Market Insight-Global Pharmaceutical Retail Market Overview 2022
The Global Pharmaceutical Retail Market Was Valued at USD 951.59 Billion in 2021 and Is Expected to Reach USD 1335.60 Billion by the End of 2028, Growing at a CAGR of 4.98% between 2022 and 2028.– Bossonresearch.com
Increasing diagnosis of chronic diseases is expected to lead to fast growth in retail pharmacies. The rising incidence of long-standing diseases such as hypertension, diabetes, cardiovascular diseases, and cancer requires prolonged medication and, thus, drives the growth and need for retail pharmacies in the market.
Increasing diagnosis of chronic diseases is expected to lead to fast growth in retail pharmacies. The rising incidence of long-standing diseases such as hypertension, diabetes, cardiovascular diseases, and cancer requires prolonged medication and, thus, drives the growth and need for retail pharmacies in the market.
Emerging technologies and expanded customer care services in some of the largest pharmacies are helping them to earn customer loyalty. They help in keeping the customers informed about their healthcare while offering them seamless access to quality pharmaceutical drugs and medical products with complete security through the supply chain. One of the popular trends in retail pharmacies is artificial intelligence (AI) tools, which enhance the service and stability of the supply chain. Integrating AI into the operations of retail pharmacies helps in improving the decision-making process, order fulfilment, demand forecasting, and monitoring of the transportation and storage environment. Some of the other trends in retail pharmacies include online pharmacy services, growth-driven data and analytics, virtual-retail pharmacy services, and product serialisation.
Retail pharmacy means any pharmacy where drugs are compounded, dispensed, stored or sold or where prescriptions are filled or dispensed to the general public.
This report provides a deep insight into the global Laundry Detergent market covering all its essential aspects. This ranges from a macro overview of the market to micro details of the market size, competitive landscape, development trend, niche market, key market drivers and challenges, SWOT analysis, value chain analysis, etc.
Figure Global Pharmaceutical Retail Market Size (million USD)
Source: Bossonresearch.com, 2022
Driving Factors
Irreplaceability of retail pharmacies
The demand for medical consumption is mainly determined by the number of people covered and the incidence rate, which belongs to rigid demand consumption. Compared with other general retail industries, the drug retail industry is relatively less affected by the macroeconomic environment, and the economic cycle is not obvious. Based on objective conditions such as accelerated aging, the full liberalization of the three-child policy, and the improvement of residents' consumption levels, residents' demand for medicines is still strong, the pursuit of high-quality medical resources has not changed, and the demand for health care products and professional services continues to increase. At the same time, affected by the new crown epidemic, consumers' demand for health continues to increase.
Retail pharmacies are an indispensable link in the pharmaceutical distribution chain. Retail pharmacies are located in the middle reaches of the pharmaceutical distribution chain, undertaking pharmaceutical R&D, manufacturing, and pharmaceutical distribution and wholesale links, selling pharmaceuticals and providing other pharmaceutical-related services to consumers through direct sales, pharmaceutical e-commerce, and smart pharmacies. Consumers have low waiting tolerance for non-chronic disease drugs and asymmetric drug sales information, making retail pharmacies irreplaceable. In addition, patients' purchase of medicines is time-sensitive. According to the survey, 15% of patients have high waiting tolerance and will choose to stock up on online B2C platforms. Another 85% of customers need timely medication, and the waiting tolerance is low. Therefore, retail terminal pharmacies are irreplaceable.
On the other hand, the gross profit margin of pharmaceutical retail business is significantly higher than that of pharmaceutical wholesale business. Taking the common people, a pharmaceutical retail company in China, as an example, from the perspective of the profitability of the company's retail business and wholesale business, during the period from 2017H to 2021H, the gross profit rate of the company's pharmaceutical retail business was significantly higher than that of the wholesale business, but it showed a slow downward trend. In 2021H, the gross profit margin of pharmaceutical retail is 36.76%, and the gross profit margin of pharmaceutical wholesale is 13.52%.
Rapidly increasing aging population and prevalence of chronic diseases
The global aging population is rapidly increasing. Globally, there are more than 703 million adults over the age of 65, according to the United Nations. It is estimated that this number will increase to 1.5 billion by 2050. Rising global aging population and increasing health awareness are likely to drive the pharmaceutical retail market. The geriatric population is more susceptible to multiple diseases, increasing their dependence on pharmacies and drug stores, thereby indirectly affecting the market. According to the Global Health and Aging report, the number of people aged 65 or over is expected to grow to nearly 1.5 billion by 2050, with most of the growth occurring in developing countries. As the population ages, certain health conditions are expected to pose challenges to our healthcare system. These diseases include cancer, dementia, increased falls, obesity and diabetes. The number of cases is expected to increase due to an aging population.
With the increase of the elderly population and the impact of the pace of life and working environment, the number of patients with chronic diseases is increasing all over the world. Chronic diseases have the characteristics of long illness cycle, low frequency of visits to doctors, and large demand for medication. The operating characteristics of retail pharmacies can better meet the drug purchase needs of patients with chronic diseases.
According to the International Diabetes Association, 463 million adults had diabetes in 2019. It is estimated that the number of adults living with diabetes will increase to 700 million by 2045. According to the American Heart Association, 126.9 million Americans suffered from cardiovascular disease between 2015 and 2018.
Meanwhile, rising cough, cold, and flu cases are supporting the growth of this market.
Increased health care spending
With the continuous development of the world economy and the improvement of residents' disposable income, residents' health awareness has been continuously strengthened, and people have paid more attention to the maintenance of daily physical health and the treatment of diseases, and the medical and health care consumption expenditure of urban residents has continued to grow.
According to the forecast of IQVIA, affected by factors such as population growth, aging and improved medical accessibility in emerging pharmaceutical markets, global medical expenditure is expected to exceed US$1.5 trillion by 2023.
On the other hand, the increase in public healthcare expenditure and the easier access to medicines have boosted the pharmaceutical retail market, especially in rural areas and second-tier cities. Prescription costs in England increased by 3.46% in the 2020-21 financial year compared to 2019-20, according to the NHS. According to the Centers for Disease Control and Prevention, between 2015 and 2018, 45.7 percent of the U.S. population took at least one prescription drug, while 21.3 percent took three or more during the same period. The total health expenditure in China has increased from RMB 4,634.49 billion in 2016 to RMB 7,559.36 billion in 2021, with a five-year compound growth rate of 13.01%, and per capita health expenditure from RMB 3,351.7 to RMB 5,348.1 in 2021, with a five-year compound growth rate of 12.39%.
In the long run, the continuous investment in government health expenditure and the rapid growth of commercial insurance payment will further promote the long-term development of the pharmaceutical market, thereby driving the development of the pharmaceutical retail industry.
Rapid expansion and upgrading of pharmaceutical retail companies
Rapid expansion and upgrading of existing pharmaceutical retail companies to increase market penetration is positively impacting market growth. For example, in 2020, Rite Aid Corp. opened two new stores, relocated five stores, and completed store renovations, remodeling 1,826 stores in fiscal 2020. Retail and hospital pharmacies are rapidly adopting various automation devices to improve patient safety and provide fast and accurate service to patients. Automated systems are widely used in electronic prescribing, point-of-sale procedures, barcode verification, robotic dispensing, automated pill counting, interactive voice response systems, and automated prescription withdrawals.
Moreover, key stakeholders are also adopting strategies such as acquisitions, partnerships, and collaborations to expand their distribution channels and market share. For example, in June 2021, digital pharmacy Medly Pharmacy announced plans to acquire pharmacy chain Pharmaca to expand its presence in 30 different markets. In May 2021, online pharmacy PharmEasy acquired e-pharmacy Medlife to gain a higher market share and expand its presence in the industry. With this acquisition, PharmEasy has a 60% to 70% share of the Indian e-pharmacy market.
Driven by the COVID-19 pandemic
The COVID-19 pandemic has accelerated the growth of traditional pharmacy retail stores and online pharmacy channels. Globally, medical retail stores are classified as essential services, but online pharmacies emerged as the most dynamic channel for sourcing medicines and equipment due to virus fears. Driven by different waves of COVID-19, the online pharmacy industry saw a surge in orders for medical equipment, personal protective equipment, health supplements, and common medicines.
Pharmacists are also on the front lines, just like healthcare workers. The store they work in is also a useful resource for basic items that many grocery stores are in short supply. Pharmacies are also facing shortages of medicines and medical supplies. In addition, due to the anticipation of being quarantined, various patients flocked to the door of the pharmacy and demanded to be replenished in advance, which adversely affected the necessary medicines. As the number of customers in a pharmacy continues to increase, so will the demand for employees, driving the growth of the business.
For example, the revenue growth rate of American chain drugstores has declined significantly during the epidemic, that is, since the first quarter of 2020, the revenue growth rate has declined quarter by quarter. From 2020Q3 to 2021Q4, the revenue of Walgreens and Rite Aid is basically in a state of negative growth, and the growth of CVS revenue is also far below the level before the epidemic. Since 2022Q1, after the gradual liberalization of overseas markets, the revenue growth of chain pharmacies has rebounded rapidly quarter by quarter, and the revenue volume and growth rate of CVS are higher than the pre-epidemic level.
End-use Insights
Rapidly increasing aging population and prevalence of chronic diseases , and increasing healthcare spending will- be the key drivers for the market development. The increasing aging of the global- population- and- increasing- health- awareness will- drive the development of the pharmaceutical-retail- market. At the same-time, geriatric- population is moresusceptible to multiple diseases, increasing their dependence on pharmacies and pharmacies, thereby indirectly affecting the market. With-the increase of-the elderly population and-the impactof the pace of life and working environment, the number of patients with chronic diseases is increasing all over the world. Chronic diseases have the characteristics of long illness cycle, low frequency of visits to doctors, and large demand for medication. The operating characteristics of retail pharmacies can bettermeet the drug purchase needs ofpatients with chronic diseases. On the otherhand, with the continuous development of the world economy and the improvement of residents' disposable income, residents' health awareness has been continuously strengthened, and people have paid more attention to the maintenance of daily physical health and the treatment of diseases, and the medical and health care consumption expenditure of urban residents has continued to grow. In the long run, the continuous investment in government health expenditure and the rapid growth of commercial insurance payment will further promote the long-term development of the pharmaceutical market, thereby driving the development of the pharmaceutical retail industry. In addition, the rapid expansion and upgrading of pharmaceutical retail companies and the promotion of the COVID-19 pandemic will all play an important role in promoting the development of the market.
Global Pharmaceutical Retail Market: Competitive Landscape
At present, the concentration of the global pharmaceutical retail market is relatively low. In 2021, the CR5 and HHI of the pharmaceutical retail market will be 34.88% and 4.75% respectively, indicating a low market concentration. Players in the market are adopting various strategies such as partnerships, collaborations, mergers and acquisitions, and product development to expand product portfolio and geographical distribution. Some of the key players operating in the global pharmacy market are Walgreens Boots Alliance, CVS Health, Cigna (Express Scripts), AmerisourceBergen Corporation, Walmart, Rite Aid Corp, The Kroger Co, Dm-drogerie markt, Rossmann, PHOENIX Pharma SE, China Neptune , Safeway, Albertsons, Publix Pharmacies, A.S. Watsons, JD Health, Sinopharm Group, Costco Pharmacy, Ordinary Pharmacy, Dashenlin Pharmaceutical
Key players in the Pharmaceutical Retail Market include:
Walgreens Boots Alliance
CVS Health
Cigna(Express Scripts)
AmerisourceBergen Corporation
Walmart
Rite Aid Corp
The Kroger Co
Dm-drogerie markt
Rossmann
PHOENIX Pharma SE
China Nepstar
Safeway
Albertsons
Publix Pharmacies
A.S. Watson Group
JD Health
Sinopharm Group Co., Ltd
Costco Pharmacies
LBX pharmacy
DaShenLin Pharmaceutical Group Co.,Ltd
Request for more information
Click to view the full report TOC, figure and tables: https://bossonresearch.com/productinfo/2026325.html?templateId=494129
About US:
Bosson Research (BSR) is a leading market research and consulting company, provides market intelligence, advisory service and market research reports for the automobile, electronics and semiconductor, and consumer good industry. The company assists its clients to strategize business policies and achieve sustainable growth in their respective market domain.
Bosson Research provides one-stop solution right from data collection to investment advice. The analysts at Bosson Research (BSR) dig out factors that help clients understand the significance and impact of market dynamics. Bosson Research (BSR) bring together the deepest intelligence across the widest set of capital-intensive industries and markets. By connecting data across variables, our analysts and industry specialists present our customers with a richer, highly integrated view of their world.
Contact US:
Tel: +86 400-166-9288
E-mail: sales@bossonresearch.com
