Digital pharmacy Market Size, Share, Trends | 2032

Report Description

Digital pharmacy Market Outlook 2032

The global digital pharmacy market size was USD 135.35 Billion in 2023 and is projected to reach USD 698.37 Billion by 2032, expanding at a CAGR of 17% during 2024–2032. The market growth is attributed to the integration of digital technologies into healthcare systems globally.

Increasing adoption of digital technologies in healthcare is fueling the global digital pharmacy market. The pharmacy sector is undergoing a paradigm shift toward online platforms and digital solutions, fueled by the rise of digitalization. Consumers are increasingly turning to digital pharmacies for convenience, accessibility, and personalized healthcare services. This trend is driven by the growing demand for remote healthcare solutions, particularly amidst the COVID-19 pandemic, where telemedicine and online prescriptions have become essential components of healthcare delivery. For instance,

• According to a published report in February 2024, experts anticipate the digital pharmacy is predicted to be 23.62% in 2024 in terms of user penetration and is expected to increase to 30.92% by 2028, indicating a significant expansion of the market reach and popularity among consumers across the globe. Additionally, the average revenue per user (ARPU) is projected to be USD 28.69, reflecting the potential revenue generation per user within the digital pharmacy market.

Digital pharmacies are prepared to revolutionize the traditional pharmacy model by offering a seamless and efficient healthcare experience to patients globally. The integration of artificial intelligence (AI) and data analytics further enhances the capabilities of digital pharmacies, enabling personalized medication management and real-time health monitoring. Additionally, partnerships between digital pharmacy platforms and healthcare providers are expanding, facilitating improved coordination of care and improved patient outcomes. The digital pharmacy market is offered substantial opportunities for innovation and growth within the healthcare industry. For instance,

• In October 2022, as per a report published by the International Pharmaceutical Federation, approximately 25% of respondents highlighted improved access as the significant benefit of online pharmacies. Convenience and reduced patient costs were cited by 23% and 10% of participants, respectively. Online pharmacies offer accessibility benefits by enabling patients to order prescriptions conveniently from their homes and receive them through delivery, potentially resulting in significant cost savings. A study from Software Advice revealing that 61% of users save over USD 20 on average through online pharmacies.
  

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Impact of Artificial Intelligence (AI) in the Digital Pharmacy Market

Artificial Intelligence (AI) is profoundly impacting the digital pharmacy market, enhancing efficiency and patient care. AI algorithms personalize medication management, reducing adverse reactions and improving adherence. Real-time monitoring of patient health metrics aids in early intervention, while AI-driven inventory systems optimize supply chains. Intelligent chatbots improve customer service by providing immediate assistance. AI is revolutionizing pharmacy operations and patient outcomes, shaping the future of healthcare delivery.

AI is transforming the way pharmacies operate. AI-powered inventory management systems optimize supply chain logistics, ensuring adequate stock levels and minimizing waste. Intelligent chatbots and virtual assistants powered by AI enhance customer service by providing immediate responses to inquiries, assisting with medication refills, and offering medication-related information. For instance,

• In May 2022, CVS Health introduced CVS Health Virtual Primary CareTM, an innovative virtual care solution accessible through a unified digital platform. This offering integrates CVS Health's services, clinical expertise, and data to provide a coordinated and consumer-centric healthcare experience. CVS Health Virtual Primary Care offers consumers the flexibility to access primary care, on-demand care, chronic disease management, and mental health services virtually, with the option for in-person visits if needed, reflecting the strategic commitment of CVS Health to enhancing primary care.

Digital Pharmacy Market Dynamics

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Major Drivers

Increasing adoption of digital technologies in healthcare is driving the digital pharmacy market. The digitalization of healthcare systems across the globe boost the acceptance and integration of digital solutions in medication management and prescription services. This trend is projected to accelerate in the coming years, as healthcare providers seek to improve efficiency, reduce errors, and enhance patient outcomes through digital pharmacy platforms. Moreover, advancements in technology, such as artificial intelligence (AI) and data analytics, are revolutionizing medication management by providing personalized treatment recommendations and optimizing medication adherence.

Growing demand for remote healthcare solutions is a major factor propelling the global digital pharmacy market. The COVID-19 pandemic has heightened the need for telemedicine, online prescriptions, and medication delivery services, as patients seek safe alternatives to in-person healthcare visits. This surge in demand for remote healthcare solutions is expected to persist beyond the pandemic in the coming years, driven by factors such as convenience, accessibility, and the desire for contactless healthcare experiences. For instance,

• In March 2022, Walgreens and Labcorp, a prominent global life sciences company, introduced Pixel by Labcorp, a PCR test for COVID-19 at-home collection kits. These kits are now available across the US through Walgreens, supplied in collaboration with the US Department of Health and Human Services (HHS). This partnership aims to provide easy access to reliable and convenient testing services for communities across the US.

Regulatory support and reimbursement policies are expected to drive the market in the coming years. These policies for telemedicine and digital healthcare initiatives remove barriers to the adoption and incentivize the use of remote healthcare solutions. These policies promote the widespread utilization of digital pharmacy services among healthcare providers and patients by providing clarity, assurance, and financial incentives. Additionally, regulatory frameworks ensure compliance with standards, enhance trust, and foster innovation, contributing to the growth and development of the digital pharmacy market.

Existing Restraints

Regulatory challenges are expected to hamper the growth of the global digital pharmacy market during the forecast period. Regulations governing the practice of pharmacy and the sale of medications vary across different regions, posing compliance challenges for digital pharmacy platforms. Additionally, concerns related to patient privacy, data security, and the authenticity of online prescriptions create barriers to the market entry for digital pharmacies. Compliance with stringent regulatory requirements often entails significant investments in technology and infrastructure, which impedes the expansion of digital pharmacy services, restraining the market. For instance,

• According to the International Society for Pharmaceutical Engineering in 2019, 66% of countries globally lack explicit laws regulating or prohibiting the online sales of medicinal products. Additionally, the Federal Bureau of Investigation (FBI) in the US reports over 80,000 websites facilitating medication orders through illegal pharmacies, highlighting the widespread presence of illicit online pharmaceutical platforms.

Limited internet access in certain regions is anticipated to restrain the growth of the global digital pharmacy market in the coming years. While digital technologies offer convenience and accessibility, disparities in internet connectivity hinder the adoption of digital pharmacy services, particularly in rural and underserved areas. The lack of reliable internet infrastructure limits the reach of digital pharmacy platforms and impedes their ability to provide seamless healthcare services to all populations. Addressing the digital divide and improving internet access in underserved communities is crucial for unlocking the full potential of digital pharmacy solutions globally.

Resistance to change among healthcare providers and patients is expected to impede the growth of the global digital pharmacy market during the forecast period. Some healthcare professionals are reluctant to adopt new technologies, despite the benefits offered by digital pharmacy platforms, due to concerns about workflow disruption or unfamiliarity with digital tools. Similarly, patients accustomed to traditional pharmacy practices hesitate to transition to digital platforms for medication management. Overcoming resistance to change requires education, training, and effective communication strategies to demonstrate the value and safety of digital pharmacy services.

Emerging Opportunities

Growing emphasis on personalized medicine offers opportunities for tailored healthcare services in the market . Digital pharmacy platforms leverage data analytics and artificial intelligence to analyze patient information and recommend personalized treatment plans and medication regimens. This personalized approach improves patient adherence to medications and minimizes the risk of adverse drug reactions. Healthcare providers prioritize precision medicine, and digital pharmacy platforms are well-positioned to capitalize on this growing trend as well as deliver customized healthcare solutions to patients.

Increasing integration of artificial intelligence (AI) and data analytics presents opportunities for innovation and advancement in the global digital pharmacy market. AI-powered algorithms enhance medication management by analyzing patient data and predicting medication adherence patterns. Additionally, data analytics tools provide valuable insights into patient behavior, medication efficacy, and healthcare outcomes, enabling digital pharmacy platforms to optimize their services and improve patient care. AI technology continues to evolve, digital pharmacy platforms have the opportunity to leverage AI-driven solutions to enhance efficiency, accuracy, and personalized healthcare delivery.

Scope of the Digital Pharmacy Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics are included in the report.

Digital pharmacy Market Segment Insights

Service Segment Analysis

Based on service, the digital pharmacy market is divided into online prescription services, medication delivery, teleconsultation, medication management apps, and remote monitoring. The online prescription services segment held a major share of the market in 2023, owing to its convenience, accessibility, and increasing adoption among consumers and healthcare providers. The rising demand for remote healthcare solutions, especially amidst the COVID-19 pandemic, where patients prefer to consult healthcare professionals and refill prescriptions online to minimize exposure to the virus, boost the segment. Additionally, advancements in telemedicine technologies and regulatory support for online prescription services contribute to the growth of this segment.

The medication delivery segment is expected to expand at a significant growth rate in the coming years, due to the increasing demand for doorstep delivery of medications, particularly among elderly patients and those with chronic conditions. The growing preference for contactless healthcare services, busy lifestyles, and the convenience of having medications delivered directly to the doorstep is propelling the demand for medication delivery services. Furthermore, the expansion of e-commerce infrastructure and logistics networks enhances the accessibility and efficiency of medication delivery services, driving the segment.

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Platform Segment Analysis

On the basis of platform, the global market is segregated into app-based and website-based. The app-based segment held a large market share in 2023, due to its convenience, accessibility, and user-friendly interface, which resonates well with the increasing number of smartphone users globally. The growing popularity of mobile applications for healthcare services, such as medication management, prescription refills, and teleconsultation is fueling the segment. Additionally, app-based platforms offer features such as medication reminders, personalized health tracking, and easy access to healthcare professionals, enhancing the overall user experience and driving the adoption among consumers.

The website-based segment is anticipated to expand at a substantial CAGR during the forecast period, owing to factors such as improved internet connectivity, growing digital literacy, and the availability of comprehensive healthcare information online. Website-based platforms offer a broader range of services and information as compared to mobile applications, making them suitable for users who prefer accessing healthcare services through desktops or laptops. Furthermore, website-based platforms provide a seamless interface for healthcare providers to manage prescriptions, communicate with patients, and offer teleconsultation services, driving adoption among both consumers and healthcare professionals.

Product Segment Analysis

Based on product, the digital pharmacy market is segmented into personal care, vitamins & supplements, medicine & treatment, and others. The medication & treatment segment led the market in terms of revenue in 2023, due to the essential nature of medications and treatments in healthcare, driving the consistent demand for digital pharmacy services. The increasing prevalence of chronic diseases, rising healthcare expenditure, and the growing adoption of digital technologies in medication management & prescription services are driving the segment. Additionally, advancements in telemedicine and remote healthcare solutions further contribute to the growth of this segment, as patients seek convenient access to medications and treatments from the comfort of their homes.

The personal care segment is projected to register a robust growth rate during the assessment years, fueled by factors such as increasing consumer awareness about personal health & wellness, rising disposable income levels, and the growing popularity of self-care practices. Digital pharmacy platforms catering to personal care products offer a wide range of items such as skincare, haircare, and hygiene products, appealing to a broad consumer base. Moreover, the convenience of purchasing personal care products online, personalized recommendations, and doorstep delivery enhance the attractiveness of digital pharmacy platforms, fueling the segment.

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 Mode of Operation Segment Analysis

On the basis of mode of operation, the global market is segregated into business to consumer (B2C), business to business (B2B), and consumer to consumer (C2C). The business to consumer (B2C) segment held a large market share in 2023, due to the direct interaction between digital pharmacy platforms and individual consumers. The increasing adoption of digital technologies among consumers, rising demand for convenient & accessible healthcare services, and the ease of accessing medications & healthcare products online drive the segment. Additionally, the COVID-19 pandemic accelerated the shift toward online shopping and telemedicine, further boosting the B2C digital pharmacy platforms, as consumers prioritize safety and convenience in healthcare transactions. For instance,

• In 2021, Rite Aid Corp. forged a partnership with Uber to facilitate the nationwide delivery of Rite Aid products through Uber Eats in the US. This collaboration enables customers to easily order and receive essential healthcare & grocery items directly to their homes, enhancing convenience and accessibility for consumers seeking essential products.

The business to business (B2B) segment is anticipated to expand at a substantial CAGR during the forecast period, due to the growing adoption of digital healthcare solutions by healthcare institutions, pharmacies, and other businesses in the healthcare ecosystem. Digital pharmacy platforms catering to B2B clients offer solutions such as medication management systems, teleconsultation platforms, and supply chain management tools, enhancing efficiency and streamlining healthcare operations. Furthermore, partnerships between digital pharmacy platforms and healthcare providers, pharmacies, & pharmaceutical companies facilitate the integration of digital solutions into existing healthcare infrastructure, driving adoption and growth in the B2B segment.

End-user Segment Analysis

Based on end-user, the digital pharmacy market is segmented into patients, healthcare providers, and pharmacies. The patients segment attributed to high market revenue share in 2023, due to the increasing adoption of digital pharmacy services by individual consumers seeking convenient access to medications and healthcare products. The growing trend of self-care & patient empowerment, rising awareness about the benefits of digital healthcare services, and online healthcare information propels the segment. Additionally, the aging population, rising prevalence of chronic diseases, and the COVID-19 pandemic further accelerated the adoption of digital pharmacy services among patients, driving the segment.

The healthcare providers segment is projected to register a robust growth rate during the assessment years. The growth is attributed to the increasing integration of digital technologies into healthcare practice, the growing demand for telemedicine & remote healthcare solutions, and the need for efficient medication management systems. Healthcare providers, including physicians, hospitals, and clinics, are increasingly adopting digital pharmacy platforms to streamline prescription management, facilitate teleconsultation services, and improve patient outcomes. Furthermore, regulatory support for telemedicine & digital healthcare initiatives, advancements in technology, and the emphasis on value-based care further contribute to the growth of the segment. For instance,

• In January 2023, OptumRx Inc., a subsidiary of UnitedHealth Group Incorporated, launched the Price Edge tool, aiming to assist customers in accessing prescription drugs at competitive rates. This tool compares direct-to-consumer pricing for traditional generic drugs with insurance pricing, enhancing customer satisfaction and loyalty by providing affordable medication options.

Regional Outlook

In terms of region, the global digital pharmacy market is classified as Asia Pacific, North America, Latin America, Europe, and the Middle East & Africa. North America held a major market share in 2023, due to the widespread use of telemedicine and online prescription services in the region. The growing demand for remote healthcare solutions and increasing investments in digital healthcare initiatives by the key players and government organizations are propelling the market in the region. Furthermore, the presence of leading digital pharmacy platforms, technological advancements, and a large patient population contribute to the market.

The market in Asia Pacific is projected to expand at a significant pace in the assessment years, owing to rapid urbanization, increasing internet penetration, and rising healthcare expenditure. The growing adoption of digital technologies in healthcare in countries such as China, India, and Japan have increased the demand for digital pharmacy services. Additionally, the shift toward personalized medicine, advancements in AI & data analytics, and initiatives to improve healthcare access in rural areas further drive the growth of the digital pharmacy market in the region. For instance,

• In January 2022, Hyphens Pharma International Limited, Singapore-based large specialty pharmaceutical and consumer healthcare company, introduced WellAway ePharmacy in the city-state. WellAway provides convenient access to pharmaceutical services and facilitates teleconsultation for doctors, catering to the needs of elderly, immobile, self-isolating, or health-conscious individuals, especially amid the ongoing COVID-19 outbreak.
  

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