ccording to the Market Statsville Group (MSG), the global digital pharmacy market size is expected to grow from USD 83.9 billion in 2021 to USD 336.7 billion by 2030, at a CAGR of 16.7% from 2022 to 2030. Digital pharmacy is the application of digital tools and technology to improve pharmacy operations, practice, and patient care. Digital pharmacies want to match market demand. And the need spans generations. Physically, older people may be unable to visit the Canada Pharmacy. Millennials have grown up with technology. It appeals to everyone. Its popularity is not limited to cities. Those who reside in cities have more alternatives and undoubtedly like having their medications delivered. Rural patients, on the other hand, can also benefit, particularly in pharmacy deserts (areas with limited access to pharmacies).
Global Digital Pharmacy Market Definition
The rising consumer demand for online pharmaceuticals during and after the COVID-19 pandemic, market consolidation and partnerships, and the growing senior population are driving the expansion of this market. However, patients depending on pharmacists for clinical care and an increase in illegal pharmacies are projected to limit the market’s development throughout the forecast period.
Consumers drive the transition, but it is also about modernizing the process. These innovative pharmacies use automation, robots, and technology to boost efficiency and simplify dispensing and insurance approvals.
COVID–19 Impact on the Global Digital Pharmacy Market
Other significant reasons driving market development include the growing number of internet users, more access to online services, and the increased deployment of e-prescriptions in healthcare services in the wake of the COVID-19 pandemic. In March 2020, CVS Health began implementing new strategies to balance the demand for medications to treat COVID-19 and other chronic conditions. In November 2020, Amazon will start an online pharmacy service in the United States for both generic and prescription pharmaceuticals. Before COVID, 70% of families were chronic-first users of digital pharmacy because they saw superior value in these affordable and convenient services. However, since digital pharmacy became the need of the hour during the lockdown period, an equal amount of chronic-first and acute-first families were onboarded. Furthermore, the rising demand for over-the-counter items such as masks, sanitizers, thermometers, and steamers, among others, is supporting the expansion of the digital pharmacy industry. As a result, the rapid use of over-the-counter (OTC) drugs will benefit the digital pharmacy market.
Global Digital Pharmacy Market Dynamics
Drivers: Consumer preference for purchasing online medications increased during and after COVID-19
COVID-19 is one of our most serious social and health problems. The growing epidemic has caused a significant change in life—at all levels of society. The high infection incidence of COVID-19 increased pharmaceutical demand in hospitals and home care settings. COVID-19 has altered the way enterprises are done. Consumer attitudes, behaviors, and purchasing habits have all shifted—and many of these new patterns will persist in the aftermath of the pandemic. During the epidemic, individuals were compelled to stay indoors due to nationwide lockdowns. This compelled consumers to use internet channels to buy products and services, pay bills, and consult with physicians. According to the FICCI 2020 research, more than 75% of all customers said their online pharmacy purchases rose or stayed constant. In the next years, shifting customer behavior will fuel the digital pharmacy solutions market.
Restraints: Growing illegal pharmacies are limiting market growth
Illegal internet pharmacies are frequently global operations, with servers, shipping operations, and other aspects of the company spread across many nations. According to the WHO, inferior and fraudulent goods can cause patient injury and inadequate treatment, leading to a general distrust of pharmaceuticals, healthcare practitioners, and the health system. The FDA issued warning letters to website operators in 2021 who were engaging in illegal activities violating the US Federal Food, Drug, and Cosmetic Act. Consumers looking for alternatives to local pharmacies represent a danger to the local pharmaceutical business and pharmacists. Such unlawful purchasing practices can erode trust and credibility in online medication, impeding the worldwide adoption of digital pharmacy solutions.
Opportunities: Emerging economies are expected to drive growth in the digital pharmacy market during the forecast period
Emerging economies are expected to drive growth in the digital pharmacy market. Developing countries have a large elderly population. In China, the number of people aged 65 and more was anticipated to be 131.4 million in 2015, with a 29.0 percent increase expected to reach 169.6 million by 2020. (Source: The United Nations Population Division Statistics). Because the aged are more susceptible to illnesses, the growing geriatric population is predicted to raise patient volumes in several countries. As a result, demand for digital pharmacy solutions will increase. China, Korea, and India’s burgeoning economies, increased government backing, rising life science research, and improved healthcare infrastructure all drive pharmacies in these nations to use online platforms.