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Online Pharmacy Billion Dollar Business On The Internet

Online Pharmacy Billion Dollar Business

In the past year, the world we have known has turned upside down, changing our lives drastically, all because of an invisible yet deadly monster called the Corona Virus. Commonly known as the COVID-19 pandemic, it has defined the entire year of 2020.

Seventy-five million people have been victims of the Coronavirus and caused the death of 1.6 million people worldwide as of mid-December 2020. Nearly every aspect of our life has been affected by this illness, from work to school to everyday activities like going out, getting groceries, and even our wardrobes.

Online shopping of garments, groceries and even electronics was already on the rise, and with COVID taking over the world, it has now become a necessary lifestyle for everyone.

Consumers are in a constant state of fear of getting infected with this deadly virus; therefore, they avoid meeting anyone or even going out to purchase daily supplies. Unfortunately, consumers cannot always live with this fear; thus, what is it that we are missing out on that might just be the most crucial business during this chaotic time?

Meeting the consumers’ essential needs by keeping them safe and healthy by providing them with their required medications at their doorstep by turning your local pharmacies into a digital platform is precisely what the need of the hour is.

The efficiency of e-pharmacy in delivering low-cost medical products combined with the increased ingression of e-commerce players is propelling the global growth of the e-pharmacy market.

The global online pharmacy market is expected to grow at a CAGR of more than 20% by revenue during the period 2019 to 2025

E-commerce competitors are finding this space exciting and magnetic, especially now after Covid-19. This pandemic has also spawned many first-time online buyers of prescription and OTC medications who are willing to stick to e-pharmacy purchases even post the pandemic.

Amazon (PillPack), Caremark LLC (CVS Pharmacy), Carepoint Healthcare LLC (Carepoint Pharmacy), Express Scripts Holding, Shop Apotheke Europe N.V., Giant Eagle,  The Kroger Company, and Walmart are some of the leading companies in the global online pharmacy industry. The online global pharmacy market is entirely diverse, and enterprises of all sizes are emerging together.

The key pharmaceutical companies are expected to increase their investments toward forming more partnerships with e-commerce establishments to escalate their market value.

Geographically, the online global pharmacy market is dispersed majorly into North America, Europe, Asia Pacific, and other parts of the world. In the United States, the online pharmacy market is generally prescription-based. However, the presence of prescription-based online pharmacies in Europe is limited, unlike in the U.S. However, Europe is the second-largest online pharmacy market among other regions, while North America remains the largest one. Moreover, in the Asia pacific, online pharmacy is anticipated to rise, owing to the enormous surge in investments and various government initiatives to improve the healthcare system. China and India are deemed to be the major contributors with prominent market shares in the region.

The role of pharmacies has changed a great deal over the years. They are no longer merely suppliers of medicine and medicinal product but are also involved in the catering of other numerous health care services. The increased collaboration is another significant reason contributing to the growth of the market, with the online pharmacies collaborating with health tech, MedTech, and insurance companies to increase their reach and revenue.

Amazon (PillPack), Caremark LLC (CVS Pharmacy), Carepoint Healthcare LLC (Carepoint Pharmacy), Express Scripts Holding, Shop Apotheke Europe N.V., Giant Eagle,  The Kroger Company, and Walmart are some of the leading companies in the global online pharmacy industry. The online global pharmacy market is entirely diverse, and enterprises of all sizes are emerging together. The key pharmaceutical companies are expected to increase their investments toward forming more partnerships with e-commerce establishments to escalate their market value.

The following factors are presumed to contribute to the growth of the online pharmacy market in the coming years:

  • The rise in economic growth, healthcare expenditure, and income per capita
  • Increased collaborations among Stakeholders
  • Availability of extensive product offerings, economical prices, hefty promotions, and diverse business models
  • Increase in health awareness
  • Demand for self-medication

It is not surprising that the online pharmacy market is drawing major investment flow. Alto Pharmacy has raised over $350 million in the U.S. to date, with its latest $250 million funding round leaping its unicorn valuation mark of over $1 billion. In September, Capsule racked up $200 million in its recent funding round and has planned to expand its same-day nationwide prescription delivery services. True pill recently raised $75 million, a company that provides the direct-to-consumer backend technology for brands like Hims and Nurx,

With the proper knowledge, vision, and tactics, your investment in this market is sure to give you mind-blowing returns and results.

FAQ’S

The global online pharmacy market is expected to grow at a CAGR of more than 20% by revenue during the period 2019 to 2025

The market is expected to witness massive growth due to the pandemic. The lockdown restrictions, along with the fear of getting infected by the Coronavirus, have led to increased dependence on online pharmacies for purchase.

Sales of prescription-based medicines are a little behind the sales of OTC drugs as they are readily available for everyone.

References

Gonzalez, D. (2016). Online pharmacies. In S. Boslaugh (Ed.), The SAGE encyclopedia of pharmacology and society (Vol. 2, pp. 1005-1008). SAGE Publications, Inc., https://www.doi.org/10.4135/9781483349985.n287 Accessed on 06/06/2021

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