Pharmacy Market Challenges, Key Vendors, Drivers, Growth Opportunities and Forecast 2028

Posted on 2022-12-13 by researchinsights in Industrial // 0 Comments

Pharmacy Industry Overview

The global pharmacy market size was valued at USD 1,008.5 billion in 2020 and is projected to expand at a compound annual growth rate (CAGR) of 4.3% from 2021 to 2028.

The increasing number of people suffering from diseases, increasing aging population, and growing number of prescriptions are the key parameter driving the market. According to the National Health Services, the cost of prescriptions in the financial year 2020 – 21 increased by 3.46% as compared to 2019-20 in England. According to the Centers for Disease Control and Prevention, 45.7% of the population in the U.S. consumed at least one prescription drug between 2015 and 2018, while 21.3% of the population consumed three or more prescription drugs during the same period.

Rapid expansion and upgradation of existing pharmacies to increase market penetration are positively impacting the market growth. For instance, in 2020, Rite Aid Corp. opened two new stores, relocated five stores, and completed store remodeling to get 1,826 remodeled stores in the fiscal year 2020. Retail and hospital pharmacies are rapidly adopting various automation devices to increase patient safety and provide rapid & accurate services to their patients. Automation systems are widely used in e-prescribing, point-of-sale programs, bar code verification, robotic dispensing, automated pill counting, interactive voice response systems, and automated prescription pick-up.

Gather more insights about the market drivers, restrains and growth of the Global Pharmacy Market

According to a survey conducted by Pharmacy Purchasing and Products on pharmacy automation devices in 2019, 84.0% of the hospital pharmacies have adopted or planned to adopt automated dispensing cabinets. Moreover, pharmacies are adopting various digitalization programs to cater to the growing consumer demand and form a profitable business model. For instance, CVS Health introduced a Digital Transformation program to personalize the healthcare experience using artificial intelligence, machine learning, data, and analytics. Moreover, in December 2021, the company announced a partnership with Microsoft to scale up retail personalization and loyalty programs using advanced machine learning by using Azure.

Such digitalization and automation strategies are estimated to drive the market during the forecast period. Pharmacies are providing various patient care services and introducing various initiatives to promote medication sales. According to an article published in National Community Pharmacy Association (NCPA) Digest in 2019, 77% of the pharmacies offered medication therapy management, 76% offered immunizations for flu, 69% offered immunization for non-flu conditions, 57% offered blood pressure monitoring, and 56% provided compounding services.

Moreover, collaborative drug therapy agreements were offered by 39% of pharmacies, diabetes training by 33%, ostomy supplies by 32%, smoking cessation by 23%, patient education classes by 16%, asthma management by 13%, and weight management by 11%. Moreover, the pharmacies also started offering COVID-19 testing and vaccination services. CVS Health acquired eight million new customers through COVID-19 testing in 2020. Pharmacies are adopting innovative strategies for different functions, such as fulfilling prescriptions. For instance, Walgreens Boots Alliance introduced micro-fulfillment centers for supporting prescription shipping demand.

The company plans to introduce twenty-two micro-fulfillment centers in the U.S. by the end of 2020. Moreover, key stakeholders are also adopting strategies, such as acquisitions, partnerships, and collaborations, for expanding its distribution channel and market share. For instance, in June 2021, Medly Pharmacy, a digital pharmacy, announced its plans to acquire Pharmaca, a pharmacy chain to expand its presence in thirty different markets. In May 2021, PharmEasy, an online pharmacy, acquired Medlife, an ePharmacy, to gain a higher market share and expand its presence in the industry. With this acquisition, PharmEasy holds 60% to 70% of the ePharmacy market in India.

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