmacy, Giant Eagle, Inc., Netmeds Marketplace Ltd., Apex Healthcare Berhad, Optum Rx, Inc., L Rowland & Co (Retail) Limited, The Kroger Co., Walgreen Co., Walmart, Inc., amongst others.

The global ePharmacy market is segmented as follows:

By Drug Type

• Prescription drug
• OTC medicine

By Product Type

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

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
• Benelux Reunion
  • • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Southeast Asia
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America