Introduction
The pharmacy market is expected to grow significantly, reaching an estimated USD 1,750 billion by 2032, up from USD 1,108 billion in 2022. This growth, with a steady 4.8% CAGR, is fueled by technological advances in drug delivery and patient management, alongside a rising demand due to the increasing prevalence of chronic diseases globally.
However, the sector faces notable challenges, including limited access to medications in several regions, which spurs a need for more adaptive pharmaceutical manufacturing solutions. The high costs associated with new drug development and stringent regulatory environments across different countries also pose considerable obstacles.
Recent strides in the pharmacy market include a surge in pharmaceutical e-commerce, highlighted by significant growth in online pharmacy engagement and digital health technologies during the COVID-19 pandemic. Major companies like CVS Health and Walgreen Boots Alliance have experienced boosts in digital operations and e-commerce. Furthermore, innovations in artificial intelligence are transforming drug discovery, clinical trials, and patient care, enhancing the efficiency and reducing costs of pharmaceutical services.
Key Takeaways
- Market Overview: The global pharmacy market is expanding, with a projected CAGR of 4.8% due to demographic shifts and health trends.
- Growth Drivers: Increases in the aging population, prescription volumes, and disease prevalence are major factors propelling market growth.
- England’s Spending: In fiscal year 2020-2021, England saw a 3.5% rise in medication expenditures, reflecting growing healthcare demands.
- Dominant Segment: Prescription medications lead the market, supported by an aging population and rising chronic diseases like diabetes and heart disease.
- OTC Growth: The OTC segment is set to grow fastest, fueled by demand for analgesics, heartburn, and respiratory treatments.
- Retail Pharmacies: In 2022, retail pharmacies dominated due to increased independence, chain expansions, and technological advances.
- E-pharmacies Advantages: Offering privacy, discounts, and free shipping, e-pharmacies are becoming increasingly popular.
- Distribution Channels: Hospital pharmacies lead in distribution, benefiting from more patient visits and hospitalizations, especially during the COVID-19 pandemic.
- Market Restraints: Side effects and subsequent product recalls can tarnish brand reputations and slow market growth.
- Emerging Trends: The pandemic has spurred decentralized clinical trials and partnerships between pharmaceutical firms and AI technology companies.
- COVID-19 Influence: Although initially disruptive, the pharmaceutical market quickly adapted, minimizing long-term impacts.
- Regional Dominance: North America held a 52.2% revenue share in 2022, led by industry giants like Walgreens and CVS Health.
- APAC’s Rapid Growth: Asia-Pacific is poised for rapid market expansion, driven by burgeoning pharmaceutical sectors in India and China.
- Strategic Movements: Leading companies focus on R&D, partnerships, and acquisitions to enhance market presence, with key players including Medly Pharmacy, CVS Pharmacy, and Amazon Pharmacy.
Pharmacy Statistics
- The global pharmacy market was valued at approximately USD 1,108 billion in 2022.
- By 2023, it’s expected to rise to near about USD 1,161 billion.
- In 2024, the market is projected to increase to approximately USD 1,210 billion.
- The value is anticipated to grow to roughly USD 1,283 billion by 2025.
- By 2026, the market size is forecasted to be over USD 1,353 billion.
- In 2027, it’s expected to reach approximately USD 1,409 billion.
- By 2028, the market is projected to grow to near about USD 1,451 billion.
- In 2029, the market is anticipated to climb to approximately USD 1,520 billion.
- By 2030, it’s projected to increase to near about USD 1,584 billion.
- In 2031, the market is expected to rise to over USD 1,660 billion.
- Finally, by 2032, the global pharmacy market is projected to be worth approximately USD 1,750 billion.
- Overall, from 2022 to 2032, the market is expected to grow at a compound annual growth rate (CAGR) of 4.8%.
Statistics By Share
- The United States invests approximately 42.60% of its healthcare budget in the pharmaceutical sector, leading globally.
- China dedicates around 7.60% of its healthcare expenditure to pharmaceuticals, reflecting its growing healthcare industry.
- Japan allocates about 4.50% of its spending to pharmaceuticals.
- Germany and France contribute nearly 4% and roughly 2.80%, respectively, to their pharmaceutical sectors.
- Italy and the United Kingdom spend about 2.40% and 2.30% of their healthcare budgets on pharmaceuticals.
- Canada and Spain each designate around 2% and nearly 1.90% to this sector.
- Brazil also commits close to 1.90% of its healthcare spending to pharmaceuticals, matching Spain’s investment.
Statistics By Company
- In 2022, 37 new molecular entities were approved.
- Top pharma companies had $1.7 trillion of deals in the pipeline in 2022.
- GSK’s pharmaceutical and vaccines sales totaled US$36.15 billion, up 11% in 2022.
- AstraZeneca’s full-year revenue surpassed US$44.35 billion in 2022.
- Sanofi’s global sales were just under €43 billion (US$45.22 billion), up 7% in 2022.
- Bristol-Myers Squibb’s sales totaled US$46.16 billion in 2022.
- Roche’s pharmaceutical segment sales were CHF45.6 billion (US$50.38 billion) in 2022.
- Novartis’ full-year revenues fell by 2%, to US$50.54 billion in 2022.
- Merck & Co.’s pharmaceutical sales were US$52.01 billion in 2022.
- Johnson & Johnson’s pharmaceutical sales rose by 2% to US$52.6 billion in 2022.
- AbbVie’s 2022 sales totaled US$58.05 billion, up 3%.
- Pfizer’s sales in 2022 totaled US$100.33 billion, up 19%.
Statistics BY Sector
- Specialty Drugs Market: Specialty drugs represent more than half of the total market, growing at 11.7% in 2023, while traditional drugs grew 7.3%.
- Top U.S. Pharmacies: CVS Health Corporation held the largest market share in 2023, followed by Walgreens Boots Alliance. CVS Health captured over 25% of the market.
- Retail Pharmacy Closures: Nearly 700 retail pharmacies in the U.S. have closed in the past two years due to staffing issues and changing market dynamics.
- Medicare Part D Growth: Medicare Part D’s market share grew from 33.7% in 2019 to 34.9% in 2022, marking the highest volume growth among payment methods.
- Revenue from Generics: Unbranded generics accounted for 87.2% of small molecule prescriptions but only 8.5% of revenue in 2022.
- Biologics Market Share: Biologics constituted 46% of pharmaceutical spending in 2022, amounting to $260 billion. 14% of this was from biosimilars.
- Pharmacy Benefit Managers: The market share and revenues of the top pharmacy benefit managers reached $334 billion in 2023.
- Specialty Drugs Spending: Specialty medicines accounted for 55% of net spending in 2022, driven by autoimmune and oncology sectors.
- Flu Season Dynamics: The U.S. saw an early peak in the 2022-23 flu season, with high incidence among pediatric patients due to reduced immunity post-pandemic.
- Food Store Pharmacies: Pharmacies in grocery stores like Kroger and Albertsons had a compound annual growth rate of 5.9% in 2022.
Statistics By Technology And Services
- Immunization Need Increase: Hospitalizations increased by 200% for influenza, 60% for RSV, and 51% for COVID-19 since mid-November.
- Survey Results: A 2023 survey shows 90% of prescribers and virtually all pharmacists prioritize team-based care.
- Pharmacist Burnout: A 2022 systematic review found that 51% of pharmacists experienced burnout.
- Pharmacy Staffing Challenges: Three-quarters of community pharmacies had difficulty filling pharmacy technician positions in 2022.
- Physician Shortage Forecast: By 2034, the U.S. could face a shortage of up to 124,000 physicians.
- Collaborative Practice Agreements: These agreements are available in all 50 states and Washington, D.C., enhancing pharmacists’ ability to manage chronic diseases.
Pharmaceutical Industry In Vietnam
- Pharmaceutical Profit Growth (2024): SSI Securities Corporation forecasts a profit growth of 8.4% for the pharmaceutical sector.
- Revenue Increase Forecast (2024): An estimated 8% increase in revenue for pharmaceutical companies is expected.
- Net Profit Growth Forecast (2024): Projected net profit growth for pharmaceutical firms is around 6%.
- DHG Pharmaceutical’s Profit Decline: In the first quarter of 2024, DHG’s profit after tax fell by 38.4% year-on-year to approximately $8.7 million.
- Imexpharm’s Financial Performance: Imexpharm reported a 20.5% decrease in profit after tax, totaling over VNĐ61.9 billion, despite a revenue growth of nearly 2.5%.
- Bidiphar’s Revenue and Profit: Bidiphar saw a minor revenue gain, but gross profits fell by more than VNĐ2 billion in the first quarter of 2024.
- Vinapharm’s Financial Decline: Vinapharm’s consolidated net revenues fell by 3% and profit after tax decreased by 15%.
- Traphaco’s Revenue and Profit Drop: Traphaco experienced an 11.6% drop in net revenue and a 32% loss in profit after tax to VNĐ54 billion.
- Vietnam Pharmaceutical Market Value (2024): Expected to reach $7.89 billion, marking a 9.1% increase from the previous year.
Emerging Trends
- Increased Use of Artificial Intelligence (AI) and Machine Learning (ML): The pharmaceutical industry is experiencing significant advancements with the integration of Artificial Intelligence (AI) and Machine Learning (ML). These technologies are transforming key operations, including drug discovery and clinical trials, enhancing both efficiency and precision. AI applications are not only accelerating the development of personalized medicine but are also expected to reduce operational costs significantly. This integration facilitates a more streamlined approach to healthcare delivery, promising enhanced patient outcomes through improved drug formulations and therapeutic strategies.
- Gene Editing Advancements: Recent developments in gene editing, particularly through technologies like CRISPR, are revolutionizing the treatment of genetic disorders. These advancements have facilitated the development of targeted therapies, marking substantial progress in the field. One notable example is the approval of therapies such as Casgevy, which are making strides in treating conditions like sickle-cell anemia and β-thalassemia. This shift not only highlights the potential of gene editing in addressing complex diseases but also underscores a significant move toward more precise and effective healthcare solutions.
- 3D Printing in Drug Manufacturing: The adoption of 3D printing technology in drug manufacturing is paving the way for revolutionary changes in the production of medications. This technology allows for the customization of dosages tailored to individual patient needs, thereby enhancing compliance and the effectiveness of treatments. Beyond its immediate applications, 3D printing holds promise in the area of bioprinting where it could potentially contribute to regenerative medicine by creating tissues and cells that aid in medical recovery and treatment.
- Focus on Curative Therapies: There is a growing emphasis within the pharmaceutical industry on developing curative therapies rather than merely managing symptoms of chronic diseases. Significant advancements in immunotherapies and cell-based treatments, such as CAR-T cell therapies, are demonstrating remarkable success in curing certain types of cancers. This trend towards curative solutions represents a transformative shift in healthcare, aiming to provide permanent solutions to previously intractable conditions.
- Extended Reality (XR) Tools: Extended Reality (XR) tools are increasingly being utilized in pharmaceutical research and manufacturing, offering enhanced ways to conduct operations. XR technologies facilitate real-time, collaborative, and data-rich interactions among research teams and production staff. This application of XR is not just modernizing existing methodologies but is also driving forward more innovative and efficient drug development processes. Through immersive and interactive experiences, XR tools help streamline workflows and improve outcomes in drug discovery and patient care.
Use Cases
- Expansion of Clinical Services in Pharmacies: Pharmacies are broadening their horizons by incorporating an extensive range of clinical services. This includes managing chronic diseases and providing specialized care tailored to specific patient needs. By offering these expanded services, pharmacies not only enhance the overall care provided to patients but also attract a larger customer base. This strategy is instrumental in driving business growth within the pharmacy sector, as it meets the increasing demands for comprehensive healthcare solutions.
- Integration of Wearable Technology in Pharmacy Services: The integration of wearable technology into pharmacy services is transforming patient care. Wearables, which monitor vital signs and track medication adherence, enable pharmacies to offer more personalized and timely interventions. This technology is pivotal in supporting continuous patient care outside of traditional clinical settings. As wearables become more prevalent, they facilitate a closer connection between pharmacists and patients, ensuring that treatment plans are followed accurately and health outcomes are improved.
- Incorporation of Digital and Automation Technologies in Pharmacies: Automation and robotics are set to revolutionize the pharmacy industry. These technologies are being integrated to handle routine tasks such as medication sorting and inventory management, freeing pharmacists to concentrate on critical patient care aspects. The adoption of digital tools and automated systems is expected to significantly boost operational efficiency and enhance the quality of services provided to patients, leading to better health management and customer satisfaction.
- Optimization of Supply Chain Management in Pharmacies: Pharmacies are now utilizing cutting-edge technologies such as blockchain to optimize their supply chains. This advancement is crucial in ensuring the authenticity and quality of pharmaceutical products. By improving traceability and transparency, blockchain technology addresses significant challenges such as the distribution of counterfeit medications. Enhancing supply chain mechanisms not only bolsters patient safety but also reinforces the reliability and integrity of pharmacy operations.
Conclusion
The pharmacy market is on a robust growth trajectory, driven by advancements in digital health technologies and a growing demand for medications, particularly in response to chronic diseases and an aging population. Significant strides in e-pharmacy and digital health platforms have enhanced accessibility and patient management, reflecting a transformative shift towards more efficient healthcare delivery. However, challenges such as regulatory complexities and the high costs of new drug development remain. Strategic investments in AI, personalized medicine, and collaborative ecosystems are critical for sustaining growth and addressing emerging healthcare needs. With continued innovation and adaptation, the pharmacy market is well-positioned for a promising future.
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