In recent years, several players with the likes of Amazon and Reliance have committed to increasing their stakes in the ePharmacy market. A major consumer proposition in the ePharmacy market stems from improving access to genuine medicines, especially in nations where the pharma retail is characteristically unorganized. The disruption comes from the growing urge to leverage the reach and potential of e-commerce sector to bring some order in this largely unorganized pharmaceutical retail.
Proponents of ePharmacy business models espouse the prospects on the back of the need to prevent sale of spurious and substandard drugs. The presence of a highly fragmented and unorganized retailing sector has led to scope of rampant counterfeiting of drugs, in addition to high prices end-consumers have to bear the brunt of. To top it all, the access to essential medications through offline stores is glaringly low, especially in low- and middle-income countries. All this has bolstered the market propositions of ePharmacy.
Burgeoning E-commerce Fuel Appetite for Industry Investments
The rise in internet penetration and growing push of eCommerce giants toward organized retail have been driving the evolution of the ePharmacy market. During the outbreaks of COVID-19 pandemic, the trend for ordering goods from apparel to cars has accelerated, supported by the new business normal. Another impetus to the demand has come from the growing acceptance of e-prescriptions among patients and the healthcare industry in general. Moreover, the application of mobile apps for prescription refills are gaining traction among elderly populations.
In recent years, a few eCommerce giants have used ePharmacy as the launchpad for delivering prescription drugs. In developed countries, the growing investments in the ePharmacy market has raised the ante for established offline drug retailers.
Asia Pacific Replete with Opportunities, Emerging Economies Witness Rise in teleconsultation Bolster Growth
In emerging markets such as in Asia Pacific, a burgeoning e-commerce sector notably in the emerging economies has fueled the appetite for ePharmacy investments. In countries such as India, the spiralling logistics for e-commerce has underpinned the vast potential for growth of players. Concomitantly, regulations and guidelines have favored the expansion of avenues in the ePharmacy market.
Rise in teleconsultation during the COVID-19 pandemic has spurred the demand for medications for various diseases, including chronic conditions. This accelerated the demand for ePharmacy. Growth in large hospital chains offering teleconsultation and telemedicine services is a key trend underpinning the prospects for players to expand ePharmacy business. The expansion of multispecialty telemedicine networks in developing and developed economies is one of the key trends that has incentivised investments in the ePharmacy market. This has ramped up investments in various teleconsultation platforms.
The ePharmacy market is brimming with opportunities. According to a report by TMR, the global valuation is projected to touch the mark of US$ 158.2 Bn by the end of 2027.
Growing Interest in Digital Platforms to boost ePharmacy Market
Growing investments in health technologies have propelled the development of self-medication apps is bolstering the prospects of the ePharmacy market. The growing acceptance of telecommunication platforms among patients and clinicians is a key trend that has stimulated development of integrated teleconsultation platforms. Moreover, companies in the e–pharmacy market are fervently looking to boost the digital platforms for to increase their competitiveness in the pharmacy retail.
Despite the vast potential of the ePharmacy market, there are reservations of consumers ordering medicines online. The need of the hour is to make regulations stringent and standardized.
Source: Transparency Market Research