Online Pharmacy Market Report: By Platform Type (App-Based, Web-Based), Product Type (Medications, Health, Wellness, Nutrition, Personal Care & Essentials) – Global Industry Revenue Estimation and Demand Forecast to 2030

Market Overview

The global online pharmacy market size stood at $68,382.3 million in 2021, which is expected to reach $261,684.5 million by 2030, at a CAGR of 16.1% during 2021–2030. This is ascribed to the rising number of internet users, widening access to online services, and surging use of e-prescriptions in hospitals and other healthcare settings.

Furthermore, an increase in teleconsultation and diagnostic support drives the e-pharmacy market growth. Over the years, traditional office visits for chronic diseases have been the hallmark of medical care. However, since the introduction of telehealth/teleconsultation, treatment pathways have changed all over the world. Nowadays, e-prescriptions can be generated through remote consultation, which can be used to purchase drugs through online pharmacies. This has led to savings in patients' time and increase in the efficiency of healthcare providers.

Further, there is active involvement of companies integrating their electronic health record (EHR) platforms with telehealth, which further boosts the online pharmacy market growth. For instance, in December 2020, Cerner Corporation integrated its EHR platform with telehealth, to improve patient access to healthcare from home. In addition, the shortage of healthcare professionals in some regions is prompting the adoption of telehealth services. For instance, as per the Association of American Medical Colleges (AAMC), the U.S. could see an estimated shortage of 37,800 to 124,000 physicians by 2034, including shortfalls in both primary and specialty care.

Furthermore, due to the unavailability of certain medications in retail pharmacy stores, a large patient pool worldwide prefers to order them online and have them home-delivered. Furthermore, e-pharmacies reduce chronically ill patients' and elderly citizens' reliance on third parties to obtain medicines and healthcare supplies. The expanding reach of e-commerce has allowed e-pharmacies to gain a large customer base in both developed and developing countries around the world.

Health Wellness & Nutrition Products To Witness Fastest Growth in the Market

The market for online healthcare and nutrition products is expected to progress with the highest CAGR, of around 17%, during the forecast period. The rising consciousness toward a healthy lifestyle, improving online channels, ease of shopping, and better prices are some of the major factors driving the growth of this market. Moreover, the increasing cost of healthcare, rising awareness of dietary supplements, high population of baby boomers, and increasing urbanization rate are playing a pivotal role in the growth of the market. The lifestyle of the urban population is more fast-paced as compared to that of the rural population. The urban population is also more health-conscious, which is a major factor for its inclination toward health, wellness, and nutrition products.

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App-Based Platforms Held Larger Share in the Market

Online pharmacy products sold through app-based platforms was valued around $40 billion in 2021. This growth is attributed to the increase in mobile usage and internet penetration. As per the ​World Telecommunication/Information and Communication Technologies (ICT) Indicators Database, there were around 107.5 mobile cellular subscriptions (per 100 people) in 2020.

The rapid growth in e-commerce has driven many online pharmacies around the world to offer doorstep delivery. The increasing penetration of e-commerce and the growing population conducting online transactions have raised the demand for online pharmacies in recent years. As per the United Nations Conference on Trade and Development (UNCTAD), the e-commerce sector saw a “dramatic” rise in its share of all retail sales, from 16% in 2019 to 19% in 2020.

Mobile health (mHealth) is also snowballing all over the world due to the rising mobile penetration. It involves the application of mobile phones and other internet-enabled devices, such as computers, tablets, and smartwatches, to provide and avail of healthcare services. In developing nations, mHealth is providing an improved level of healthcare service as it can keep track of the health status of patients. The use of such communication tools is a faster and more-convenient way of assessing the health condition of a person. mHealth applications collect the health data from patients’ connected medical devices and deliver it to the physician and vice versa.

Rising Number of Internet Users and High Adoption of Online Services Driving North American Market

In 2021, North America held the majority revenue share, more than 40%, in the market. The market in North America is mainly driven by the high internet penetration and awareness regarding online OTC drugs. As per the Internet World Stats, around 90% of the North American population uses the internet.

Moreover, the incidence of chronic diseases in the U.S. and Canada is increasing rapidly. For instance, according to the Centers for Disease Control and Prevention (CDC), 6 in 10 adults in the U.S. have a chronic disease. The leading causes of death and disability, they are the leading drivers of the country’s $3.8-trillion annual healthcare costs. This factor has paved the way for the development of online pharmacies in recent years.

With the COVID-19 pandemic gripping the globe and social distancing being the popular mode of operation, both online and offline pharmacies need to change their activities. From surviving the logistical nightmare of the rising medicine requests to dealing with impulsive shopping, most online retailers prefer to stock themselves with vital drugs over others. Many online pharmacies emerged during the pandemic to cater to the changing buying patterns. For instance, in May 2021, CVS Pharmacy, the retail division of CVS Health, announced an upgrade to its CarePass membership program, with prescription delivery within hours. Additionally, the company exempted the delivery charges for CarePass members with an eligible prescription.

Furthermore, online sales of essential healthcare items, such as face masks, hand sanitizers, and anti-bacterial creams and drugs, burgeoned. For instance, according to the Department of Statistics, Government of Canada, there was a more than 600% spike in the sales of hand sanitizers from 2019 to 2020.

Recent Strategic Developments of Key Players

Key players in the market are taking concrete measures to increase their market share, strengthen their product portfolio, and improve their value proposition. For instance,

• In November 2021, Flipkart Group entered the healthcare sector via the launch of Flipkart Health+. As part of this development, the group signed an agreement to acquire a majority share in Sastasundar Marketplace Limited, which owns and operates SastaSundar.com, an online pharmacy and digital healthcare platform.
• In March 2021, Phoenix Group Holdings acquired Co-op Health, which provides digital prescription service to enable people to order medication through an app or over the web, for collection at a local pharmacy or home delivery.

Key Players in Online Pharmacy Market Are:

• Amazon Pharmacy
• Express Scripts Holding Company
• CVS Health
• Giant Eagle Inc.
• The Kroger Co.
• Shop Apotheke Europe N.V.
• Walgreens Boots Alliance Inc.
• Walmart Inc.
• Zur Rose Group AG
• Phoenix Group Holdings

Market Size Breakdown by Segment

The report offers comprehensive market segmentation analysis along with market estimation for the period 2017–2030.

Based on Platform Type

• App-Based
• Web-Based

Based on Product Type

• Medications
• Health, Wellness, & Nutrition
• Personal Care & Essentials

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • Italy
  • France
  • Spain
  • Russia
• Asia-Pacific (APAC)
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Latin America (LATAM)
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa (MEA)
  • U.A.E.
  • Saudi Arabia
  • South Africa