E-pharmacy 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 |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
E-pharmacy 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 growth of the e-pharmacy market can be attributed to a rise in the number of internet consumers, increasing 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 United Kingdom are putting more effort into the implementation of e-prescriptions, thus expanding the growth of the e-pharmacy market. For instance, in November 2023, an electronic prescription service was launched in Wales, which enables general practitioners to send prescriptions online to the patient's choice of pharmacy. Such initiatives in the e-pharmacy market are expected to drive market growth due to the rise in the adoption and expansion of services.
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 2023, the government of Ghana, Africa, launched the National Electronic Pharmacy Platform, which offers accessibility to prescribed medications and allows purchases through online orders with the e-pharmacy app on mobile phones. Additionally, in September 2022, Amazon announced it planned to sell prescription medications online in Japan. It aims to collaborate with small and medium-sized pharmacies to build a platform where patients can get online instructions on taking medications. Without visiting a pharmacy, customers would be able to have their medications delivered to their homes. Such initiatives are expected to drive market growth due to the rise in adoption of e-pharmacy services in low- and middle-income 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, factors such as the increasing implementation of e-prescriptions and product launches 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.
E-pharmacy Market Trends
The Over-the-Counter Drugs Segment is Expected to Hold a Significant Market Share During the Forecast Period
The over-the-counter drugs segment is poised to witness lucrative growth over the forecast period. This can be attributed to various factors, such as the growing trends of pharmaceutical manufacturers from switching prescription drugs to over-the-counter drugs, the adoption of self-medication, and the growing burden of pain due to chronic diseases with the inclination of customers toward online pharmacies.
The increasing patent expiration rates are resulting in companies switching from prescription drugs to over-the-counter drugs as a counter strategy. For instance, in July 2022, the Food and Drug Administration received an application from HRA Pharma for the first OTC birth control pill sold in the United States. The company submitted a prescription drug to over-the-counter drugs 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 provide customers with easy access to the mentioned drugs. Also, during the COVID-19 pandemic, the e-pharmacy market, particularly for OTC drugs, witnessed significant growth as consumers were reluctant to visit clinics for minor ailments.
In January 2022, the Drug Technical Advisory Board of India (DTAB), as part of a new OTC drug policy, permitted the sale of some medications without a prescription. DTAB approved various OTC medications, including analgesics (pain relievers), cough syrups, decongestants, laxatives, antiseptics, and medicines for gum infections. Such initiatives from the governments of highly populated countries are expected to drive the segment.
Various e-pharmacy channels provide over-the-counter drugs and contribute to segmental growth. For instance, an article published in the Indian Journal of Pharmacology in October 2022 mentioned an online platform, Netmeds, which provides delivery of over-the-counter drugs to around 5.7 million individuals in 670 cities and towns in India. Thus, the usage of such online platforms by individuals to purchase prescription drugs contributes to segmental growth.
Thus, factors such as the increasing trends toward over-the-counter drugs, adoption of self-medication, and the rising inclination of customers toward online pharmacies are expected to drive segmental growth over the forecast period.
North America is Expected to Witness Significant Growth in the E-pharmacy Market Over the Forecast Period
The North American market is expected to grow significantly over the forecast period owing to the higher number of internet users and higher adoption of online services. 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 Food and Drug Administration (FDA)-approved pharmaceuticals at bargain prices on Marley Drug's e-commerce website, which offers home delivery to all 50 states.
The increasing trend toward e-prescriptions is expected to contribute to market growth in the region. For instance, in January 2024, an article published by the University of Toronto mentioned that various jurisdictions and healthcare facilities are moving toward e-prescriptions, resulting in reduced human errors and improved medication safety to enhance patient outcomes in Canada. Thus, the significant benefits of e-prescriptions will lead to an increase in the adoption of e-pharmacies, boosting market growth.
The growing prevalence of minor illnesses, such as flu, fever, backache, cough, and cold, increases the demand for OTC medications. 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. In January 2022, Mark Cuban started an online pharmacy offering affordable generic medications under the name "Mark Cuban Cost Plus Drug Company" (MCCPDC). Although the company does not accept insurance, the website sells 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.
Government initiatives to improve the regulations and surveillance of online pharmacies will increase their adoption, thus driving market growth in the region. For instance, in April 2023, the Federal Commission for the Protection Against Health Risks (COFEPRIS) in Mexico covered various irregular distributors of medicines, including companies that market health supplies through the Internet as online pharmacies. COFEPRIS affirmed its commitment to safeguarding public health through continuous surveillance of health products. Thus, government initiatives to conduct constant health surveillance in online pharmacies are expected to contribute to market growth.
Therefore, the above-mentioned factors, such as the growing adoption of online pharmacies, government initiatives, and product launches, are anticipated to contribute to market growth in this region.
E-pharmacy Industry Overview
The e-pharmacy market is semi-consolidated, with a few players currently dominating the market. 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. Major market players include CVS Health Corporation, Albertsons Companies Inc., ALTO, and Axelia Solutions (Pharmeasy).
E-pharmacy Market Leaders
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Optum Rx Inc.
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Giant Eagle Inc.
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Rowlands Pharmacy
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Walmart Stores Inc.
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Walgreen Co
*Disclaimer: Major Players sorted in no particular order
E-pharmacy Market News
- March 2024: Amazon Pharmacy established a partnership with Eli Lilly to distribute various medicines that can be used for the treatment of migraine, obesity, and diabetes. These medicines can be delivered to the patients directly to the home. This increased the accessibility to pharmacists for medication management support.
- March 2023: Shop Apotheke Europe and Galenica established a partnership to increase accessibility to Mediservice's broad range of prescription drugs and home care services and improve the customer experience in Switzerland.
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)
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
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
E-pharmacy 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. E-pharmacy cuts down the long chain of distributors.
The e-pharmacy market is segmented by drug type, product type, and geography. By drug type, the market is segmented into prescription drugs and over-the-counter (OTC) drugs. By product type, the market is segmented into skincare, dental, cold and flu, vitamins, weight loss, and other product types. By geography, the market is segmented into North America, Europe, Asia-Pacific, the Middle East, and Africa, and South America. For each segment, the market size is provided in terms of value (USD).
| 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 | ||||||||
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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 90.57 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 global online pharmacy market is witnessing significant market growth, driven by the rise in 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 reveals that the over-the-counter product segment is dominant, 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.
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Industry trends and market trends show a positive trajectory, with significant market data supporting these findings. The industry outlook and market outlook are optimistic, with market segmentation highlighting various product types such as skin care, dental, cold and flu, vitamins, and weight loss.
Industry information and industry statistics underline the importance of this sector, with industry reports and market review providing valuable insights. The market predictions and market overview suggest continued expansion, driven by consumer demand and technological advancements.
Research companies and industry sales reports provide a detailed market report, offering a report example and report pdf for further reference. The market size and industry size are expected to grow, reflecting the increasing adoption of online pharmacies globally.
