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e-Pharmacy, Hospital Pharmacy and Brick-and-Mortar Pharmacy Market in India

e-Pharmacy, Hospital Pharmacy and Brick-and-Mortar Pharmacy Market in India

Indian pharmacy market is expected to grow in near future as aging and growing population, rising income levels, and emerging medical conditions and emergence of new diseases help increase the demand for various medicines.

Indian pharmaceutical market was the 11th largest pharmaceuticals market by value in the world in 2017. It is expected to register second highest CAGR growth among all countries till 2023 and improve it’s raking to reach 9th position in the global pharmaceuticals market.

 
India Pharmaceuticals Industry Analysis and Trends 2023

India pharmaceuticals sales is expected to be worth USD 33.18 billion by 2023.

 

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This growth is fueled by the growing and ageing population in India. More than 6% of Indian population is above 65 years of age and this number is expected to rise by 2023. Apart from ageing and rising population the improvements in purchasing power and access to quality healthcare and pharmaceuticals to poor and middle-class families is also driving the growth of Indian pharma industry. Indian people spend 64.21% of their health expenditure from out-of-pocket of which pharmaceuticals spend accounts for 51.67%.

Indian pharmacy market is divided in 3 segments based on market share from lowest to highest:

  1. Online / e-Pharmacy
  2. Hospital Pharmacy
  3. Brick-and-Mortar Pharmacy
Pharmacy Market in India
 

1. Online / e-Pharmacy Market in India

Online pharmacy market in India currently has the smallest market share in Indian pharmacy market. This is mainly due to the nascent industry and lack of any regulatory framework for the industry. In August 2018, the Union Health Ministry come out with draft rules amendments to the Drugs and Cosmetics Act on sale of drugs by e-pharmacies in India with an aim to regulate online sale of medicines and provide patients accessibility to genuine drugs from authentic online portals. The newly re-elected Mr. Narendra Modi government has planned to finalize online pharmacy rules it it’s 100-day agenda.

Increased access to high speed internet and rising smartphone usage had made it possible to access e-commerce websites even in rural and remote areas of India. This along with ease of use, home-delivery of medicines, no fear of counterfeit medicines and around 15-20% discount on MRP of medicines offered by online pharmacies are bigger draw for consumers.

Due to these factors online pharmacy market in India is expected to see the fastest CAGR growth among all 3 pharmacy segments.

 
Online Pharmacy Market in India 2023

Indian online pharmacy market is expected to be worth USD 2.35 billion by 2023.

 

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Major players operating in e-pharmacy market in India are PharmEasy, 1mg, NetMeds Marketplace Limited, Myra and LifCare. These companies have attracted private / venture investment to grow their business. As per a news report, PharmEasy had raised more than USD 50 million in two tranches, while 1mg is in advanced talks to close a USD 60-80 million round. Netmeds which has secured USD 35 million, is in talks with investors to raise more money. LifCare had raised around USD 11 million in July 2018 from the likes of Saif Partners and Nexus Venture Partners.

2. Hospital Pharmacy Market in India

Hospital pharmacy market in India currently has the second largest market share in Indian pharmacy market. India is expected to witness a remarkable rise in healthcare infrastructure in upcoming years. There will there be a dramatic rise in the type and size of hospitals both Government operated and privately operated.

As a result, Indian hospital pharmacy market is expected to witness second highest CAGR growth rates till 2023 in Indian pharmacy market and retain it's market position.

 
Hospital Pharmacy Market in India 2023

Indian hospital pharmacy market is expected to be worth USD 9.48 billion by 2023.

 

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Hospital pharmacy stores are located within hospitals which enables easy accessibility to patients as they supply time-sensitive medicines for critical care. Hospital pharmacies also allow hospitals to provide quality medicines to patient by purchasing directly from drug manufacturers thus avoiding the problem of counterfeit medicines.

3. Brick-and-Mortar Pharmacy Market in India

Brick-and-Mortar pharmacy market in India currently has the largest market share in Indian pharmacy market.

In 2018, Government of India launched the world’s largest public healthcare scheme Ayushman Bharat Yojana or Pradhan Mantri Jan Arogya Yojana (PMJAY) under National Health Protection Scheme (NHPS) which aims to provide free healthcare coverage of up to INR 0.5 million to around 100 million people. Also, under the aegis of Pradhan Mantri Bhartiya Jan Aushadhi Pariyojana the Government of India as set up Jan Aushadhi Kendra (pharmacy stores) which provide quality medicines at affordable prices. These factors are expected to increase the access of pharmaceuticals to more people in world’s second most populous nation leading to growth of pharma retail market in India. Brick and mortar pharma retail stores are typically located in proximity of hospitals, clinics and residential areas which enables easy accessibility to consumers as often they supply time-sensitive medicines for patients.

 
India Pharma Retail Industry Analysis and Trends 2023

Indian pharma retail market is expected to be worth USD 21.35 billion by 2023.

 

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The Indian Pharma retailing space is largely unorganized in nature with a few players like Apollo, MedPlus, Trust etc. in the organized pharma retailing space. Since the sector sales are driven by sales volumes, achieving economies of scale becomes difficult if only a small percentage of the industry is organized. With major chunk of the industry being unorganized, implementing an efficient distribution system will not be possible which in turn will result in wastage of time and resources. In addition, Pharma retail in rural India has largely remained unaddressed due to which a major chunk of the market remains under-served.

Major organized players operating in brick-and-mortar pharmacy market in India are Apollo Pharmacy, MedPlus Health Services Pvt. Ltd., Zydus Wellness Limited, 98.4 Degree (Global Healthline Pvt. Ltd.), Trust Chemists & Druggists Ltd and Emami Frank Ross Ltd.

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