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 Coronavirus (COVID-19). The COVID-19 pandemic has defined the entire year of 2020, causing the deaths of millions.
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 was already on the rise, and with COVID taking over the world, it has now become a necessary lifestyle for everyone.
The most essential requirement is to remain healthy without stepping out. Online pharmacies or e-pharmacies are the best solutions to this conundrum.
Why Are Online Pharmacies Necessary?
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 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 services, reach, and revenue. (Cain, J., 2008)
The Spread Of The Online Global Pharmacy Market
The online global pharmacy market is entirely diverse, and enterprises of all sizes are emerging together. 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, online pharmacy is anticipated to rise in the Asia Pacific, 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.
Determinants On The Growth Of Online Pharmacies
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
Why Is There An Increase In Investment In The E-Pharmacy Sector?
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.
The efficiency of e-pharmacies 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 2021.
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 key pharmaceutical companies are expected to increase their investments toward forming more partnerships with e-commerce establishments to escalate their market value.
It is not surprising that the online pharmacy market is drawing significant 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.