Prescription delivery services are an integral part of healthcare. With the global population’s life expectancy increasing, incidence of chronic and infectious ailments is also rising. As a consequence, expenditure on medicines and treatment is surging across all countries. While traditional retailing has prevailed, recent innovations have paved the way for several novel approaches.
Recent innovation trends in disease areas, business models and delivery technology such as drones, in-mail and computer vision based authentications and tracker-based prescription delivery are disrupting the market. Online to Offline (O2O) business models from leading players have generated new avenues for growth.
Future Market Insights’ recent study projects the prescription delivery services market to expand staggeringly at a CAGR of 18.4% throughout the 2020-2030 forecast period, reaching a valuation of US$ 434.3 Mn.
Rising Prevalence of Chronic Conditions
As the global population expands, so do associated chronic conditions and co-morbidities. It is estimated that by 2020-end, chronic diseases are expected to rise to 57%, with 60% of this burden being borne by emerging economies. This has heightened demand for effective healthcare delivery systems.
A major part of effective treatment for such conditions is timely intake of drugs. Therefore, access to the nearest retail pharmacy or doorstep delivery is essential. Some delivery systems also offer 24/7 customer service and facilitate therapy adherence.
Development of systems such as PharmacyOS have proven to be highly effective in managing multiple daily medications. The platform proactively identifies, understand and solve any problems that might stand between a customer and their medication.
Foundational Developmental Stages
Presently, modern prescription delivery services market is in its nascent stages. Therefore, pharmacies and healthcare providers are anticipated to find lucrative expansion opportunities throughout the forecast period. Currently, conventional physical delivery accounts for over 60% of all home-based medicine availability.
Over the years, service providers are exploring alternative options such as single-store, hyperlocal or direct manufacturer-to-customer delivery, particularly for Schedule H drugs. This would greatly help incur cost savings by reducing the burden of middlemen, particularly for patients who are unable to afford expensive lifesaving drugs.
Healthcare providers are looking to leverage electronic pharmacies in the wake of rising internet and smart device penetration across potential markets. For instance, CVS Health has launched the CVS Pharmacy Mobile App which helps consumers save time and money through an integrated platform which included online payment and refill/pickup options.
Similarly, Walgreens online refilling, new drug order placements and order tracking facilities through its online pharmacy portal. Users must possess a user ID in order to avail these services. Such developments are proving beneficial to the prescription delivery services market expansion.
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Pharmacy Logistics Challenges Restraints Growth
While the scope of pharmaceutical drug delivery has increased in the wake of a flourishing healthcare industry, diffusion of distribution networks may lead to difficulties in timely delivery.
Due to the highly scattered nature of the pharmaceutical supply chain, it becomes difficult to co-ordinate the delivery status of critical drugs to end-users. As people constantly require drugs for multiple ailments, customers may opt for cheaper alternatives due to inefficient delivery mechanisms.
The global pharmaceutical market has nearly doubled over the last 10 years, leading to an increase in sales volume and penetration in developing nations throughout the world. This means that the need for warehouse management cannot be overemphasized.
The pharmaceutical industry must rely heavily on logistics services for this task. The increasingly attractive markets, increased visibility in the chain of supply, and reduction of costs have made this need even more of a reality.
North America Prescription Delivery Services Market
The North American prescription delivery services landscape is scheduled to reach US$ 174.2 Mn, capturing more than 40% of the global market share. Growth is being fueled by surging healthcare awareness, access to high value drugs and high per capita healthcare expenditure.
OTC drugs for various ailments are gaining immense popularity, attributed to ease of access to retail pharmacies by customers. These brick and mortar pharmaceutical stores have an ample stock of several hypertension, diabetes and other chronic or infectious diseases alleviating drugs.
According to the Consumer Healthcare Products Association in 2019, over 9 out of 10 Americans preferred to treat minor ailments with OTC medicines before seeking professional care. Many patients in the U.S use nonprescription topical analgesics for musculoskeletal disorders, which are easily available at OTC stores.
However, in recent years, a shift has been witnessed towards online pharmacies. Vendors such as Walgreens, CVS Health, NetMeds and Giant Eagle Inc. have emerged as potential game changers, introducing mobile applications and internet portals in the wake of deepening internet and smart devices penetration.
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Europe Prescription Delivery Services Market
Europe is the 2nd largest market by value, with U.K., Germany and France spearheading growth. Willingness to switch to home delivery for OTC, self -diagnostics kits and schedule ‘H’ drugs prescribed over telemedicine consultations are leapfrogging prospects for advanced prescription delivery services.
Presence of strong governmental regulations are instrumental in determining availability of various classes of drugs in different countries. For instance, U.K’s National Health Service (NHS) establishes that online pharmacies can only dispense medicines with a valid doctor’s prescriptions to prevent abuse.
Vendors, therefore, need to acquire a legal license to operate in the European landscape. Throughout the European Union, manufacturers, importers and distributors of medicines must be licensed to distribute prescribed drugs. A competent authority verifies the authenticity of the vendor after which they are permitted to operate.
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East Asia Prescription Delivery Services Market
The East Asian prescription delivery services are expected to capture an impressive market share to the tune of 11.5% by 2030-end. Rapid advancements in the Chinese pharmaceutical industry is attributed as the chief growth driver. Intensive research in developing robust healthcare solutions is driving the Chinese market.
This huge potential of China’s healthcare industry has attracted massive investments by global players, leading to the proliferation of a robust infrastructure. This inflow of capital has prompted accelerated research in drug development and availability, opening up avenues for pharmacies to increase their presence.
In recent months, OTC medicines have acquired massive popularity due to the COVID-19 pandemic. Being the epicenter of the disease, residents have resorted to panic buying and hoarding of several antibiotics and retroviral drugs from retail pharmacies. This has heightened revenue prospects across the region.
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Disease Indication Insights
Prescription drugs are slated to achieve the maximum share by 2030, reaching nearly 50% of the global market. Rising prevalence of chronic ailments has spurred patients to opt for home-based treatment, thus heightening growth prospects.
Within this segment, drugs to control diabetes are acquiring major traction, capturing over a third of the market share and reaching a value of US$ 77.1 Mn by 2030. According to W.H.O, diabetes is a leading cause of other co-morbidities such as kidney failure and heart attacks.
In order to prevent the onset of such problems, patients are increasing their consumption of diabetic drugs, which are now available at much more affordable rates.
Distribution Channel Insights
Retail pharmacy stores are poised to account for the bulk of all prescription drugs sales around the world, registering an incremental $ opportunity worth US$ 151.7 over the 2020-2030 forecast period, capturing a market share exceeding 3/5th.
Prominent vendors are concentrating on providing streamlined services to customers through the incorporation of smart billing services post-purchase. Devices such as self-checkout kiosks and automatic cash dispensing machines have helped vendors retain customer loyalty, thus heightening growth prospects.
COVID-19 Impact Insights
The COVID-19 pandemic has generated fertile ground for the prescription delivery services market. The imposition of nationwide lockdowns to enforce social distancing have reduced footfalls across conventional pharmacies. This has compelled patients to rely on online retail platforms to avail their medicines.
Furthermore, heightened vulnerability of geriatrics suffering from co-morbidities to the coronavirus has necessitated stockpiling of essential medicines, thus keeping the need for prescription delivery services afloat throughout the pandemic’s duration. This panic buying behavior shall usher in an 80% y-o-y growth.
Growth is especially anticipated to be robust across the U.S, China and India, countries with the highest rates of infections. Collectively accounting for 40% of the global infection rate, these countries have witnessed an unprecedented increase in hoarding prescription medicines by individual households. This shall continue until the latter-half of 2021.
The Prescription Delivery Service Market is witnessing entry of e-Commerce, pharmacy and retail chains, albeit at a local or regional level. Technological developments, new product launches and collaborations characterize some critical expansion strategies of market players.
Some of the key players in the Prescription Delivery Service Market are: Walgreens Co., Walmart Stores Inc., CVS Health, Giant Eagle Inc., Express Scripts Holding Company, Ali Health and Kroger Co. to name a few.
Besides these established players, several startup companies are also emerging as potential game changers in the industry. These include NetMeds, Kfyao, Capsule, Myra Medicines, NURX, MedAvail, Zipdrug, Insightfil and ScriptDrop to name a few.
Walgreens, a prominent retail pharmaceutical distributor, has a robust presence in the global prescription delivery services market. The company offers refills, auto refills, drug information and home delivery services.
In 2017, the company acquired Rite Aid for a sum of US$ 5.2 billion, resulting in the merger of two of the United States’ three largest pharmacy chains.
In 2020, Ali Health, a division of the e-commerce giant Alibaba, announced that it is injecting more assets into its portfolio, keeping in mind the current pandemic scenario. It has raised a capital worth US$ 1.3 billion for this purpose.
Prescription Delivery Services Market- Report Scope
Historical Data Available for
US$ Mn for Value and Units for Volume
Key Regions Covered
North America, Latin America, Europe, South Asia, East Asia, Oceania and Middle East & Africa (MEA)
Key Countries Covered
U.S., Canada, Brazil, Mexico, Germany, France, Italy, Denmark, U.K, Russia, Spain, BENELUX, Thailand, India, Indonesia, Malaysia, China, Japan, South Korea, Australia, New Zealand, GCC, Turkey, Northern Africa and South Africa.
Key Segments Covered
Disease Indication and Distribution Channel
Key Companies Profiled
Market Overview, Key Market Trends, Market Background, Key Success Factors, COVID-19 Impact Analysis, Value Analysis, Volume Projections, Segmental Overview, Regional Outlook and Competitive Landscape.
Customization & Pricing
Key Questions Answered in the Report
- How has the Prescription Delivery Services Market fared in the past five years?
The global prescription delivery services market was valued at US$ 29.2 Mn in 2015 and acquired a value of US$ 50 Bn in 2019. This upsurge was largely a product of deepening penetration of e-commerce platforms and smart devices in retail stores to cater to the rapidly increasing demand for prescription medicines for various ailments.
- What will be the likely growth scenario for the prescription delivery services market in the forthcoming forecast period.
According to FMI, the prescription delivery services market represents an incremental $ opportunity worth US$ 354 Mn between 2020 and 2030, and an absolute opportunity of US$ 18.4 Mn. A prolific 18.4% CAGR is predicted for the 2020-2030 forecast decade.
- What drivers underpin market expansion for the upcoming decade?
Rising incidence of chronic and infectious diseases in the wake of rising life expectancies is pushing consumers to stockpile on essential drugs as they are inexpensive.
Moreover, the market is still in the growth stage, allowing the entry of startups and new entrants who are looking to flood the landscape with technologically advanced delivery mechanisms.
- Identify possible impediments or hindrances to the predicted trajectory.
Logistical challenges in terms of distribution of the final drug to appropriate end-users due to the highly diffused nature of distribution networks is proving a major deterrent to growth. This is primarily due to difficulties in co-ordination of transportation and delivery.
- Will the COVID-19 pandemic alter the said predictions?
Yes. The COVID-19 pandemic is expected to have an impact on the prescription delivery services market. As lockdown restrictions tighten, patients are opting to make their purchases via e-commerce portals to avail their supply of drugs, helping sustain market demand.
- Outline the degree of competition and identify the prominent players.
The global prescription delivery services market is highly fragmented, characterized by the presence of multiple established vendors and startup companies. Technological developments, new product launches and collaborations characterize some critical expansion strategies of market players.
Prominent players in the landscape are as follows: Walgreens Co., Walmart Stores Inc., CVS Health, Giant Eagle Inc., Express Scripts Holding Company, Ali Health and Kroger Co. Some startup companies include: NetMeds, Kfyao, Capsule, Myra Medicines, NURX, MedAvail, Zipdrug, Insightfil and ScriptDrop.
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- Is this research conducted by Future Market Insights?
Yes, the prescription delivery services market research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to the research analyst
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Prescription Delivery Services Market Segmentation
- Therapeutic Drugs
- Cholesterol Disorders
- Wellness Supplements
- OTC Drugs
- Diagnostic Kits
- Pharmacy Stores
- Retail Pharmacy
- Drug Stores
- Healthcare Institutions
- Research Institutes
- North America (U.S & Canada)
- Latin America (Brazil, Mexico & Rest of Latin America)
- Europe (Germany, France, Italy, U.K, Spain, BENELUX, Russia & Rest of Europe)
- South Asia (India, Malaysia, Thailand, Indonesia & Rest of South Asia)
- East Asia (China, Japan & South Korea)
- Oceania (Australia & New Zealand)
- Middle East & Africa (GCC, Northern Africa, South Africa & Rest of MEA)