The global online pharmacy market is projected to generate $261,684.5 million revenue by 2030, advancing at a CAGR of 16.1% during 2021–2030. This will be on account of the rising implementation of e-prescriptions, increasing teleconsultation and diagnostic support, and improving modes of online payment.
In addition, the spur in the chronic disease prevalence and aging population intensifies the market growth. As per the Global Cancer Observatory (GLOBOCAN), an estimated 19,292,789 new cancer cases were diagnosed and nearly 9,958,133 cancer deaths recorded all over the world in 2020. Moreover, as per the International Agency for Research on Cancer (IARC), by 2040, the global burden of cancer is predicted to grow to 27.5 million new cases and 16.3 million deaths.
Self-care is rapidly becoming more popular, as people in both developed and developing countries become more aware of their health. The demand for online pharmacies, particularly those that distribute over-the-counter (OTC) medications, is expected to rise, as the need for self-care increases. According to the Consumer Healthcare Products Association (CHPA), every dollar spent on OTC products saved the U.S. healthcare system about $7 in 2019. Furthermore, without OTC drugs, 90% of the U.S. citizens are more likely to visit a doctor.
In addition, if OTC medications for allergies, rashes, bug bites, wounds, and lower gastrointestinal bleeding are not available, 27 million U.S. citizens will die without treatment. Every year, OCT drugs save the U.S. healthcare system approximately $146 billion in healthcare costs.
Medications held the largest share, of around 75.0%, in the online pharmacy market in 2021. This is ascribed to the easy delivery of medications at the doorstep, which saves time and energy, thus resulting in a high demand for online pharmacies. Moreover, the rising prevalence of both communicable and non-communicable diseases boosts the market growth. For instance, as per the World Health Organization (WHO), ischemic heart disease was the top cause of death in both 2000 and 2019. Additionally, it was responsible for more than 2 million deaths over the last two decades.
Companies operating in the market have been involved in business expansions to remain competitive. For instance,
In November 2020, Amazon launched Amazon Pharmacy, an online and mobile prescription medication ordering service. In addition to delivering OTC as well as prescription medicines, the company offers insurance services and “self-service help” tools, to allow patients to receive a consultation from healthcare providers.
The major players operating in the global 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, Cerner Corporation, and Flipkart Internet Private Limited.